The responsibilities of the federal and provincial levels of government with respect to energy are clearly delineated in the Constitution. Provincial governments are the direct managers of most of the country’s natural resources, and have responsibility for energy management within their borders. The federal government is responsible for international and interprovincial trade and energy infrastructure, as well as the regulation of nuclear energy and uranium, and the management of energy resources on federal Crown land, offshore and in the northern territories. As such the primary principles that guide Canadian energy policy are:

• respect for jurisdictional authority and the role of the provinces;

• market orientation: competitive markets are generally the most efficient means of determining supply, demand, prices and trade while ensuring an efficient, competitive and innovative energy system that is responsive to Canada's energy needs; and,

• targeted interventions: when markets cannot achieve policy objectives, government should intervene, through regulation or other means. These policy objectives include issues of science and technology, health and safety (e.g., pipeline regulation) and environmental sustainability.

Canadian energy policies have evolved to reflect individual provincial or regional strengths. For example, Quebec and Manitoba, both rich in hydroelectricity potential, have remarkably clean power systems in place and are looking for opportunities to increase electrification, such as in transportation. Meanwhile, hydro-poor but fossil fuel-rich provinces such as Alberta and Saskatchewan have developed energy systems that are far more reliant on hydrocarbons.

The Government of Canada seeks to achieve a balance between the environmentally responsible production and use of energy, the growth and competitiveness of the Canadian economy, the availability of secure and competitively priced energy, and the protection of energy infrastructure. Canada is an energy intensive country, and current energy policies focus on:

• promoting renewables and clean electricity generation;

• encouraging energy efficiency; and,

• developing cleaner fossil fuel applications and alternatives.

These efforts are supported by an emphasis on innovation – through research, development and deployment of clean technologies and practices.

In May 2015, Canada announced its commitment to reduce GHG emissions by 30 percent below 2005 levels by 2030. This commitment has been made possible by the combined efforts of the federal, provincial and territorial governments in reducing emissions.

In December 2015, Canada was one of 177 countries that adopted the Paris Agreement at the 21^st Conference of the Parties to the United Nations Convention on Climate Change. Canada supported targets to hold the increase in global average temperature to “well below 2 degrees Celsius above pre-industrial levels” and pursue efforts to limit the temperature increase to 1.5 degrees Celsius.

In March 2016, the federal and provincial governments agreed to develop a pan-Canadian framework for clean growth and climate change to be implemented in early 2017. The framework will build on measures that provinces and territories have already taken to inform the development and submission of Canada`s 2030 GHG emissions reduction commitment and its long-term low greenhouse gas emission development strategy.

Table 1: ESTIMATED AVAILABLE ENERGY RESOURCES

*recoverable under current technological and economic conditions, as of 2010 (2012 in the case of liquids, 2013 in the case of uranium)

**Solid: Billions of tons; Liquid, Gas: Billion m3; Uranium: tU; Hydro, Renewable: GW

Source: Statistics Canada; Canadian Minerals Yearbook 2015

Table 2: ENERGY STATISTICS (in EJ)

** Energy consumption = Primary energy consumption + Net import (Import - Export) of secondary energy.

*** Solid fuels include coal, lignite

**** Includes nuclear and hydro.

Sources: Natural Resources Canada, Statistics Canada (Tables 128-0009, 128-0016). Note: Table 128-0009 has been terminated and replaced with Table 128-0016. Comparisons with earlier data (pre 2000) should be done with caution.

Under the Constitution, electricity falls primarily under the jurisdiction of the provinces. The provincial governments own the natural resources and are responsible for most aspects of regulation and energy sector development within their geographical boundaries, including electricity policy and planning. The federal government’s role is restricted to nuclear energy policy and regulation, the regulation of international transmission lines and electricity exports, and the regulation of interprovincial transmission lines that are designated by the Governor in Council. Both levels of governments are involved in electricity research.

As a result, each province and territory has its own electricity policy and regulatory framework. All provinces have adopted a regulated monopoly model for transmission and distribution. Most provinces have also adopted the same model for generation, with the exceptions of Alberta and Ontario. In many provinces, electricity is primarily supplied by a vertically integrated electric utility. Although some of these utilities are privately owned, most are Crown corporations owned by the provincial governments.

With the exception of Saskatchewan, each province has an arms-length board that regulates the provincial electricity system, including construction activities and electricity rates. In Saskatchewan, the provincial Cabinet, with advice from a review panel, is responsible for approving electricity rates.

Canada has an exceptionally clean electricity generation system, with more than 80% of electricity supply coming from non-greenhouse gas emitting sources in 2014. Canada’s hydroelectric resources represent a large part of this supply, totalling about 60% of total electricity supply. That said, the provincial electricity supply portfolios are quite varied. Newfoundland and Labrador, British Columbia, Manitoba and Quebec rely primarily on hydroelectricity (with shares exceeding 93% of provincial supply). Hydro and nuclear represent the major sources of electricity in Ontario. Coal and natural gas dominate in Alberta, Saskatchewan and Nova Scotia. In New Brunswick, nuclear, hydro, natural gas and coal each play roles.

