February 2021
MESSAGE FROM THE PRESIDENT JENNIFER STEWART
FEBRUARY GOVERNMENT POLICY UPDATES NEWS UPDATES
FULL MEMBERS
ASSOCIATE MEMBERS
CONNECTION CONTENTS
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| PRESIDENT'S CORNER
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| STAYING CONNECTED
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| CANADIAN TRANSPORTATION ALLIANCE
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| GOVERNMENT POLICY UPDATE
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| NEWS UPDATES
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THANKS TO OUR FRONTLINE WORKERS
MISSION CIPMA’s mission is to ensure the sustainability and growth of a healthy and viable independent fuel marketing and distribution sector at both the wholesale and retail levels in Canada. Our specific goals include: Ensuring that independent fuel marketers thrive and have the opportunity to earn a fair and reasonable return that is proportionate to their business risk and capital investment, and ensuring that Canadian consumers and independent fuel marketers have access to a competitively priced and readily available supply of fuel products in all regions of the country.
MESSAGE FROM THE PRESIDENT JENNIFER STEWART | PRESIDENT & CEO Dear CIPMA Members, This week Canada is set to receive its largest delivery of vaccines which has offered a much-needed glimmer of hope after a very trying year. With the ever-evolving regional restrictions and associated regulations, CIPMA will continue to advocate on behalf of our members to advance the policy issues that matter most to you. Against the pandemic background, all levels of government have had to adjust to the new administration in the United States, and its renewed environmental focus. With President Bidens' cancellation of the Keystone XL pipeline and government investments in electric vehicle infrastructure, we are working to find opportunities in this new policy climate to ensure our industry is represented and has a voice at the decision-making table. To ensure you are properly supported in this evolution we will continue to provide you with relevant information through our weekly Policy Round-Up and our near-daily rapid information updates on priority policy developments on matters of fuel supply, carbon pricing, and the future of the sector. Also, we are pleased to continue to offer our new monthly webinar series CIPMA Presents: Industry Insights to provide our members with research-based analysis from experts across our sector on the key issues impacting the downstream sector to support retail business decisions. To ensure the petroleum sector plays an active role in discussions around the future of the transportation energy sector, CIPMA is also pleased to be a founding member of the Canadian Transportation Alliance (CTA), spearheaded in partnership with the Fuels Institute and close collaboration with the Canadian Fuels Association. The CTA is an independent and impartial alliance of players across a diverse cross-section of the transportation market working together to inform stakeholders and government through the commission of third-party research on issues impacting transportation sectors. We invite our members to visit the ctalliance.ca for more information. As restrictions loosen throughout the country in the coming months, we understand that our top priority must remain the safety of your retail site employees, to ensure they are protected and are able to provide an essential service for Canadians safely. This plus the opportunities that an enviro-economic driven future present, make us optimistic for the rest of what 2021 can offer our members. As always, we are here to support you. Don’t hesitate to reach out to us should you have any questions or concerns. All the best,
Jennifer Stewart President and CEO Canadian Independent Petroleum Marketers Association
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STAYING CONNECTED CIPMA CONNECTION 2021 EVENTS, PODCASTS, WEBINARS PUMP CHATS Latest episodes now available: Episode 7, Ryan Dermody President, Norcan Petroleum Group Inc. Episode 8, Don Smith VP Petroleum & Innovation UFA Co-operative Limited
CIPMA PRESENTS: INDUSTRY INSIGHTS WEBINAR SERIES Dennis DesRosier - EV trends and policy impacts Thanks to Dennis Desrosiers for joining us during this month’s webinar series to offer insights on the trajectory of EVs and their impacts on climate change policy. We welcome you to watch the recording here. Fuels Institute - Big picture policy and regulatory trends Join CIPMA and the leading experts with the Fuels Institute on March 10th at 2 pm for a big picture look at the policy and regulatory trends impacting our sector. Register here!
CANADIAN FUEL MARKETING CONFERENCE Virtual event to be held in fall 2021. Details to come!
