ADVOCACY CORNER

The Advocacy Corner will be featured in the newsletter on a bi-monthly basis. We will continue to monitor and track all policy related issues that matter to you, our Members, in the lead up to and post the federal election.

Our team is working hard to ensure our sector is represented in these difficult times.

As things are moving quickly, we will be sending regular email advocacy updates to Members. Here’s a snapshot of issues we’re working on:

CIPMA sent a letter to the British Columbia Utilities Commission (BCUC) requesting information on the Fuel Price Transparency Act. Jennifer Stewart had a call with Ian Jarvis, COO of the commission earlier this week. The BC government will be doing a consultation with the industry, which is currently on hold. CIPMA will keep Members apprised of all relevant updates and will be participating in the consultation on behalf of our members.

CIPMA has engaged the Alberta Minister of Finance to defer provincial gasoline tax remittances, similar to what has been announced in BC / Ontario to inject some cash liquidity for businesses. CIPMA has several requests into other provincial finance ministers where this relief mechanism has not been announced and we will be actively pursuing this relief measure.

CIPMA has engaged all provinces to confirm that gasoline / convenience stores are deemed an essential service. CIPMA has also engaged Minister Blair’s office to ensure should the Federal Emergencies Act be introduced, that gasoline stores be deemed essential.

CIPMA has engaged Natural Resources Canada / Environment and Climate Change Canada to request that all regulatory measures / initiatives be put on hold for the time being. We have just learned that the government will delay the

publication of the proposed Clean Fuel Standard regulations for the liquids class in Canada Gazette, Part I. They now plan to publish proposed regulations for the liquids class in fall 2020, with final regulations in late 2021 and coming into forced in mid-2022. Regulations for the gaseous and solids classes will follow about one year later.

CIPMA had a meeting with the Quebec Government regarding its proposed renewable fuel regulations. The proposal that the government will be putting forward is below. CIPMA will be engaging Members and creating a response to government. Blending can be done in premium gasoline and CI value will be considered:

1) Gasoline requirements of ethanol content: 10% ethanol in 2021 12% ethanol in 2025 14% ethanol in 2028 15% ethanol in 2030

2) Requirements in diesel fuel 1% renewable fuel in 2021 2% renewable fuel in 2023 3% renewable fuel in 2025 4% renewable fuel in 2027

3) Exclusions Allow a transition period for certain regions that do not have blending installations ready. Exclude remote regions of Quebec as Nord- du-Québec, Côte-Nord, Gaspésie, Îles-de-la Madeleine and Île d'Anticosti.

4) Reduction of greenhouse gases (GHG) associated with renewable fuels (carbon intensity [CI] and life cycle analysis [LCA]) Integrate environmental standards (GHG reductions with IC or/and adding sustainability criteria).

5) Co-treatment of biocrude for the production of renewable fuels Allow biocrude as an input in the refining process. A renewable fuel yield should be associated with biocrude refining.

6) Credit and exchange mechanism Add a way to exchange credits between subject parties and / or products (petrol / diesel fuel) as well as generate credits by integrating renewable fuel into non-subject petroleum products (eg: in heating oil).

7) Compliance period and record keeping Mandatory register of integrated volumes as well as an annual reporting of the average Jennifer Stewart had a meeting with the Federal Government regarding a three-month deferral of the Federal Excise Tax. This was in conjunction with CFA. We continue to engage with government and CRA on this file.

CIPMA has engaged all Provincial Regulators in the Atlantic provinces to request an increase in the margin to provide some temporary financial relief for retailers in regulated markets.

Jennifer Stewart has a meeting with the Minister of Labour next week.

We will continue to create several graphics that can be used on your social media channels thanking frontline workers at retail / convenience outlets.

W W W . CIPM A . O R G

W W W . CIPM A . O R G

Michael Ervin of Kent Group, is putting together an analysis of how much of the retail / downstream sector CIPMA represents. We will be translating this analysis into an infographic and will share it with government during our meetings.