Since the 1990s, the structure of the electricity industry has undergone significant change. Most provinces have moved from the traditional model of provincially regulated and vertically integrated monopolies towards a more competitive system with the private sector playing an increasing role. In Alberta and Ontario, a bid-based model exists between local distribution companies and both large and small generators, while in other provinces independent power producers are able to sell power only to the major utility that provides most of the generation, transmission and distribution services.

The main drivers for this type of restructuring include political support for competitive markets, technological developments (e.g., gas turbines) that have led to smaller generating stations, and the need to seek lower electricity costs for industrial customers.

The following table indicates the entities involved in providing electricity generation, transmission and distribution services in each province.

Given the diversity of provincial electricity markets and electricity resources, the use of various sources for base load, intermediate and peak load depend on the province. However, in most cases, hydro, nuclear, and coal are used for base load, while natural gas, petroleum and hydro are used in intermediate and peak situations. Wind and other renewables are growing sources of energy in several provinces.

Table 3: ELECTRICITY PRODUCTION, CONSUMPTION & CAPACITY

*Electricity transmission losses are not deducted.

** Includes producer consumption.

Sources: Statistics Canada Catalogues 57-003, 57-202 and 57-206, CANSIM Table 128-0017, and micro data from the Electric Power Generating Stations Survey, the Electricity Supply and Disposition Survey and the Electric Power Thermal Generating Station Fuel Consumption Survey.

Table 4: ENERGY RELATED RATIOS

* Net import / Total energy consumption.

Source: Natural Resources Canada, Statistics Canada (Tables 128-0009, 128-0016). Note: Table 128-0009 has been terminated and replaced with Table 128-0016. Comparisons with earlier data (pre 2000) should be done with caution.

Canada was one of the first countries to develop a civilian nuclear power programme after the Second World War. It has since developed the Canada Deuterium Uranium (CANDU) system, which uses pressurized fuel channels instead of a pressure vessel, natural uranium fuel instead of enriched uranium, and heavy water as a coolant/moderator instead of the light water that is found in the pressurized water reactor designs. CANDU reactors have been successfully sold in Canada, as well as abroad. Currently, nuclear energy provides about 16% of Canada’s electricity needs.

The many milestones of the Canadian nuclear programme are:

• In 1955, Atomic Energy of Canada Limited (AECL), Ontario Hydro and Canadian General Electric made a commitment to build the first small-scale prototype 22 MWe CANDU reactor at Rolphton, Ontario, which began supplying the Ontario power grid in 1962;

• A larger prototype was constructed at Douglas Point, Ontario. The 200 MWe reactor went into service in 1967; these two reactors established the technological base for the larger commercial units to follow and launched Canada’s nuclear programme;

• Two 500 MWe reactors at Pickering, Ontario were committed to under a tri-partite agreement between Ontario Hydro, AECL and the federal government; Ontario Hydro later committed to two more units to build an integrated 4-unit station; the units (Pickering A) came into operation between 1971 and 1973;

• Gentilly-1, a 250 MWe boiling light water reactor was constructed in Bécancour, Québec. It was put into service in 1972 and operated intermittently until 1978.

• Conceptual design studies on the Bruce A station were initiated in 1968; the 4x800 MWe unit Bruce A station came into service from 1977 to 1979;

• AECL developed the CANDU 6 reactor design and was successful in selling four of these in the early to mid-1970’s: Gentilly-2 (Hydro-Québec, 1973), Point Lepreau (New Brunswick, 1974) and two abroad;

• In July 1974, Ontario Hydro decided to add 4 units to the Pickering site; these came into service as Pickering B from 1983 to 1986;

• Four additional units (Bruce B) came into service from 1984 to 1987; four 900 MWe units at Darlington came into service from 1989 to 1994;

• Seven units at Bruce A and Pickering A were laid up from 1995 to 1998 pending refurbishment after an independent review of the plant’s operations;

• Pickering A units 4 and 1 were subsequently refurbished and returned to service in 2003 and 2005, respectively. In 2005 Ontario Power Generation (OPG) – previously known as Ontario Hydro - decided that units 2 and 3 would remain in safe shutdown state and not be refurbished;

• In 2001, OPG entered into an agreement with Bruce Power, a private sector consortium, to lease its Bruce A and Bruce B nuclear generation station;

• Bruce Power successfully restarted units 3 and 4 of Bruce A in 2004 and 2003 respectively. In 2005, it undertook a multi-billion dollar project to refurbish and restart units 1 and 2;

• In 2007, the Government of Canada accepted the Nuclear Waste Management Organization’s (NWMO) – a not-for-profit entity funded by the nuclear utilities – recommendation of Adaptive Phased Management (APM), for the long term management of nuclear fuel waste in Canada. This approach includes isolating and containing nuclear fuel waste in a deep geologic repository (DGR);

