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HomeMy Public PortalAbout2023-11-30_Council_Website Agenda Package_Location at FHCS_847 Highway 12.pdf Page 1 of 2 of Agenda Cover Page(s) MUNICIPAL COUNCIL AGENDA Thursday, November 30, 2023 This meeting is not able to be Livestreamed via YouTube due to the location at Forest Heights Community School, Chester Grant, NS 1. MEETING CALLED TO ORDER 2. APPROVAL OF AGENDA/ORDER OF BUSINESS 3. PUBLIC INPUT SESSION 4. MINUTES OF PREVIOUS MEETING 4.1 Council – November 16, 2023. 5. PROCLAMATIONS 6. COMMITTEE REPORTS 6.1 Nominating Committee – November 16, 2023 – Councillor Veinotte. 7. PUBLIC PRESENTATIONS 7.1 9:30 a.m. Grace Brittain and Charlie McInnes – Safe Grad 2024 Donation Request. 8. BY-LAWS AND POLICIES 9. MATTERS ARISING 9.1 Quarterly Update – Infrastructure & Operations Department. 10. CORRESPONDENCE 10.1 Correspondence dated November 9, 2023 from Municipality of the District of Lunenburg regarding the 2023/24 REMO Budget Variance Update. 10.2 Email from John MacDonald regarding continued concerns about Bayswater Beach and requesting Council to write a letter to the province requesting a moratorium on restocking of the Saddle Island site in Bayswater. Page 2 of 2 (Agenda Pages) 11. NEW BUSINESS 11.1 District 3 Council Grant – Chester Merchants. 11.2 Discussion - Stop signs on private roads – Deputy Warden Shatford. 11.3 Request for Decision prepared November 23, 2023 – Community Development & Recreation – Capital Grants Review. 11.4 Request for Decision prepared November 24, 2023 – Infrastructure & Operations - Municipal Capital Growth Program Grant (Wastewater Strategy). 11.5 Request for Decision prepared November 22, 2023 – Community Development & Recreation and Finance – Private Street Maintenance Petition – Lakewood Drive Community Road Association. 11.6 Southwest Nova Scotia Bioeconomy Development Opportunity Zone Rating. 12. IN CAMERA 12.1 In Camera as per Section 22(2)(a) of the Municipal Government Act – acquisition, sale, lease, and security of municipal property. 13. ADJOURNMENT APPOINTMENTS 9:30 a.m. Grace Brittain and Charlie McInnes – Safe Grad 2024 Donation Request. 428 MUNICIPALITY OF THE DISTRICT OF CHESTER Minutes of COUNCIL MEETING Livestreamed via YouTube www.youtube.com/modcvideo from 151 King Street, Chester, Nova Scotia On Thursday, November 16, 2023 MEETING CALLED TO ORDER Warden Webber called the meeting to order at 8:47 a.m. Present: District 1 – Councillor Andre Veinotte District 2 – Deputy Warden Floyd Shatford District 3 – Councillor Derek Wells District 4 – Warden Allen Webber District 5 – Councillor Abdella Assaff District 6 – Councillor Tina Connors District 7 - Councillor Sharon Church Staff: Tara Maguire, CAO Pamela Myra, Municipal Clerk Emily Lennox, Executive Secretary Matthew Blair, Director of Infrastructure & Operations Chad Haughn, Director of Community Development and Recreation Garth Sturtevant, Senior Planner Jonathan Meakin, Manager, Sustainability and Asset Management Fred Whynot, Director of Public Works Sylvia Dixon, Development and Planning Technician Solicitor: Samuel Lamey, Municipal Solicitor Public: There were 4 members of the public in the gallery. Regrets: Erin Lowe, Deputy CAO Jennifer Webber, Communications Coordinator & Outreach Coordinator Warden Webber noted that the meeting is not able to be livestreamed today. Council (continued) November 16, 2023 429 APPROVAL OF AGENDA/ORDER OF BUSINESS Addition/Change:  Councillor Church – Church Memorial Park Update. 2023-479 MOVED by Deputy Warden Shatford, SECONDED by Councillor Church the agenda and order of business for the November 16, 2023, Council meeting be approved as amended. ALL IN FAVOUR. MOTION CARRIED. PUBLIC INPUT There was no public input. MINUTES OF PREVIOUS MEETINGS 4.1 Council – October 26, 2023. 2023-480 MOVED by Deputy Warden Shatford, SECONDED by Councillor Assaff that the minutes of the October 26, 2023, Council Meeting be approved as circulated. ALL IN FAVOUR. MOTION CARRIED. 4.2 Special Council – November 2, 2023. 2023-481 MOVED by Councillor Assaff SECONDED by Councillor Church that the minutes of the November 2, 2023, Special Council Meeting be approved as circulated. ALL IN FAVOUR. MOTION CARRIED. PROCLAMATIONS 5.1 Letter and Proclamation for consideration from Nature Canada regarding “Restoring and Protecting 30% of our Ocean by 2030.” Members of Council agreed with the concept, however, felt they did not have enough information regarding the percentages noted and would prefer to make a general statement rather than quote percentages. 2023-482 MOVED by Councillor Church, SECONDED by Deputy Warden Shatford that the proclamation request from Nature Canada regarding “Restoring and Protecting 30% Council (continued) November 16, 2023 430 of our Ocean by 2030” be proclaimed with the percentages statement removed in the proclamation to be signed by the Warden. ALL IN FAVOUR. MOTION CARRIED. COMMITTEE REPORTS 6.1 Recreation & Parks – October 16, 2023 – Councillor Church. Councillor Church reviewed the recommendations and Councillor Veinotte noted he was glad to see typical recreation grants as well as arts and culture grants. 2023-483 MOVED by Councillor Church, SECONDED by Deputy Warden Shatford that the recommendations from the October 16, 2023 meeting of the Recreation & Parks Committee be approved as follows: Aspotogan Arts and Crafts $500 Aspotogan Recreation Association $2,000 Charing Cross Garden Club $500 Chester Curling Club $2,200 Chester Duplicate Bridge Club $500 Chester Garden Club $500 Chester Minor Basketball $2,400 Chester Minor Hockey $2,800 Chester Tennis Club $500 Forties Garden Club $500 Friends of Chester Competitive Dancers $1,500 Heritage Handwork Group $500 New Ross Women’s Tug of War Team $1,500 Shoreham Village Senior Citizens $1,500 South Shore Pipes and Drum Association $1,000 South Shore Schooners $2,800 South Shore Work Activity Program $1,000 St. Stephen’s Parish (Musical Friends) $2,800 $25,000 ALL IN FAVOUR. MOTION CARRIED. Council (continued) November 16, 2023 431 6.2 Lunenburg County Seniors’ Safety Program – Monthly Report – October 2023 – Councillor Connors. Councillor Connors commented that it was business as usual and that the staff are preparing for Christmas. PUBLIC PRESENTATIONS 7.1 9:00 a.m. George Buranyi – Save Our Old Forests Lunenburg County. Present was George Buranyi of Save Our Old Forests Lunenburg County who indicated that the group seeks to engage local communities in protecting old forests and calls on the provincial government to pause all harvesting and roadbuilding activities in forests over 80 years old on Crown Land. They are requesting Council to support those goals and forward a letter to the province. He reviewed the statistics provided in the presentation material. 2023-484 MOVED by Deputy Warden Shatford, SECONDED by Councillor Church that Council support the Save Our Old Forests (SOOF) group and write the provincial government (Premier, NS Department of Natural Resources and Renewables, and the Department of Environment and Climate Change) requesting the government to pause all harvesting and roadbuilding activities in forests over 80 years old on Crown Land. ALL IN FAVOUR. MOTION CARRIED. 7.2 9:20 a.m. Lynda Flinn – Rezoning of PID 60094497 (Old Trunk 3/Target Hill Road). Present was Lynda Flinn who outlined to Council that they wish to grow own greens for their businesses and have found a system to grow them year round hydroponically. They have family land on the Commons Road that is currently zoned rural, and the property has always been used as a residential storage facility for their personal items. They would like to place the container (purposely built) to contain a hydroponically system on that property. It is currently zoned as rural; however, it will be zoned as residential or medium residential in the new Village Plan which would exclude this. Present was Garth Sturtevant, Senior Planner, who noted that the proposed R4 Zone in that area would not allow this use as it is commercial. He noted that he suggested Ms. Flinn come to Council because Council has already seen the draft of the Plan Review. Council (continued) November 16, 2023 432 Concern was noted that when the area undergoes a transformation in the next ten to twenty years, the character of the area will change and the need for housing is great. The point is that in 10-15 years that particular structure may look very strange and be of a different character than what will be there. Ms. Flinn noted that it does not have to look like a shipping container – it can look like a building with landscaping and could fit very well in a residential area. The Senior Planner noted that if this was proposed on the site of the Kiwi Café as an accessory use, we would approve it. That is why it is tricky. On the other lot it would be commercial. The units are used in urban environments and would comply with those regulations. It was agreed to have the Senior Planner prepare some information for Council’s consideration and provide some options for the request. The question was also asked if it would be allowed at this time as the property is zoned as rural. This can be provided with the information from staff. Future use was discussed, and it was noted that it could be a business on its own in the future selling hydroponic foods they currently source from elsewhere – that would allow them to sell to the community here. The Senior Planner was directed to prepare a report for consideration. BY-LAWS AND POLICIES There were no by-laws or policies for review. MATTERS ARISING 9.1 Quarterly Update – Community Development & Recreation. Present was Chad Haughn to review the Quarterly Update of the Community Development and Recreation Department commenting on the following:  Planning Matters - Village Plan Review, Subdivision, Development Permits, and Building.  Animal Control.  Fire Inspections.  By-Law Enforcement/Solid Waste Inspections. Council (continued) November 16, 2023 433  Recreation and Parks Services.  Community School Visits.  PRO Kids.  Community Sign Program.  Community Playboxes.  Summer Trail Crew.  July 21, 2023 Flood – Trail Destruction and Trail Repairs. A break was held from 10:05 a.m. to 10:15 a.m. CORRESPONDENCE 10.1 Email dated October 24, 2023 sent on behalf of Bear Lake Wind Farm regarding Notification of Environmental Assessment Registration. No action is required – this was for information only. 10.2 Correspondence dated October 11, 2023 to the NS Federation of Municipalities from the Municipalities of Shelburne and Barrington and the Towns of Clark’s Harbour, Lockeport, and Shelburne regarding an urgent need for advocacy to improve rural cell phone coverage for emergency preparedness. Councillor Wells commented that this is not just for emergency services, but for everyday use as well. The CAO noted that on October 26 the Province announced they would be working with Build NS – similar to what they did for broadband service – and would be expanding cellular service ($47.3 million) with the Cellular for NS Program. NEW BUSINESS 11.1 Request for Decision prepared November 7, 2023 – Community Development and Recreation - New Road Names – Parker Ridge Drive and Layton Lane. Present was Sylvia Dixon, Development & Planning Technician to review the Request for Decision prepared November 7, 2023 regarding two new road names – Parker Ridge Drive and Layton Lane. There have been no objections to the names. Council (continued) November 16, 2023 434 2023-485 MOVED by Councillor Veinotte, SECONDED by Councillor Assaff that Council approve the road names Parker Ridge Drive and Layton Lane accessed off of Goat Lake Road (East Chester) and staff be directed to notify the appropriate departments, organizations, and residents. ALL IN FAVOUR. MOTION CARRIED. 11.2 Request for Decision prepared November 7, 2023 – Infrastructure & Operations – NS Community Solar Program: Environmental Stewardship and Economic Development. Present was Jonathan Meakin, Manager, Sustainability and Asset Management to review the Request for Decision prepared November 7, 2023 regarding the NS Community Solar Program: Environmental Stewardship and Economic Development. The request is to authorize a study to investigate sites for a solar project at Kaizer Meadow through the NS Community Solar Program. 2023-486 MOVED by Councillor Church, SECONDED by Councillor Wells that Council authorize a preliminary study by SolarBank and TriMac Engineering to investigate potential sites at Kaizer Meadow Industrial Park for the development of a possible project under the Nova Scotia Community Solar Program. DISCUSSION:  Councillor Veinotte asked about the megawatt availability, and it was noted that they believe there is enough space to generate a 10 mw project. NS Power is allowing a total of 100 mw of power to be generated across the province through solar panels. Councillor Veinotte would like it to be reviewed to ensure the business case is there.  Councillor Assaff noted that he has heard that people have found it difficult to sell back generated power to NS Power.  Councillor Veinotte is not interested in wasting money on projects that don’t pay or need to receive subsidies to work. ALL IN FAVOUR. MOTION CARRIED. 11.3 Request for Decision prepared October 31, 2023 – Community Development & Recreation – Private Street Maintenance Petition – Sherwood Forest Owners Association. Sylvia Dixon, Development and Planning Technician, reviewed the request of the Sherwood Forest Lot Owners Association, outlining that the association has selected a per lot method for the fee calculation and that the four properties owned by Gilbert Falkenham & Sons Ltd. be excluded. Staff is satisfied that requirements have been met. Council (continued) November 16, 2023 435 2023-487 MOVED by Councillor Church, SECONDED by Councillor Assaff that Council accept the Sherwood Forest Lot Owners Association petition package for private street improvement and maintenance and direct finance staff to implement a special tax for the affected accounts to take effect in the upcoming fiscal year. ALL IN FAVOUR. MOTION CARRIED. 11.4 Request for Decision – Infrastructure & Operations - Otter Point Wastewater Treatment Plant (WWTP) Upgrade. Fred Whynot, Director of Public Works, was present to review the Request for Decision regarding the Otter Point Wastewater Treatment Plant Wastewater Treatment Plant Upgrades. The lowest of the two bids received came in at just under $2.5 million, which is well over the budgeted amount of $1,057,500. The recommendation is for Council to reject the bids received for the Otter Point WWTP Upgrade and approve the project management with in-house resources – staff can do it in-house to determine design tweaks and direct purchase the system. The Municipality also has contractors on contract who can help us on site and other things can be done by using our procurement process. 2023-488 MOVED by Deputy Warden Shatford, SECONDED by Councillor Wells that Council: (a) Reject the bids received for the Otter Point Wastewater Treatment Plant Upgrade; and (b) Approve the project management of the Otter Point Wastewater Treatment Plant Upgrade with in-house resources. SIX IN FAVOUR. COUNCILLOR VEINOTTE ABSTAINED. MOTION CARRIED. Councillor Veinotte declared a Conflict of Interest and abstained from voting on the motion. 11.4 Church Memorial Park Update – Councillor Church. Councillor Church provided an update, noting that former CAO, Dan McDougall, has agreed to be the Treasurer for the Board and once they get the information from the auditors, they will have an AGM. They need the financial year end statements as of April 2023. Belliveau Veinotte has the statements and are hoping to complete the review soon. They are facing staffing shortages. The Request for Proposals (RFP) for the feasibility study has gone out and deadline is December 1, 2023 and they are hoping to award it in the new year. She will forward Councillors a copy of the RFP. They have also hired a new senior refrigerator and plant manager who will be starting Council (continued) November 16, 2023 436 in January. There was a problem with the clock in the ice rink and they were able to purchase a used one for $3,000, well below the price of $25,000 for a new one. It was also noted that they plan to form a Capital Campaign Committee. 11.5 Paving in Western Shore – NS Public Works and Bell – Councillor Assaff. Councillor Assaff noted that when he was at the Nova Scotia Federation of Municipalities (NSFM) Conference he spoke with a representative from NS Power about the paving that has not been completed in Western Shore. In short, both NS Power and NS Department of Public Works are saying that the other is responsible for the lack of proceeding with the work being done. He also spoke with the MLA. IN CAMERA There were no items for In Camera discussion. ADJOURNMENT 2023-489 MOVED by Councillor Church, SECONDED by Councillor Assaff that the meeting adjourn. ALL IN FAVOUR. MOTION CARRIED. (10:40 a.m.) _________________________ _________________________ Allen Webber Pamela Myra Warden Municipal Clerk NOTE: The minutes are a record of decisions made at meetings. For more details on discussions, a recording of the minutes can be viewed at: www.youtube.com/modcvideo. However, this meeting was not able to be streamed or recorded. MOTIONS FROM NOVEMBER 16, 2023 NOMINATING COMMITTEE MEETING FOR APPROVAL OF COUNCIL 2023-490 APPROVAL OF AGENDA/ORDER OF BUSINESS 2023-491 APPROVAL OF OCTOBER 25, 2023 MINUTES 2023-492 COUNCIL APPOINTMENTS TO COMMITTEES/BOARDS MOVED by Councillor Church, SECONDED by Deputy Warden Shatford that Council reappoint members of Council to the Committees/Boards as provided on November 16, 2023 with one change to appoint Councillor Veinotte to the Equity, Diversity, & Inclusion Committee in Councillor Assaff’s resignation from the Committee. COMMITTEE/ORGANIZATION PUBLIC TERM MEMBER Audit Committee 2 Years for Public Appointments All members of Council Sandra Dumaresq Heather McLeod Building Code & Unsightly Premises Committee N/A Councillor Connors Deputy Warden Shatford Chester Municipal Planning Advisory Committee 2 Years for Public Appointments District 1 – Leslie Taylor District 2 – VACANT District 3 – Hugh Harper District 4 – Lee Harnish District 5 – Nicholas Buckle District 6 – Margeson Reeves District 7 – Hassen Hammond Chair of Chester Village Planning Advisory Committee Councillor Church Councillor Assaff Chester Village Planning Advisory Committee 2 Years for Public Appointments Carol Nauss Sara Filbee Sydney Dumaresq COMMITTEE/ORGANIZATION PUBLIC TERM MEMBER VACANT Chair of Chester Municipal Planning Advisory Committee Village Commission – Nancy Hatch Councillor Wells Chester Volunteer Fire Service Committee Two 3-Year Terms and One 2-Year Term Kirk Collicutt (3 Years) Norman Countway (3 Years) James Robert (2 Years) Committee of the Whole N/A All members of Council Equity, Diversity, and Inclusion Advisory Committee 2-Year and 3-Year Terms Lorraine Burch – 3 Year Term David Broome – 3 Year Term Joud Alouch – 2 Year Term Robert Young – 3 Year Term Charlie McInnes - 3 Year Term Carol Millett – 3 Year Term Councillor Assaff Councillor Veinotte Council Connors Heritage Advisory Committee 1 Year Carol Nauss Tim Harris Barry Redmond Bunch Fraser Brenda Mulrooney Chester Municipal Heritage Society - Vacant Chester Municipal Heritage Society – Vacant Deputy Warden Shatford Councillor Assaff Landfill Citizens Monitoring Committee 2 Years for Public Appointments Brad Armstrong Herbert Fraser VACANT COMMITTEE/ORGANIZATION PUBLIC TERM MEMBER Robert Mitchell Councillor Church Councillor Veinotte Landfill Consultation Committee N/A Warden Webber RCMP Advisory Board 2 Years for Public Appointments Arthur Vardjas Terri DeMont Beverly Armstrong Warden Webber Councillor Connors Deputy Warden Shatford Provincial Appointment Recreation & Parks Committee 3 Years for Public Appointments (No more than 2 consecutive terms) District 1 – VACANT District 2 – Suzanne Brown 2nd Term District 3 – Brad Armstrong 2nd Term District 4 - VACANT District 5 – Ross Shatford 1st Term District 6 – Patricia Bates 1st Term District 7 – Kevin Marczak 1st Term Councillor Church Alternate – Councillor Wells Sherbrooke Lake Park Advisory Committee (2017-529/540) 3 Years for Public Appointments Hugh Harper Heather Dyment Councillor Connors Water Quality Monitoring Committee 2 Years Aspotogan Heritage Trust – Kathy Gamache COMMITTEE/ORGANIZATION PUBLIC TERM MEMBER Municipal PAC Appointment – Ross Shatford Fox Point Lake Owners Association – John McNeil Aspotogan Developments – Ged Stonehouse Technical Consultant – Amina Stoddard Deputy Warden Shatford Church Memorial Park Trustees 1 Year Councillor Church Community Use of Schools – ACES 1 Year Councillor Connors Warden Webber Deputy Warden Shatford Community Use of Schools – FHCS 1 Year Councillor Connors Warden Webber Councillor Assaff Fences and Arbitration Committee 1 Year By-Law Enforcement Officer Deputy CAO Alternate: CAO Lunenburg County Accessibility Advisory Committee 1 Year Councillor Assaff Alternate: Councillor Wells Lunenburg County Seniors’ Safety Program 1 Year Councillor Connors Region 6 Solid Waste Management Committee 1 Year Councillor Veinotte Regional Emergency Measures (REMO) 1 Year Warden Deputy Warden COMMITTEE/ORGANIZATION PUBLIC TERM MEMBER CAO/Deputy CAO Alternate: Councillor Wells South Shore Housing Action Coalition 1 Year Councillor Assaff South Shore Regional Library Board 1 Year Councillor Connors South West Regional Community Advisory Board (formerly Flight Engineering) 1 Year Councillor Wells Western Regional Crown Land Stakeholder Interaction Committee 1 Year Councillor Veinotte Zoe Valle Library Municipal Trustee 1 Year Councillor Wells ALL IN FAVOUR. MOTION CARRIED. 2023-493 ADJOURNMENT SafeGrad Donation: $600 Grace Brittain & Charlie McInnes What is SafeGrad? An event that takes place directly following the grade 12 graduation ceremony. Forest Heights students will go on a school bus to HB Studios in Bridgewater. Here, they will enjoy food and many community building activities all night. There will be a zero tolerance policy to any illegal substances, making it a safe and inclusive environment for all participating. The next morning, students will take the bus back to Forest Heights where teachers will serve them breakfast and connect with students before they embark on their next chapter. Environmental Club Receiving funds for a school bus impacts our environment, student wellness and community: a)Environmental impact: less emissions going into the atmosphere by car pooling b)Student Wellness: students won’t have to spend money to be part of the activity c)Equitable: fair opportunity for all students regardless of social standing to celebrate together Community Wellness a)Inclusivity: in a time where many LGBTQ+ community members feel excluded and unsafe, this celebration is a place of utmost respect and safety; zero discrimination policy is enforced by teachers & the student body b)Safety: student’s would be able to have safe ride home rather than driving sleep deprived; zero tolerance for any illegal substances on the bus or at the event c)Social Unity: by providing group travel to a community event, this provides a chance for us students to spend time together before we embark on our individual adult lives Receiving funds for a school bus impacts our community as the SafeGrad event will be inclusive, safe and foster social unity. SafeGrad Donation: $600 Grace Brittain & Charlie McInnes 2023-11-21 1 Infrastructure & Operations Quarter 1 Report 2023/24 Solid Waste 1 2 2023-11-21 2 Landfill Collection Update NOVA SCOTIA’S TREASURE RUNNING TOTALTONNAGE Q4TONNAGE Q3TONNAGE Q2TONNAGE Q1MATERIAL 30,773.820015,089.0115,684.81RESIDUAL WASTE (A) 5,569.09002,917.042,652.05SEPTIC WASTE (B) 665.4100350.4315.01WOOD (C) 693.6800404.38289.93ASPHALT (D) 984.9600531.33453.66ORGANICS (E) 430.7200230.47200.25RECYCLABLES, CARDBOARD & PAPER (F) 2,101.77001,097.891,003.88MIXED C&D WASTE (G) Solid Waste – Stats Solid Waste – Stats Volume in Cells (MT)YEAR 47,0622016/17 47,2362017/18 51,2792018/19 52,1822019/20 53,9442020/21 64,7482021/22 65,0892022/23 TBC2023/24 381,540TOTAL 54,506AVERAGE 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Annual Total Volume in Cells (MT) 3 4 2023-11-21 3 Solid Waste – Stats 2022-232021-222020-212019-202018-19 84,67278,38269,84466,07867,023Weigh In (Scale House) 65,08964,74853,94452,18251,279In Landfill (Cell) 19,58313,63415,90013,89615,744 Diverted Waste (From Cell) 23.13%17.39%22.77%21.03%23.49%% Diverted 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 2018-19 2019-20 2020-21 2021-22 2022-23 Diverted Waste Weigh In (Scale House)In Landfill (Cell) Diverted Waste (From Cell)% Diverted Solid Waste – Buildings & Structures Cell 3B - Now fully operational. 