Attachment to Commission Letter dated 10 May 2021

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Foothills Pipe Lines (South B.C.) Ltd (Foothills)

Foothills Zone 8 West Path Delivery 2023 (Project) Section 214 of the Canadian Energy Regulator Act

File OF-Fac-Gas-F111-2020-02 02 Filed 4 March 2021

TABLE OF CONTENTS

INFORMATION REQUEST NO. 2 ......................................................................................................... 2

GENERAL MATTERS ................................................................................................................................. 2

2.1 Project Schedule ............................................................................................................. 2

ENGINEERING MATTERS ........................................................................................................................... 2

2.2 Phase II Geohazard Assessment ................................................................................... 2

TRANSPORTATION MATTERS .................................................................................................................... 3

2.3 Volumetric Data ............................................................................................................... 3

ECONOMIC MATTERS ............................................................................................................................... 4

2.4 Need and Alternatives ..................................................................................................... 4

2.5 Greenhouse Gas Emissions (GHG) ............................................................................... 5

MATTERS RELATED TO INDIGENOUS PEOPLES .......................................................................................... 6

2.6 Update Regarding Engagement with Indigenous Peoples ............................................. 6

2.7 Elk Valley Métis Association Letter of Comment ............................................................ 7

2.8 Public Consultation Update ............................................................................................. 8

SOCIO-ECONOMIC MATTERS .................................................................................................................... 8

2.9 Navigation and Navigation Safety ................................................................................... 8

ENVIRONMENT MATTERS ........................................................................................................................ 10

2.10 Species at Risk – Whitebark Pine ............................................................................. 10

2.11 Fish and Fish Habitat ................................................................................................ 11

2.12 Watercourse Assessments ....................................................................................... 11

2.13 Spawning Surveys ..................................................................................................... 12

2.14 Federal Lands ........................................................................................................... 13

2.15 Credible Net-zero Plan for Projects with a Lifetime Beyond 2050 ............................ 13

Attachment to Commission Letter dated 10 May 2021

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Information Request No. 2

General Matters

2.1 Project Schedule

Reference: i) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, PDF page 1 of 12, C11799-1

ii) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, PDF page 5 of 12, C11799-1

iii) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 23, Table 2.4, PDF page 73 of 79, C11799-12

Preamble: In reference i), Foothills identifies the proposed construction date of

1 July 2021.

Reference ii) identifies the major milestones for the Project schedule as follows:

Complete detailed design: August 2021

Canada Energy Regulator (CER) decision requested: October 2021

Start construction: July 2022

Complete construction: October 2023

Planned in-service date: November 2023

Reference iii) identifies anticipated timing for the Project construction as follows:

Access preparation, clearing and grading – July to October 2022

Construction: July – October 2023

Final clean-up: August – October 2024

Kingsgate Border MS: October/November 2023

Project In-service: November 2023

Request: Confirm the proposed Project construction start date (including access

preparation and clearing and grubbing) and the requested Commission decision date.

Engineering Matters

2.2 Phase II Geohazard Assessment

Reference: i) Foothills, Engineering Matters Summary, Section E2-5, PDF page 2 of 3, C11799-5

Preamble: Reference i) states, “On completion of the Phase II Assessment, a

geohazard mitigation and monitoring program for any moderate or high-rated hazard will be developed.”

Reference i) also states, “those potential locations still of concern [moderate or high-rated geohazards] will be included within the TC Energy Pipeline Integrity Program for routine monitoring and inspection.”

The Commission would like to understand more about the timing of the Phase II Assessment and potential geohazard mitigations being considered.

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Request: a) Provide the anticipated completion date of the Phase II Assessment.

b) When does Foothills intend to file the Phase II Assessment with the CER?

c) Will Foothills complete a baseline inline inspection inertial measurement unit survey shortly after operating the Project? If not, explain and justify.