• In November 2007, the Minister of Natural Resources announced a review of AECL. In May 2009, the Government announced that it was moving forward with a restructuring of the company and on October 2, 2011, the Government of Canada completed the sale of the assets of AECL’s CANDU Reactor Division to Candu Energy Inc., a wholly-owned subsidiary of SNC-Lavalin;

• In February 2010, OPG announced its intention to proceed with the mid-life refurbishment of its four nuclear power reactors at Darlington;

• In May 2010, the NWMO initiated its siting process to identify an informed and willing community with a safe and suitable site to host a DGR. Through the siting process, twenty two communities came forward to engage with the NWMO and learn more about the APM approach, and as of December 2015 there are nine Ontario communities that continue to participate;

• The refurbishment of Bruce A units 1 and 2 and Point Lepreau were completed and the units returned to service in 2012. Hydro-Québec decided to decommission Gentilly-2 and shut the station down on December 28, 2012;

• In February 2012, the Government of Canada publicly launched the second phase of the restructuring of AECL, focused on its nuclear laboratories. In February 2013, the Government of Canada announced its intention to implement a Government-owned, Contractor-operated (GoCo) model for its nuclear laboratories.

• As part of the restructuring, in 2014 AECL created and operationalized Canadian Nuclear Laboratories (CNL) as the operator of its nuclear laboratories. In September 2015, the shares of CNL were transferred to the Canadian National Energy Alliance (CNEA), a private-sector consortium under contract to manage and operate CNL under the GoCo model.

• In early 2016, OPG confirmed the decision to move forward with nuclear refurbishment at Darlington beginning with the first unit in October 2016; there is a possibility of continued operations at Pickering until 2024.

Figure 1: Federal reporting structure

The Department of Natural Resources (Natural Resources Canada) reports directly to the Minister of Natural Resources, while the CNSC and AECL report to Parliament through the Minister.

There are currently 19 nuclear power reactors in full commercial operation in Canada, operated by public utilities and private companies in Ontario (18) and New Brunswick (1). These reactors generated about 16% of Canada’s electricity (approximately 60% in Ontario) in 2014. In 2015, the capacity factors of CANDU reactors in operation in Canada averaged 80.7%, higher than the lifetime average performance of 76.6%.

Table 5: STATUS AND PERFORMANCE OF NUCLEAR POWER PLANTS

Figure 2: Canada’s Major Nuclear Facilities

The refurbishments of Ontario’s Bruce A units 1 and 2 and New Brunswick’s Point Lepreau nuclear station have all been completed and the units returned to service in fall 2012. Bruce Power recently invested over $500 million to extend the life of Bruce A units 3 and 4 to approximately 2020 and announced plans to invest $1.1 billion over the next five years to extend the operational lives of its Bruce B units to approximately 2020.

In January 2016, Ontario announced that it is investing $12.8 billion to refurbish four reactors at Darlington, expected to be completed by 2026. Bruce Power also announced that it will be spending $13 billion to refurbish six reactors at Bruce. These refurbishments will extend the lifespan of the reactors by approximately 30 years.

Pickering, originally scheduled to shut down in 2020, is expected to continue to operate until 2024, pending approval from the CNSC.

Canada recognizes that nuclear energy can play an important role in achieving global energy security, climate change mitigation and sustainable development goals.

Ontario’s 2013 Long-Term Energy Plan commits to keeping nuclear power at approximately 50% of the province's electricity supply while New Brunswick’s Energy Blueprint expects nuclear to continue to contribute 35%.

In December 2015 the province of Ontario announced it had entered into an amended agreement with Bruce Power that will allow the operator to refurbish six nuclear units at its Bruce nuclear generating station between 2020 and 2036. In January 2016, Ontario approved the refurbishment of four nuclear reactors at the Darlington generating station and approved a proposal to operate units at the Pickering plant for an additional two to four years beyond the plant’s scheduled decommissioning in 2020. The Darlington refurbishment is expected to be completed by 2026.

Canada also recognizes that dealing with the long-term management of radioactive waste, in particular nuclear fuel waste, is vital to the development of the nuclear industry. In 2007, the Government of Canada accepted an APM approach, as recommended by the NWMO, as the most appropriate plan for managing the waste over the long-term that is in the best interests of Canadians and their environment.

The provinces are responsible for managing their own energy supply and electricity generation infrastructure, including decisions on the construction of nuclear power plants in the provinces, whether by private or public entities. As indicated earlier, the regulation of nuclear energy falls under federal jurisdiction. In this regard, nuclear power plants in Canada are regulated by the Canadian Nuclear Safety Commission (CNSC) throughout their lifecycles starting from the environmental assessment and site preparation phase to decommissioning and abandonment, including long-term radioactive waste management.

The Major Project Management Office (MPMO)’s mandate is to provide overarching project management and accountability for major resource projects in the federal regulatory review process, and to drive improvements to the regulatory system for major resource projects. In collaboration with other federal departments and agencies, including the CNSC, the MPMO advances the principles of transparency, predictability, timeliness and accountability in the Government of Canada’s approach to the review of major resource project applications. It also supports effective and efficient system for environmental assessment and enhanced and meaningful consultation with Indigenous peoples.

