Responsible Care® Leadership Groups East & West An Ontario Regional Update By Norm Huebel

1. Responsible Care® Leadership Groups East & West An Ontario Regional Update By Norm Huebel February 5/6, 2014

2. Triennial • Triennial Plan focuses on increasing opportunity for investment and competitiveness • Strategies and strategy teams are focused on the federal, Quebec Ontario and Alberta governments • Ontario has been very active and the one page strategy document has bas been effective in repositioning our sector and getting the focus of Government and opposition

3. Ontario Strategy Key messages of the Ontario strategy have been: • Chemistry industry is important to the economy of the province, to jobs and to tackling fiscal problems • We are investing • We can invest even more if we get the policy environment right • The policy environment can be improved in the following areas: • Feedstock • Regulatory reform • Certificates of Approval • Electricity • Workforce and training • Buffer Zones

4. 2012 Accomplishments Modernization of Approvals • MOE has a high priority project looking at the use of Qualified Persons that could lead to a third Tier in the Approvals Process- a CIAC initiative Buffer Zones • Have met with Minister of MAAH & had a plant tour of CCC to illustrate and discuss need for Buffer Zone Regulation • Have obtained most of Thursday Group members’ support for a reg Toxics • Through a multi-stakeholder process have developed a Living List Process for adding and deleting substances from the toxics list – awaiting internal process within MOE to move forward Reg 419 • Have initiated the process ( 2 meetings) to develop a technical standard for the petrochemical industry

5. 2012 Accomplishments Thursday Group • Have established the Thursday Group as a credible voice of the manufacturing industry in Ontario. • Have had requests from ADMs, DMs and politicians (including the Leader of the Opposition) to appear before it • DM of Environment spoke off the record on his priorities for 2014 at it because of inclusiveness of the group and the “in camera” nature of the session • Thursday Group has formed the nucleus for a number of major initiatives with the government, namely • GHG push back on Ontario’s direction in not recognizing competitiveness and not having a proper consultation process in place • Industrial Exception pushback • Input prior to tabling of Great Lakes Protection Actw3

6. Political Environment • Over the past year CIAC has spent a lot of time advocating with all 3 parties the importance of the manufacturing sector to the province and the importance of competitiveness in driving investment and job creation • Although all appear to have been listening the prime political focus today is all about a pending election that could be triggered by the spring budget • The probability of an election will be strongly influenced by the outcome of 2 by-elections scheduled for Thornhill (was a PC seat ) and Niagara Falls (was a Liberal seat) on February 13, 2014 • Outcome will not trigger a change in government because current seat standing in the legislature is: • Liberals 49 seats, the Tories 36 and the NDP 20. • The fate of the government continues to rest in the hands of the NDP continuing to support the Liberals • All parties are aggressively seeking monetary support

7. Path Forward • After the budget uncertainty has been resolved CIAC will have to focus its advocacy on whatever government is in power at that time • If there is an election the parties’ platforms will give a good indication of coming priorities • It is highly likely that it will be a minority government so efforts will have to be focussed on the priorities of the parties that form and support the minority with a requirement to continue to maintain relationships with the 3rd party • CIAC political advocacy will be cranked up after the budget uncertainty is resolved • In the meantime advocacy continues on numerous files with the bureaucracy such as GHGs, water, waste, toxics, Reg 419, Approvals, Buffer Zones, Accessibility Act regulations, Financial Assurances, MOL Prevention priorities, electricity • Reminder: the legislation sets the broad framework but the regulatory details (developed by the bureaucracy) determine the burden for companies

8. Path Forward Last year CIAC asked: Member Engagement How can members be engaged? • Plant visits/tours with local MPPs and Ministers • Participation in meetings with CIAC

9. Path Forward Questions to Ponder • How do we get the major players such as IOL, Shell, NOVA, etc. that sit on the Western Leadership Groups engaged in the Ontario advocacy with CIAC? • What do you feel should be the advocacy priorities for 2014? • Should CIAC form a Company Advisory Committee to determine strategic direction and advocacy priorities for Ontario?