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Canadian Independent Petroleum Marketers Association | Connection 2021 |
Presented by:
Get to know companies and leaders from Canada’s gasoline and convenience sector in the new monthly podcast Pump Chats. Hear from industry analysts on what’s next for the industry, how it's weathering COVID-19, and its evolution to a cleaner, more sustainable tomorrow.
NOW AVAILABLE EPISODE 8 Don Smith VP Petroleum & Innovation UFA Co-operative Limited
Canadian Independent Petroleum Marketers Association | Connection 2021 |
GOVERNMENT POLICY UPDATE This latest feature of the newsletter will be published monthly. The update serves as a recap and reference point for our members on the latest policy impacts on the energy market. We will continue to monitor and communicate any policy changes directly to members as it happens. The updates below are for the period beginning February 1st ending February 26, 2021.
WHAT'S NEW?
FEDERALLY Government of Canada review of fuel efficiency standard • Environment and Climate Change Canada published the outcome of their review: Mid-Term
Evaluation of the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulation. • The review determined that the current fuel efficiency standards are achievable, but not rigorous enough to allow Canada to meet its emissions reduction objectives. • The analysis included a high-level cost-benefit analysis, which compared the new less stringent U.S. standards (1.5% per year for 2021 through 2025 model years) to an alternative where Canada's regulations would be amended to restore the original increases in stringency (about 5%) beginning with the 2023 model year. • The analysis indicates that adopting more stringent standards for the 2023 to 2025 model years could result in net benefits of approximately $2.5 billion (2018 Canadian dollars), and would support the attainment of Canada’s zero-emission vehicle (ZEV) sales targets. Government of Canada rolls-out EV charging infrastructure funds for municipalities • The Minister of Natural Resources announced funding to encourage the adoption of zero-emission vehicles (ZEV), by providing more charging outlets to charge electric vehicles (EV). • In Manitoba, $50,000 in funding has been
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announced to install one of the first EV fast chargers in the City of Dauphin. • In British Columbia, a $200,000 investment has been announced to install four EV fast chargers at the Nanaimo Airport. • In Ontario Chris Bittle, Member of Parliament for St. Catharines, on behalf of the Honourable Seamus O’Regan Jr., Canada's Minister of Natural Resources, announced a $235,000 investment to install 20 electric vehicles (EV) chargers at Brock University in the Niagara region. Federal Government announced a plan to permanently fund public transit • $14.9 billion for public transit projects over the next eight years was announced this week by the Federal Government, which includes permanent funding of $3 billion per year for Canadian communities beginning in 2026-27. • The investment is to support the use of zero-emission vehicles and to build major transportation projects such as the expansion of large urban transit systems • The fund is noted as being part of the government’s plan to create one million jobs, fight climate change, and rebuild a more sustainable and resilient economy.
WHAT'S NEW?
PROVINCIALLY BRITISH COLUMBIA BCUC - Request for Advance Ruling on Confidentiality for FPT Act - Framework Draft No. 1
• The British Columbia Utilities Commission (BCUC) issued Framework Draft No. 1 which describes the process the BCUC proposes to use to determine what fuel data, submitted by those in the wholesale and retail fuel industry under the Fuel Price Transparency Act (FPT Act), should be considered “protected information and confidential”, and what could be published.
NOVA SCOTIA
ZEV key among new priorities for the Canada Infrastructure Bank • The Honourable Catherine McKenna, Minister of Infrastructure and Communities, wrote the newly appointed Chairperson of the Canada Infrastructure Bank with an updated Statement of Priorities and Accountabilities. This Statement sets out the Government’s expectations for the Bank’s activities across five priority areas: public transit, green infrastructure, trade and transport, broadband, and clean power. • Aiming to invest $10 billion over the next three years in strategic initiatives such as zero-emission buses, energy-efficient building retrofits, agricultural irrigation, broadband, renewables, and energy storage.
Nova Scotia Utility and Review Board (NSUARB): Retail margin update
• The NSUARB has ordered a 0.3 Cpl minimum and a 0.4 Cpl maximum increase in the retail margin effective Friday, February 5, 2021. The board’s rationale for the increase will be addressed in its forthcoming decision paper.