The CNSC has been – and continues to be – a full and active member of the MPMO initiative since its establishment in 2007. The MPMO is currently coordinating the mandated review of environmental and regulatory processes with the goal of developing new, fair processes that are robust, incorporate scientific evidence, protect the environment, respect the rights of Indigenous peoples, and support economic growth. The CNSC is the responsible authority for new nuclear projects under the Canadian Environmental Assessment Act, 2012.

Different financing models exist for financing nuclear plants and the decision on the approach taken rests with the provinces and relevant public and private utilities in the provinces.

Atomic Energy of Canada Limited (AECL) was established as a Crown corporation in 1952, with a mandate to develop peaceful uses of nuclear energy. Its reactor division was privatized in 2011, and a GoCo model was fully implemented at AECL’s nuclear laboratories in September 2015.

Under this GoCo model, AECL continues to own the sites, facilities, assets and liabilities, while the management and operation of the sites is the responsibility of CNL, which is privately owned by the CNEA.

AECL’s mandate continues to be to:

• Manage Canada’s radioactive waste and decommissioning responsibilities

• Facilitate science and technology activities in support of core federal responsibilities; and,

• Support Canada’s nuclear industry through access to science and technology facilities and expertise on a commercial basis.

AECL achieves this mandate through a long-term contract with CNL and the CNEA for the management and operation of its sites. These include the Chalk River Laboratories (CRL) in Chalk River, Ontario, and the Whiteshell Laboratories in Pinawa, Manitoba. Work undertaken at CRL includes nuclear science and technology in the areas of safety, security, health, the environment, energy, non-proliferation and emergency management, as well as important work in decommissioning and waste management. The Whiteshell Laboratories are currently being decommissioned, with very limited and specific nuclear science and technology activities remaining.

The Canadian nuclear industry covers the entire nuclear energy fuel cycle from nuclear R&D, uranium mining and fuel fabrication to nuclear reactor design, nuclear plant construction, maintenance, waste management and decommissioning.

Canadian uranium production totalled 13 325 tU in 2015, about 22% of the total world production. All Canadian production is from mines located in northern Saskatchewan.

McArthur River, the world's largest high-grade uranium mine, and the Key Lake mill, the world's largest uranium mill, are operated by Cameco Corporation. These two facilities maintained their standing as the world's largest uranium production centre by producing 7,341 tU in 2015.

The Rabbit Lake mine and mill, which are wholly owned and operated by Cameco, produced 1,621 tU in 2015. On April 21, 2016, Cameco announced it is suspending operations at Rabbit Lake due to low uranium prices, but may resume production when market conditions improve.

The Cigar Lake is the world's second-largest high-grade uranium deposit. The mine is operated by Cameco Corporation and the ore is processed at the McClean Lake mill which is operated by AREVA Resources Canada.  Cigar Lake production totalled 4,359 tU in 2015, ranking it as the world’s second largest uranium mine.  The mine is expected to be in full production in 2017, producing 6 900 tU annually.

Production from the McClean Lake mill is almost entirely from Cigar Lake ore.  A small amount of stockpiled ore from the McClean Lake mine was processed in 2015, producing a total of 4 tU.  There are no plans to resume mining at McClean Lake in the near future, however the mill capacity is being expanded.

Cameco Corporation operates Canada's only uranium refining and conversion facilities, located at Blind River and Port Hope, Ontario, respectively. At the Blind River refinery, which is the world’s largest facility, uranium ore concentrates from Canada and abroad are refined to uranium trioxide (UO₃), an intermediate product. The bulk of the UO₃ is then trucked to the Port Hope facility, which has approximately 20% of the world’s annual uranium hexafluoride (UF₆) conversion capacity and currently provides the only commercial supply of fuel-grade natural uranium dioxide (UO₂). UF₆ is enriched outside Canada for use in foreign light-water reactors, while natural UO₂ is used to fabricate fuel bundles for CANDU reactors in Canada and abroad.

In Canada, there are two fuel fabrication companies, GE-Hitachi Nuclear Energy Canada and Cameco Fuel Manufacturing Inc., a wholly owned subsidiary of Cameco Corporation, which produce fuel pellets and fuel bundles for CANDU reactors. Both of these companies operate in the province of Ontario. GE-Hitachi produces fuel pellets and fuel bundles at facilities in Toronto and Peterborough, Ontario respectively. Cameco produces fuel pellets, fuel bundles, and components at its facilities in Cobourg and Port Hope, Ontario. The fuel fabrication process involves forming the uranium dioxide into pellets, followed by a process of sintering and sheathing in zirconium to make fuel bundles for use in CANDU reactors.

Canada has policies, legislation and responsible institutions that govern the management of all categories of radioactive waste. The Government’s 1996 Policy Framework for Radioactive Waste outlines the national context for the management of radioactive waste and lays out a set of principles to ensure that it is carried out in a safe, environmentally sound, comprehensive, cost-effective and integrated manner.