Transportation Matters

2.3 Volumetric Data

Reference: i) Foothills, Response to Commission Information Request (IR) No. 1, PDF pages 3 to 4 of 15, C12314-1

ii) CER, Foothills Pipeline Profile website, accessed 29 April 2021

Preamble: In reference i), Foothills provides the current capacity, historical throughput

and contracted capacity in a figure. Foothills states, “As can be seen in Figure 1, in November 2023 Foothills evergreen contracts increases to 3,270 TJ/d (86.5 106m3/d), which include the existing and incremental 161.4 TJ/d (4.3 106m3/d) contracts. This contract level results in a Design Flow that exceeds the system capability without the Project of 3,109 TJ/d (82.2 106m3/d) by approximately 162 TJ/d (4.3 106m3/d). With the addition of the Project in November 2023, the capability increases to 3,270 TJ/d (86.5 106m3/d), meeting the Design Flow and contractual requirements throughout the gas year.”

Reference ii) is a figure from the CER’s website based on Foothills’ reporting of capacity and throughput information as measured at Kingsgate between 1 April 2019 and 31 December 2020.

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Request: a) Describe why the figures in references i) and ii) appear to show

differences in the amount of available capacity. In the response, include at a minimum:

a.1) the data supporting figure 1 in reference i) in table format;

a.2) a description of where the data supporting figure 1 in reference i) was measured;

a.3) any assumptions made in the scaling of the left and right y axes;

a.4) the average energy content of a cubic metre of gas transported on the Foothills Zone 8 system in the last two years;

a.5) a description of any tariff or contract provisions related to the volume of gas or the energy content of gas delivered to Foothills Zone 8 for transportation; and

a.6) a description of any assumptions for the energy content of gas that Foothills uses for planning purposes.

b) Confirm that Foothills contracts are in TJ.

c) If confirmed, provide the total contracts supporting the Project in TJ.

Economic Matters

2.4 Need and Alternatives

Reference: i) Foothills, Response to Commission IR No. 1, PDF pages 3 to 4 of 15, C12314-1

ii) CER, Filing Manual, 4.2.3 – Justification, PDF page 50 of 286

Preamble: In reference i), Foothills states that it posted a notice of Existing Capacity on

31 July 2019. The capacity open season was held from 31 July 2019 to

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26 August 2019. Twelve bids were received in total, with 4 parties being successful for an awarded volume of 269 TJ/d (108 TJ/d for the Foothills Zone 8 West Path Delivery 2022 Project and 161 TJ/d for the Project).

Reference ii) provides the following guidance to an applicant on providing justification for a proposed project:

“Describe the needs that would be satisfied by the project and demonstrate that, taking into consideration all viable alternatives available, the proposed project is the most appropriate option to meet the needs while serving the public interest.”

Request: a) Provide the total volume of bids received through the open season.

b) Describe whether any further open seasons for Foothills Zone 8 capacity have been held or are planned to be held.

c) Explain whether the capacities for the 2022 and 2023 expansions were determined prior to or following the open season.

d) If applicable, describe any changes to the design of the Project as a result of the open season.

e) Describe why the two projects were not designed to meet the entirety of the demand for additional capacity.

f) Explain whether alternatives to the Project were considered that accommodated more, or all, of the bids for additional capacity. Include an explanation of why any such alternatives were not pursued.

g) Describe any further expansion plans for Foothills Zone 8.

h) Explain whether bids in the open season had different start dates associated with the bids.

h.1) If not, explain why the 2022 and 2023 Westpath expansions were filed as separate projects.

h.2) If not, explain whether alternatives were considered that would have addressed all the awarded capacity in a single project.

2.5 Greenhouse Gas Emissions (GHG)

Reference: i) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 17 – Environmental Assessment Summary, PDF pages 8 to 9 of 10, C11799-9

ii) Foothills, Reply comments, PDF page 2 of 4, C12567-1

iii) CER, Filing Manual, Table A-4 Filing Requirements for Economics and Financing, PDF pages 127 to 128 of 286

Preamble: In reference i), Foothills states that it will leverage its access to TC Energy’s

broad and diverse experience, in determining potential actions to achieve net-zero Project emission by 2050. Foothills further states that it plans to engage with its customers in 2021 to understand their views on the impacts of such potential actions and will balance their effectiveness with long-term impacts to costs and services to its customers, in determining actions to achieve net-zero Project emissions by 2050.

