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

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.

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.

Bill C-206 An Act to amend the Greenhouse Gas Pollution Pricing Act adopted at 2nd reading

• 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.

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

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

Québec has launched a public hearing regarding the determination of the operating cost of gas stations in Quebec.

• 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.