Under the framework, the federal government has the responsibility to:

• develop policy and regulate;

• oversee owners to ensure that they comply with legal requirements and meet their funding and operational responsibilities in accordance with approved waste management plans.

Consistent with the framework, waste owners are responsible for the funding, organization, management, and operation of long-term waste management facilities and other facilities required for their waste.

Natural Resources Canada is the lead for the development and implementation of federal government policy on radioactive waste management, and provides oversight of waste owners to ensure obligations under the Policy Framework are met. It is also responsible for the administration of the Nuclear Fuel Waste Act (NFWA), and supports the Minister of Natural Resources in ensuring that the nuclear utilities and the NWMO comply with the requirements of the Act.

As the Canadian nuclear regulator, the CNSC regulates radioactive waste owners in Canada based on its comprehensive and stringent regulatory regime, and verifies that waste management facilities comply with established safety requirements through inspections and audits.

AECL, a Crown corporation wholly owned by the Government of Canada, is responsible for the federal government’s radioactive waste and decommissioning obligations at AECL and other sites across Canada. AECL oversees its contractor, CNL, which manages and operates AECL’s nuclear laboratories and implements programs and projects to manage federal radioactive waste responsibilities.

Canada’s nuclear operators are responsible for managing their own wastes and are well suited to develop and implement safe, secure solutions. The nuclear industry is safely managing its radioactive waste, and initiatives are underway to develop long-term radioactive waste management facilities.

CNL operates a commercial waste service for small producers and owners of radioactive waste, such as hospitals and universities. CNL accepts, on a fee-for-service basis, low-level and intermediate-level radioactive waste from these organizations for long-term management.

Nuclear fuel waste is defined under the NFWA as irradiated fuel bundles removed from commercial and research nuclear reactors. Nuclear fuel waste from power reactors is currently stored safely in pools and/or dry storage containers in waste management facilities at each of the operating power reactor sites. There are three provincial nuclear utilities (i.e. OPG, Hydro-Québec and NB Power) who altogether own about 97 percent of the approximately 10,000 m³ of nuclear fuel waste in Canada, while the remainder is owned by AECL and McMaster University^(1).

Consistent with the Policy Framework for Radioactive Waste, the NFWA was brought into force in 2002 to ensure that a national solution for the long-term management of nuclear fuel waste was developed, government-selected and implemented.

The Act required the nuclear utilities to establish a waste management organization. Consequently, the NWMO was established as a separate legal entity to develop and implement a national long-term solution for nuclear fuel waste. The legislation also required the nuclear energy corporations and AECL to establish trust funds with independent third-party trust companies to finance their long-term waste management responsibilities.

As a first step towards developing a national solution, the Act required the NWMO to submit a study to the Government of Canada on proposed approaches for the long-term management of nuclear fuel waste. On November 3, 2005, the NWMO submitted its study, Choosing a Way Forward, after having carried out a three-year dialogue with Canadians from coast to coast. In its study, the NWMO recommended the APM approach as its preferred solution.

Following careful review and consideration of the study, on June 14, 2007, the Government selected the APM approach as Canada’s national solution for managing nuclear fuel waste over the long term. The goal of the APM approach involves containing and isolating the nuclear fuel waste in a DGR located at a safe site within an informed and willing host community. The NWMO is responsible for implementing the APM approach, subject to necessary regulatory approvals.

In May 2010, the NWMO initiated a siting process to identify an informed and willing host community with a safe, and suitable site for a DGR. By 2012, twenty-two (22) interested communities in Ontario and Saskatchewan came forward to participate in the process and learn more about the APM project. Potential land areas located within the interested communities have been narrowed down through assessments, and as of December 2015, the NWMO had focused its siting process on nine Ontario communities. Those nine communities are continuing to engage with the NWMO and explore the possibility of hosting a DGR and Centre of Expertise for the long-term management of nuclear fuel waste. For information about the NWMO’s siting process and how it will implement the APM approach, refer to the following website address: http://www.nwmo.ca.

To date, highly-enriched uranium (HEU) nuclear fuel waste from research reactors at Canadian universities has been returned to the United States, through the Department of Energy, to its Savannah River facility. In 2010, Canada and the U.S. agreed to cooperate in the repatriation of U.S.-origin HEU fuel stored at CRL to the Savannah River site, and in 2012, this agreement was expanded to include HEU-bearing liquids.

Consistent with the Radioactive Waste Policy Framework, owners of low-level and intermediate-level radioactive waste (L&ILRW) are responsible for managing and operating storage facilities for their wastes. Above-ground and in-ground storage structures and buildings are used to contain and store L&ILRW, and prevent the release of contaminants to the environment.

OPG, Canada’s largest nuclear utility, has a centralized storage facility for L&ILRW at the Bruce Nuclear site, whereas other waste owners generally store their L&ILRW at the site where the waste was generated.