In reference ii), Foothills states that it has considered ongoing law and policy

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development on carbon, climate change laws, regulations, policies, and financial risks as part of the economic analysis for the Project.

Reference iii) requires an explanation of how current climate change law, regulations, and policies, and financial risk or other uncertainties around commitments and future changes have been incorporated in the economic analysis of the project. Reference iii) further states that Applicants should describe how a credible plan to achieve net-zero emissions by 2050 may impact the economic feasibility of the project.

Request: a) Provide a credible plan of potential actions that have been considered to

achieve net-zero emissions by 2050 for the Project. Explain the potential impacts of the plan, and how they have been considered as part of the economic feasibility of the Project.

b) Confirm if a carbon price has been considered as part of the economic analysis of the Project, including the impacts on Foothills’ operations and costs, and to customer costs and services in the long-term.

b.1) If yes, explain how its potential impacts have been incorporated into the economic analysis of the Project.

b.2) If no, identify the potential impacts on the economic feasibility of the project.

Matters Related to Indigenous Peoples

2.6 Update Regarding Engagement with Indigenous Peoples

Reference: i) Foothills, Foothills Zone 8 West Path Delivery 2023 Project, Project Application, Attachment 22 – Indigenous Matters Summary, PDF pages 2 to 3 of 53, C11799-26

ii) Foothills, Foothills Zone 8 West Path Delivery 2023 Project, Project Application, Attachment 22 – Indigenous Matters Summary, PDF page 4 of 53, C11799-26

iii) Foothills, Foothills Zone 8 West Path Delivery 2023 Project, Project Application, Attachment 22 – Indigenous Matters Summary, PDF page 7 of 53, C11799-26

Preamble: In reference i), Foothills states that it initially identified potentially affected

Indigenous communities based on the location of the Project within known or asserted traditional territories, regional boundaries, and/or areas of interest. The reference also provides the list of Indigenous communities that Foothills has been engaging with on the Project, as well as additional Indigenous communities identified by the CER on 21 November 2019.

In reference ii), Foothills provides an overview of engagement activities carried out with each potentially-affected Indigenous community from 6 November 2019 to 15 February 2021 pertaining to the Project.

In reference iii), Foothills confirms that it will continue to engage with Indigenous communities to better understand how Indigenous and Treaty rights are exercised or practiced in the Project area and any potential issues, concerns, or recommendations Indigenous communities may have about the Project, including opportunities to provide Project-specific Traditional Knowledge. Foothills further states that additional information it receives

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following submission of the Application will continue to be considered in Project planning, as appropriate.

Request: Provide:

a) an update on Foothills’ engagement activities with all of the Indigenous communities included in reference i) since 15 February 2021;

b) a summary of any concerns raised; and

c) a description of how Foothills has addressed or will continue to address any concerns raised, or an explanation as to why no further action is required to address the concerns.

2.7 Elk Valley Métis Association Letter of Comment

Reference: i) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 22 – Indigenous Matters Summary, PDF page 3 of 53, C11799-26

ii) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Environmental and Socio-economic Assessment, Rights of Indigenous Peoples Technical Data Report, Appendix C: Métis Nation of British Columbia Literature Review - Foothills Zone 8 West Path Delivery 2023 Project, PDF page 356 of 358, C11799-22

iii) Elk Valley Métis Association, Response to Project Application dated 22 March 2021, C12137-1

Preamble: In reference i), Foothills states that on 10 February 2021, Elk Valley Métis

Association attended Foothills’ virtual open house for the Project and expressed an interest in being engaged. Foothills states in reference i) that it has scheduled a meeting with Elk Valley Métis Association to better understand their interest in the Project.