QUÉBEC FUEL MARGIN REVIEW
Bill C-206 An Act to amend the Greenhouse Gas Pollution Pricing Act adopted at 2nd reading
Québec has launched a public hearing regarding the determination of the operating cost of gas stations in Quebec.
• On February 24, 2021, Bill C-206 An Act to amend the Greenhouse Gas Pollution Pricing Act (qualifying farming fuel), was adopted at 2nd reading and referred to the AGRI (Agriculture and Agri-Food) committee. • The Private Members Bill sponsored by Conservative Member of Parliament, Philip Lawrence, looks to exempt farmers from paying the carbon tax on gasoline, propane, and natural gas.
• The province holds these reviews every three years. At the end of the last two hearings, the cost determined by the “Régie de l’énergie” didn’t change. • This time, industry representatives are requesting a review of costs to reflect current market conditions. CIPMA remains in close contact with L'association des distributeurs d'énergie du Québec for updates on the matter as it progresses.
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NEWS UPDATES Please note that all orange text in the following section is hyperlinked. If viewing electronically, you can click to read full articles.
GLOBAL GERMANY TO MANDATE EV CHARGERS AT ALL GAS STATIONS Germany will require every gas station in the country to install electric car charging stations. Reuters reported that the requirement is included in a $146 billion economic recovery plan that's come about in the wake of the coronavirus pandemic. BRITISH ENERGY COMPANY TO ACQUIRE PINNACLE RENEWABLE ENERGY British energy company Drax has agreed to acquire Pinnacle at a price of C$11.30 per share, valuing Pinnacle at C$385 million. The acquisition brings together Drax, which owns the world’s largest sustainable biomass power station in the UK, with Pinnacle, one of the leading global producers of high-quality compressed wood pellets. This Canadian-UK combination will be positioned as the world’s leading sustainable biomass supply and power generation business. FORD WILL BE ALL-ELECTRIC IN EUROPE BY 2030 Ford is vowing to convert its entire passenger vehicle lineup in Europe to electric power by 2030 in just the latest sign of the seismic technological changes sweeping the auto industry. Ford will spend $1 billion to revamp its factory in Cologne, Germany and make it a base for production of battery powered cars using Volkswagen's mechanical framework, said Stuart Rowley, president of Ford of Europe. Canadian Independent Petroleum Marketers Association | Connection 2021 |
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UNITED STATES PERMITS APPROVED FOR ENBRIDGE TUNNEL UNDER GREAT LAKES Michigan’s environmental agency is approving the construction of an underground tunnel to house a replacement for the oil pipeline in the Great Lakes. State officials say the tunnel is a separate issue from the fight over the existing line. State officials have awarded permits to Enbridge for the $500-million tunnel project. The company is resisting Democratic Gov. Gretchen Whitmer's order to shut down Enbridge's Line 5 in the Straits of Mackinac, which connects Lake Huron and Lake Michigan. DAKOTA ACCESS PIPELINE DECISION DELAYED The Biden administration will get more time to decide the fate of the Dakota Access Pipeline. In a filing this month, the government asked a court to postpone a conference on the status of the pipeline for 58 days while it gets new officials up to speed on the case.
NATIONAL EV BATTERY TECH ANNOUNCES PARTNERSHIP WITH DAYMAK Extreme Vehicle Battery Technologies Corp. announced that on February 5, 2021, the Company entered into a partnership agreement with Daymak International Inc., Canadas #1 distributor of light electric vehicles1 ("LEVs"). Daymak has sold over $100 million of LEVs, of which an estimated 30% of their production cost goes into the battery systems. Pursuant to the Agreement, the Company will become the exclusive provider of batteries and battery packs used in Daymak's products.