5 6 2023-11-21 4 Solid Waste – Administration •Draft Operations & Maintenance Manual for 2023/24 is complete and under review. •Draft Landfill Strategy has commenced. Asset Management & Sustainability 7 8 2023-11-21 5 AM & S – Programs Water Supply Lending As of November 2023, 26 loans have Program been issued since 2018/19. Clean Energy Financing As of November 2023, 3 active files Program for residential dwelling energy retrofits. Community Solar Program Viability of Kaizer Meadows as site for solar garden. AM & S – Grants •Sustainable Communities Challenge Grant o In progress •Municipal Capital Growth Program o In progress •Disaster Mitigation & Adaptation Fund o Awaiting decision •Community Climate Capacity Program o In progress •Housing Accelerator Fund o Awaiting decision 9 10 2023-11-21 6 AM & S – Asset Management •Defines the role of asset management in achieving strategic priorities and municipal core service delivery through sustainable capital, business, and operations & maintenance planning. •Provides clear, consistent, and current communication to all stakeholders regarding our AM practices. •Identifies and implements objectives to advance AM practices, plans, and continuous improvement processes. •Describes key roles and responsibilities, processes, tools, and resources in implementing AM practices throughout the Municipality. AM & S – Sustainability •Guides decisions and actions that support the social, economic and environmental needs of the Municipality’s residents, businesses, and organizations without compromising the ability of future generations to meet their needs. •Identifies options for systemic long-term environmental resiliency and sustainability in respect to climate, built environment, waste, water, and natural areas. •Defines sustainable service delivery as a means to deliver services for communities, economies, and the environment through infrastructure that emphasizes continuity, adaptability, and opportunity. 11 12 2023-11-21 7 Public Works cs for Public Works November 21, 2023 NOVA SCOTIA’S TREASURE Running TotalQ4Q3Q2Q1 Activity 30021 Sewer Permits Issued 109005851Sewer Callouts (S. Business) 10001EDU Increase 80071Utility Locates 00000Berthage Permits Issued 3070022384Compost Carts Delivered 20020Dead Marine Life Collected 130076Events Requiring Public Sort Station 10010Public Sorting Station Abuse Incidents 2210015863Maintenance Work Orders 80035Road Name Signs Installed 20002Streetlight Requests 00000Sidewalk Snow Removal Events 00000Mobile Radar Unit Deployments 40022Compliments Public Works – Stats 13 14 2023-11-21 8 Public Works – Village of Chester PERSON HOURSMONTHQUARTER 0January 4 0February 0March 0April 1 0May 0June 15July 2 23.5August 3September 0October 3 0November 0December 41.5Total Public Works – Roads Active Transportation - Construction underway on Hwy 3 (Sidewalks) Chester; Hubbards (complete); Chester Basin in 2024/25. Still awaiting NS Power to relocate power poles. 15 16 2023-11-21 9 Public Works – Roads Rapid Rectangular - Awaiting written NSDPW confirmation Flashing Beacons Speed Radar Signs - 4 signs approved by NSDPW New Ross, Hubbards, Chester, Chester Basin. J-Class Roads - List submitted in October Public Works – Wastewater Lift Stations & - Tender awarded. Break ground in Forcemains December. Chester Wastewater - Design of new plant underway. Treatment Plant Anticipated construction 2024/26. 17 18 2023-11-21 10 Public Works – Wastewater Otter Point Wastewater - RFP rejected. Treatment Plant Project being brought ‘in-house’. Public Works – Wastewater Mill Cove Fire - Consultant reworking prices to Protection decommission system; pending council approval. Wastewater Study - Workshop undertaken in October. Awaiting funding for Chester Basin WWTP relocation – spring/summer 2024. 19 20 2023-11-21 11 Public Works – Buildings & Structures Wild Rose - Work continues. Accessible Anticipated opening to public in spring 2024. Washrooms Harbour View - RFD in Q4 regarding disposal options. Lane Public Works – Buildings & Structures Building Security - Security specialist conducted walk-through. Options being discussed with staff. 21 22 2023-11-21 12 Public Works – Administration Staff - Infrastructure Systems Manager - Larry Hood 2x field staff hired. 1x vacancy currently posted. Two staff attended ACWWA wastewater conference in PEI. Public Works – Administration Staff - Asset Management & Sustainability Manager Jonathan Meakin 23 24 RECEIVED NOV 15 2023 Municipality of the District of Lunenburg 10 Allee Champlain Drive Cookville Nova Scotia Canada B4V 9E4 Administration Phone: 902.543.8181 Fax: 902.543.7123 Web Site: www.modl.ca November 9, 2023 Warden Allen Webber & Council Municipality of the District of Chester 151 King St PO Box 369 Chester NS BOJ 1JO Dear Warden Webber: RE: REMO 2023/24 Budget Variance Update At the October 31, 2023, Regional Emergency Management Organization (REMO) Advisory Committee meeting, the Committee passed the following motion: that the Regional Emergency Management Advisory Committee approve an additional 20,200 for the 2023/24 budget and recommend approval to the partner municipal units in accordance with Section 20 of the Inter -Municipal Agreement." Please find attached the breakdown of costs per individual unit based on uniform assessment. Please forward this budget variance update to your Council for consideration and approval. Once approved, please forward a copy of Council's motion approving the motion to Angela Henhoeffer, Municipality of the District of Lunenburg (angela.henhoeffer@modl.ca) for insertion on a future REMO agenda. Sincerely, Tom MacEwan Chief Administrative Officer Jgp Attach. cc: Angela Henhoeffer, REMC Background on REMO Budget REMO has for several years returned small operating surpluses to the partner units. Early evaluation of the current year's operating forecast suggests that this will not be the case for the 2023/24 budget year. There are a few factors combining to result in extra expenditures. First, the need for REMO responses, including the major flash flooding event in July have depleted the REMO contingency account. Second, to improve REMO's response capabilities, training for a large number of municipal staff is planned for this fiscal year, which will be provided in house to keep costs lower and to ensure the content is tailored to Lunenburg REMO, but this approach will still incur costs. Finally, we are anticipating changes to personnel costs according to MODL's salary administration and personnel policies. The estimated differences are summarized in the table below: Item Estimated Addition REMO Contingency 4,000 Municipal Staff Training 8,000 Personnel Costs 8,200 Proposed 2023/24 REMO Budget Variance The total approved budget for REMO in 2023/24 is set at $171,800. The additional anticipated cost for these three items comes to $20,200 or 12% of the total budget. The breakdown of costs per individual unit based on uniform assessment is provided below: Unit Percentage Amount Bridgewater 12% 2,505 Mahone Bay 3% 505 Chester 30% 61080 MODL 50% 10,080 Lunenburg 5% 1,030 Total 1 $ 20,200 1 Pam Myra (she/her) From:John MacDonald Sent:November 16, 2023 11:07 AM To:Pam Myra (she/her) Cc:Andre Veinotte Subject:Re: Bayswater Beach Attachments:PEZ Diagram 6.gif; 0_IMG_2722.jpg; IMG_2742.jpg; IMG_2782.jpg; IMG_2781.jpg Follow Up Flag:Follow up Flag Status:Flagged Good morning Pam & Andre, I am following up your May 17 email below and wondering if you have received a response from DNR? As an update on the situation on Bayswater Beach, we did meet with our MLA on the beach this past summer. She agreed that the black smelly material on the beach was most likely coming from the Saddle Island site but it was her understanding that the province was planning to restock the site anyway. Apparently they are planning to use their 2021 report that said (without evidence) that the black material on the beach was likely coming from the lake behind the beach as justification for this irresponsible plan. The Director of the Nova Scotia Life Guard Service has also raised this pollution issue with DNR, telling me this summer that the situation was "abnormal and unique to Bayswater Beach". See attached photos taken recently showing the abnormal conditions persisting on the beach. As you may be aware, there have been studies done including two funded by Chester Council that found no issues with the lake and no connection between the lake and the black material on the beach. Furthermore, a 2022 study by DFO found that the Exposure Zone around ONP Aquaculture sites can be as much as four kilometers, and Bayswater Beach is located approximately one Kilometer down current from the Saddle Island site. Please see the attached satellite photo showing the potential exposure zone at Bayswater Beach using data from the 2022 DFO study. This has been verified as valid by a retired DFO Sedimentologist who is considered a expert in this field. He has been to Bayswater multiple times and is convinced that the beach is being impacted. With multiple studies now refuting the NSDFA findings, the province still appears willing to use what now looks like internal disinformation to justify the continued pollution of a Provincial Beach Park in the Municipality of the District of Chester, and this is unacceptable! With the science-based evidence mounting, there can now be little doubt that Bayswater Beach is being impacted. This impact is having a negative impact on our community and this very busy and important Beach Park in the Chester Municipality. Therefore, I am asking Chester Council to write a letter to the Province requesting a moratorium on any further restocking of he Saddle Island site#1006 in Bayswater. Thank You, John MacDonald On Wed, May 17, 2023, 11:26 AM Pam Myra (she/her), <pmyra@chester.ca> wrote: Good morning, Mr. MacDonald. This is a follow-up regarding the Bayswater Beach issue. I had some difficulty getting information on exactly who should get the videos. The motion of Council and videos were sent to aquaculture, protected areas, and the MLA. I also spoke with Environment and finally DNR (who also have the videos). I was advised by DNR that they would follow up. I have no updates at this time but will send them along once I receive anything. Pam The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location. The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location. Pam Myra (she/her) Municipal Clerk/Director of Human Resources Corporate & Strategic Management 151 King Street, Chester, NS, B0J 1J0 Office: 902-275-4109 General Inquiries:902-275-3554 Cell: 902-277-1872 Web: www.chester.ca The linked image cannot be displayed. The file may have been mov ed, renamed, or deleted. Verify that the link points to the correct file and location. Consider the environment. Do you really need to print this email? District Grants 2023-2024 Updated November 23, 2023 Requested Approved Date Approved District 1 Community Centre: Parking Lot Repairs 3,000.00$ 3,000.00$ July 13, 2023 FHCS Prom Committee 300.00$ 300.00$ April 27, 2023 Parish of Blandford: Community Garden Box & Soil 200.00$ 200.00$ September 14, 2023 TOTAL FUNDS APPROVED 3,500.00$ TOTAL FUNDS REMAINING 6,500.00$ FHCS Prom Committee 300.00$ 300.00$ April 27, 2023 Hubbards & Area Business Association: Community Garden 1,000.00$ 1,000.00$ June 8, 2023 TOTAL FUNDS APPROVED 1,300.00$ TOTAL FUNDS REMAINING 8,700.00$ Chester Merchants Association: Chester Village Christmas Festival 500.00$ Chester Playhouse Society: Reopening Celebrations 2,000.00$ 1,000.00$ June 8, 2023 Chester Seaside Artisans & Farmers Market: Tents & Tables 2,000.00$ 500.00$ September 14, 2023 Church Memorial Park: Beer Garden 1,000.00$ 1,000.00$ August 3, 2023 FHCS Prom Committee 300.00$ 300.00$ April 27, 2023 TOTAL FUNDS APPROVED 2,800.00$ TOTAL FUNDS REMAINING 7,200.00$ FHCS Prom Committee 300.00$ 300.00$ April 27, 2023 Gray Grant Society: Forestry Management 4,000.00$ 4,000.00$ September 28, 2023 Royal Canadian Legion, Br. 88, Chester Basin: Operating Costs due to flood 1,000.00$ 1,000.00$ September 14, 2023 TOTAL FUNDS APPROVED 5,300.00$ TOTAL FUNDS REMAINING 4,700.00$ FHCS Prom Committee 300.00$ 300.00$ April 27, 2023 Royal Canadian Legion, Western Shore: 4 special events 2,500.00$ 1,850.00$ May 18, 2023 Royal Canadian Legion, Western Shore: Flower Pots at Wild Rose Park 660.00$ 660.00$ June 29, 2023 Together We Can Community Society: Flower Pots & Wreaths at Wild Rose Park 660.00$ 660.00$ June 29, 2023 Together We Can Community Society:Halloween, Xmas, Wreaths 1,800.00$ 1,690.00$ October 26, 2023 Western Shore & Area Improvement Association: Flower Pots at WRP 2,420.00$ 2,420.00$ June 29, 2023 Western Shore & District Fire Dept.: Flower Pots, Wreaths & Garden Party 2,420.00$ 2,420.00$ June 29, 2023 TOTAL FUNDS APPROVED 10,000.00$ TOTAL FUNDS REMAINING -$ Charing Cross Garden Club: 70th Anniversary &Flower Show 500.00$ 500.00$ June 29, 2023 Forties Community Centre: Oktoberfest 500.00$ 500.00$ Apirl 13, 2023 FHCS Prom Committee 300.00$ 300.00$ April 27, 2023 New Ross Community Care Centre: Community Engaagement Initiatives 2,000.00$ 2,000.00$ June 29, 2023 Royal Canadian Legion, Br. 79, New Ross: Canada Day & Remembranc Day 1,000.00$ 1,000.00$ June 29, 2023 Royal Canadian Legion, Br. 79, New Ross: Roof Project 2,000.00$ 2,000.00$ September 14, 2023 TOTAL FUNDS APPROVED 6,300.00$ TOTAL FUNDS REMAINING 3,700.00$ Bonny Lea Farm: 50th Anniversary BBQ at PIP 500.00 500.00 August 3, 2023 Chester Seaside Artisans & Farmers Market: Tents & Tables 2,000.00$ 500.00$ September 14, 2023 Chester Playhouse Society: Reopening Celebrations 2,000.00$ 1,000.00$ June 8, 2023 FHCS Prom Committee 300.00$ 300.00$ April 27, 2023 District 7 TOTAL FUNDS APPROVED 2,300.00$ TOTAL FUNDS REMAINING 7,700.00$ Total Funds Approved 31,500.00$ District Grant Budget 2023-2024 70,000.00$ Remaining Funds 38,500.00$ District 6 District 1 District 2 District 4 District 5 District 3 Es MUNICIPALITY OF THE DISTRICT OF CHESTER DISTRICT GRANT APPLICATION ^' Deadline to Apply: No deadline Name of Organization Chester Merchant Association Contact Person Jill Mattinson Position with Organization Treasurer Organization Mailing Address P O Box 951 Chester NS BOJ 1J0 Phone: Cell: Email: Slipcoversetcbyjill@gmail.com Date: Nov 22 2023 Signature of Signing Officer and position with Organization: Name: Jill Mattinson Position: Treasurer Endorsement (check box) I declare I am a member of the organization and have authority to submit this application. Note: Feel free to attach additional supporting documents if the space provided is not sufficient. AMOUNT REQUESTED: $ 500.00 MUNICIPAL DISTRICT # 3 1) Please provide a brief description of your project or event. The annual Chester Village Christmas festival is facilitated by The Chester Merchants Association. This year we are very fortunate to have Lorraine Burch, former Director of the OHC, on board to coordinate the activities and the many volunteers. The Festival included activities such as the Gingerbread Contest with a Folk Art theme, the Fun Run through the Village, the Family Fun Fair at the Art Centre and the Celebration of Trees held at the Captains House. The festival is held over 3 day from November 24-26. Page 1 of 2 2) How do you plan on spending your District grant funds? Events are sponsored individually by various business but advertising and decorating of the venues and streets is from our account. The District Grant of $500 will cover the cost of advertising on Cove FM radio I.e. 30 seconds spots during the lead up to the festival and during the weekend. Our total budget of $6,500 is met by donations and grants to support the activities. 3) Please describe the positive effects your project will have on the community and how it supports the Municipal Strategic Priorities Framework (to view the Priorities document click the attached link or copy and paste it in your browser.) https://portal.laserfiche.ca/Portal/DocView.aspx?id=1236847&repo=r-0O01f4a08362 or Google `Municipality of Chester Strategic Priorities'. The festival brings the community together through volunteering at the various events and participating in the festivities. The Strategic Priorities are met by benefiting the residents of the Municipality and the local merchants by bringing addition customer traffic to the Village. 4) If you have previously received any grants from the Municipality, have you submitted the Final Report? Yes ✓ No If No, please submit your Final Report as soon as possible. 5) Who should the cheque be made payable to and what address should we send it to if different from Page 1? Please email a pdf version of your application to: recreation@chester.ca OR mail a hard copy to: Recreation & Parks Services Municipality of the District of Chester 186 Central Street, PO Box 369 Chester NS BOJ 1J0 If you have any questions, please call us at 902-275-3490. Page 2 of 2 REQUEST FOR DECISION REPORT TO: Municipal Council MEETING DATE: November 30, 2023 DEPARTMENT: Community Development & Recreation SUBJECT: Capital Grants Program Review ORIGIN: Council Direction Date: November 23, 2023 Prepared by: Chad Haughn, Director of Community Development & Recreation Date: Authorized by: Tara Maguire, CAO RECOMMENDED MOTION It is recommended that Council review the capital grants guidelines and provide direction for changes. CURRENT SITUATION During the Spring review of grants, Council expressed interest in reviewing the small capital grant. It was identified that there are community groups that have capital projects that do not fit within either of the current Major Capital or Small Capital grant options and therefore perhaps changes should be made to the guidelines. DISCUSSION The previous consensus of Council is that no changes be made to the existing Major Capital Grant. As a reminder, the Major Capital Grant covers up to a maximum of 70% of a large capital project budget and the funding amount can be between $10,000 and $100,000. The project must either be related to a new facility or expand the capacity of an existing facility, but building maintenance and repair are not eligible. The current Small Capital Grant has a maximum funding amount of $10,000. The purpose is to support groups that have minor capital equipment needs. The preference is for the group to have other sources of funds as part of their project budget; however, Council could fund up to 100% of a project. The identified gap is community organizations that have projects that do not fit either of the current capital grants. For example, groups needing to conduct major repairs to their facility such as a roof replacement. Funding for the Small and Major capital grants comes from Wind Reserve: 1/3 Community Development. In the 2023-24 budget, the Major Capital budget was $250,000 and the Small Capital budget was $25,000 for a total of $275,000. OPTIONS 1. Increase the maximum amount of funding under the Small Capital Grant. The increase in funding would provide additional funding for projects that have larger budgets but that do not fit the criteria for Major Capital grant. The new amount is up to Council but could be in the range of $20,000 - $30,000 or another amount agreed upon by Council. Note – if the amount of eligible funding is increased for the Small Capital Grant, Council should also consider changes to the total budget. R e q u e s t f o r D e c i s i o n P a g e | 2 2. Although Council indicated that the preference is for no changes to the Major Capital Grant, another option for consideration is to expand the project eligibility criteria for the Major Capital Grant. 3. Make no changes to the capital grant programs. IMPLICATIONS By-Law/Policy Council is able to provide grants to groups as outlined in the Municipal Government Act. Further to this, the MOC Small Capital and Major Capital Grant Guidelines are used to determine eligible groups, projects and funding details. Financial/budgetary Any changes to the amount of eligible funding in the capital grant program would be made during 2024-25 budget deliberations. Environmental NA Strategic Priorities Providing capital grants to community groups will assist the Municipality in advancing the following Priority Outcomes of the 2021-24 Strategic Priorities Framework: Priority Outcomes: Healthy & Vibrant Communities 1. Ensure residents have access to facilities, natural assets, programs, and services that enrich a quality of life and provide safe communities for residents and visitors alike. Work Program Implications There will be no significant impact on work program, any changes made now to the grant program will be implemented for the upcoming fiscal year. Has Legal review been completed? ___ Yes _ _ No _X_ N/A COMMUNICATIONS (INTERNAL/EXTERNAL) The current deadline for capital grants is January 31st so any changes to the guidelines will need to made immediately so that those changes can be communicated to community groups. Changes to the grants program would be advertised and notice sent directly to local community groups. ATTACHMENTS Copies of the current Small Capital and Major Capital Grant Guidelines. Page 1 of 2 MUNICIPALITY OF THE DISTRICT OF CHESTER ~ SMALL CAPITAL GRANT ~ GUIDELINES The purpose of the Small Capital Grant is to provide financial assistance to community organizations to enhance their ability to operate a quality community facility or to better serve members of the public. This funding opportunity is intended to support minor capital projects, such as, improvements to facilities or purchase of equipment that will expand the capacity of the organization. Eligible Applicants ▪ You must be a non-profit organization, or otherwise comply with the requirements of the Municipal Government Act for eligibility for a grant or contribution by a Municipality (Section 65(AU). ▪ Your primary purpose must be to operate, sponsor or encourage programs, activities, or facilities within the Municipality of the District of Chester. ▪ Council may make eligibility exceptions on occasion when deemed appropriate. Ineligible Applicants ▪ Churches / faith-based organizations. ▪ Private member-based organizations, whose primary focus is to serve its members. Eligible Projects ▪ Projects must be capital in nature. ▪ Regular operating costs, maintenance costs or general repair work is not eligible. ▪ Only expenses incurred after an application is submitted are eligible to be included in the project. ▪ It is always advisable to consult with the Recreation & Parks Services prior to submitting an application to ensure your project is eligible for this particular grant. Funding ▪ The maximum funding request is $10,000 per application. ▪ Council looks favorably at applications that include funding from other sources (i.e. grants from other levels of government, in-kind contributions and fundraising efforts). ▪ Council will review all applications and determine the funding level for each project. Page 2 of 2 Application Procedure ▪ Applications must be submitted by January 31st. ▪ Organizations must complete the Small Capital Grant Application form. ▪ You may attach a separate document if there is insufficient space on the form for your response to each question. ▪ The application form must be completed in full and have appropriate signatures. ▪ If organizations have questions about the application form or would like to receive assistance to complete the form, please contact Recreation & Parks Services at 902-275-3490 or by email at recreation@chester.ca. ▪ After a project is complete, organizations are required to complete and submit a Final Report Form to indicate how the funds were spent. Evaluation Applicants will be reviewed and evaluated based on the following: ▪ Grant criteria have been met. ▪ Demonstrated positive community impact. ▪ The organization has shown a financial need for grant funding. ▪ Alignment with the Municipality’s strategic priorities. Grant Recognition The Municipality of Chester encourages appropriate recognition as a funding partner of approved projects. Note: The amount of grant funding available is limited. Council reserves the right to approve funding amounts lower than requested. Council also reserves the right to reject any grant application, regardless of whether the criteria have been met. Page 1 of 2 MUNICIPALITY OF THE DISTRICT OF CHESTER ~ MAJOR CAPITAL GRANT ~ GUIDELINES The purpose of the Major Capital Grant is to provide financial assistance to community organizations that are undertaking a major community capital project. These projects may include the construction of a new facility, expansion of an existing facility or purchase of large capital items. Eligible Applicants ▪ You must be a non-profit organization, or otherwise comply with the requirements of the Municipal Government Act for eligibility