Reference ii) states that Elk Valley Métis Association and nearby smaller communities exercise their Aboriginal right to harvest in the proposed Project’s footprint, including hunting, fishing, trapping, plant gathering, and use for cultural purposes. The reference further states that Project construction and operation could put local, regional, and provincial Métis Aboriginal rights and traditional land use at risk.

In reference iii), Elk Valley Métis Association outlines preliminary concerns with the Project.

Request: Provide a detailed response to the 10 March 2021 letter from Elk Valley Métis

Association in a concordance table that includes:

a) issues and concerns raised by Elk Valley Métis Association; and

b) a detailed response from Foothills to each issue and concern, including:

b.1) specific references (links and PDF page numbers) to documents in support of Foothills Zone 8 West Path Delivery 2023 Project application that are currently on the Commission’s record, along with a clear demonstration of how each reference addresses each concern raised in Elk Valley Métis Association’s letter;

b.2) any documents that are not currently on the Commission’s record

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in support of Foothills’ response to the concerns raised in Elk Valley Métis Association’s letter; and

b.3) specific references in the table for documents submitted under b.2) above, and clear demonstration of how information in each of the documents addresses each of the issues and concerns raised in Elk Valley Métis Association’s letter.

2.8 Public Consultation Update

Reference: i) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 21 – Engagement Matters Summary, PDF page 2 of 4, C11799-24

ii) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 21 – Engagement Matters Summary, PDF page 3 of 4, C11799-24

Preamble: In reference i), Foothills states that it has engaged with landowners and

nearby residents and is in the process of obtaining the necessary land rights and will acquire them prior to the scheduled start of construction for each relevant Project component. Foothills further states that engagement is ongoing and it will continue to engage with land stakeholders to share Project information, seek their feedback, and address Project-related concerns, should they arise.

In reference ii), Foothills states that, as a result of the stakeholder outreach to date, it has identified outstanding issues or concerns with the Project components, as outlined in Table 1 of the reference. Foothills further states that it is committed to continuing discussions with landowners or stakeholders to further explain its route selection, to develop mitigation strategies, and to determine fair and reasonable compensation for land rights, as appropriate.

Request: Provide:

a) an update on consultation with interested landowners, occupants, land users, and stakeholders since the application filing date of 4 March 2021;

b) a summary of any concerns raised since the application filing date;

c) an update of how Foothills has addressed or will address concerns raised in reference ii); and

d) a description of how Foothills has or will continue to address any concerns raised since the application filing date, or an explanation as to why no further action is required to address the concerns.

Socio-Economic Matters

2.9 Navigation and Navigation Safety

Reference: i) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 18 – Environmental Obligations Summary, Table 1: Federal Environmental Requirements Applicable to the Project, PDF page 4 of 5, C11799-10

ii) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 23 – Environmental and Socio-Economic Assessment, PDF

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page 19 of 79, C11799-12

iii) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 23 – Environmental and Socio-Economic Assessment, PDF page 147 of 398, C11799-14

iv) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 19 – Interactions Table, PDF page 55 of 77, C11799-11

v) CER, Filing Manual, Navigation and Navigation Safety, PDF page 120 of 286

Preamble: In reference i), Foothills states that, per sections 218 and 219 of the

Canadian Energy Regulator Act, a certificate issued by the CER is required to construct or operate a pipeline that passes in, on, over, under, through or across a navigable water as defined by the Canadian Navigable Waters Act (CNWA).

In reference ii), Foothills states that the Elko Section does not cross any waterbodies on the CNWA List of Scheduled Waters. In reference ii), Foothills also states that three watercourses that are crossed by the Project – Leach Creek, McEvoy Creek, and Pioneer Creek – are rated as possibly or likely to be navigable based on field assessments completed in 2020.