SHELL, SELLING ALBERTA SHALE OIL ASSETS Royal Dutch Shell is further reducing its exposure to the Alberta oilpatch with a deal to sell producing light oil shale assets there to Calgary-based Crescent Point Energy Corp. for $900 million. The purchase allows Crescent Point to add a new core area to its main assets in Saskatchewan and will boost its 2021 production estimate to about 134,000 boe/d, mainly highly profitable crude oil and petroleum liquids. CALGARY OIL COMPANY FILES $400-MILLION LAWSUIT AGAINST ALBERTA GOVERNMENT An oil company is suing the Alberta government for $400-million, arguing public officials strung it along as it sought approval for an oil sands project while they worked behind the scenes to thwart the development. It’s the second time Calgary-based Prosper Petroleum Ltd. has taken the government to court over its proposed Rigel project, which would produce around 10,000 barrels of oil a day near the Fort McKay First Nation, about 65 kilometres northwest of Fort McMurray. TOYOTA, LYFT OFFER HYDROGEN-POWERED VEHICLES FOR VANCOUVER Toyota Motors Corp. and Lyft Inc. said on Wednesday they have launched a partnership to provide some ride-hail drivers in Vancouver with access to hydrogen-powered Mirai sedans. Lyft drivers in the city will be able to rent one of 24 Mirais for $198 a week, a price described as extremely competitive by Lyft's general manager for British Columbia, Peter Lukomskyj.
WESTERN REGION FEDERAL GOVERNMENT FUNDING EV CHARGER IN TWO CANADIAN CITIES Minister of Natural Resources announced funding to encourage the adoption of zero-emission vehicles (ZEV), by providing more charging options to charge their vehicles. In Manitoba, $50,000 in funding has been announced to install one of the first electric vehicle (EV) fast chargers in the City of Dauphin. In B.C, a $200,000 investment has been announced to install four electric vehicles (EV) fast chargers at the Nanaimo Airport.
ONTARIO / QUÉBEC REGION FEDERAL EV CHARGING INVESTMENT ANNOUNCED IN ONTARIO Chris Bittle, Member of Parliament for St. Catharines, on behalf of the Honourable Seamus O'Regan Jr., Canada's Minister of Natural Resources, announced a $235,000 investment to install 20 electric vehicles (EV) chargers at Brock University in the Niagara region. Canadian Independent Petroleum Marketers Association | Connection 2021 |
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7-ELEVEN PLANS TO SERVE ALCOHOL IN ONTARIO According to the Alcohol and Gaming Commission of Ontario (AGCO) website, there were 61 applications filed for store locations in various municipalities. In a statement issued on Tuesday, the company shared plans to have a small selection of Ontario-made beer and wine for sale. The applications, according to 7-Eleven, were filed after the Ontario government decided to extend beer and wine retailing to convenience stores.
ATLANTIC REGION IRVING OIL REQUEST FOR PETROLEUM PRICE HIKES DENIED BY THE ENERGY BOARD In a firm rejection of Irving Oil's request for urgent increases in petroleum wholesale margins, New Brunswick's Energy and Utilities Board ruled Wednesday that the company will have to wait for a full hearing in April to argue its case.
March 10th at 2 pm with the
Learn from leading experts from the Fuels Institute on policy and regulatory trends impacting our sector REGISTER HERE
WEBINARSERIES
Canadian Independent Petroleum Marketers Association | Connection 2021 |
Being on the frontlines is not easy. Your work and commitment matters to your community. On behalf of all our members, thank you.
Canadian Independent Petroleum Marketers Association | Connection 2021 |
Wewant wanttotoshare sharethe thesuccesses successesofofour ourmembers. Members. We members. youwant wanttotofeature featureyour yourcompany’s company's IfIfyou company’srecent recent achievements,updates, updates,ororsimply simplywant wanttotobe be achievements, featured,please pleasereach reachout JenniferStewart Stewartatat featured, outtotoJennifer jstewart@cipma.org jstewart@cipma.org
Jennifer Stewart, President and CEO jstewart@cipma.org | Cell: 613.915.5699 MAILING ADDRESS | 411 Donald B. Munro Drive, Ottawa, Ontario, K0A 1L0
Canadian Independent Petroleum Marketers Association | Connection 2021 |