for a grant or contribution by a Municipality (Section 65(AU). ▪ Your primary purpose must be to operate, sponsor or encourage programs, activities, or facilities within the Municipality of the District of Chester. ▪ Community Trail Groups are eligible for funding providing they own the land or have an easement or license for the land where the trail is located. ▪ Council may make eligibility exceptions on occasion when deemed appropriate. Ineligible Applicants ▪ Churches / faith-based organizations. ▪ Private member-based organizations, whose primary focus is to serve its members. Eligible Projects ▪ Projects must be capital in nature such as new building construction, expansion of existing buildings or renovations. ▪ Facility renovations or upgrades must enhance your service. ▪ Regular operating costs, maintenance costs or general repair work is not eligible. ▪ Only expenses incurred after an application is submitted are eligible to be included in the project. ▪ It is always advisable to consult with the Recreation & Parks Services prior to submitting an application to ensure your project is eligible for this particular grant. Funding ▪ The minimum funding request is $10,000. ▪ The maximum funding request is $100,000 per application. ▪ Council will fund up to a maximum of 70% of the total project budget. Groups must secure the remaining 30% from other sources, a minimum of 10% must be cash. ▪ Organizations are only eligible to receive one major capital grant every two years (24 months). ▪ Council will consider multi-year funding requests. No additional funds will be allocated to multi- year requests, the maximum funding of $100,000 applies. Once a total grant amount is approved, funding can be dispersed over multiple years to meet the unique financial needs of a project. For example, an approved multi-year grant for $50,000 could be paid out with $25,000 in year 1 and $25,000 in year 2. Page 2 of 2 ▪ If your organization has received multi-year funding, you are only eligible to reapply after two years from the time the last payment is issued. ▪ Council will review all applications and determine the funding level for each project. Application Procedure ▪ Applications must be submitted by January 31st. ▪ Organizations must complete the Major Capital Grant Application form. ▪ You may attach a separate document if there is insufficient space on the form for your response to each question. ▪ Proposed work must comply with all applicable Municipal, Provincial and Federal regulations and you must own or have a long-term lease with the facility. ▪ The application form must be completed in full and have appropriate signatures. ▪ If organizations have questions about the application form or would like to receive assistance to complete the form, please contact Recreation & Parks Services at 902-275-3490 or by email at recreation@chester.ca. ▪ After a project is complete, organizations are required to complete and submit a Final Report Form to indicate how the funds were spent. Payment Schedule ▪ 75% of the total approved grant will be distributed at the beginning of the project. The remaining 25% will be distributed at the end of the project, once the Final Report has been submitted. Evaluation Applications will be reviewed and evaluated based on the following: ▪ Grant criteria have been met. ▪ Demonstrated positive community impact. ▪ The organization has shown a financial need for grant funding. ▪ Alignment with the Municipality’s strategic priorities. Grant Recognition The Municipality of Chester encourages appropriate recognition as a funding partner of approved projects. Note: The amount of grant funding available is limited. Council reserves the right to approve funding amounts lower than requested. Council also reserves the right to reject any grant application, regardless of whether the criteria have been met. REQUEST FOR DECISION REPORT TO: Council MEETING DATE: November 30, 2023 DEPARTMENT: Infrastructure & Operations SUBJECT: Municipal Capital Growth Program Grant ORIGIN: Strategic Priorities (Wastewater Strategy) Council Motions 2022-548 & 2022-549 Date: November 24, 2023 Prepared by: Jonathan Meakin, Manager, Sustainability & Asset Management Fred Whynot, Director of Public Works Date: November 24, 2023 Reviewed by: Matthew Blair, Director of Infrastructure and Operations Date: November 24, 2023 Authorized by: Tara Maguire, CAO RECOMMENDED MOTION That Council approve the following Resolution in support of the Municipality’s application to the 2023- 24 Municipal Capital Growth Program (MCGP): BE IT RESOLVED THAT the Municipality of the District of Chester submit the project titled Chester Basin Wastewater System Expansion and Climate Change Adaptation Project for funding to the 2023-24 Municipal Capital Growth Program (MCGP); and BE IT FURTHER RESOLVED THAT Council supports the project and commits to provide its share of at least 50% or $2,228,470 (net HST) of the estimated $4,456,940 (net HST) total eligible project cost. CURRENT SITUATION On November 1, 2023, the provincial government announced a new grant program, the Municipal Capital Growth Program (MCGP), which is designed to “provide investments for capital municipal infrastructure to service Nova Scotia’s growing population while supporting provincial priority areas”. Staff discussed possible projects for submission to MCGP with Council during a workshop on November 23, 2023. Following that discussion, staff now seek Council’s Resolution supporting the project and estimated costs as part of a complete MCGP application due on December 13, 2023. BACKGROUND Municipal Capital Growth Program (MCGP) The MCGP supports capital infrastructure projects that contribute to municipal growth and long-term sustainability. This new grant program was announced on November 1 and the Department of Municipal Affairs and Housing held an online information session on November 14. The MCGP has a total program budget of $32M for submissions from all municipalities and may fund up to 50% of eligible costs for a successful application. R e q u e s t f o r D e c i s i o n P a g e | 2 Applications must be for a new project, or a phase of a project not yet started, in one of the following project categories:  water and wastewater systems (construction, expansion, or renewal)  accessibility (capital projects, including sidewalks and active transportation)  brownfield redevelopment (including remediation & extension of services to such sites)  climate change adaptation (capital projects from climate risk assessments; coastal and inland flooding adaptations; emergency preparation, such as generators, water storage) The scope and outcomes of an eligible MCGP project must include completed construction of infrastructure or acquisition of eligible equipment. The project must be completed by March 31, 2026. Status of Chester Basin Wastewater System The Chester Basin Wastewater Treatment Plant (WWTP) is currently at capacity, uses chlorine for disinfection (with no de-chlorination), and treats wastewater from eight (8) equivalent dwelling units (EDUs). In addition, the increased frequency and intensity of storm events, storm surges, and coastal flooding causes tidal inundation in the chlorination chamber, which results in improperly treated effluent. As an asset at the end of its useful life and located at a site vulnerable to the impacts of climate change, the Chester Basin WWTP faces heightened risk of failure and service disruption. The renewal and rehabilitation of the Chester Basin wastewater system is informed by several critical actions:  Council discussed a number of recommendations from the Wastewater Service Study (2022) during its December 22, 2022 meeting. Two Motions resulted from that discussion: Motion 2022-549 approved a series of next steps for each wastewater system, and Motion 2022-548 prioritized action for critical upgrades to the Chester Basin wastewater system.  In April 2023, staff issued an RFP Chester Basin WWTP: Site Selection, Technology, and Probable Costs. This resulted in two reports: a conceptual design report for a new Chester Basin system, and a flood risk analysis report of the existing system. These reports informed the Municipality’s submission to the federal Disaster Mitigation and Adaptation Fund grant program and will also provide information for the MCGP submission. DISCUSSION During the November 23, 2023 workshop, discussion resulted in the selecting the Chester Basin Wastewater System Expansion and Climate Change Adaptation Project for submission to the MCGP. Details of this project include:  An overall objective of increased flood resilience of critical wastewater infrastructure in Chester Basin, while providing an improved and expandable treatment facility. R e q u e s t f o r D e c i s i o n P a g e | 3  Relocation and construction of a new Wastewater Treatment Plant (WWTP) above the coastal flood risk zone to protect the facility from sea level rise and storm surge, which will reduce the risk of infrastructure damage and service disruption.  Upgrades and floodproofing to the existing lift station to protect the asset from flooding, as well as construction of a new forcemain from the rehabilitated lift station to the new location of the WWTP since the plant will be located at a higher elevation and require pumping of the influent to reach the required plant hydraulic grade line.  The design of the new WWTP will have an increased capacity to allow for more service connections in the short- and long-term. A larger and expandable WWTP will accommodate new development opportunities in the area and provide service options to existing properties currently serviced by septic systems that are ageing and/or situated within the coastal flood zone. The Chester Basin Wastewater System Expansion and Climate Change Adaptation Project will meet several MCGP outcome indicators, notably:  Projects identified in climate hazard/risk assessment (Y/N)  Increased # of properties with access to municipal wastewater system  Increased capacity to collect and/or treat wastewater (m3 per year) In July 2023, staff submitted an application to the federal Disaster Mitigation and Adaptation Fund (DMAF) grant program. DMAF invests in public infrastructure to mitigate the potential economic, environmental, and social impacts of climate change, and to strengthen community resilience to disasters triggered by natural hazards and extreme weather events. DMAF grant application results are anticipated late spring/early summer 2024. The estimated project costs submitted to DMAF amount to:  $7,122,670 (design, construction, materials, contingency)  $8,191,071 (HST included)  $7,428,232 (net HST) – eligible costs total The Municipality’s eligible project costs submission to the MCGP is the 60% formula share of the DMAF eligible costs total = $4,456,940 (net HST). A successful MCGP grant could result in up to 50% of those costs = $2,228,470 (net HST). OPTIONS  Option 1 – Approve and adopt the Resolution as drafted to complete the Municipality’s application to the 2023-24 Municipal Capital Growth Program for the Chester Basin Wastewater System Expansion and Climate Change Adaptation Project. R e q u e s t f o r D e c i s i o n P a g e | 4  Option 2 – Do not approve and adopt the Resolution, and direct staff to either develop a different Municipal Capital Growth Program project application for the December 13, 2023 deadline or decline to submit an application. IMPLICATIONS By-Law/Policy N/A Financial/budgetary Any proposed Chester Basin Wastewater System capital projects are currently unbudgeted items. Council will need to consider budget options for such projects for the 2024-25 Capital Budget pending the results of both the MCGP and DMAF grant submissions. Environmental The Chester Basin Wastewater System Expansion and Climate Change Adaptation Project will be an important step addressing climate resilience and sustainable service delivery. Strategic Priorities The MCGP grant submission in support of the Chester Basin Wastewater System Expansion and Climate Change Adaptation Project will assist the Municipality in advancing the following Priority Outcomes of the 2021-24 Strategic Priorities Framework: Priority Outcomes: Environmental Stewardship 3. Support environmental conservation & protection initiatives and efforts to tackle the impact of climate change. Priority Outcomes: Healthy & Vibrant Communities 1. Ensure residents have access to facilities, natural assets, programs, and services that enrich a quality of life and provide safe communities for residents and visitors alike. Priority Outcomes: Infrastructure & Service Delivery 1. Develop and implement evidence-based plans for future infrastructure and service needs, along with related funding models, to accommodate sustainable growth and levels of service. Work Program Implications The MCGP project grant will inform a number of priority work programs for staff in the Department of Infrastructure & Operations. Has Legal review been completed? ___ Yes _ _ No _X_ N/A COMMUNICATIONS (INTERNAL/EXTERNAL) N/A ATTACHMENTS N/A REQUEST FOR DECISION REPORT TO: Municipal Council MEETING DATE: November 30, 2023 DEPARTMENT: CD&R/Finance SUBJECT: Private Street Maintenance Petition ORIGIN: Lakewood Drive Community Road Association Date: November 22, 2023 Prepared by: Sylvia Dixon, Development & Planning Technician Date: November 22, 2023 Reviewed by: Tim Topping, Director of Finance Date: Authorized by: Tara Maguire, Chief Administrative Officer RECOMMENDED MOTION It is recommended that the Municipal Council accept the Lakewood Drive Community Road Association petition package for private street improvement and direct finance staff to implement a special tax for the affected accounts to take effect in the upcoming fiscal year. CURRENT SITUATION The Lakewood Drive Community Road Association requests that the Municipality collect street maintenance and improvement fees on behalf of their association. The Lakewood Drive Community Road Association is registered with the Nova Scotia Registry of Joint Stock Companies under the Societies Act (Registry ID 4478926). The association has submitted supporting documentation found in the attachment of this report. BACKGROUND The Lakewood Drive Community Road Association has requested that the Municipality collect street maintenance and improvement fees on behalf of their association. These fees will be used for year-round maintenance for the improved access for the property owners. The Lakewood Drive Community Road Association has submitted a maintenance and improvement budget for 2024/25 of $22,000 to be calculated by the “Per Lot” method as described in the Private Street Improvement & Maintenance By-Law. A petition has been circulated to determine if support exists to implement this fee, collected by the Municipality of the District of Chester as a special tax, to cover the private street maintenance and improvement. Based on the signed and returned petitions, sufficient support has been received to proceed. As per the Private Street Improvement & Maintenance By-law, 67% of property owners, who also represent 67% of the land in the affected area (see attached map) must provide positive responses to the petition. There are ninety-five (95) properties within the affected area along the Lakewood Drive, Maple Point Crescent, and Short Road. Sixty-six (66) properties have had positive responses, which represents 69.5% of the total affected properties. These properties represent 94.5% of the affected area. Staff are satisfied that the required support has been proven by the signed petitions, found in the attachment of this report, and that these owners represent the required percentage of land within the affected area. A summary spreadsheet of the affected properties can be found below. R e q u e s t f o r D e c i s i o n P a g e | 2 Owner(s) PID AAN Signed Petition 3338947 Nova Scotia Limited 60101961 08154481 No 4407678 Nova Scotia Limited 60101896 04464869 No 4407678 Nova Scotia Limited 60101904 01617761 No 4407678 Nova Scotia Limited 60101912 01608509 No 4407678 Nova Scotia Limited 60478203 09478485 No Alain Sylvio Gravel & Christine Patricia May Gravel 60101995 02311054 Yes Allison Flemming & Derek Martin 60102134 09179526 Yes Allison Flemming & Derek Martin 60478559 04169425 Yes Amanda V Landry & Peter H Sellhorn 60101920 04432428 No Anthony Blom 60101615 08176345 Yes Anthony Blom 60101623 08176353 Yes Cameron J Senger & Michele D Senger 60478161 09478450 Yes Cheryl Louise Cleary 60478104 06117856 Yes Cheryl Lynne Selig 60101946 00632821 Yes Christopher H Whynacht & Tanya R Whynacht 60101706 00111554 Yes Christopher M Hayes & Shawna M Penny 60102126 05049814 Yes Christopher M Hayes & Shawna M Penny 60478237 09478515 Yes Darren Adams 60101656 08153892 Yes David Coldham & Lorraine Coldham 60101789 00471496 Yes David Coldham & Lorraine Coldham 60101797 00471518 Yes David J Hart & Daniele L Hart 60478112 09478388 No David Morse 60478567 08153884 Yes David P Cawthra & Kelly R Cawthra 60101649 08170606 Yes David T Hillier & Debra W Hillier 60602232 04220862 Yes Deborah J Whitzman & Martin P Whitzman 60102050 01936824 Yes Deborah L Crummey & Frederick R Crummey 60101771 03910385 Yes D E. Radford, Gregory J. Radford, Terence V. Gallagher, Mary S. Radford 60101532 08220255 Yes Elizabeth Marie Hughes 60101938 03222748 Yes Emily L Bartlett & James L Francis 60102142 05717558 Yes Erin P Haysom & Matthew W Haysom 60102092 04681401 No Glenda L Long & Kristopher Philip J Long 60101821 05049334 Yes Gregory R & Julian J Little 60101698 02373785 Yes James W Hart 60470358 08160880 No Jane Wright & Norman Greenberg (new property owner of this PID) 60655123 10077761 Yes Jane Wright & Norman Greenberg 60478088 09186506 Yes Janet Lester & Wendell Lester 60101862 05272777 Yes Jason Bentley Nickel 60101631 08182442 Yes Jennifer Greenwood & Austen Robert Hughes 60101987 01552171 Yes Jennifer Greenwood & Austen Robert Hughes 60655149 10077788 Yes Jennifer Greenwood & Austen Robert Hughes 60655156 10077796 Yes Jennifer M Breakspear & Jeffrey G Crummey 60102019 02835029 Yes Jessica Vandorpe & Dawson Wambolt 60655131 10077771 No Joan E Kelly 60101888 08180199 No John L Hughes & Joanne V Hughes 60101672 08177619 Yes Jonathan D Waye & Stephanie M Waye 60102001 00172057 No Josh Adam Riley 60655115 10077753 Yes Karen A Kerr & Rodney R Kerr 60101979 03898121 Yes Kathleen Naylor & Jody Conrad 60478138 08233772 Yes Kevin F Carter & Leanne J Carter 60101714 01493299 Yes R e q u e s t f o r D e c i s i o n P a g e | 3 Laura M Harker-Paul & Colin W Paul 60102068 03244407 Yes Lee-Ann Brown-Laverie & Glen Jesso 60101870 02326248 Yes Luella F Hiltz 60102159 06215173 No Mardo Construction Ltd 60418290 03021998 Yes Mardo Construction Ltd 60645470 09874399 Yes Mardo Construction Ltd 60645488 09874402 Yes Mardo Construction Ltd 60645496 09874410 Yes Mardo Construction Ltd 60645504 09874429 Yes Mardo Construction Ltd 60645512 09874437 Yes Mardo Construction Ltd 60655164 10077801 Yes Melissa Marion Ann Macinnis 60684339 10424666 Yes Michael & W Melissa Hernon 60101755 01997831 No Michael Gillan Limited 60101847 03340635 No Michael Gillan Limited 60101854 01309919 No Michael John Hugh Gillan 60101722 02373807 No Michael John Hugh Gillan 60470374 09478523 No Michael John Hugh Gillan 60470416 09478566 No Michael John Hugh Gillan 60470424 09478574 No Michael John Hugh Gillan 60470432 09478582 No Michael Scott Burke 60101763 04323521 Yes Patricia A Boutilier, Wade S Boutilier, Shane D Boutilier, Sheldon B Boutilier 60101607 06269931 Yes Paul A Clarke & Jaime V Wombolt 60101748 00570036 No Randy E & Valarie D Birch 60478245 08219664 Yes Randy E. Birch & Valerie D. Birch (new property owner of this PID) 60102084 03340627 Yes Randy E. Birch & Valerie D. Birch (new property owner of this PID) 60478252 09478426 Yes Robert Andrew Armstrong 60478260 08219451 Yes Robert Andrew Armstrong 60505245 04588215 Yes Robyn E Albers & Jonathan D Fulton 60101953 02340275 Yes Robyn E Albers & Jonathan D Fulton 60478526 02340275 Yes Roy Strickland 60101599 08174180 Yes Shawn F Rafuse & Ayreen L Trinidad 60613270 09478302 No Sheldon T Harper & Wesley S Harper 60101813 00463329 Yes Stephanie J Beaton & Laura K Whitehouse 60101839 05050073 Yes Stephanie J Beaton & Laura K Whitehouse (new property owner of this PID) 60101680 05049342 Yes Stephen Douglas Hume 60101730 01581708 No Stephen Douglas Hume 60470382 09478531 No Stephen Douglas Hume 60470390 08239487 No Stephen Douglas Hume 60470408 09478558 No Terence Vincent Gallagher 60101664 08176698 Yes Terrence E Ferguson 60102076 08222088 Yes Terrence E Ferguson 60478542 04813197 Yes Victor John Anderson 60102027 06091482 No Wendell H Lester & Elizabeth K Schmidt 60102100 04824326 Yes Wendell H Lester & Elizabeth K Schmidt 60102118 04824334 Yes Wendell Harry Lester 60470366 08193614 Yes William Elder Webber 60101565 08148112 No R e q u e s t f o r D e c i s i o n P a g e | 4 DISCUSSION The criteria required within the Private Street Improvement & Maintenance By-law #72 submitted by the Lakewood Drive Community Road Association can be found in the attachments for review and consideration by Council. At this time, staff recommend that Council accept the signed petitions and direct Finance Staff to implement the street maintenance fee requested by the Lakewood Drive Community Road Association. OPTIONS 1. Municipal Council can approve the request and accept the petition package for private street maintenance and direct finance staff to implement a special tax for the affected accounts. 2. Municipal Council can decide not to approve the request. Collection of fees to maintain the private street will remain solely with the private landowners. 3. Municipal Council can defer making a decision and require additional criteria or information. IMPLICATIONS By-Law/Policy Private Street Improvement and Maintenance By -Law No. 72. Financial/budgetary As noted in the section 4 of the Private Street Improvement & Maintenance By-law #72, the total amount of the special tax levied by the Municipality under this By-Law shall not exceed the cost of the street improvements and/or maintenance plus interest and an administration charge of five percent (5%). The Association has submitted a maintenance budget for 2024/25 of $22,000 to be calculated by the “Per Lot” method as described in the Private Street Improvement & Maintenance By-Law. A copy of the budget can be found below. R e q u e s t f o r D e c i s i o n P a g e | 5 Environmental N/A Strategic Priorities The private road maintenance area rate fees will assist the Municipality in advancing the following Priority Outcomes of the 2021-24 Strategic Priorities Framework: Priority Outcomes: Infrastructure & Service Delivery 1. Develop and implement evidence-based plans for future infrastructure and service needs, along with related funding models, to accommodate sustainable growth and levels of service. 2. Create efficiencies through innovative service delivery, and proactive maintenance and operations of existing infrastructure. Work Program Implications N/A Has Legal review been completed? ___ Yes _ x_ No __N/A COMMUNICATIONS (INTERNAL/EXTERNAL) R e q u e s t f o r D e c i s i o n P a g e | 6 ATTACHMENTS 1. Location map 2. Lakewood Drive Community Road Association Certificate of Incorporation with Registry of Joint Stock Companies 3. Lakewood Drive Community Road Association annual general meeting minutes 4. Form A and petitions signed by property owners 5. Private Street Improvement & Maintenance By-law #72 Electronically signed by: Office of the Registrar of Joint Stock Companies Date: 05 January 2023 08:41 AST Location: Nova Scotia, Canada Contact: rjscpa novascotia.ca Certificate of Incorporation Societies Act Registry ID Name of Society 4478926 LAKEWOOD DRIVE COMMUNITY ROAD ASSOCIATION hereby certify that LAKEWOOD DRIVE COMMUNITY ROAD ASSOCIATION was incorporated under the Societies Act and that the liability of the members is limited. 9 Registrar of Joint Stock Companies December 22, 2022 Date of Incorporation NOVA SC OQ1 N L } c v o v ' Ln cC U) L NQ ro 4Ln m a) Z3 Uc U ' n O 4 O () V L i L N a 4 rU 0 U 0 a) a 4- C UQ O C + 4-- 0 U () U f2 O O LnLn L Q 0- ro a) O a a) a) a) 4- O Ln O O a) +' C U O O N U O Q a) O T i L O 4- Q. L m O 0 L O +, L Y L O J N E a, v 41 C O N O U rUO Up c 3 - L 0 u Y . 04- T T a) ) Q 0- oO O a) 0 0- L r v a) 0 L L O a) + - i O O D a . N ai aic a) U U a) 0 D Q . 