In reference iii), Foothills states that, for Projects that are regulated by the CER, the CER considers project effects on navigation, including navigation safety on behalf of Transport Canada. Foothills also states that watercourses crossed by the Project are not on the CNWA List of Scheduled Waters; however, the public right to navigate applies to all navigable watercourses, including non-scheduled waters. Foothills further states that the CER considers effects on public navigation on all potentially navigable waters and will ultimately make the final decision whether to approve proposed works (e.g., pipelines crossings) on navigable watercourses.

In reference iv), Foothills states that the Project may result in a change in navigation and navigation safety during construction due to a loss or alteration of access to or through navigable waters. Foothills also states that all possibly navigable watercourses will be crossed using trenched methods. Foothills further states that it may be necessary for waterway users to portage around the watercourse crossing location. Foothills outlines in reference iv) that the only mitigation proposed is to install warning signs along the banks both upstream and downstream of the crossing to caution users of a navigational hazard, where appropriate.

Reference v) provides guidance on filing requirements for navigation and navigation safety, including providing a list of potentially-affected waterway users and engagement conducted with waterway users and Indigenous communities regarding navigational use, issues raised, and how issues have been addressed.

The Commission notes that the consideration of its decision on navigation and navigation safety stems from requirements of the Canadian Energy Regulator Act, rather than as a consideration on behalf of Transport Canada under the CNWA. The Commission also notes that, pursuant to section 220 of the Canadian Energy Regulator Act, a pipeline is not a work to which the CNWA applies.

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Request: Provide:

a) a Navigation and Navigation Safety Plan that outlines all mitigation

measures to be implemented for the Project, including for contingency plans;

b) a description of engagement activities that have taken place with all potentially affected waterway users and Indigenous communities regarding navigational use, including:

b.1) a summary of any concerns raised and how Foothills has addressed or plans to address any concerns raised; and

b.2) how the results of Foothills’ engagement activities were included in the Navigation and Navigation Safety Plan;

c) confirmation that the Navigation and Navigation Safety Plan will be included in the Environmental Protection Plan provided to construction crews and contractors; and

d) confirmation that the content regarding navigation and navigation safety and mitigation will be included in pre-construction orientations for construction crews and contractors.

Environment Matters

2.10 Species at Risk – Whitebark Pine

Reference: i) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 23, Environmental and Socio-economic Assessment (ESA), Section 6, PDF page 62 of 114, C11799-13

ii) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 19, Interactions Table, PDF pages 13 to 14 of 77, C11799-11

Preamble: Reference i) states that Whitebark Pine is a blue-listed species within British

Columbia and listed as Endangered under Schedule 1 of the Species at Risk Act (SARA). Reference i) identifies that Whitebark Pine was previously documented in the Local Assessment Area (LAA) and Regional Assessment Area, and confirmed in the Project Development Area (PDA) during field surveys in 2019 and 2020. Whitebark Pine were identified as occurring on federal land from approximately KP 4+000 to KP 27+000.

In reference ii), Foothills states that the Project will potentially affect 5,016 Whitebark Pine trees in the PDA. Field studies identified that no habitat within the PDA or LAA met the critical habitat criteria for Whitebark Pine identified in the Environment and Climate Change Canada (ECCC) Proposed Recovery Strategy for the Whitebark Pine (Pinus albicaulis) in Canada (2017). Foothills further states that it has applied to ECCC pursuant to Section 73 of SARA for authorization of Project-related disturbance to Whitebark Pine trees. Foothills referred to the applied-for SARA permit in reference to mitigation and reclamation measures to be implemented.

While general mitigation was provided in the Application for vegetation; it does not include specific mitigation and reclamation plans for Whitebark Pine. The Commission requires additional information to complete its assessment on Whitebark Pine.

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Request: Provide the following:

a) an update on the status of the SARA permit application; and

b) specific mitigation and reclamation measures for Whitebark Pine.

2.11 Fish and Fish Habitat

Reference: i) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 19, Interactions Table, PDF pages 25 to 38 of 77, C11799-11

Preamble: Reference i) states that the proposed Project will consist of 30 watercourse

crossings of classified streams. The watercourse crossings will be completed using trenched crossing methods (e.g. isolated open-cut) which involve disturbance to bed and banks and in-stream works.