OPG and AECL collectively own 92% of Canada’s 285,000 m³ of L&ILRW, and AECL is responsible for a further 2 million m³ of historic low-level radioactive waste. Historic waste consists largely of radium and uranium contaminated soils. Both organizations have initiatives underway to establish long-term waste management facilities at their sites for L&ILRW, and AECL’s contractor, CNL is implementing two projects to construct facilities for historic waste in the Port Hope, Ontario area. These initiatives and projects are described below:

OPG deep geologic repository for L&ILRW

In 2004, the Municipality of Kincardine and OPG entered into a hosting agreement that would enable OPG to prepare a site, construct, and operate a DGR at the Bruce Nuclear site, which is located within the community of Kincardine, Ontario.

The repository would be designed to manage L&ILRW produced from the continued operation of OPG’s twenty nuclear power reactors at Bruce, Pickering and Darlington, Ontario, including L&ILRW arising from reactor refurbishment. For information about OPG’s DGR, please visit http://www.opg.com/power/nuclear/waste/dgr/.

On January 24, 2012, the federal Minister of the Environment and the President of the CNSC announced the establishment of a three-member Joint Review Panel to review the environmental effects of OPG’s proposed project. The Joint Review Panel (JRP) held a total of 33 days of public hearings in September and October 2013, and September 2014.

On May 6, 2015, the JRP submitted its report to the Minister of the Environment for review and decision under the Canadian Environmental Assessment Act, 2012, which included a total of 97 recommendations. In its report, the JRP concluded that the DGR project is not likely to cause significant adverse environmental effects, provided that the mitigation measures proposed and commitments made by OPG during the review, and the mitigation measures recommended by the Panel, will be implemented.

On February 18, 2016, the Minister of Environment and Climate Change requested additional information and further studies on the environmental assessment for the DGR project. OPG has committed to complete the studies and provide the information. by December 31, 2016. For information on the environmental assessment, please visit:

http://www.ceaa-acee.gc.ca/050/details-eng.cfm?evaluation=17520.

If the project is authorized to proceed to the next phase of the permitting process, the Minister of Environment and Climate Change’s EA decision statement will include conditions related to the project that will be legally binding on the proponent.

Decommissioning and waste management projects at AECL sites

AECL’s inventory of radioactive and nuclear fuel waste, located at CRL (Ontario), Whiteshell Laboratories (Manitoba) and three prototype reactor sites in Ontario and Quebec, includes used research reactor fuel, and L&ILRW in solid and liquid form. More than half of the liabilities are the result of Cold War-era activities between the late 1940s and early 1960s. The remaining liabilities stem from research and development for nuclear reactor technology, the production of medical isotopes, and national science programs. AECL also manages the waste produced by ongoing nuclear science and technology activities at CRL.

AECL’s waste inventory is currently being managed in a number of waste management areas at CRL and Whiteshell Laboratories and includes various types of storage, including silos, tile holes, bunkers, shielded above-ground storage buildings as well as a new fuel packaging and storage facility. The nuclear fuel waste will eventually be sent to the NWMO’s DGR for long-term management, and AECL’s contractor, CNL has initiated three projects that will address the bulk of AECL’s inventory of radioactive waste, subject to licensing from the CNSC.

The first project involves the construction and operation of a near-surface disposal facility at CRL for low-level radioactive waste from past, present and future activities at CRL and other AECL locations. The facility will consist of an engineered mound or landfill with multiple disposal cells, and will replace the current practice of placing the waste in temporary storage. The facility will be sized to hold approximately one million m3 of waste, and will allow CNL to decommission more than 100 buildings and structures at CRL that are outdated and no longer needed, and remediate contaminated lands and historic waste burials that are impacting groundwater at the site. CNL plans to complete the construction of the facility so that it can commence operations and receive waste by early 2020.

The other two projects relate to CNL’s plan to decommission two reactors in situ or in place – specifically the Nuclear Power Demonstration (NPD) prototype reactor in Rolphton, Ontario and the WR-1 research reactor at Whiteshell Laboratories near Pinawa, Manitoba. For both reactors, the reactor vessels and much of the associated reactor components and systems are located below grade in the subsurface portion of the facility. CNL plans to remove the above-ground portions of both facilities, and fill the subsurface portions of the facilities with grout to “entomb” the reactors in place.

CNL plans to complete the decommissioning of the NPD reactor by the end of 2021, and the former Whiteshell Laboratories, including the decommissioning of the WR-1 reactor, by the end of 2024.

Management of historic waste

Historic, low-level waste is waste that was managed in the past in a manner that is no longer considered acceptable, for which the current owner cannot reasonably be held responsible, and for which the Government of Canada has accepted responsibility. Canada’s historic waste inventory consists largely of radium and uranium contaminated soils.

The Government of Canada established the Low-Level Radioactive Waste Management Office (LLRWMO) within AECL in 1982 as the federal agent for the cleanup and management of historic low-level radioactive waste in Canada. AECL is the responsible federal agency for delivering on the Government of Canada’s commitments, and has contracted out the management of the LLRWMO to CNL.