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L 1l aJ ct L Y aJ m t Ln aJ Ln S i aJ 00 t Y aJ M - c I, aJ r- aJ 00 - C Y aJ M L aJ r- 1 L aJ O t J U N U J U r- I U ct U 1 U ri U U J U 00 U 00 U O Lf1 M w 01 O M al 00 O O w T Ln N al M O M Ol N N al L( 1 Ln N 00 00 Ct I, M 00 Llj ri 00 r- 1 M r- I r- I O 1 O I O O r, O e i O O it O I, Lf1 r- I 1- 1- 1 LD r- I 11 r- I Cf O O O O O O O O O O O LD W w LD LD w l0 LD lD lD LD O 0 N Y aDC aDc C m C m J m O O I Y aJaj aJ m C C A 7 7 L L O O Q a i c 72 2 2 n L O Vf LAm Ln 3 3 aJ VI Q maJ m roTb LaJ L aJ 0 L m m aj 0 0 O Q Q W W U u- ' O c C 0 C C C C CU c co c cO N 3 CU L v n y aj s a _ t am aa aaJ 0 0 0 0 W LL. 0 0 Cc' LL. 0w VI H t m Ln 2 Jv1 Lo to cn 04- 0o a eDma 0 0 0 0 0 0 0 0 0 z z z z z z z z z au' i a0i atAi aLni aJ auli v a) a i L LQ L L0 L C 0 C 0 C 0 O O 0 m L O m L m L O m L m L O m 0 L 0 U v C7 a) ( 7 0 7 a) U C7 a) C7 0 7 0 C7 o a 3 4 a) 41 le o 3 ++ M y 3 J v 3 ° JY v v YVI a) Ib L J01 a Ln L J1 aJ O L Y a) m . L JLn aJ vi Ct L Y a) m - C Lr) aJ M L Y a) Ib L Ym aJ J L 1 U Ln U M U J U N U J U M U J U 01 U 00 w d' N O W Lnw p 11 rq 0000 ON N N O H C) O O OO O O lO0 lO0 k. 0 COO tOo COO tO0 tO0 COO 41 L aJ aJ a) L Lm Lm C C 0 NW N ai cli 55 yy Wyy 0 m b0 bq a a) U J J ba aJC LLaL) LLL CQ LAJaj NJ aJ W w S S 4- S W a) U L C N a) o L p aa m v ai i i U a) Jj aJ Jj aa)) ai 0 00rqa) Woo_ NAMES AND SIGNATURES OF PROPERTY OWNERS: NAME Pin CIVIC ADDRESS SIGNATURE 3338947 Nova Scotia limited 60101961 Lakewood Or, Chester Grant 4407678 Nova Scotia Umited 6010191! Lakewood or, Chester Grant 4407678 Nova Scotia limited 60101904 12 Short Ad, tChesterGtant 4407678 Nova Smut lUniled 6047/203 Lakewood Or, _ - -- - - --- -- Chester Grant I 4407678 Nova Scotia Lonlied 60101896 Lakewood Or, Chester Grant Alain Sylvio Gravel& Christine 60101995 233 Lakewood Or, Patricia May Gravel Chester Grant Allison Flemming i 0erek r W478SS9 2S Maple Point Mart n Cres, Chester Grant Allison Flemming i Derek 160102134 Maple Point Cres, Martin Chester Grant Amanda V Landry R Peter H 60101920 156 Lakewood0r, i Sellhorn Chester Grant DO you agree! Yes/No Please Circle) Yes I Yes Yes Yes l Yes Page 2 of 10 oldha uldham &Lorraine coldharrs 60101797 1051 - ake-- --- woodDr, Chester Grant Yrs y No t / David 1 Hart & Oaniele L Han 60479112 Maple Point Cres, Chester Grant Yes David 1 Mossman & Marie S 60478252 Lakewood Dr, Mossman Chester Grant Lakewood Dr, Yes David 1 Mossman $Marie 5 60107084 Mossman 60478567 Chester Grant 17 Maple Point Yes David Moro Cres, Chester Yes 1 No Grant./ David P Cam bra & Kelly R Cawthra 60101649 537 Lakewood Or, Chester Grant f) r1 / Yes / No ly l David 7 Hillier & Debra W Hillier 60602232 129 Lakewood Dr, Chester Grant No Deborah! Whitzman & 60102050 249 Lakewood D , Debbie Digila y algn y e e Martin P Whitzman Chester Grant Whitzman Yes WhitzmanDate:2023.06.17 08: 51 A6-03'00' Deborah L Crummey & 60101771 99 Lakewood Or, Frederick R Crummey Chester Grant 9 — — Yes I No Deirdre E Radford, Gregory 1 60101532 553 Lakewood Dr, Radford, TerenceV. Chester Grant Yes / No Gallagher, Mary Susan Radford Elizabeth Marie Hughes 60101938 149 Lakewood Dr, Chester Grant j Les) No 7w Page 4 of 10 c F ' at 00 1 C= 1 k J Cn t CV 1 1 L Emily L Bartlett & lames L 60102142 11 Maple Point rrancis Cres, Chester 1 Yes / No Grant Erin P Haysom & Mall hew W 60102092 329 Lakewood Or, Haysom Chester Grant Yes Glenda L long & Kristopher 60101821 33 Lakewood Dr,', I Philip J long ChesterGrant Yes / No Gregory R & Julian J Little 60101698 43 Lakewood Or, I DW&r.0-dbyC-W mo1 ChesterGrant M. a r" lam uY oenb j {m Yes James W Hart 60470358 LakewoadOr, FenDate: 2M.06.1N 16'0629-03W iChesterGrantYesi Jane Wright, Norman Greenberg G;Z/ No 60478088 S41 Lakewood Or, ChesterGrant Janet Lester & Wendell Lester 60101862 64lakewood Or, ChesterGrant K Yes / No 4; 1 Jason Bentley Nickel S33 Lakewood Or, 60101611 Chester Grant Yes Jennifer Greenwood & Austen 6065S149 Lakewood Dr, Robert Hughes Chester Grant C_T__.. 1 r No t Jennifer Greenwood & Austen Robert Hughes 606SS1s6 Lakewood Or, / ) ChesterGrant /L / /psi / No Jennifer Greenwood & Austen Robert Hughes 60101987 229lakewood Or, Chester Grant i (fir / No Page 5 of 10 y Olom —I 60101621 515lakewood Dr, Chester Grant yolomE GO101G15 511 lokewood Yes Or, Chester Grant on 1 Senger &Michele 604781G10Senger 419lakewood Dr, Chester Grant Cheryl Louise Cie`— — 6047R104 479 Lakewood Or, M1 es Chester Grant Cheryl Lynne Selig 60101946 151 Lakewood Or, @s Chester Grant L Q L p i' YA / No Christopher H Whynacht & 60101706 49 Lakewood Or, r Tanya R Whynacht Chester Grant Yes / No Christopher H Whynacht & Tanya R Whynacht 60101680 Lakewood Dr, Chester Grant Yes / No Christopher M Hayes & 60478237 355 Lakewood Dr, Shawna M Penny Chester Grant Yes Christopher M Hayes & Shawna M Penny 60102226 Lakewood Or, Chester Grant Yes ND Darren Adams 60101656 Lakewood Or, ChesterChester Grantd-4 No David Coldham & lorralne 60101789 Lakewood Or,^ Qny Ye' / No Coldham Chester Grant Page 3 of 10 1 Michael Gillan Limited 60101854 Lakewood Dr, Chester Grant Yes Michael Gillan Limited O1014141 Lakewood Dr, Chester Grant Yes Michael John Hugh Gillan 60470432 Lakewood Or, Chester Grant Yes Michael John Hugh Gillan 60470424 Lakewood Dr, Chester Grant Lakewood Dr, Chester Grant Yes Yes Michael John Hugh Gillan 60470416 Michael John Hugh Gillan 60101722 57 Lakewood Or, Chester Grant Yes Michael John Hugh Gtllan 60470374 Lakewood Dr, Chester Grant Yes Michael Scott Burke 60101763 95 Lakewood Dr, Chester Grant Yes Patricia A Boutilier & Wade S Boutilier, Shane David 60101607 483 Lakewood Dr, Chester Grant Yes Boutilier, Sheldon Blair Boutilier Paul A Parke & Jaime V 60101748 85 Lakewood Dr, Wombolt Chester Grant Yes Randy E & Valarie D Birch 60478141 317 Lakewood Dr, Chester Grant Ves No Page 8 of 10 MaplePoint Cres Short Rd 428 6 553 229 533 335 87 129 80 156 12 33560 355 23 233 483 295 105 81 151 15 247 547 441 419 567 26 263 515 559 10 18 21 85 479 620 48 43 51 64 5 9 243 551 28 29 292 149 40 552 245 329 35 90 114 28 317 541 9 48 95 40 6 25 11 9 99 513 92 41 60 17 239 147 155 219 249 57 8 481 537 49 301 25520 80 302 F o restHillRd C h e s t e r G r a n t R d Lakewoo d Dr H o g LotRd Rev.:Date:Description: 0 Location Map MUNICIPALITY OF THEDISTRICT OF CHESTER HalifaxRegionalMunicipality Municipalityof the Districtof Chester Municipalityof the D istrictof East HantsMunicipalityof the Countyof Kings Municipality ofthe Districtof Lunenburg Municipality ofthe Districtof West Hants Legend Lakewood Dr, Maple Affected Area 23/10/03 Representation of Chester Municipality within Nova ScotiaScale: 1:2,000,000 Sources:Digital Base Map Data from Service Nova Scotia andMunicipal Relations Prepared by the Municipality of the District of Chester Coordinate System/Datum: UTM NAD83 CSRSZONE 20N Map Disclaimer:Information shown on these drawings is compiled fromnumerous sources and may not be complete oraccurate. The Municipality of the District of Chester isnot responsible for any errors, omissions or deficienciesin these drawings. Actual Map Size: w 11" x h 8.5" Lakewood Dr, Maple Point Cres, & Short RdChester Grant Civic Addresses Roads Property Boundaries Waterbody Ê Digital Folders Entry ID:957795 Date Printed: 23/10/03 Point Cres, and Short Rd ¯Scale: 1:11,000 150 0 15075 Metres The Municipality of Chester Office ofthe Municipal Clerk 151 King St, PO Box 369 Chester, NS BO) 1Jo Phone: (902) 275-3554 Fax:(902)275-4771 www.chester.ca O JChesterMunicipality @chestermun A THE MUNICIPALITY OF CHESTER I, Pamela M. Myra, Municipal Clerk of the Municipality of the District of Chester do hereby certify that the following is a true copy of the Private Street Improvement and Maintenance By -Law No. 72 amended effective September 14, 2022. Given under the hand and seal of the Municipality of the District of Chester this 271h day of October, 2022. Pamela . My Municipal Clerk NOVA SCOTIA'S TREASURE Municipality of the District of Chester Private Street Improvement and Maintenance By -Law By -Law No. 72 Effective Date: September 14, 2022 Private Street Improvement and Maintenance By -Law #72 (continued) Page 2 of 12 MUNICIPALITY OF THE DISTRICT OF CHESTER PRIVATE STREET IMPROVEMENT AND MAINTENANCE BY-LAW BY-LAW # 72 This By -Law shall be known as the "PRIVATE STREET IMPROVEMENT AND MAINTENANCE BY-LAW" In this By -Law, unless the context otherwise indicates: 2.1. "Cost" means the amount of money paid or payable in respect of the street "improvement and/or maintenance." 2.2. "Improvement" means laying out, opening, constructing, upgrading, and improving. 2.3. "Maintenance" means repairing and maintaining. 2.4. "Municipality" means the Municipality of the District of Chester. 2.5. "Owner" includes part owner, joint owner, tenant -in -common orjoint tenant of the whole or part of any real property fronting on a street or situate within an affected area and also includes any trustee, executor guardian, agent or other person having the care or control of such real property in the case of absence or disability of the person having the title thereto provided that for the purpose of calculating the percentage of owners in Section 3(1) real property with more than one owner shall be counted as having one owner. An Owner is entitled to one vote for each individual property parcel they own within the Defined Area. In the case where an individual property has more than one Owner, all Owners must agree on the single response. If all Owners are not in agreement, it will be deemed that the Owner's response is negative. 2.6. "Special Tax" means a tax in respect of the street improvement and/or maintenance based on a per lot basis, a frontage basis, per owner or an area rate based on $100.00 of assessment, as requested in the petition. 2.7. "Street" means any private street, roadway, highway or travelled way, or portion thereof, situate in the Municipality but does not include any unopened or undeveloped street unless specifically included in the Plan attached to Form "A" of the Petition of the owners. 2.8. "Association" means a body corporate incorporated under the Societies Act which represents the owners within the affected area. Notice of Intention to Amend — Committee of the Whole — May 19, 2022 (2022-218) First Reading— Council — May 26, 2022 (2022-227) Second Reading — Council — September 8, 2022 (2022-352) Effective Date —September 14, 2022 (Date of publication in Lighthouse NOW Progress Bulletin) Private Street Improvement and Maintenance By -Law #72 (continued) Page 3 of 12 3. 2.9. "Affected Area" means that area within which the owner shall be liable for the special tax levied pursuant to this By -Law, and which is shown on the Plan attached to Form "A" of the Petition of the owners and shall include any subdivision shown therein. 2.10. "Interest" means that rate of interest charged to the Municipality from time to time on the money borrowed for the improvements which the Municipality shall be entitled to recover from the owners as part of the special tax. 2.11. "Approved purpose" means those purposes for which a Municipality is authorized to expend money pursuant to the Municipal Government Act. 2.12. "Applicant" means the Association referenced in section 2.8 and which has the right itself, or on behalf of the Owners, to maintain the Street. 2.13. "Dwelling" means a residential unit as identified by the Property Valuation Services Corporation filed roll. 3.1 Where sixty-seven (67%) of the owners of real property owning at least sixty-seven (67 %) of the real property within an affected area petition in person or by agent the Municipality for an improvement and/or maintenance of a street, for an approved purpose which may be within or outside the affected area or both, the Municipality may make such improvements, and/or provide for such maintenance if it determines that such improvement and/or maintenance carries out an approved purpose and if so shall be entitled to recover all of the cost of such improvements or maintenance by levying a special tax upon the owners of real property within the affected area as provided by in this bylaw and such tax shall be recoverable from each owner by the Municipality by a per foot of lot frontage basis, or by a per lot basis or by a per owner basis or by an area rate of so much per $100.00 of assessed value of real property within the affected area as requested in the petition which is generally to be in the form as shown on Form "A" attached. The owner of a lot which fronts on more than one street within the affected area, shall pay based on only one (1) boundary of their property, that being the longest boundary that fronts on a street and only this boundary will be considered when calculating the total frontage within the affected area and in calculating the percentage of frontage that the owner owns. a) In the case of recovery of the cost of the street improvement by area rate, based on so much per $100.00 of assessed value of the real property, in the affected area as shown in the petition in Form "A", such area rate shall be struck by Municipal Council from year to year for a period not to exceed ten Notice of Intention to Amend — Committee of the Whole — May 19, 2022 (2022-218) First Reading— Council — May 26, 2022 (2022-227) Second Reading — Council — September 8, 2022 (2022-352) Effective Date —September 14, 2022 (Date of publication in Lighthouse NOW Progress Bulletin) Private Street Improvement and Maintenance By -Law #72 (continued) Page 4 of 12 10) years and shall cover all the projected costs including interest, to the Municipality for that year for such street improvement. b) In the case of recovery of the cost of the street maintenance by area rate, based on so much per $100.00 of assessed value of the real property, in the affected area as shown in the petition in Form "A", such area rate shall be struck by Municipal Council from year to year for the year for which maintenance is sought as provided for herein. 3.2 In the case of recovery of the cost of the street improvement and/or maintenance on a per lot basis and unless otherwise proved defined in this By-law, lot shall mean each individual developed lot, approved building lot or lot capable of being approved in its existing condition for development purposes and any land not capable of being developed, shall not be considered a lot for the purpose of this By -Law until such time as it is. 3.3 In the case of recovery of the cost of street improvement and/or maintenance on a per owner basis, multiple owners of the same real property shall be considered as one owner. For this paragraph, an owner of real property shall be defined as an owner of an area of land that forms one contiguous parcel of land upon which no more than one dwelling unit is constructed and contains at least one lot as defined in paragraph 3(2). If an owner has more than one parcel of land within the affected area separated by intervening property owners, then that owner shall be assessed individually for each separate parcel of land provided that each parcel has at least one lot as defined in paragraph 3(2). Further, if any parcel of land has more than one dwelling unit constructed upon it, then that owner shall be assessed individually for each dwelling unit. 3.4 Every petition for a street improvement and/or maintenance shall be in Form "A" of this By - Law, or similar thereto, and shall clearly state the locality in which the improvement and/or maintenance is requested, the approved purpose for which the maintenance and/or improvement requested and together with the following information shall be presented for approval to the Council of the Municipality. a) A Plan showing the streets outlined in red, which the Petitioners are desirous of having improved and or maintained and within the affected area, the names of the owners, length and width of the roadways and the frontage of each owner if the method of levying this special tax is on a frontage basis. b) In the case of a street improvement an estimate of the cost of the desired improvement along with the names of the persons or Association who shall be responsible for having the improvement carried out. Notice of Intention to Amend — Committee of the Whole — May 19, 2022 (2022-218) First Reading — Council — May 26, 2022 (2022-227) Second Reading — Council — September 8, 2022 (2022-352) Effective Date —September 14, 2022 (Date of publication in Lighthouse NOW Progress Bulletin) Private Street Improvement and Maintenance By -Law #72 (continued) Page 5 of 12 c) In the case of a street maintenance an estimated yearly maintenance budget along with the name of the Association which shall be responsible on a yearly basis for preparing and submitting for approval to the Municipality, a budget for that year's street maintenance. The budget as submitted shall be verified by the Executive of the Association as having been passed by a majority of the members of the Association in attendance at a duly called meeting for that purpose at which a quorum was present. 3.5 In the event of a dispute between an owner and the Municipality as to any measurements or area of real property referred to in this By -Law, the owner shall be responsible to retain at their expense a surveyor in good standing of the Association of Nova Scotia Land Surveyors who shall certify as to the measurements or area or real property to the Council for the Municipality of the District of Chester. 3.6 That notice of the petition for street improvement and/or maintenance shall be sent by registered mail to each owner within the affected area who has not signed the petition including the owner of the street, if known, at the address shown on the assessment rolls and proof of the sending of this notice shall accompany every petition presented to the Municipality but it shall not be necessary to prove actual receipt of notice. 4 The total amount of the special tax levied by the Municipality under this By -Law shall not exceed the cost of the street improvements and/or maintenance to the Municipality plus interest and an administration charge of five percent (5%). 5.1 The special tax levied under this By -Law is a lien on the whole of the property of each owner for that owner's share of the capital improvement and/or maintenance with the same effect as rates and taxes under the Assessment Act and each owner shall be liable for a portion of the total cost of the street improvement and/or maintenance and an administration charge equal to: a) In the case of property fronting on a street the ratio that the lot frontage of each owner bears to the total frontage in the affected area. b) Within the affected area equal to the ratio that each lot bears to the total number of such properties situate in the affected area or c) An area rate of so much per $100.00 of assessed value of the property within the affected area as shown in the petition on Form "A", Notice of Intention to Amend — Committee of the Whole — May 19, 2022 (2022-218) First Reading — Council — May 26, 2022 (2022-227) Second Reading — Council — September 8, 2022 (2022-352) Effective Date —September 14, 2022 (Date of publication in Lighthouse NOW Progress Bulletin) Private Street Improvement and Maintenance By -Law #72 (continued) Page 6 of 12 5.3 7. d) In the case of a per owner basis, an equal amount assessed to each owner of a parcel of land as defined in paragraph 3.3 within the affected area as requested in the petition. 5.2 Notwithstanding the provisions of this By -Law, the Municipality may, upon request, exempt from assessment any owners within an affected area whose property abuts and has access to a public highway or do not use or have access to the street upon which improvements and/or maintenance are being sought but subject to the provision that the Municipality may later assess those exempted owners if it appears to it that they are then using the improved streets. a) In the case of a street improvement, the special tax levied pursuant to this By -Law, shall cover a period not exceeding ten (10) years and should cover all projected costs including interest to the Municipality for each year for such street improvement. b) In the case of street maintenance, special tax levied pursuant to this By -Law shall cover the amount approved by the Municipality pursuant to the budget submitted to the Municipality including all costs together with interest to the Municipality for that year for the street maintenance. 5.4 Notwithstanding paragraph 5.3 an owner subject to this special tax levied with respect to a street improvement, may elect to pay their share of the capital cost in a lump sum as calculated pursuant to this By -Law, and upon payment thereof that property shall bear no further responsibility for the balance of the cost of the street improvement. The special tax levied under this By -Law is collectible in the same manner as rates and taxes under the Assessment Act and by the same proceedings as are rates and taxes under the Assessment Act. 7.1 Regarding a street improvement, the lien provided for in this By -Law shall become effective on the date on which the Clerk of the Municipality signs and files at the Municipal Office, a Certificate stating the total costs of the street improvement and the amount of the special tax to be levied on each owner. 7.2 With regard to street maintenance, the lien provided for in this By -Law shall become effective on the date on which the Clerk of the Municipality signs and files with the Municipality a Certificate with a statement that the affected area is subject to an annual Notice of Intention to Amend — Committee of the Whole — May 19, 2022 (2022-218) First Reading — Council — May 26, 2022 (2022-227) Second Reading — Council — September 8, 2022 (2022-352) Effective Date —September 14, 2022 (Date of publication in Lighthouse NOW Progress Bulletin) Private Street Improvement and Maintenance By -Law #72 (continued) Page 7 of 12 10. special tax for street maintenance in an amount set annually by Municipal Council as provided for in this By -Law and shall remain effective from year to year until terminated pursuant to this By -Law. The Clerk of the Municipality shall keep a separate record of all monies due for the improvement and/or maintenance of streets, which records shall contain: 8.1 The names of the owner of a property liable for the special tax and the name of the improvement and/or maintenance with respect to which the taxes arose. 8.2 The amount of frontage each owner or the number of properties as the case may require. 8.3 The amount of the special tax levied on each owner with particulars of the amounts due or owing. The Clerk of the Municipality shall notify the owner of each property within the affected area upon the filing of the Certificate referred to in Section 7. Attached to such notice shall be a copy of the Certificate. 10.1 The amount payable in respect to the special tax for street improvement by each owner of real property within an affected area may be paid in equal annual instalments together with interest over a period not exceeding ten (10) years. 10.2 Each instalment and each succeeding instalment in respect of the tax imposed by this By - Law shall be due on the same date as the Municipality, by resolution, requires a payment of rates and taxes and in the event of default of payment of any instalment the whole balance with interest becomes due and payable. 10.3 The tax imposed by this By -Law shall bear interest at the rate imposed by Municipal Council by resolution for overdue taxes as an additional charge for non-payment of rates and taxes. 10.4 The amount payable in respect of the tax by each owner of real property within the affected area, may at the option of that owner be paid in one lump sum on or before the 31st day in the fiscal year in which the cost has been incurred or at any other time over the ten (10) year period. 11. The special tax imposed pursuant to this By -Law for a street improvement and/or maintenance may be terminated at any time by the Association filing with the Municipality a certified copy of a Notice of Intention to Amend — Committee of the Whole — May 19, 2022 (2022-218) First Reading — Council — May 26, 2022 (2022-227) Second Reading — Council — September 8, 2022 (2022-352) Effective Date —September 14, 2022 (Date of publication in Lighthouse NOW Progress Bulletin) Private Street Improvement and Maintenance By -Law #72 (continued) Page 8 of 12 Special Resolution of the Association passed at a duly constituted meeting at which a quorum was present called for that purpose requesting the Municipality to do so or by the Municipality at its own discretion, if there has been non-compliance by the Association with the provisions of this By -Law. In either case, upon the Clerk filing a Certificate with the Municipality that all monies payable pursuant to this special tax have been collected, then this By -Law shall thenceforth have no further force or effect within the affected area. Notice of Intention to Amend — Committee of the Whole — May 19, 2022 (2022-218) First Reading — Council — May 26, 2022 (2022-227) Second Reading — Council — September 8, 2022 (2022-352) Effective Date —September 14, 2022 (Date of publication in Lighthouse NOW Progress Bulletin) Private Street Improvement and Maintenance By -Law #72 (continued) Page 9 of 12 APPENDIX "A" FORM "A" PETITION FOR STREET IMPROVEMENT & MAINTENANCE To the Municipal Council of the Municipality of the District of Chester: The undersigned are sixty-seven percent of the owners at in the Municipality. 