The Commission requires additional information to complete its assessment of the watercourses.

Request: Provide the following for each watercourse crossing:

a) area of habitat (m2) that will be permanently altered, disrupted or destroyed below the high water mark;

b) estimated amount of fish mortality;

c) area of riparian habitat to be cleared (m2);

d) where there is potential that spawning deterrents may be used, provide the area of habitat (m2) to be covered by the spawning deterrents; and

e) identify whether rock armouring of the bank(s) is required.

2.12 Watercourse Assessments

Reference: i) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 23, ESA, Section 8.2, Existing Conditions for Aquatic Resources, PDF page 74 of 398, C11799-14

ii) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 23, ESA Appendix G, Aquatic Resources, PDF page 28 to 30 and 37 of 130, C11799-17

iii) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 23, ESA Appendix G, Aquatic Resources, PDF page 112 of 130, C11799-17

Preamble: Reference i) states that five watercourse crossings are located within the

PDA but are not crossed by the Project ditchline. Of these five watercourse crossings, two (WC-029.00 and 031.00) may require temporary vehicle crossings, three (WC-001.00, 003.00 and 010.00) may require riparian vegetation clearing, and one or more may require bank armouring to protect the Project ditchline from erosion events.

Reference ii) states that four of the five watercourses within the PDA that do not cross the pipeline ditchline have not been assessed to-date. Two of these (WC-001.00 and WC-003.00) are on Leach Creek where assessments of other crossings have been completed and two (WC-010.00 and WC-029.00)

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are on watercourses that have had no field assessments to-date.

Reference iii) identifies that watercourses WC-001.00 and WC-003.00 have a recommended least risk window of August 20 to August 31 due to the presence of focal fish species and presence of good spawning habitat upstream. Reference ii) further states that the least risk window for watercourses WC-010.00 and WC-029.00 will be determined at a later date.

The Commission requires additional information to complete its assessment of the watercourses.

Request: Provide the following:

a) the expected completion date of the four watercourse surveys and assignment of least risk windows; and

b) the expected date of filing a summary of the results of the surveys and the identified least risk windows with the CER, including any additional mitigation that would be implemented as a result of the surveys.

2.13 Spawning Surveys

Reference: i) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 23, ESA Appendix G, Aquatic Resources, PDF page 33 of 130, C11799-17

ii) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 23, ESA Appendix G, Aquatic Resources, PDF pages 37 to 75 of 130, C11799-17

iii) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Attachment 23, ESA Appendix G, Aquatic Resources, PDF pages 21, 25 to 26 of 70, C11799-19

Preamble: Reference i) identifies that the timing of westslope cutthroat trout spawning is

both temperature and flow dependent. Spawning occurs when water temperature hits 7 to 11 oC and occurs post-freshet in recently deposited clean gravels from 1.8 - 3.3 cm diameter. Reference i) further states that the Flathead population typically spawns from May to July with temperatures between 5.2 and 11.6 oC during post-freshet, in tailout of deep pools in the mainstem and tributary habitats. The Elk population redds are clumped in locations with abundant large woody debris cover and undercut banks.

Reference ii) summarizes the results of the watercourse crossing field assessments. Reference iii) identifies several watercourses that have been identified as having poor to moderate or good spawning habitat for spring (freshet) spawning species, including westslope cutthroat trout. It also identifies that westslope cutthroat trout were captured during electrofishing sampling at these watercourses. These watercourses include WC-008.00, WC-009.00, WC-011.00, WC-021.00, and WC-024.00.

Reference iii) states that construction is scheduled to occur from July to October 2023. Reference ii) further states that construction is not anticipated to interact with the spring-spawning fish species within Project watercourses, therefore a spring spawning survey was not conducted. Reference iii) identifies potential for construction through watercourses WC-008.00, WC-009.00, WC-011.00, and WC-021.00 to occur outside the least risk

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window using an isolated open cut crossing method.

