Accessing Crown Timber for Energy Production March 13, 2013 Thank you for inviting us to speak. Don Nixon, Forestry Specialist, Operations Branch, MNR Patrick Gidley, Acting Policy and Planning Support Officer, Far North Branch, MNR Accessing Crown Timber for Energy Production March 13, 2013

Within the Area of the Undertaking Access to forest resources gained via: Business-to-business agreements with holders of existing forest resource licenses (FRLs) (e.g., arrange to purchase fibre from others) FRL issued to facility operator or its harvest entity (e.g., harvest it yourself) Wood supply commitment from the Crown A combination of the above

Within the Area of the Undertaking Available Wood Report provides an indication of volume available for utilization on a management unit basis Harvesting of forest resources carried out in accordance with an approved Forest Management Plan (FMP) and Annual Work Schedule (AWS) Crown charges apply to harvested forest resources ($1.07/m3 FFT charge for bioproduct in March 2013; per m3 FRT charges management unit-dependant)

Far North The legislative foundation for land use planning in the Far North is the Far North Act, 2010, which was proclaimed on January 31, 2011. Community based land use planning is a joint process in which Ontario and First Nations are working together to make decisions on where land use activities may take place in the Far North of Ontario. Through the land use planning process, Ontario and First Nations will determine which areas will be dedicated to protection and which areas are suitable for sustainable economic development. 5

Far North The Far North Act, 2010 requires that a community based land use plan be in place prior to most development, including commercial timber harvest. The Act also permits certain activities to proceed (e.g. mineral staking, environmental clean-up, feasibility studies), and sets out exceptions (e.g. predominantly for community use or to meet community needs) which the Minister may authorize through an order in advance of a community based land use plan. The approach in the Far North reflects ‘orderly development’ to ensure consideration of all aspects of activities (environmental, social, economic). Consideration of activities takes place through: Land use planning EA coverage – processes Permitting requirements Resource management planning may be required (forest management). 6

Progress on Community Based Land Use Planning 7

Far North MNR is working together with First Nations to prepare land use plans that would determine “if” and “where” land use activities can occur in each land use planning area. E.g.: The Whitefeather Forest Community Based Land Use Plan (CBLUP) approved in 2006 identified forest management as a permitted and compatible activity in defined areas (zones). If commercial forest management is determined to be a permitted use and First Nations wish to pursue the economic opportunity, Environmental Assessment Act (EAA) coverage is required and a FMP is prepared. EAA coverage granted for forest management on Crown lands on the Whitefeather Forest in 2009: harvesting of forest resources will be carried out in accordance with an approved FMP and AWS. The approach in the Far North reflects ‘orderly development’ to ensure consideration of all aspects of activities (environmental, social, economic). Consideration of activities takes place through: Land use planning EA coverage – processes Permitting requirements Resource management planning may be required (forest management). 8

Far North Any proposed land use activities or developments may be subject to EAA requirements which would be addressed through existing mechanisms or new EAA coverage, as well as other approvals and requirements (e.g., permitting, resource management planning) from other legislation or policy. The approach in the Far North reflects ‘orderly development’ to ensure consideration of all aspects of activities (environmental, social, economic). Consideration of activities takes place through: Land use planning EA coverage – processes Permitting requirements Resource management planning may be required (forest management). 9

Facility Business Plan Requirements Facility licence required where facility consumes >1,000 m3/year (O.Reg 167/95) Business plan must demonstrate proponent’s ability to finance, manage and operate the facility. As well, an analysis is required to be provided showing the source, species and volume of forest resources that will supply the facility Notice obligations on the Environmental Bill of Rights Environmental Registry where facility consumes >5,000 m3/year

Contact Information Don Nixon Forestry Specialist, Operations Branch Donald.Nixon@ontario.ca (807) 475-1680 Patrick Gidley Acting Policy and Planning Support Officer, Far North Branch Patrick.Gidley@ontario.ca (807) 475-1445