1) Owning sixty-seven percent of the real property fronting on the street or portion of the street the Municipality of the District of Chester, as hereinafter described 2) Owning sixty-seven percent of the real property which includes more than fifty percent of the real property fronting on a street situate in the subdivision in the Municipality of the District of Chester hereinafter described: i. as the street(s) or portion thereof known as ii. in the area situated at as shown on the attached plan. Each of the owners, whose signature appears below, respectively propose that the Municipal Council accept this as a petition in compliance with section 3 of the Private Street Improvement and Maintenance By -Law. The improvements and/or maintenance is required for the following approved purpose: The nature of the improvement required is: The nature of the maintenance required is: Each of the owners, whose signature appears below, pray that they be levied for a portion of the tax in respect of the street improvement and/or maintenance or both as indicated above on: i. a per foot of frontage basis ii. a per lot basis iii. a per owner basis iv. an area rate based on assessment. The name of the responsible person or association representing the owners is: Name and Contact Information Notice of Intention to Amend — Committee of the Whole — May 19, 2022 (2022-218) First Reading — Council — May 26, 2022 (2022-227) Second Reading — Council — September 8, 2022 (2022-352) Effective Date —September 14, 2022 (Date of publication in Lighthouse NOW Progress Bulletin) Private Street Improvement and Maintenance By -Law #72 (continued) Page 10 of 12 NAMES AND SIGNATURES OF PROPERTY OWNERS: NAME SIGNATURE Notice of Intention to Amend — Committee of the Whole — May 19, 2022 (2022-218) First Reading — Council — May 26, 2022 (2022-227) Second Reading — Council — September 8, 2022 (2022-352) Effective Date —September 14, 2022 (Date of publication in Lighthouse NOW Progress Bulletin) Private Street Improvement and Maintenance By -Law #72 (continued) Page 11 of 12 Annotation for Official By -Law Book May 19, 2022 - Committee of the Whole Notice of Intention to Amend 2022-218) Date of First Reading May 26, 2022 - Council 2022-227) Date of advertisement of Notice of Intent to August 24, 2022 Consider LighthouseNOW Progress Bulletin September 8, 2022 — Council Date of Second Reading 2022-352) September 14, 2022 Date of advertisement of passage of By -Law LighthouseNOW Progress Bulletin Date of mailing to Minister a certified copy of By- Law October 27, 2022 Effective Date September 14, 2022 1 certify that the Private Street Improvement and Maintenance By -Law #72 was amended by Council and published as indicated above October 27, 2022 Pamela M. Myra, unicipal Clerk Date Notice of Intention to Amend — Committee of the Whole — May 19, 2022 (2022-218) First Reading— Council — May 26, 2022 (2022-227) Second Reading — Council — September 8, 2022 (2022-352) Effective Date — September 14, 2022 (Date of publication in Lighthouse NOW Progress Bulletin) Private Street Improvement and Maintenance By -Law #72 (continued) Page 12 of 12 MUNICIPALITY OF THE DISTRICT OF CHESTER 4..-,.. NOTICE CHESTEI2 BY-LAW AMENDMENT PRIVATE STREET IMPROVEMENT & MAINTENANCE BY-LAW NO. 72 Take Notice that Chester Municipal Council conducted Second/Final Reading for consideration of an amendment the following By -Law on September 8, 2022, as follows: By -Law Amendment to By -Law Private Street The amendment will reduce the administration fee from 10% Improvement & to 5%, clarify the definitions of "owner" and "applicant" to Maintenance improve clarity and reduce ambiguity, update references to By -Law No. 72 the Municipal Government Act, update wording to be gender neutral, add a definition for "dwelling", and correct grammar and punctuation. I, Pamela M. Myra, Municipal Clerk of the Municipality of the District of Chester do hereby certify that the above is a true copy of an advertisement duly advertised in the Lighthouse NOW Progress Bulletin edition on September 14, 2022. Given under the hand of the Municipal Clerk and under the corporate seal of the said Municipality this 27th day of October, 2022. Pamela M. Myra Municipal Clerk Notice of Intention to Amend —Committee of the WholetN[ay.19',*2022 (2022-218) First Reading —Council —May 26, 2022 (2022-227) Second Reading —Council —September 8, 2022 (2022-352) Effective Date —September 14, 2022 (Date of publication in Lighthouse NOW Progress Bulletin) LAKEWOOD DRIVE COMMUNITY ROAD ASSOCIATION ANNUAL GENERAL MEETING J U N E 25 2023 Minutes 1. 19 member households present, which meets quorum per LDCRA bylaws. Welcome by Working Group member Kathleen Naylor. Land acknowledgement. Thank you to volunteers and residents for their interest. Reminder: formation of Association and development of petition to municipality are separate but related initiatives. 2. Opening Remarks by Meeting Chair, Norman Greenberg. 3. Request to the meeting for a Recording of Minutes Secretary. Kathleen Naylor volunteered. 4. Minutes of the previous general meeting. Note: No previous general meeting. 5. Consideration of the Annual Report of the Directors. Note: No previous Annual Report. 6. Consideration of the Annual Financial Report of the Society. Jane Wright, volunteer road fee tracker, was available for questions re. funds collected/disbursed in past year. No questions. Approve March 31 Financial Statement. Move: Terry Gallagher, Second Deborah Hillier, approved unanimously. 7. Appointment of the "voluntary auditors" for the 2023 budget year. Randy Birch and Steph Beaton volunteered. Jane Wright moved to approve them as volunteers, Joanne Hughes second, unanimously approved. 8. Motion #1, Terry Gallagher gave overview. Initially, working group thought wording might need to align with definition of lot owner in municipal bylaw 72 re. petition; however for business of road association, this definition makes sense. There were no questions. Motion to approve: Monique Ferguson, second Kevin Carter, unanimously approved. To approve the Lakewood Drive Community Road Association By-laws, dated June 25,2023 including revision to Section 11 as follows: 1 I .nMECEN Q a a-oe- 20 11. Every Member shall have one vote unless a) If one person owns multiple lots, they get one vote at association meetings, and b)If one lot is owned by multiple owners, those co -owners share one vote at association meetings". 9. Call for election of Directors from the floor. Minimum 6, Maximum 9. Seven members who have been working group members are offering: Kathleen Naylor, Norman Greenberg, Terry Gallagher, Randy Birch, Steph Beaton, Scott Burke, Joanne Hughes. Two members offered from the floor: Kevin Carter, Cheryl Cleary. Motion to accept Slate of Directors: moved by Tanya Whynacht, second Jane Wright, unanimously approved. 10. Motion #2, Terry Gallagher gave overview. Note that error in agenda —we are not in fact asking to approve the forecast, we are asking to approve only the 2023 budget. Motion to approve by Steph Beaton, second Alain Gravel, unanimously approved. To approve the Annual 2023 Budget and the 2024, 2025 and 2026 Forecast". Note: See attached. 11. Motion #3, Kathleen Naylor gave overview. No questions. Motion: Tanya Whynacht, second Monique Ferguson, unanimously approved. To proceed to Petition the Members of the Lakewood Drive Road Association, in accordance with the Municipality of the District of Chester, Private Street Improvement and Maintenance By -Law #72, to enact a Special Tax on a per lot basis for the funding of the maintenance of roads within the Affected Area, namely Lakewood Drive, Maple Point Crescent and Short Road" Note: See attached. 12. Motion #4, Terry Gallagher gave overview. Motion: Elizabeth Schmidt, second Joanne Hughes, unanimously approved. To proceed with engineering and repairs to the ditch and culverts at 156 Lakewood Drive and under Short Road to a maximum of $7,500 funding from surplus funds held by the Lakewood Drive Community Road Association." Pa 13. "Town Hall" discussion. Norman Greenberg: Recent conversation about disaster plan/fire emergency planning, in light of recent serious wildfires in NS. A good idea to explore this situation. Wendell Lester: Question re. rec lots. Clarified that rec lots and road are still owned by Doug Zinck/Mardo Construction, so current approval of any requests to make changes to rec lots lies with him. Jane Wright: would like to know if trails adjacent to road are on public or private property. What is the 'setback' from the road? Steph Beaton: would like to ensure that if association pursues purchase of land, it includes buffer behind lots. Wendell Lester: can we explore Hog Lot Road for access for fire emergency? Association will be proceeding with exploration of emergency plans and consult with fire department. Deborah Hillier: concern re. ATV use and speed on road. Would signage be possible? Tanya Whynacht: invitation to all for Canada Day concert/BBQ at 49 Lakewood. 25 person or $50/household. 14. Motion #4 To adjourn the first Lakewood Drive Community Road Association Meeting" Motion by Monique Ferguson, second Terry Gallagher, approved unanimously. 3 Board Meeting: Initial Board Meeting followed briefly. Elected board members: Kathleen Naylor Norman Greenberg Terry Gallagher Randy Birch Joanne Hughes Scott Burke Steph Beaton Kevin Carter Cheryl Cleary Voted on executive: President: Kathleen Naylor Vice -President: Norman Greenberg Secretary/Treasurer: Terry Gallagher Motion to approve executive roles: Steph Beaton, Second: Joanne Hughes Brief discussion of research done on Directors' and Officers' Insurance. Norman will share quotes with board for decision. Board meetings will be 4 times per year. First official board meeting scheduled for September 7th, 7:00 pm. Motion to adjourn: Kevin Carter, Second: Steph Beaton 21 UI I im. vo INFORMATION REPORT REPORT TO: COW MEETING DATE: November 30, 2023 DEPARTMENT: Corporate & Strategic Management SUBJECT: BDO Zone Rating ORIGIN: Motion #2022-466 Date: November 23, 2023 Prepared by: Erin Lowe, Deputy CAO Date: Reviewed by: Tara Maguire, CAO Date: November 27, 2023 Authorized by: Tara Maguire, CAO CURRENT SITUATION The Nova Scotia Innovation Hub (NSIH) with support from the Municipality of Chester, Town of Bridgewater, Municipality of the District of Lunenberg, and Region of Queens Municipality are participating in the Bioeconomy Development Opportunity (BDO) Zone Initiative (www.bdozone.org) – a certification and regional risk rating program that accelerates biobased project development in communities. BDO Zone ratings do this by carrying out credible, technical evaluations on feedstock and infrastructure risk, and then enabling communities to effectively and easily signal and promote key feedstock and infrastructure “success” characteristics to biobased developers and investors around the world. NSIH is looking to leverage Southwest Nova Scotia’s access to woody biomass (i.e., low quality wood fibre and sawmill residuals) and other infrastructure-related supply chain advantages to help attract biobased “deal-flow” and support new biobased economic development. The goal is to provide a market for mill and woodlot owners for this product by attracting investment from bio-based developers to our region. Markets for low-quality wood fibre and sawmill residuals have been negatively impacted by the closures of Bowater and Northern Pulp. The feedstock study and infrastructure risk portion of this initiative is now complete. The Southwest Nova Scotia BDO Zone is rated ‘A’, reflecting ‘high quality’ feedstock supply chains and robust infrastructure. BACKGROUND In November 2022, Council passed the following motion to support the establishment of a new Bioeconomy Development Opportunity (BDO) Zone in Southwest Nova Scotia. 2022-466 MOVED by Councillor Church, SECONDED by Councillor Assaff that Council approve the maximum investment of $10,000 with the participation of another rural municipal unit for the Bioeconomy Development Opportunity Zone (BDO Zone) Initiative (Investment Attraction). ALL IN FAVOUR. MOTION CARRIED. DISCUSSION/UPDATES The BDO Zone initiative would be considered a ‘multiplier’ for our efforts focusing on attracting investment from the bioeconomy. The bioeconomy falls in what we define as Green Industry and if successful, supports our forestry sector by providing a market for low-quality wood fibre. The BDO Zone initiative has two components: R e q u e s t f o r D e c i s i o n P a g e | 2 1. The rating process uses internationally recognized risk metrics to credibly quantify, and signal key biomass feedstock and infrastructure “success” characteristics valued by biobased developers and investors around the world. 2. Promotion of the SW NS BDO Zone for 12 months on bdozone.org, in a press release to over 50 bio- based organizations and sector publications worldwide, on webinars featuring our zone via BDO ZoneCONNECT, and private, hosted discussion groups with prequalified bio-project developers, investors and strategic partner companies actively looking to build new bio-based plants in BDO Zones. Benefits in participating: Investment readiness: BDO Zones undergo rigorous and extensive due diligence using a standardized framework of over 100 transparent and validated risk indicators. This includes gathering data on the amount of feedstock available to support a bio-based development project, determining the commitment of suppliers, and analyzing the infrastructure in the region to support investment such as host sites, transportation, logistics, etc. Having an A or AA rating through this initiative signals to investors that our region and associated host sites have been prequalified for some of the attributes that those investing in the industry care about. Alignment: one of the objectives in our investment attraction plan is to ensure we are aligning our efforts with our municipal neighbours, provincial attraction goals and federal attraction goals where possible. Promotion of the Kaizer Meadow Industrial Park: this initiative also identifies and promotes potential host sites for biobased manufacturing plants, the Kaizer Meadow Industrial Park has been identified as one of these host sites. This project is complimentary to our other investment attraction efforts for the park including:  Receiving Atlantic Canada Site Certification for the Kaizer Meadow Industrial Park. The Atlantic Canada Certified Site Designation certifies sites across Atlantic Canada as development ready, creating a roster of quality properties for investors. The goal is to provide investors with immediate access to data and other property information to bring attention and focus to development-ready, high-quality sites across Atlantic Canada that are primed for investment opportunities. This is Atlantic Canada’s only site certification and network of pre-qualified, development-ready sites.  Selection of the Kaizer Meadow Industrial Park as a priority site for the Industrial Bioeconomy Assets of Nova Scotia Project – an initiative of the NSIH in affiliation with Nova Scotia Business Inc. (NSBI). This project showcases the features and value of the site as a high-potential bioeconomy host site. Next Steps: Now that the rating process is complete, the promotion phase will begin. Foreign Direct Investment (FDI) Promotion activities will include:  Promotion of the SW NS BDO Zone for 12 months on bdozone.org.  A press release to over 50 bio-based organizations and sector publications worldwide.  Webinars featuring our zone via BDO ZoneCONNECT.  Private, hosted discussion groups with prequalified bio-project developers, investors and strategic partner companies actively looking to build new bio-based plants in BDO Zones.  InvestNS collaboration R e q u e s t f o r D e c i s i o n P a g e | 3 Local promotion activities to include:  Promotion in municipal newsletter  Social media promotion  Promotion on investchester.ca  Direct mail and/or presentation to woodlot owners at association events  Data will be used with any related investment inquiry ATTACHMENTS Rating report Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 1 | P a g e BDO Zone Assets • 550,000 GMT/yr of woody biomass potentially available for new project(s) • A large sawmill that has recently expanded woodland and milling operations • A mechanized contractor base with experience producing the rated quantity of roundwood • Ecological forestry regulations ensure sustainable wood supply from public lands • Four sites suitable for bio- project development are located within 150 km of the Port of Halifax BDO Zone Liabilities • Significant trucking capacity shortages • Road weight restrictions and diesel prices negatively affect transportation costs • Increased partial harvesting and protected area coverage increase wood supply costs BDO Zone Risk Rating The Southwest Nova Scotia, Bioeconomy Development Opportunity Zone is rated ‘A,’ or ‘high quality.’ Risk Rating Grades are defined as follows: AAA (extremely low), AA (very low), A (low), and BBB (low- moderate), BB (moderate), B (moderate-high), C (high). Southwest Nova Scotia BDO Zone Scoring & Rating Methodology In assessing the biomass supply chain risk for the Bioeconomy Development Opportunity (BDO) Zone, 48 Risk Indicators from the Canadian Standards for Biomass Supply Chain Risk (BSCR) were applied. These BDO Zone Risk Indicators are the subset of BSCR Risk Indicators applicable to evaluating feedstock risk within a BDO Zone. Feedstock quantities are expressed in green metric tonnes per year (GMT/yr). Feedstock costs are expressed in Canadian dollars (CAD). Maximum transport distance is based on a 150-km maximum driving distance from the center point (Caledonia, NS). Next, each Risk Indicator is discounted, or “notched,” based on the degree to which the uncertainty drivers are deemed addressable and whether there are reasonable expectations that mitigation measures could be put into place within the price parameters for this rating. The Notched Salience score corresponds to the likelihood of each Risk Indicator’s described risk materializing given the implementation of economically reasonable mitigation measures. To arrive at the Notched Salience score, Raw RI scores are reduced based on the effectiveness of the likely mitigation measures. If applicable, notching occurs at one of 3 levels: 25%, 50%, or 75%. Rating Parameters: Category Rated Quantity Delivered Cost BDO Zone Size Pulpwood 400,000 GMT/yr $55-$70 (GMT) 150-km maximum road distance from Caledonia, NS Sawmill Residuals 150,000 GMT/yr $25-$60 (GMT) Forest Residues N/A N/A Bioeconomy Development Opportunity Zone Risk Rating ‘A’ Rating Parameters: Category Rated Quantity Delivered Cost BDO Zone Size type ##,### type/yr $#-$# (type) ##-mi drive distance from Town, State type ##,### type/yr $#-$# (type) type ##,### type/yr $#-$# (type) ‘Choose an item.’ The Southwest Nova Scotia Bioeconomy Development Opportunity Zone is rated ‘A.’ A substantial quantity of biomass remains available at low risk under the province’s new ecological forestry regulations. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 2 | P a g e Finally, the potential impact of each Risk Indicator on the supply chain is assessed and scored on an Impact Level scale as either low (3.33), moderate (6.66), or high (9.99). Impact level scores are based on assumptions that key measures were implemented to mitigate uncertainty drivers in the BDO Zone but failed to do so. The Loaded RI score for each Risk Indicator is calculated as the product of Notched Salience and Impact Level scores. For example, if the Risk Indicator ‘Competitor Price and Price Sensitivity’ is scored at a Raw Score of 4, a Notched Salience of 2, and the Impact Level is high (i.e., 9.99). The final Loaded RI score for this risk indicator is 2 × 9.99 = 19.98 (out of 100). Loaded RI scores of 33.33 or less are deemed low risk; scores greater than 33.33 and less than 66.66 are deemed moderate risk; and those that score 66.66 to 100 are deemed high risk. The total risk rating for the BDO Zone is the average of all Loaded RI scores. The BDO Zone score for Southwest Nova Scotia is 18.66 out of 100, resulting in an 'A' designation. All scoring and rationale for each Risk Indicator are provided in Appendix A. Analyst Notes The Southwest Nova Scotia (SW NS) BDO Zone centers in the town of Caledonia, NS. The supply basin for the analysis (max. 150-km road distance from Caledonia) encompasses a ~21,000 square kilometer area that includes the seven counties comprising Western Nova Scotia as well as portions of Hants and Halifax counties. The competition basin encompasses a ~36,000 square kilometer area that extends beyond Sheet Harbour, New Glasgow, and into Cumberland County. Most of the land base within the supply basin is part of the Western ecoregion. The ecoregion is characterized by a relatively mild climate, extensive rivers, lakes, and wetlands, and a mixed terrain of exposed bedrock, glacial hills (drumlins), and river valleys. Major commercial tree species utilized for lumber and solid wood product manufacturing include red spruce, white pine, and hemlock. There are currently no markets for low-grade softwood roundwood. Regional hardwood markets are restricted to two wood processing facilities and a number of small-scale firewood producers. The total area of working forest in SW NS (approx. 1,000,000 ha) is comprised of smaller privately owned woodlots averaging 100 ha (50-60% of total working forest area) and larger tracts of private lands and public (“Crown”) lands over which forestry planning and management activities occur at scale (40-50% of total working forest area). Wood supply in the region is disproportionately sourced from private lands; between 2013 and 2020, harvesting on private working forest accounted for ~75% of total wood supply (Appendix B). The majority of Crown lands in the region are under the management of WestFor Management Inc. (300,000 – 390,000 ha of working forest). First Nations- and community-owned lands amount to less than 5% of the publicly owned land base (~35,000 ha). Approximately 225,000 ha of forested land in SW NS is protected within Wilderness Areas, National Parks, Provincial Parks, and Nature Reserves. One of the largest sawmills in the province is located within the supply basin. Freeman Lumber has an annual lumber production capacity of 110 million board feet (MMBF) and specializes in softwood lumber production. The mill procures >80% of the annual wood supply in Western NS. The eight other sawmills located within the supply basin have lumber production capacities <3.5 MMBF/yr and consume less than 50,000 GMT/yr. Total annual production of sawmill residuals (chips, sawdust, shavings, and bark) is estimated to be approx. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 3 | P a g e 230,000 GMT/yr. Two medium capacity sawmills – one premium grade lumber (30 MMBF/yr) and the other specialized in processing smaller diameter roundwood (70 MMBF/yr) – are located just outside the supply basin. In 2020, roundwood production in SW NS reached a 15-year low (833,000 m3, or 750,000 GMT). Current growth-to-removal ratios likely exceed 1.2 for most commercial tree species. Demand for low-quality roundwood has been significantly reduced in SW NS since the closure of the Bowater Mersey paper mill in 2012. Demand for wood fiber produced in SW NS further declined in 2020 following the closure of the Northern Pulp kraft paper mill in Pictou County. A single paper mill remains in operation in Nova Scotia but is located >250 km away from the eastern edge of the supply basin and 400 km away from the center point at Caledonia. Potential suppliers of low-grade roundwood (pulpwood) and residuals in SW NS generally cannot sell at profit to the mill owing to excessive transportation costs. Competitors for lower quality wood fiber in the supply basin (not including firewood) include a 28 MW biomass-based power plant, a wood siding manufacturing facility, and at least one small-scale heating facility. Within the wider competition zone (300 km maximum road distance from Caledonia), competitors include a 1 MW cogeneration facility, two pellet mills, a wood chip export terminal, and at least two small- scale heating facilities. Competitors are generally restricted in their demands to sawmill residuals. Since 2020, most wood chips, sawdust, and bark produced within the region have been purchased by the 28 MW biopower plant to meet the province’s renewable energy targets. Current prices for wood chips average $35/GMT FOB and prices for bark and sawdust range from $15-20/GMT FOB. In comparison, prices for wood chips produced within the more eastern areas of the supply basin averaged $50/GMT up until the closure of Northern Pulp in 2020. For areas further west, comparable prices were common in the early 2000s up until the closure of the Bowater Mersey paper mill in 2012. Consistent demand for low-grade roundwood produced within the supply basin is restricted to the wood siding manufacturing facility, which intakes approx. 