The Commission notes that the start of construction will overlap with the end of the spawning period for westslope cutthroat trout. The Commission requires additional rationale for not conducting a spring spawning survey.

Request: Provide the rationale for not conducting a spring spawning survey, given that

construction may overlap with the spawning period for westslope cutthroat trout.

2.14 Federal Lands

Reference: i) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, ESA, PDF page 54 of 79, C11799-12

ii) Impact Assessment Act (S.C. 2019, c. 28, s.1), Section 82

Preamble: Reference i) identifies that the Elko Section of the Project is located

predominantly (90%) on federal Crown freehold land (specifically federal land for which the Federal Crown holds a fee simple interest), managed by Natural Resources Canada, which is part of the Dominion Coal Block.

Reference ii) identifies that, under section 82 of the Impact Assessment Act, the CER, as a federal authority, must determine whether or not a project is likely to cause significant adverse environmental effects on federal lands.

The Commission requires additional information to support its assessment of the portion of the Project located on federal lands.

Request: Provide the location, using latitude and longitude (degree, minute, second),

of the portion of the Project located on federal land (Dominion Coal Block).

2.15 Credible Net-zero Plan for Projects with a Lifetime Beyond 2050

Reference: i) Foothills, Foothills Zone 8 West Path Delivery 2023 Project Application, Environmental Assessment Summary, PDF pages 7 to 9 of 10, C11799-9

ii) CER, Filing Manual, Table A.2 – Filing Requirements for Biophysical Elements - GHG Emissions and Climate Change

iii) Strategic Assessment of Climate Change, PDF page 22 of 26

Preamble: Reference i) includes a section entitled “Foothills Net-zero Plan for the

Project”. Foothills states that strategies to manage emissions are evolving and will depend on environmental policy developments, technology improvements, operational constraints, customer considerations and aggregate system requirements. Foothills also states that it plans to engage with its customers starting early in 2021 to understand their views on the impacts of potential actions to achieve net-zero Project emissions by 2050. Reference i) further states that TC Energy entities have already invested in several renewable energy and GHG energy reduction projects, and have implemented an updated Fugitive Emissions Management Program aligned with the Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (SOR/2018-66).

Reference ii) outlines the CER’s filing requirements and guidance regarding

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the GHG and climate change factor included in the Canadian Energy Regulator Act with respect to GHG emissions. It states that for proponents of projects with a lifetime beyond 2050, project applications must include a credible plan to achieve net-zero emissions by 2050. It also states that the GHG emissions assessment should consider relevant estimating and reporting guidance, such as Environment and Climate Change Canada’s Strategic Assessment of Climate Change (SACC).

Reference iii), the SACC, includes a discussion of a credible plan to achieve net-zero emissions by 2050. The SACC states that a plan does not need to describe every technology or practice the project will implement over time to achieve net-zero emissions, and that proponents can describe the process they will follow in order to make the decisions and investments needed to achieve net-zero emissions by 2050. It also states that proponents can refer to the corporate’s net-zero emission plan.

The Commission notes that Foothills’ “Foothills’ Net-zero Plan for the Project” provides very little concrete discussion of how net zero will be achieved, nor does Foothills specifically reference how the Project’s emissions will be reduced to zero by the year 2050.

Request: Provide further details regarding Foothills’ credible net-zero plan for 2050 that

includes:

a) how the net GHG emissions will equal 0 kt CO2 eq / year by 2050 and thereafter for the remainder of the lifetime of the Project;

b) an overview of the measures Foothills is considering to ensure that the Project is net-zero by 2050, and the process that it will follow to make the decisions and investments needed to achieve net-zero emissions by 2050; and

c) a description of emissions reductions at regular intervals up to 2050, including any potential replacement cycles or retrofits that may be employed; and the impact of the actions Foothills will take to achieve net-zero emissions on Canada’s net-zero goal.