While the LLRWMO is responsible for the management of historic waste generally, a second office, the Port Hope Area Initiative Management Office (PHAI MO) was created specifically to manage the large volumes of historic waste associated with Port Hope Area Initiative (PHAI) and described below.

The bulk of Canada’s historic low-level radioactive waste is located in the southern Ontario communities of Port Hope and Clarington. These wastes and contaminated soils amount to approximately 2 million m³ and relate to the historic operations of a radium and uranium refinery in the Municipality of Port Hope dating back to the 1930s.

In March 2001, the Government of Canada and the local municipalities entered into an agreement on community-developed proposals to address the cleanup and long-term management of these wastes, thereby launching the PHAI. CNL is implementing the PHAI under contract to AECL.

The PHAI involves the construction of two above-ground engineered waste management facilities in the communities to consolidate the historic waste, some of which is currently dispersed in an urban environment. In 2012, the Government of Canada announced $1.28 billion in funding to construct the facilities, cleanup the communities, and emplace the historic waste in the new facilities. CNL plans to construct and begin operating the two waste management facilities by the end of 2017.

Most of the remaining historic waste to be dealt with in Canada consists of very low-level radioactive waste located along the Northern Transportation Route between Port Radium, Northwest Territories and Fort McMurray, Alberta. The waste results from the past transport of radium and uranium bearing ore and concentrates from the Northwest Territories to Fort McMurray, Alberta. Cleanup of the soil that posed a radiological hazard has taken place at a number of locations along the Northern Transportation Route, and the wastes are safely stored in regularly inspected storage mounds. Strategies are currently being developed for the cleanup of the remaining contamination along the Northern Transportation Route, which is estimated to consist of about 14,000 m³ of contaminated soil.

Nuclear research and development in Canada began in the 1940s. The federal government has funded a research and development program at AECL since its creation in 1952. Before restructuring, AECL was responsible for Canada's nuclear research and development program, including activities in support of CANDU technology as well as basic science activities to support applied programs in the nuclear, biological and material sciences.

Early CRL pursuits were in the "new" sciences at the time - nuclear physics, nuclear chemistry and radiation biology. The National Research Universal (NRU) reactor was critical to the laboratories’ early programs of basic science and isotope production as well as to the development of the CANDU reactor system. CRL supported federal government initiatives to develop national radiological health and safety regulations and to contribute to international efforts to control the proliferation of nuclear weapons.

With the implementation of a GoCo model, AECL now delivers its research and development mandate to support core federal responsibilities and Canada’s nuclear industry through a long-term contract with the CNEA for the management and operation of CNL. The main AECL site for nuclear science and technology activities is CRL in Ontario. The Whiteshell Laboratories are currently being decommissioned, with very limited and specific nuclear science and technology activities remaining.

Managed and operated by CNL, the CRL boasts multiple highly-specialized and unique laboratories, testing facilities, and two research reactors, all of which are used to deliver nuclear science and technology in the areas of health, safety, security, environment, energy, non-proliferation and emergency management for the benefit of Canadians and industry. Recent infrastructure investments at CRL will enable continued nuclear science and technology activities.

In February 2015, Canada announced that the NRU would continue to operate until March 31, 2018, at which point it is scheduled to cease operations and be placed in a safe shutdown state, pending decommissioning. As per Canada’s strategy on the security of supply of medical isotopes, adopted in 2010, the NRU will cease the routine production of molybdenum-99 on October 31, 2016. However, the February 2015 announcement added that the NRU will retain the capacity to produce molybdenum-99 between November 2016 and March 2018, to be used only in the event of an unexpected global shortage of extended duration that cannot be mitigated through other means. The Government of Canada continues to support the development of alternative isotope production technologies in order to diversify and strengthen the global supply of molybdenum-99. Importantly, the NRU will continue to be used for nuclear science and technology until its planned shutdown in March 2018.

Canada is a member of the Generation IV International Forum (GIF), which enables the coordination of advanced nuclear research among major nuclear countries. As part of this initiative, Canadian Nuclear Laboratories continues to work toward the development of the Supercritical Water Reactor (SCWR) concept.

Canada is a member country of both the Nuclear Energy Agency (NEA) of the Organisation for Economic Cooperation and Development (OECD) and the International Atomic Energy Agency (IAEA). It is also a member of the Generation IV International Forum (GIF) and the International Framework for Nuclear Energy Cooperation (IFNEC). Canada has 30 treaty-level bilateral Nuclear Cooperation Agreements in force covering 48 countries.

On May 31, 2000, the CNSC was created as the successor to the Atomic Energy Control Board (AECB), which had served as the regulator of Canada's nuclear industry for more than 50 years. The Commission's creation followed the entry into force of the Nuclear Safety and Control Act (NSCA) and its regulations. The NSCA represented the first major overhaul of legislation governing Canada's nuclear regulatory regime since the AECB was established in 1946. It established a Tribunal (the Commission) to regulate the nuclear industry and authorized the hiring of technical and support staff. The CNSC reports to Parliament through the Minister of Natural Resources.