100,000 GMT/yr of hardwood pulpwood. The 28 MW biopower plant infrequently purchases smaller quantities of roundwood (~20,000 GMT); the most recent purchase of this kind was made in 2017/18. Excluding hardwoods suitable for use as firewood, total demand for low-grade roundwood in the supply basin likely does not exceed 125,000 GMT/yr. The lack of demand for low-grade roundwood has led to the retention of diameter classes and species that would normally be recovered under ideal market conditions. Current prices for low-grade roundwood range from $40/GMT to $65/GMT delivered. Given current demand from the region’s sawmills, we estimate that at least 200,000 GMT/yr of low- grade roundwood (~60% softwood, 40% hardwood) is left unutilized during conventional forest operations within the supply basin (Appendix B). This quantity is available for new projects without any increase in annual harvested area. A further 200,000 GMT/yr could be made available with increases in annual harvesting activity. Procuring this quantity of low-grade roundwood would require additional workers and equipment, and would consequently increase the annual production of sawlogs. Sawmill capacity in the supply basin is sufficient to process this increased supply of sawlogs, resulting in an increase in sawmill residuals production if demand for lumber is sufficient. Forest residue (e.g., tops and branches of trees not recovered during conventional logging operations) was not considered in the analysis. Although there is some residue recovery experience in Nova Scotia, it is unlikely to Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 4 | P a g e succeed for operational and regulatory reasons. At least 550,000 GMT/yr of low grade roundwood and sawmill residuals are available for new projects at low risk, without the need for forest residue recovery. Key Risk Indicators The SW NS BDO Zone has significant economic and institutional strengths of relevance to the development of new bio- projects. The forest industry in the region is well developed, with established milling and logging infrastructure, an experienced workforce, and public support for, and tolerance of, forestry and trucking operations. Over a dozen governmental and non-profit organizations are actively collaborating with industry to develop the forest sector. Workforce recruitment and training programs are also in an advanced stage of development compared to other regions in North America. Prospective investors in new biomass-based projects are further advantaged by the current lack of competition for wood fibre. The most significant risks to biomass supply for new projects in the BDO Zone relate to the transportation phase of the supply chain. The current logging truck capacity in the region, which totals approximately 60 trucks and an equivalent number of drivers, is inadequate for the existing roundwood demand of ~800,000 GMT/yr. Regional chip truck capacity is also inadequate for the current sawmill residuals market in SW NS. Timely and reliable delivery of the rated quantities of roundwood and residuals to a new project would likely require approx. thirty additional logging trucks, ten additional chip trucks, and an equivalent number of new drivers. Although financing for additional trucks is likely to be available, recruitment of new drivers and owner-operators will be challenging owing to difficulties insuring inexperienced Class 1 drivers and competing with alternative regions and industries for workers. Measures that might lead to successful recruitment of new drivers include reliable benefits packages offered by existing multi-truck companies (e.g., logging contractors and sawmills) and government or third- party training programs and incentives (Table F-1, Appendix F). The risks associated with labour and equipment availability in the transportation phase are compounded by diesel price volatility, road infrastructure, and regulations. Roundwood transportation costs in Nova Scotia increased by 50% between 2017 and 2023 owing largely to elevated diesel prices. While continued volatility is inevitable and common to all regions of North America, the relatively low total annual demand for diesel in SW NS renders the region more susceptible to price volatility (although provincial regulations are designed to counteract this effect). The federal carbon tax and recently implemented Clean Fuel Regulations also add uncertainty regarding whether the rated quantities can be made available at the rated price ranges. Concerning road infrastructure and regulations, transportation in the region can face limitations due to the density, condition, and weight designation of secondary and tertiary roads. In SW NS, there is a notable concentration of land designated as "remote-access" by the Nova Scotia Department of Natural Resources and Renewables (NS DNRR), signifying areas with low populations and very few roads or trails. Approximately 40% of roads in the supply basin have a maximum Gross Vehicle Weight (GVW) designation of 41.5 tonnes, significantly limiting the quantity of wood fibre that can be transported. This designation is attributed to inadequate road width, the presence of small bridges, and other factors that affect B-train and chip truck access. Special permits for additional weight allowances can be requested but many forestry professionals contacted by Ecostrat noted that permit requests are rarely granted. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 5 | P a g e Road infrastructure and regulations relevant to the forest industry in Nova Scotia continue to improve. The Government of Nova Scotia plans to spend over $1 billion on road and bridge infrastructure improvements over the next seven years. A major highway connecting the railway and port infrastructure of the Halifax region with SW NS (Highway 103) is in the process of being divided (expected project completion in 2028). A number of organizations continue to work towards increasing allowable weight limits, including the provincial government, the Forestry Economic Task Force, the Forest Nova Scotia Transportation Committee, and a forestry sector transition team. In 2019, the maximum allowable weight limits of a number of roads in SW NS were increased. The distribution of forest resources available for new projects in SW NS imposes additional constraints on the transportation phase of the supply chain. The available low- grade roundwood supply for new bio-projects is widely dispersed across both private and public forests in SW NS (Map F-1, Appendix F). Accessing over 70% of the available roundwood may require procurement from distances greater than 120 km from Caledonia, NS. Land ownership structures and provincial regulations relevant to biomass supply constitute another elevated risk. Roundwood sourced from smaller private woodlots could comprise as much as 60% of total wood fibre supply for a new project. Many forestry professionals contacted by Ecostrat expressed concern over changes in the willingness of small private landowners to harvest. Others were more optimistic about potential wood supply from smaller woodlots. The situation is mitigated to some extent by the presence of private and non-profit organizations that connect and mediate with private landowners, including the Western Woodlot Services Coop (WWSC), Freeman Lumber, and at least one large broker. In the longer term (e.g., >5 years), an expected increase in partial harvesting and protected area prevalence in SW NS adds further uncertainty to wood supply from public lands. Resulting reductions in wood supply are accounted for by the third-party report that was used to estimate low-grade roundwood availability in the supply basin (see Section 3.5 and Appendix B). Conversely, wood supply from private lands over the long-term may be adversely affected by forest harvest practices on some sites. Many areas of SW NS have shallow, acidic soils that are vulnerable to repeated biomass removal. Although partial harvesting on private lands has increased since the 1980s, over 50% of all harvesting on private lands in SW NS still involves clearcutting. The rated quantity of roundwood (400,000 GMT/yr) is expected to account for potential nutrient budget deficiencies, as it constitutes 75% of the total sustainable annual wood supply (Appendix B). This issue was assessed as a low-to-moderate risk to the rated quantity of biomass, but sustainability concerns and associated public opinion are noteworthy. Finally, labour and equipment availability issues were also identified for the harvesting phase of the supply chain. To recover the full rated quantity of low-grade roundwood, harvesting activity would have to increase by 60-80% compared to harvesting activity over the 2016 to 2020 period. A scale-up in operations of this magnitude would require approx. twenty new crews and harvest equipment sets (1 x harvester, 1 x forwarder) (Appendix B). Achieving the required workforce increase is likely over a 5-10 year period but will be challenging to achieve in less than five years. Forestry workforce size in NS has been declining significantly since the 1990s (Figure F-4, Appendix F). Although the decline has begun to stabilize over the past few years – in part due to the growth of Freeman Lumber and its associated Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 6 | P a g e contractor base – worker recruitment remains a problem. Measures that are currently being pursued in the province to improve recruitment and equipment purchasing include the continued development of formal training/apprenticeship programs for equipment operators (e.g., the High Performance Logging initiative; Table F-1, Appendix F) and expanded coordination among sawmills, logging contractors, landowners, and intermediary governmental and non-profit organizations. There is already considerable experience and organizational capacity relevant to these measures. If the capacity and frequency of equipment operator training programs continue to grow, we expect that the required logging capacity will be in place within less than five years of project initiation. Infrastructure Profile The four BDO Zone project development sites are clustered within Queens and Lunenberg counties (Appendix G). A major highway links the sites to the Halifax Regional Municipality (HRM) and its seaport, rail, and logistical infrastructure. Secondary and tertiary roads connect the working forest land base to wood processing facilities and major highways. The four sites have full access to essential utilities, including reliable electrical and water infrastructure, waste management systems, and modern telecommunications. A major hydroelectricity transmission project is expected to increase renewable electricity supply in the province to 40% by 2030. Dependable emergency services and efficient public works further contribute to a favorable business environment. Each of the four potential sites possesses unique attributes expected to contribute to the successful construction and operation of new value-added biomass-based manufacturing facilities. Project Director D. Peter Wolf Ecostrat Inc. peter@ecostrat.com Infrastructure Analyst Travis Taylor Ecostrat Inc. travis@ecostrat.com Technical Contact Marcin Lewandowski Senior Director, Operations & Risk Ecostrat Inc. marcin@ecostrat.com Business Contact Jordan R. Solomon President & CEO Ecostrat Inc. jordan.solomon@ecostrat.com Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 7 | P a g e Figure 1: Risk Indicators (Sorted by Risk Level) 0 10 20 30 40 50 60 70 80 90 100 Supplier as a Competitor Feedstock Production Priority Temporary Market-Driven Markets Year-to-Year Variation in Feedstock Availability History of Production/Feedstock is a Secondary Crop or a By-product Harvesting & Collection Equipment Temporary Externality-Driven Markets for Feedstock Variation in Densification Methods Among Different Suppliers Government Subsidies for Feedstock Production or Utilization Geographic Location Influence on Feedstock Variability Supplier as an Aggregator or Broker Low Historical Demand for Feedstock in the BDO Zone Delivery Routes through Local Communities Longevity & History of Supplier Performance Ownership of Equipment Historical Fluctuation of Quantity Used Seasonal Feedstock Supply Variation Supplier’s Dependence on, or Preference for, Competing Markets Fundamental Feedstock Production Experience Competitor Pricing & Price Sensitivity Supply Influence of Competitor Seasonal Weather Impacts on Feedstock Supply Number, Size, Mix, & Locations of Suppliers GHG Emissions from Production, Harvest & Transport Competitor Locations & Geographical Influence on the Market Demand for Competitors’ Products Impact of Increased Utilization of Feedstock Local, Provincial, & National Laws, Regulations, & Permitting About Biomass Backlash Against Biomass Development, Procurement, or Usage in the Region Feedstock Sustainability, Including Risks to Soil Quality, & Surface &… Transportation of Feedstock Requires Specialized Equipment Ownership of Land/Means of Production Harvest & Collection Practices & Schedules Biomass Availability Multiple (BAM) Front-End Validation of Data Used in Feedstock Availability Models Long-Term Weather & Climate Trends Production Scale Experience Suppliers Subject to Same External Risk Factors (Non-Weather & Equipment… Distance from Proponent Diesel Prices Transportation Distances Transportation Regulations & Local Weight Limits Road Infrastructure Production Capacity Ownership of Transportation/Logistics Availability of Labor for Feedstock Production Feedstock Transportation Costs The Capacity of Supply Chain Components & Equipment to Scale AAA AA A BBB BB B C Loaded Risk Factor _______________________________________ Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 8 | P a g e Table 1: Risk Indicators and Associated Scores Feedstock Supply Chain Risk Indicators Raw RI Score Notched Salience Impact Level Loaded RI Score Category 1.0: Supplier Risk 1.1 Longevity & History of Supplier Performance 3 3.0 3.33 9.99 1.2 Production Capacity 6 6.0 6.66 39.96 1.3 Supplier’s Dependence on, or Preference for, Competing Markets 2 2.0 6.66 13.32 1.4 Supplier as a Competitor 1 1.0 3.33 3.33 1.5 Ownership of Land/Means of Production 5 3.8 6.66 24.98 1.6 Ownership of Equipment 3 3.0 3.33 9.99 1.7 Ownership of Transportation/Logistics 6 6.0 6.66 39.96 1.8 Supplier as an Aggregator or Broker 2 2.0 3.33 6.66 1.9 Distance from Proponent 5 5.0 6.66 33.30 1.10 Fundamental Feedstock Production Experience 4 4.0 3.33 13.32 1.11 Production Scale Experience 6 4.5 6.66 29.97 1.12 Feedstock Production Priority 1 1.0 3.33 3.33 Category 2.0: Competitor Risk 2.1 Competitor Locations & Geographical Influence on the Market 3 3.0 6.66 19.98 2.2 Historical Fluctuation of Quantity Used 3 3.0 3.33 9.99 2.3 Competitor Pricing & Price Sensitivity 2 2.0 6.66 13.32 2.4 Supply Influence of Competitor 2 2.0 6.66 13.32 2.5 Temporary Market-Driven Markets 1 1.0 3.33 3.33 2.6 Demand for Competitors’ Products 3 3.0 6.66 19.98 Category 3.0: Supply Chain Risk 3.1 Biomass Availability Multiple (BAM) 4 4.0 6.66 26.64 3.2 Impact of Increased Utilization of Feedstock 3 3.0 6.66 19.98 3.3 Seasonal Feedstock Supply Variation 3 3.0 3.33 9.99 3.4 Year-to-Year Variation in Feedstock Availability 1 1.0 3.33 3.33 3.5 Front-End Validation of Data Used in Feedstock Availability Models 4 4.0 6.66 26.64 3.6 Low Historical Demand for Feedstock in the BDO Zone 2 2.0 3.33 6.66 3.7 History of Production/Feedstock is a Secondary Crop or a By-product 1 1.0 3.33 3.33 3.8 Diesel Prices 5 5.0 6.66 33.30 3.9 Harvest & Collection Practices & Schedules 5 3.8 6.66 24.98 3.10 Harvesting & Collection Equipment 1 1.0 3.33 3.33 3.11 Temporary Externality-Driven Markets for Feedstock 1 1.0 3.33 3.33 3.12 Variation in Densification Methods Among Different Suppliers 1 1.0 3.33 3.33 3.13 Availability of Labour for Feedstock Production 8 4.0 9.99 39.96 3.14 Feedstock Transportation Costs 6 6.0 6.66 39.96 3.15 Transportation Distances 5 5.0 6.66 33.30 3.16 Transportation of Feedstock Requires Specialized Equipment 7 7.0 3.33 23.31 3.17 Delivery Routes through Local Communities 2 2.0 3.33 6.66 3.18 Transportation Regulations & Local Weight Limits 7 5.3 6.66 34.97 3.19 Road Infrastructure 7 5.3 6.66 34.97 3.20 Number, Size, Mix, & Locations of Suppliers 5 5.0 3.33 16.65 3.21 Suppliers Subject to Same External Risk Factors (Non-Weather & Equipment Based) 3 3.0 9.99 29.97 3.22 Seasonal Weather Impacts on Feedstock Supply 2 2.0 6.66 13.32 3.23 Long-Term Weather & Climate Trends 4 4.0 6.66 26.64 3.24 Government Subsidies for Feedstock Production or Utilization 1 1.0 3.33 3.33 3.25 Local, Provincial, & National Laws, Regulations, & Permitting About Biomass 3 3.0 6.66 19.98 3.26 Backlash Against Biomass Development, Procurement, or Usage in the Region 3 3.0 6.66 19.98 3.27 Feedstock Sustainability, Including Risks to Soil Quality, & Surface & Groundwaters 3 3.0 6.66 19.98 3.28 GHG Emissions from Production, Harvest & Transport 5 2.5 6.66 16.65 3.29 Geographic Location Influence on Feedstock Variability 1 1.0 3.33 3.33 3.30 The Capacity of Supply Chain Components & Equipment to Scale 8 6.0 6.66 39.96 Average 18.66 Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 9 | P a g e Southwest Nova Scotia BDO Zone Independent Review Committee (IRC) Rod Badcock – Executive Director, Nova Scotia Innovation Hub Greg Brown – Economic Development Officer, Town of Bridgewater Erin Lowe – Economic Development Officer, Municipality of the District of Chester Dave Waters – Director of Economic Development, Municipality of the District of Lunenberg Richard Lane – Director of Economic Development, Region of Queens Municipality Suzanne Fraser – Investment Attraction Executive, Invest Nova Scotia Chris Bailey – Director of Forestry, Nova Scotia Department of Natural Resources and Renewables Georg Ernst – Business Development Manager, Harry Freeman & Son Limited Elizabeth Jessome – Mi'kmaw Forestry Initiative Lead, Kwilmu'kw Maw-klusuaqn Breck Stuart – General Manager, WestFor Management Inc. Harvey Gray – Executive Director, Forestry Economic Task Force Patricia Amero – General Manager, Western Woodlot Services Cooperative Ltd. Matt Miller – General Manager, Medway Community Forest Cooperative Dennis Bedford – Owner, Novon Forestry Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 10 | P a g e APPENDIX A: RISK INDICATOR SCORING METRICS CATEGORY 1.0: SUPPLIER RISK 1.1 Longevity & History of Supplier Performance Rationale: Number of years in business is a positfve indicator of future solvency. Historical performance is an indicator of future performance. Raw RI Score: The number of logging and trucking contractors operatfng in the supply basin decreased by >50% over the period 2001 to 2012 in response to declines in pulp and paper and lumber productfon.1 In 2012, the closure of the only paper mill in SW NS (Bowater Mersey, Brooklyn, NS) significantly reduced demand for pulpwood in the region. A gradual downturn in lumber productfon and the closure of a paper mill located in Central Nova Scotfa in 2020 (Northern Pulp, Abercrombie, NS) have led to further reductfons in roundwood demand, workforce size, and cash flows. Trucking capacity has been most affected, in part due to the inability to shorthaul and backhaul as the number of buyers and sellers declines. Despite capacity declines, most logging contractors that remain involved in the SW NS forest industry have been in business for over twenty years. Sawmill business experience and performance also remains strong. A large family-owned sawmill (Harry Freeman and Son, hereafter Freeman Lumber) with a lumber productfon capacity of 135 million board feet (MMBF) is located within the supply basin and has been in business since 1832. The seven other sawmills in the supply basin were established before the 1990s. Raw RI Score is 3 out of 10. Score 3 Notched Salience: No adjustment. Score 3.0 Impact Level: RI Impact level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 9.99 out of 100. Score 9.99 1.2 Production Capacity Rationale: Supplier productfon capacity can be a strong indicator of long-term credit worthiness and future solvency. Higher productfon capacitfes denote strength of operatfonal elements, including cash flows, which are important to future solvency. Raw RI Score: Regional harvestfng levels have been declining since the mid-2000s in response to market downturns and paper mill closures. Between 2000 and 2013, annual roundwood productfon in SW NS was halved. Since 2013, productfon has stabilized between ~750,000 GMT/yr and 1,000,000 GMT/yr (Figure B- 1, Appendix B). During this more recent period, the productfon capacitfes of many suppliers have increased. The Freeman Lumber sawmill doubled its lumber productfon from ~50 MMBF to 110 MMBF between 2013 and 2023 and is planning for additfonal capacity upgrades. Forest operatfons are fully mechanized, utflizing modern equipment required for cut-to-length harvestfng (i.e., single-grip harvesters and forwarders). The pulpwood productfon capacity of a single logging crew (1- 2 x harvesters, 1 x forwarder) is approximately 10-12 truckloads per week, or 12,000 – 15,000 GMT/yr.2 Score 6 1 Province of Nova Scotia. (March 2020). State of the Forest 2018. Department of Lands and Forestry. (p.11) 2 Assuming that 30% of recovered roundwood is pulpwood, a 50-week work year, 30 GMT per truckload, and double shifted logging crews. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 11 | P a g e There are approx. 60 single-crew contractors that operate in the region and at least a dozen logging contractors present in the supply basin that employ 2-3 logging crews. An increase in partfal harvestfng over the past decade has had some impacts on productfvity but this has been mitfgated through operator experience, training, and aggregatfon/coordinatfon functfons provided by larger organizatfons, including a large Crown land management organizatfon (WestFor), the largest sawmill in the region (Freeman Lumber), and a non-profit organizatfon (Western Woodlot Services Cooperatfve, WWSC). Regional trucking capacity contfnues to decline and represents a significant productfon capacity risk. Only about half of all logging contractors own logging trucks. There is therefore a dependence on independent trucking companies, all of which are single-driver, single-truck businesses. Companies that own multfple trucks are restricted to a few sawmills and some of the larger logging contractors. Trucking capacity in the region is inadequate for current harvestfng actfvity, resultfng in occasional roundwood delivery delays and the need to contract trucking services to companies in Central NS. Regional chip truck capacity is also limited. Risk is moderated to some extent by the fact that driver recruitment and truck purchasing will gradually increase if a new bio-project is built in the region. Overall, productfon capacity risk is deemed to be moderate-to-high owing to the current low productfon capacity of the region’s trucking fleet. Raw RI Score is 6 out of 10. Notched Salience: No adjustment. Score 6.0 Impact Level: RI Impact level is deemed moderate. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 39.96 out of 100. Score 39.96 1.3. Suppliers’ Dependence on, or Preference for, Competing Markets Rationale: Suppliers may have a vested interest in or preference for supplying specific competftors for biomass feedstock. Preferences may be due to historical, long-term, or personal relatfonships, less stringent feedstock quality requirements, more flexible operatfng hours by competfng markets, or suppliers’ dependences on competfng markets to accept or purchase other products/by-products. Consequently, during periods of feedstock shortage, such suppliers may be more likely to allocate the scarce supply to a competftor, resultfng in supply disruptfons for the Proponent. Raw RI Score: Current demand and pricing for low-grade roundwood and sawmill residuals produced within the supply basin are significantly reduced relatfve to earlier periods. Markets for low-grade roundwood have been especially affected. Since the closure of the Bowater Mersey paper mill in 2012, approx. 