The CNSC's mission is to regulate the use of nuclear energy and materials to protect health, safety, security and the environment; to implement Canada's international commitments on the peaceful use of nuclear energy; and, to disseminate objective scientific, technical and regulatory information to the public. Under the NSCA, the CNSC's mandate involves four major areas:

• Regulation of the development, production and use of nuclear energy in Canada to protect health safety and the environment;

• Regulation of the production, possession, use and transport of nuclear substances, and the production, possession, and use of prescribed equipment and prescribed information;

• Implementation of measures respecting international control of the development, production, transport and use of nuclear energy and substances, including measures respecting the non-proliferation of nuclear weapons and nuclear explosive devices; and

• Dissemination of scientific, technical and regulatory information concerning the activities of the CNSC and the effects on the environment, on the health and safety of persons, of the development, production, possession, transport and use of nuclear energy and nuclear substances.

The Canadian regulatory system is designed to protect people and the environment from the risks associated with the development and use of nuclear energy and nuclear substances. Companies and medical or academic institutions wishing to operate nuclear facilities or use nuclear substances for industrial, medical or academic purposes must first obtain a licence from the CNSC. It is a fundamental tenet of Canada's regulatory regime that licensees are primarily responsible for safety. The CNSC's role is to ensure that the applicants live up to their responsibility. The onus is therefore on the applicant or the holder of the licence to justify the selection of a site, design, method of construction, and mode of operation of a facility, etc. When issuing a licence, the CNSC must be satisfied that the companies have taken adequate measures to protect health and safety, the environment, security and to respect international commitments, and that the companies are qualified to carry out the licensed activities. Licensing matters for major facilities are carried out in public hearings by an independent administrative tribunal – the Commission. This is one of the most visible functions of the CNSC in the regulation of the nuclear industry.

The CNSC is responsible for implementing measures to meet Canada’s international obligations and commitments with respect to the control of the development, production and uses of nuclear energy, including the non-proliferation of nuclear weapons and nuclear explosive devices. This responsibility includes regulating the import and export of nuclear substances, nuclear equipment and nuclear technology in order to ensure that Canada’s nuclear non-proliferation policy and international obligations are respected, including those arising from the Treaty on the Non-Proliferation of Nuclear Weapons. CNSC staff also provides technical support to Canada’s participation in international non-proliferation activities and initiatives.

CNSC staff inspects licensed activities, enforces compliance with regulations, and develops regulatory and guidance documents. Guidance documents provide practical guidance to licensees and applicants on how to meet the regulatory requirements of the CNSC.

Standards for radiological protection have been developed over the years at both national and international levels. The basis for the Canadian regulatory radiation dose limits originates from the recommendations of the International Commission on Radiological Protection.

There are many stages in the lifecycle of nuclear facilities before any person or company can prepare a site to construct, operate, decommission or abandon a nuclear facility – or possess, use, transport or store nuclear substances – they must obtain a corresponding licence from the CNSC.  

There are four major steps in the licensing process for a new nuclear facility (such as a NPP):

1. Applicant submits a licence application

   The licensing process begins when an application is received by the CNSC. An Assessment Plan and timeline is then developed for each individual application.  The Assessment Plan identifies the scope and depth of the technical assessment needed to evaluate the application.  It takes historical licensing information, licensing experience, performance and compliance reports, and CNSC staff recommendations into account.

2. Environmental Assessment

   Protecting the environment is an important part of the work at the CNSC. An environmental assessment is used to predict the environmental effects of a specific project, and to determine whether these effects can be mitigated, before a project is carried out. The CNSC assesses the environmental effects of all nuclear facilities or activities at every phase of their lifecycle. This assessment is based on the scale and complexity of the environmental risks associated with the facility or activity. The CNSC carries out environmental assessments under the NSCA or, where applicable, under the Canadian Environmental Assessment Act, 2012.

3. Technical Assessment

   CNSC staff undertake a variety of Technical Assessments according to the prescribed Assessment Plan to ensure that each application complies with all regulatory criteria as defined by the NSCA, relevant regulations, international and domestic standards, and international obligations.

4. CNSC renders its decision

   The final step in the licensing process is the Commission Tribunal decision, which takes into account all CNSC staff recommendations and the views and concerns expressed at public hearings.  The public hearings provide interested stakeholders an opportunity to participate in the licensing process by voicing any concerns to the Commission members, which constitutes an important part of informing licensing decisions.

In 2012, the Government of Canada launched Responsible Resource Development, a plan to streamline the review process for major resource projects. Under this plan, the CNSC has committed to firm, end-to-end timelines for its reviews of new nuclear development. A 24-month timeline will apply to the CNSC portion of reviews and decisions for site preparation licences for new Class I nuclear facilities. This timeline will also apply to the CNSC portion of reviews and decisions for licences for site preparation and construction of new uranium mines or mills.