200,000 – 300,000 GMT/yr of low-grade roundwood produced during conventfonal forest operatfons in the western portfons of the supply basin has been left standing or felled and left on-site due to lack of proximal markets. In central and eastern areas of the supply basin, consistent demand for low- grade roundwood remained in place untfl 2020 when the Northern Pulp paper mill in Pictou County was closed. Current consumers of low-grade roundwood produced within the supply basin are restricted to Maibec CanExel (which consumes hardwood pulpwood only) and firewood buyers. Purchases of roundwood by a 28 MW biomass power plant (Brooklyn Power) have been infrequent and have not exceeded 20,000 GMT/yr in any given year since operatfons commenced in 2013. Average annual low- grade roundwood consumptfon by the facility between 2013 and 2023 is estfmated to be <4,000 GMT/yr. Score 2 Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 12 | P a g e Over 85% of sawmill residuals produced within the supply basin are currently sold to the 28 MW biomass power plant at prices <$35/GMT FOB for wood chips and <$20/GMT FOB for sawdust, shavings, and bark. All sawmill owner-operators contacted by Ecostrat, including Freeman Lumber, have expressed interest in supplying sawmill residuals to a new project for a modest premium. Port Hawkesbury Paper (PHP) is currently the most significant consumer of residuals in the province but is located >350 km away from the supply basin. Due to the excessive transportatfon distance and cost, opportunitfes to sell to PHP are largely restricted to product exchanges (e.g., transfers of sawmill residuals or pulpwood in exchange for sawlogs). Raw RI Score is 2 out of 10. Notched Salience: No adjustment. Score 2.0 Impact Level: RI Impact level is deemed moderate. Since there is established local demand for pulpwood and sawmill residuals, there is uncertainty as to whether existfng competftors will be willing to increase prices if a new project becomes operatfonal. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 13.32 out of 100. Score 13.32 1.4. Supplier as a Competitor Rationale: The risks of feedstock costs going up and availability going down increase if a supplier is also a competftor to the Proponent. In tfmes of feedstock shortage, the risk that supply commitments will not be met increases. Raw RI Score: Many logging contractors in SW NS retain a proportfon of annual hardwood roundwood productfon for sale on the firewood market. The annual quantfty sold on the firewood market is negligible compared to that sold on the sawlog market and it is unlikely that firewood demand will increase significantly. Sawmills in the region typically use some proportfon of residuals (partfcularly shavings, and to a lesser extent bark) for internal energy needs (e.g., kiln drying, space heatfng). It is unlikely that sawmills will significantly increase their use of residuals for these purposes and therefore there is high confidence in the availability of the rated quantfty of sawmill residuals and low risk of competftfon with suppliers. Raw RI Score is 1 out of 10. Score 1 Notched Salience: No adjustment. Score 1.0 Impact Level: RI Impact level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 3.33 out of 100. Score 3.33 1.5. Ownership of Land/Means of Production Rationale: Suppliers that own land where feedstock is produced, or a productfon facility, tend to have better control of supply chains and present lower degrees of supply risk. Raw RI Score: Over the past five years, the majority (~75%) of wood supply in the supply basin has been procured from the ~650,000 hectares of privately-owned working forests through stumpage payments. Private working forest is distributed among approx. 5,000 smaller woodlot owners (average woodlot size of ~100 ha), brokers and larger woodlot owners that own or manage ~1,000 – 5,000 ha, and at least three Score 5 Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 13 | P a g e entftfes that own large tracts of forested land (>10,000 ha and up to 50,000 ha in size).3 There is moderate risk associated with procuring low-grade roundwood from new harvestfng actfvity on smaller private woodlots. Many informants expressed concern over changes in the willingness of small private landowners to harvest. Others were more optfmistfc about potentfal wood supply from smaller woodlots. The situatfon is mitfgated to some extent by the presence of private and non-profit organizatfons that connect and mediate with private landowners, including the Western Woodlot Services Coop (WWSC), Freeman Lumber, and at least one large broker. Wood supply from larger tracts of private working forest is associated with low risk. The remaining portfon of SW NS wood supply over the past five years (28%) has been procured from publicly owned (“Crown”) land. Most of the wood supply from Crown land (>95%) comes from the 300,000 – 390,000 ha of working forest under the management of WestFor Management Inc. Since its establishment in 2016, WestFor has allocated sustainable wood supply to the region’s mills on the basis of one-year wood supply agreements with the Department of Natural Resources and Renewables (DNRR).4 There are plans to increase the length of wood supply agreements between WestFor and the DNRR.5 The remainder is sourced from approx. 35,000 ha of public land that is licensed to the Medway Community Forest Cooperatfve (MCFC) and the Mi’kmaw Forestry Initfatfve (MFI). With teams of foresters, planners, and other professionals, WestFor, MCFC, and MFI have a capacity to plan for and manage sustainable wood supply. The contfnued implementatfon of ecological forestry may also encourage private woodlot owners to harvest. The current license agreement between WestFor and DNRR remains annual and there is uncertainty as to whether provincial plans to increase the proportfon of land area under protected status (i.e., off-limits to tfmber productfon) will reduce wood supply from Crown lands in SW NS. Therefore, risk associated with public ownership of land is assessed as moderate. Raw RI Score is 5 out 10. Notched Salience: Initfal delays in securing long-term pulpwood supply from private or public lands can be mitfgated by focusing procurement efforts on sawmill residuals. Raw RI score is notched down 25%. Notched salience is 3.75. Score 3.75 Impact Level: RI Impact level is deemed moderate. There is a moderate level of uncertainty regarding wood supply from smaller woodlots and publicly owned forests, partfcularly for the 200,000 GMT/yr expected to come from new harvestfng actfvity. For private woodlots, detailed landowner surveys would be required to reduce uncertainty. For public lands under the management of WestFor, uncertainty remains regarding long-term licensing agreements and the impact of protected area expansion on wood supply. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 24.98 out of 100. Score 24.98 1.6. Ownership of Equipment Rationale: In most cases, suppliers that own or lease equipment for harvest, collectfon, and processing feedstock are lower risk than those who do not. For example, third-party harvestfng equipment may not 3 Freeman Lumber, Minas Basin Pulp and Power, and Wagner Forest Management 4 Referred to as Timber License Agreements (TLAs). 5 There are on-going discussions around replacing WestFor’s annual TLA with long-term Forest Utilization License Agreements (FULAs), which include 100-year planning horizons, 25-year tactical plans, and 5-year operating plans. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 14 | P a g e be available when required. Short harvest windows may be missed if a farmer and contractor cannot schedule harvest tfmes that are convenient and quantfty shortages can result. Raw RI Score: Supply chain equipment critfcal for procurement of roundwood tends to be owned by logging contractors. A typical equipment profile for a logging operatfon in SW NS includes a single -grip harvester felling and processing trees into logs and a forwarder extractfng logs to roadside. Logging trucks – which are either owned by the contractor or a third party – are then loaded and the roundwood is delivered to destfnatfon. Depending on age and conditfon, a single harvester or forwarder can cost as much as $500,000. As a result, business debt can often approach $1 million. The presence of larger entftfes willing to provide downpayment assistance mitfgates risk to some extent (e.g., WestFor, Freeman Lumber). Raw RI Score is 3 out of 10. Score 3 Notched Salience: No adjustment. Score 3.0 Impact Level: RI Impact level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 6.66 out of 100. Score 9.99 1.7. Ownership of Transportation/Logistics Rationale: In most cases, suppliers that own or lease equipment necessary to transport biomass from forest or field are lower risk than those who do not. However, in some circumstances, reliance on third partfes to transport biomass is a common practfce and does not contribute to risk. Raw RI Score: There are significant trucking capacity problems in SW NS, with long wait tfmes and a need to contract to trucking companies located outside of the region (i.e., in Central NS). Fewer than four businesses in the region own more than four logging trucks (i.e., larger sawmills and logging contractors). Approximately half of the logging contractors in the region own a single truck. The lack of available trucks is largely explained by the lack of available third-party trucking companies in SW NS. As markets have declined, and opportunitfes for shorthauling and backhauling have disappeared, independent truckers have left the business. Recruitment of new drivers is challenging owing in part to difficultfes insuring younger drivers. Chip truck capacity is also inadequate: SW NS operatfons must often enlist chip trucks from Sheet Harbour and Cape Breton. To ensure the rated quantftfes are delivered on tfme at a reliable cost, purchases of new trucks and recruitment of new drivers will be required. Raw RI Score is 6 out 10. Score 6 Notched Salience: No adjustment. Score 6.0 Impact Level: RI Impact level is deemed moderate. The availability of trucking capacity is limited in the region and will negatfvely impact the delivery of woody biomass to a new commercial biomass project. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 39.96 out of 100. Score 39.96 1.8. Supplier as an Aggregator Rationale: Aggregators may effectfvely provide supply chain redundancy, eliminatfng the risk and complexity of dealing with multfple sources of supply by combining supplies into a single master contact. Aggregators can add much needed stability in BDO Zones by increasing offtake stability for both suppliers Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 15 | P a g e and markets. An aggregator can be a more reliable long-term offtake for suppliers by virtue of having multfple markets and can be a more reliable long-term supplier for markets by having access to multfple suppliers. Further, when a single supplier breaches, the aggregator can source from another. Raw RI Score: Freeman Lumber is a significant regional aggregator of roundwood and residuals. Both sawlogs and lower-quality roundwood are frequently stockpiled at its 150,000 GMT-capacity log yard in Greenfield, NS. Capacity utflizatfon at the log yard is below 50% and storage capacity could be doubled if required. The sawmill has experience utflizing its large storage capacity for purposes of long-distance exchanges of roundwood; pulpwood is occasionally delivered to Port Hawkesbury Paper over 400 km away in exchange for sawlogs. The Western Woodlot Services Cooperatfve (WWSC) is another organizatfon which plays an important aggregatfon role in the supply chain, connectfng private landowners with logging contractors and mills. A large wood brokerage based out of Maine (HC Haynes Ltd.)) also functfons as an important roundwood aggregator in the region. Raw RI Score is 2 out of 10. Score 2 Notched Salience: No adjustment. Score 2.0 Impact Level: RI Impact level is deemed moderate. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 6.66 out of 100. Score 6.66 1.9. Distance from Proponent Rationale: The greater the distance from a supplier to a plant, the more exposure to weather and fuel cost risks, and the greater the competftfve pressure (to breach) that a closer competftor can exert. Raw RI Score: The available roundwood supply is widely distributed across private and public forests in SW NS.6 Almost half (48%) of all low-grade roundwood available in the supply basin is within an 80 km road distance from Caledonia (the center point of the analysis), in the countfes Queens, Lunenburg, and Annapolis (Figure F-1, Appendix F). All potentfal bio-project development sites also happen to be located within Lunenberg and Queens countfes. Accessing >70% of the available roundwood supply requires procurement from distances greater than 120 km from Caledonia, including from Digby County, the county with the third largest roundwood supply potentfal in SW NS. Considering diesel price volatflity (see 3.8), feedstock transportatfon costs (see 3.14), road infrastructure issues (see 3.19), and road regulatfons issues (see 3.18), the relatfvely even distributfon of low-grade roundwood across the supply basin constftutes a moderate risk. Distance-related risks associated with sawmill residuals are insignificant: Freeman Lumber produces >95% of all sawmill residuals in the supply basin and is located 27 km from Caledo nia and is within 40 km of three of the four potentfal development sites (the exceptfon is Kaizer Meadow Industrial Park, located 90 km from Freeman Lumber). Raw RI Score is 5 out of 10. Score 5 Notched Salience: No adjustment. Score 5.0 Impact Level: RI Impact level is deemed moderate. Score 6.66 6 Forestry Economic Task Force (FETF)-AFRY. (November 2022). Nova Scotia Forest Fibre Supply Analysis (Final Report). 105 pp. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 16 | P a g e Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 33.30 out of 100. Score 33.30 1.10. Fundamental Feedstock Production Experience Rationale: Risk is higher when a supplier has limited experience with harvestfng/processing and/or collectfng biomass. Where experience is lacking, the Proponent should show that steps have been taken to ensure proper training, knowledge disseminatfon, and monitoring. Raw RI Score: In general, feedstock productfon experience in SW NS is substantfal, as cut-to-length harvestfng has been common in Nova Scotfa since the 1980s. However, the prevalence of partfal harvestfng in SW NS has sharply increased over the past fifteen years owing to changes in government regulatfons and private woodlot owner preferences. In 2010, over 90% of harvestfng in the region involved clearcutting or overstory removal. As of 2022, partfal harvestfng was responsible for nearly 60% of harvestfng actfvity in the region. In virtually all forest operatfons on Crown land in the past few years, no more than 50% of canopy cover or basal area has been removed. Although most equipment operators are now trained and experienced in partfal cutting, there are marginal economic disadvantages compared to clearcutting. Fixed costs inevitably increase as greater areas of land must be harvested to procure a given quantfty (e.g., additfonal road building costs, machine movement costs). The productfon of sawlogs can also be reduced, as partfal harvestfng prescriptfons often aim for removal of lower quality trees.7 Long-term economic advantages of partfal cutting, including maximizatfon of sawlog productfon and growth and yield of shade tolerant and shade intermediate species (e.g., sugar maple, red spruce, white pine), are uncertain due to potentfal for natural disturbance over the long term. Forestry organizatfons in the region – including the Mi’kmaw Forestry Initfatfve (MFI) and WestFor – are working towards developing partfal harvest prescriptfons that balance economic and environmental objectfves. Raw RI Score is 4 out of 10. Score 4 Notched Salience: No adjustment. Score 4.0 Impact Level: RI Impact level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 13.32 out of 100. Score 13.32 1.11 Production Scale Experience Rationale: Number of years in business is a positfve indicator of future solvency. Historical performance is an indicator of future performance. Raw RI Score: Risk associated with productfon scale experience relevant to the rated quantfty of roundwood is assessed as moderate-to -high. Approximately 200,000 GMT/yr of low-grade roundwood can be recovered during conventfonal forest operatfons in the supply basin without scale-up; recovery will only require that equipment operators increase processed volumes per harvested area. However, procuring the additfonal 200,000 GMT/yr of low-grade roundwood will require an increase in harvestfng Score 6 7 Nova Scotia Innovation Hub-FPInnovations [NSIH-FPI]. August 2021. Feedstock Availability and Cost in Nova Scotia: By County and Specific Locations. Written by Kevin Blackburn, FPInnovations. 72 pp. (p.8); Forestry Economic Task Force (FETF)-AFRY. (November 2022). Nova Scotia Forest Fibre Supply Analysis (Final Report). 105 pp. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 17 | P a g e actfvity by as much as 40%.8 Recovering the total rated quantfty would return regional roundwood productfon levels (including sawlogs, pulpwood, and low-grade roundwood) to levels sustained when the Bowater Mersey paper mill was operatfonal in the early 2010s (~1.2 million GMT/yr). Experience relevant to this quantfty of productfon is available, as many of the logging contractors and sawmill operators in the region were working during this period. However, contractors may not have experience with the geographic scale of operatfons that is required to procure the rated quantftfes. Under ecological forestry regulatfons and increasing demands for partfal cutting by private woodlot owners, as much as 60% of the rated roundwood supply could come from partfal harvestfng operatfons. Since partfal harvestfng yields lower roundwood quantftfes per hectare, an annual operatfng area comparable to that required for the rated quantfty has likely not been experienced since the early 2000s, when roundwood productfon levels (largely from clearcut operatfons) were ~1.8 million GMT/yr. There is no risk associated with sawmill residuals productfon capacity experience. Raw RI Score is 6 out of 10. Notched Salience: Milling and logging contractor capacity has been growing in recent years owing in part to actfve contractor recruitment and equipment financing by larger sawmills in the region. Contfnued efforts to increase recruitment, retentfon, and new equipment uptake are expected to reduce the risks associated with logging capacity. The High-Performance Logging (HPL) initfatfve of the Canadian Woodlands Forum, BioApplied, New Brunswick Community College (NBCC), and Forest Liaison has been in development since 2011. The objectfve of the initfatfve is to increase recruitment and retentfon of a skilled equipment operator workforce in the Maritfmes by working closely with both skilled candidates and logging contractors interested in hiring and retaining entry-level machine operators. The NSCC and the Nova Scotfa Apprentfceship Agency have also expressed interest in this model of workforce development. With regards to equipment uptake, contfnued willingness of Freeman Lumber and other organizatfons to offer favourable financing arrangements for logging contractors requiring new equipment would mitfgate risks of productfon scale experience. No mitfgatfon measures could be identffied to mitfgate trucking capacity risks. Raw RI Score is notched down 25%. Notched Salience is 4.5. Score 4.5 Impact Level: RI Impact level is deemed moderate. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 29.97 out of 100. Score 29.97 1.12. Feedstock Production Priority Rationale: When biomass feedstock is a secondary or non-core line of business, or when it is a by-product or a residual from a more valuable primary product, then suppliers may not put in sufficient effort for consistent productfon. Risk of breach increases when productfon and/or delivery of feedstock compromises a supplier’s ability to make a primary product. Raw RI Score: The productfon of low-grade roundwood is complementary to the productfon of high-quality roundwood (e.g., sawlogs). Recovering low-grade roundwood during conventfonal forest operatfons does not significantly reduce operatfonal productfvity and profit of logging contractors. There is therefore no Score 1 8 Current sawlog production in SW NS totals ~700,000 GMT/yr and procuring the additional 200,000 GMT/yr of low-grade roundwood from new harvesting activity would yield approx. 300,000 GMT/yr of additional sawlog production (assuming a 60/40 sawlog/pulpwood recovery). Assuming that sawlog production is proportional to harvested area, the increase in sawlog production from 700,000 GMT/yr to 1,000,000 GMT/yr (700,000 GMT/yr + the additional 300,000 GMT/yr) represents a 43% increase in annual sawlog production and annual harvesting activity. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 18 | P a g e risk that the rated quantfty of pulpwood will become compromised due to a reduced ability to produce higher value sawlogs. There is also no feedstock productfon priority risk associated with sawmill residuals. Notched Salience: No adjustment. Score 1.0 Impact Level: RI Impact level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 3.33 out of 100. Score 3.33 CATEGORY 2.0: COMPETITOR RISK 2.1. Competitor Locations and Geographical Influence on the Market Rationale: Competftors’ locatfons relatfve to a Proponent plant can affect the viability of procuring feedstock and its cost. Accurate and detailed competftor mapping provides an understanding of the geographical influence a competftor may have, including competftfve advantages such as short hauling. Raw RI Score: Seven competftors for wood fiber were identffied within the competftfon basin. Three competftors are located within 150 km of the center point (Map E -1, Appendix E). The most significant competftor is a 28 MW biomass power plant (Brooklyn Power Corp.), which is located within ~50 km of the center point. The facility has been purchasing the majority of the sawmill residuals (mainly bark) produced by SW NS sawmills and has an estfmated annual biomass demand of ~300,000 GMT/yr. Other competftors located within the supply basin include an engineered wood product manufacturer (Maibec CanExel) with a demand of ~100,000 GMT/yr of pulp-quality hardwood (95 km from center point) and a small biomass-based heatfng facility with demand <3,500 GMT/yr (120 km from center point). The two pellet mills in the province (located 185 km and 215 km from Caledonia) rarely pay enough to justffy delivering residuals from SW NS sawmills. Competftors located >150 km from Caledonia generally do not procure wood fibre from Western NS.9 Raw RI Score is 3 out of 10. Score 3 Notched Salience: No adjustment. Score 3.0 Impact Level: RI Impact level is deemed moderate. The extent to which Brooklyn Power will be incented to combust biomass under future RE regulatfons is uncertain, but negatfve public opinion of large-scale bioenergy in the province, procurement history, and the eventual need for facility refurbishment indicate that incentfves for biopower in the province could be limited in the long term. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 19.98 out of 100. Score 19.98 2.2. Historical Fluctuation of Quantity Used Rationale: Clear understanding of key competftors’ consumptfon of each type of feedstock utflized by the Proponent is essentfal to quantffying the risks associated with each competftor. Understanding historical trends of feedstock utflizatfon can provide valuable informatfon about feedstock price elastfcity during shortages and insights into events impactfng future supply conditfons. It can also enable more accurate 9 Pulpwood/sawlog swaps between Freeman Lumber and Port Hawkesbury Paper occur infrequently Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 19 | P a g e estfmates of the sensitfvity of feedstock availability to potentfal future consumptfon levels or to the impact of external events (e.g., weather events, structural economic changes, seasonality, or policy change). Raw RI Score: Brooklyn Power Corp. operates a 28 MW biomass power plant in Brooklyn, NS that is owned by Emera. The company sells the electricity it generates from the combustfon of sawmill residuals to Nova Scotfa Power (NSP), a subsidiary of Emera.10 There have been instances when low-grade roundwood was procured by the facility (e.g., in 2016/2017 and 2018/2019), but supplies are kept in inventory and represent a small fractfon of annual wood fibre consumptfon (likely <4,000 GMT/yr of roundwood). The most recent agreement between Nova Scotfa Power and the Government of Nova Scotfa guarantees payments for electricity up to 2027/28. The agreement was made following delays and operatfonal problems with a hydroelectric generatfng statfon in Labrador (Muskrat Falls), which is connected to Nova Scotfa by an undersea transmission line (Maritfme Link). The Brooklyn Power facility was built in 1995 and will require significant investments in refurbishment. It is unlikely that renewable energy policies in the province will incent refurbishment or constructfon of a new biomass power plant given the expectatfons for the Maritfme Link – Muskrat Falls project. Other larger competftors in the region do not have a history of large wood fibre demand, including the finished wood product facility with a demand of ~100,000 GMT/yr of pulp-quality hardwood (Maibec CanExel) and two pellet plants with demands of ~200,000 GMT/yr (Great Northern Timber and Shaw Resources). Generally, risks related to historical fluctuatfons in biomass demand in the region are assessed as low. Raw RI Score is 3 out of 10. Score 3 Notched Salience: No adjustment. Score 3.0 Impact Level: RI Impact level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 9.99 out of 100. Score 9.99 2.3. Competitor Pricing and Price Sensitivity Rationale: Understanding how much competftors pay for different feedstock types is an essentfal step in determining competftfveness of Proponent. Historical prices paid by competftors provide insight into their procurement behaviors and ability/willingness to pay premiums for feedstock and exert pressure on Proponent’s suppliers during tfmes of feedstock shortage. Competftors who are able to offer higher prices for feedstock during feedstock shortages can pose significant risks to Proponent. Raw RI Score: Market prices for pulpwood and sawmill residuals in SW NS declined significantly following the closure of the Bowater Mersey paper mill in 2012 and have not recovered. The only current buyer of pulpwood in the region is Maibec CanExel which purchases ~100,000 GMT/yr of pulp-quality hardwood at a price of ~$65/GMT delivered. Brooklyn Power paid approximately $27/GMT for low-grade roundwood in 2018/2019 but has not purchased additfonal roundwood since this tfme. In comparison, delivered pulp-quality roundwood prices before 2012 typically exceeded $45/GMT and involved much larger quantftfes (>350,000 GMT/yr). Score 2 10 Nova Scotia Utility and Review Board. (June 30, 2022). 2022 10-Year System Outlook. Nova Scotia Power. 60 pp. (p.17) Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 20 | P a g e The two pellet mills in the province only buy roundwood in exceptfonal circumstances (e.g., when low - grade roundwood is available in surplus because of quotas at other mills or natural disturbances). Quantftfes accepted and prices paid are highly variable. Quotas on the quantfty of biomass that buyers are willing to accept are common for biomass heatfng facilitfes, pellet mills, and other bioenergy facilitfes. Competftors in the region prefer lower cost sawmill residuals. Current prices for bark, sawdust, and shavings in the region range from approx. $5-$20/GMT FOB mill whereas wood chip prices range from $10-$35/GMT. Before the closure of Bowater Mersey in 2012, prices for wood chips in SW NS were as high as $60/GMT FOB. Due to the depressed pricing in the region and the lack of demand for lower-quality roundwood, risk is considered low. Raw RI Score is 2 out of 10. Notched Salience: No adjustment. Score 2.0 Impact Level: There is a moderate degree of uncertainty related to our understanding of competftors’ price sensitfvity. RI Impact level is deemed moderate. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 13.32 out of 100. Score 13.32 2.4. Supply Influence of Competitor Rationale: In some cases, competftors may be able to exert high degrees of pressure on local suppliers, effectfvely enabling them to control feedstock, especially during shortages. This control can derive from long previous relatfonships between suppliers and competftors, from verbal or “understood” agreements, or from a competftor being able to assist suppliers in tfmes of surplus by maintaining large inventories that enable suppliers to contfnue supplying when other markets impose quotas. Understanding and planning around such soft risk factors is important. If such relatfonships exist in the Proponent’s procurement area, they may indicate an increased risk of feedstock shortage or pricing changes. Raw RI Score: Demand for sawmill residuals by Brooklyn Power Corp. has been inconsistent and prices offered have been significantly lower than prices paid for sawmill residuals and roundwood before the closure of Bowater Mersey in 2012 and Northern Pulp in 2020. All potentfal suppliers contacted by Ecostrat indicated that they are willing to sell to a new entrant for a modest premium. Raw RI Score is 2 out of 10. Score 2 Notched Salience: No adjustment. Score 2.0 Impact Level: RI Impact level is deemed moderate. The Government of Nova Scotfa could increase requirements for biomass electricity generatfon if the Maritfme Link – Muskrat Falls project is not successful, thereby increasing annual biomass demand at the Brooklyn Power facility. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 13.32 out of 100. Score 13.32 2.5. Temporary Market-Driven Markets Rationale: Alternatfve, non-traditfonal, market-driven competftors for feedstock can increase feedstock demand in unusual circumstances. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 21 | P a g e Raw RI Score: Freeman Lumber produces over 200,000 GMT/yr of sawmill residuals. Of this, it sends about 13,000 GMT/yr of sawdust and 6,000 GMT/yr of bagged shavings to non-traditfonal markets, mainly for animal bedding in Annapolis County. None of the local experts contacted were aware of increasing markets for animal bedding in the region. No other possible risks associated with temporary markets were identffied. Raw RI Score is 1 out of 10. Score 1 Notched Salience: No adjustment. Score 1.0 Impact Level: RI Impact level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 3.33 out of 100. Score 3.33 2.6. Demand for Competitors’ Products Rationale: Increased demand for competftors’ products can cause greater demand for feedstock by the competftor. For example, greater demand for biofuels due to a clean fuels policy can cause increased biofuel productfon by the competftor, thereby increasing demand for feedstock. Raw RI Score: There is moderate risk that the Brooklyn Power facility will increase its annual demand for sawmill residuals and roundwood as a result of policy changes. The Government of Nova Scotfa has set a goal of 80% renewable electricity by 2030. The government has also recently fined Nova Scotfa Power for failing to meet its target of 40% renewable electricity by 2020, indicatfng that there is currently significant politfcal will to achieve objectfves.11 A major hydroelectric project in Labrador that is linked to Nova Scotfa through an undersea transmission line is critfcal to achieving the renewable electricity target (40% by 2030), but has encountered technical setbacks since its initfal constructfon in 2021. There are other factors that reduce incentfves for expansion of biomass power productfon in the province, including on-going concerns over the sustainability of using wood for purposes of electricity generatfon and the requirement to refurbish the combustfon unit (est. 1995). No other major risks associated with increasing demand for products produced by competftors in the region could be identffied (e.g., pellets). Raw RI Score is 3 out of 10. Score 3 Notched Salience: No adjustment. Score 3.0 Impact Level: RI Impact level is deemed moderate due to uncertainty regarding future renewable power generatfon from woody biomass in the province. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 19.98 out of 100. Score 19.98 CATEGORY 3.0: SUPPLY CHAIN RISK 3.1. Biomass Availability Multiple (BAM) Rationale: Biomass Availability Multfple (BAM) indicates the degree of redundancy in a Proponent’s supply chain. BAM is the ratfo of biomass feedstock available to a project, at costs, tfming, and in quality 11 https://www.cbc.ca/news/canada/nova-scotia/power-electricity-renewable-energy-tory-rushton-1.6809515 Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 22 | P a g e feasible for the Proponent, divided by the project’s feedstock requirement. BAM is a strong indicator of supply chain resilience when stressed by supply shortage and/or supplier breach. Raw RI Score: Of the total 400,000 GMT/yr of roundwood available for a new bio-project, approximately 200,000 GMT/yr could be recovered from existfng logging actfvity in the supply basin (Appendix B). Additfonal harvestfng actfvity would be required to procure the remaining 200,000 GMT/yr of the rated quantfty. Using estfmates of sustainable wood supply under ecological forestry produced by a third party in 2022, we estfmate that a total of ~530,000 GMT/yr of low-grade roundwood is sustainably available for new projects in the supply basin.12 For the rated quantfty of 400,000 GMT/yr, the BAM for pulpwood is 1.33. Methods used to estfmate annual residuals productfon from sawmills in the supply basin were deliberately conservatfve to ensure that final estfmates were below what is likely in reality (Appendix C). Combined with sawmill owner-operators’ stated willingness to sell, the sawmill residual BAM of 1.55 provides assurance to new project developers that the rated quantfty of 150,000 GMT/yr will be available at low risk. Previous BDO Zone studies have had higher BAM values for pulpwood (e.g., >1.5). Therefore, overall risk is assessed as moderate. Raw RI Score is 4 out of 10. Score 4 Notched Salience: No adjustment. Score 4.0 Impact Level: Feedstock redundancy, or BAM, is an important variable when assessing feedstock supply feasibility, and its level can impact the biomass supply security for a commercial biomass project significantly. RI Impact level is deemed high. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 26.64 out of 100. Score 26.64 3.2. Impact of Increased Utilization of Feedstock Rationale: Feedstock utflizatfon can change over tfme owing to expansion of existfng facilitfes and constructfon of new facilitfes. Increased utflizatfon can lead to higher prices, feedstock disruptfons, shortages, or supplier breach. Raw RI Score: As the major consumer of woody biomass in the supply basin, capacity expansions at the Brooklyn Power Corp. biomass power facility are unlikely to occur (see 2.6). There are also no indicatfons that the two pellet mills present in Central NS will increase capacity and increase prices sufficient to procure residuals and roundwood from SW NS. Raw RI Score is 3 out of 10. Score 3 Notched Salience: No adjustment. Score 3 Impact Level: RI Impact level is deemed moderate. Score 6.66 12 Forestry Economic Task Force (FETF)-AFRY. (November 2022). Nova Scotia Forest Fibre Supply Analysis (Final Report). 105 pp. *The third-party report was produced for the Forestry Economic Task Force (FETF) by the consulting group AFRY. The report estimated sustainably available roundwood supply for new projects in NS using NS DNRR production forecast data, assumptions related to volume reductions like ly under ecological forestry, product recovery assumptions, and modeling of current demand for roundwood. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 23 | P a g e Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 19.98 out of 100. Score 19.98 3.3 Seasonal Feedstock Supply Variation Rationale: Biomass supply can present significant seasonal supply variatfons; combined with limitatfons associated with longer-distance transportatfon and storage, can lead to regional biomass supply imbalances and manifest in shortages and higher costs for Proponents. Raw RI Score: The Nova Scotfa Forest industry operates year-round with few seasonal interruptfons. Delays in roundwood deliveries can occur during the spring when tertfary roads are off limits to loggers without special permitting. Winters in Nova Scotfa tend to be mild and do not slow forest operatfons. Road maintenance is required more often in the winter months but this is not expected to impede the ability of a new project to procure the rated quantftfes of biomass at the rated prices. Sawmills often carry higher inventories over the winter months to mitfgate a slowing of supply through the spring. Raw RI Score is 3 out of 10. Score 3 Notched Salience: No adjustment Score 3.0 Impact Level: RI Impact level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 9.99 out of 100. Score 9.99 3.4 Year-to-Year Variation in Feedstock Availability Rationale: Biomass can have significant fluctuatfons in year-to-year supply due to variability in yield from biomass harvestfng operatfons. Raw RI Score: Year-to-year variatfon in roundwood yield is not expected to be significant in the study region. As in other regions of North America, there has been a long-term decline in roundwood yield per unit area harvested but this has stabilized under modern forestry practfces. Raw RI Score is 1 out of 10. Score 1 Notched Salience: No adjustment. Score 1.0 Impact Level: RI Impact level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 3.33 out of 100. Score 3.33 3.5. Front-End Validation of Data Used in Feedstock Availability Models Rationale: Feedstock supply models can be complex. Lack of clarity about model assumptfons and baseline data can result in confusion on the part of the capital markets and drive financing costs for biomass projects. The adequacy and credibility of assumptfons and baseline data is paramount to credible model outputs. Raw RI Score: Biomass availability estfmates were developed using a mix of extrapolatfons from published sources, conversion factors, third-party availability estfmates, and a spreadsheet model (Appendix B). To Score 4 Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 24 | P a g e estfmate the quantfty of low-grade roundwood available for new projects in the region, data presented in a recent wood supply study commissioned by the Forestry Economic Task Force (FETF) was used. The county-level data consists of pulpwood availability estfmates by species for the unused portfon of the sustainably available roundwood supply, as estfmated in the NS DNRR’s Sustainable Forest Analysis (SFA)/Provincial Timber Objectfve (PTO). The estfmates were developed using the NS DNRR’s forest inventory and therefore represent a reliable means of estfmatfng availability. To arrive at estfmates of wood supply for new projects in the region, the total annual wood demand in SW NS (as estfmated using the DNRR’s Registry of Buyers of Primary Forest Products series) was subtracted from the total annual sustainably available wood supply (as estfmated using NS DNRR modeling). Assumptfons regarding the ratfo of sawlogs-to-pulpwood were then introduced. This ratfo can range from 80/20 to 40/60 in SW NS, depending on species compositfon and stand history. Most forestry professionals contacted by Ecostrat believed that a defensible sawlog/pulpwood ratfo assumptfon was 70/30 or 60/40. Further details are provided in Appendix B. The spreadsheet model used to estfmate sawmill residuals productfon is simplified, involving the use of generic arithmetfc factors that convert milled quantftfes of sawlogs to wood chips, sawdust, shavings, and bark. The model outputs were calibrated using an approach that is expected to result in underestfmates of residuals availability (Appendix C). Therefore, there is low risk associated with sawmill residuals estfmatfon. Overall, risk is assessed as low-to-moderate. Raw RI Score is 4 out of 10. Notched Salience: No adjustment. Score 4.0 Impact Level: Because most of our conclusions in this assessment are based on biomass availability modelling, model errors can significantly impact supply chain risk. RI Impact level is deemed high. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 26.64 out of 100. Score 26.64 3.6 Low Historical Demand for Feedstock in the BDO Zone Rationale: If the Proponent does not have a history of developing large-scale feedstock procurement, suppliers may not have sufficient expertfse in feedstock productfon to ensure reliable supply, especially early on. Raw RI Score: Wood processing facilitfes (e.g., sawmills, paper mills) and supportfng pulpwood and residual supply chains have been operatfng in the SW NS region for over 100 years. Larger sawmills in the supply and competftfon basins have been steadily increasing capacity over the past decade. Contractors are experienced and can recover low-grade roundwood using conventfonal cut-to-length methods and equipment. Risk is assessed as low. Raw RI Score is 2 out of 10. Score 2 Notched Salience: No adjustment. Score 2.0 Impact Level: RI Impact level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 6.66 out of 100. Score Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 25 | P a g e 6.66 3.7 History of Production/Feedstock is a Secondary Crop or a Byproduct Rationale: If the feedstock is a new/secondary crop or a by-product, suppliers may either lack sufficient experience to mitfgate risk or be unable to react to such risk, and producers may be less likely to prioritfze productfon. If the feedstock is a secondary crop, then productfon can be subject to variables beyond suppliers’ control. Raw RI Score: We do not antfcipate any risks related to this risk indicator, as explained in 1.12. Raw RI Score is 1 out of 10. Score 1 Notched Salience: No adjustment. Score 1.0 Impact Level: RI Impact level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 3.33 out of 100. Score 3.33 3.8 Diesel Prices Rationale: Diesel, oil, and PPI can impact feedstock cost of harvest and collectfon over tfme. Sensitfvitfes to worst case scenarios should be run. Raw RI Score: Roundwood transportatfon costs in Nova Scotfa as reported by H.C. Haynes, Inc. increased by 51% between 2017 and 2023 as a result increasing diesel price.13 After reaching a seven-year low in May 2020, diesel prices more than doubled in real terms between May, 2020 and Dec., 2022, increasing from $0.79/L to $2.20/L (2022 CAD). By May 2023, retail diesel prices returned to early 2013 levels (Figure F-3, Appendix F). Inherent diesel price volatflity reduces confidence in a stable or downward trend over the long-term, partfcularly under climate policies like the federal carbon tax. The risk that diesel prices will push actual delivered roundwood and residuals prices in the BDO Zone beyond the upper limits of the rated price ranges is deemed moderate. Raw RI Score is 5 out of 10. Score 5 Notched Salience: No adjustment. Score 5.0 Impact Level: RI Impact level is deemed moderate due to the uncertainty in the future price of fossil fuels under provincial, regional, and natfonal climate policies. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 33.30 out of 100. Score 33.30 3.9 Harvest & Collection Practices & Schedules Rationale: Differences in harvest tfming and practfces can create risks for both the quantfty and quality of the feedstock. For example, feedstock harvested by different suppliers in different windows can undergo varying levels of exposure to sun, wind, and moisture, leading to variatfons in delivered feedstock quality. 13 In 2017, the H.C. Haynes logging truck costing formula was: # of km * 0.07 + 7 ($17.5/GMT @ 150km). In 2023, the formula was: # of km * 0.11 + 10 ($26.5/GMT @ 150km). Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 26 | P a g e Raw RI Score: There is a moderate risk that the contfnued shift from clearcutting to partfal harvestfng could affect the quantfty and quality of roundwood supplied to market. Partfal harvestfng reduces roundwood productfon per hectare, increasing variable costs and requiring a larger annual operatfng area and increases in associated road building, machine transport, and other overhead costs. Partfal harvestfng is also expected to reduce the quality of roundwood supplied to market, increasing the recovery of low- grade roundwood while decreasing the recovery of higher quality roundwood (e.g., sawlogs).14 While this could be advantageous for a new bio-project, it also presents risks: reduced sawlog recovery could affect the profitability of logging operatfons and sawmills. There are no other risks associated with harvestfng practfces and schedules. Roundwood and residuals supply chains operate contfnuously throughout the year with few weather-related interruptfons. Road access limitatfons that occur in some areas during the spring are compensated for by scheduling spring harvestfng in areas without road access limitatfons. With regards to feedstock quality, regional soft standards of log handling and storage ensure that variatfon in delivered feedstock quality and moisture content is within a range acceptable to buyers. Raw RI Score is 5 out of 10. Score 5 Notched Salience: The contfnued development of the High Performance Logging (HPL) initfatfve will mitfgate risks associated with increased partfal harvestfng in the region. The machine operators program offered by New Brunswick Community College (NBCC) and an in-field operator training consultancy (Forest Liaison) under HPL provide training specific to partfal harvestfng systems. A number of other organizatfons in the province have expressed interest in developing similar programs or supportfng the contfnued development of HPL, including the Nova Scotfa Apprentfceship Agency and the Nova Scotfa Community College (NSCC) – Lunenberg Campus. Together with traditfonal on-the-job training provided by logging contractors and equipment suppliers, such programs promise to increase equipment operator productfvity in partfal harvestfng systems. Raw RI Score is notched down by 25%. Notched salience is 3.75. Score 3.75 Impact Level: RI Impact level is deemed moderate. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 24.98 out of 100. Score 24.98 3.10 Harvesting & Collection Equipment Rationale: Different types of harvestfng and collectfon equipment suppliers use can significantly impact the quality and availability of feedstock. The use of different types and combinatfons of harvestfng, collectfon, and processing equipment can lead to non-homogeneous feedstock. In additfon, equipment not designed specifically for biomass cultfvatfon, harvestfng, and collectfon can increase feedstock quality risks. Raw RI Score: None of the equipment used in the regional forestry supply chain constftutes a risk to wood fibre quality and availability. Trees are felled, delimbed, and sectfoned into logs with harvesters. Logs are extracted to roadside with forwarders. Logs and residuals are delivered to destfnatfons using conventfonal trucks. None of this equipment poses a feedstock quality or availability risk when managed and operated properly. Score 1 14 Nova Scotia Innovation Hub-FPInnovations [NSIH-FPI]. August 2021. Feedstock Availability and Cost in Nova Scotia: By County and Specific Locations. Written by Kevin Blackburn, FPInnovations. 72 pp.; Forestry Economic Task Force (FETF)-AFRY. (November 2022). Nova Scotia Forest Fibre Supply Analysis (Final Report). 105 pp. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 27 | P a g e Raw RI Score is 1 out of 10. Notched Salience: No adjustment. Score 1.0 Impact Level: RI Impact Level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 3.33 out of 100. Score 3.33 3.11. Temporary Externality-Driven Markets for Feedstock Rationale: Alternatfve, non-traditfonal, externality-driven competftors for feedstock can drive feedstock demand (and cost) in unusual circumstances. Raw RI Score: Neither roundwood nor sawmill residuals are at risk of supply disruptfons or sharp price increases resultfng from shifts in alternatfve, non-traditfonal markets. Risk is assessed as low. Raw RI Score is 1 out of 10. Score 1 Notched Salience: No adjustment. Score 1.0 Impact Level: RI Impact Level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 3.33 out of 100. Score 3.33 3.12 Variation in Densification Methods Among Different Suppliers Rationale: The shape and density of the unit in which feedstock is supplied can impact feedstock cost and quality. Raw RI Score: Pulpwood and residuals are not densified for transportatfon and the existfng suppliers are using similar logistfcs equipment and practfces. Risk is low. Raw RI Score is 1 out of 10. Score 1 Notched Salience: No adjustment. Score 1.0 Impact Level: RI Impact Level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 3.33 out of 100. Score 3.33 3.13 Availability of Labour for Feedstock Production Rationale: Skilled labour shortages can be difficult to remedy in the short term. Availability of suitable labour in an area can impact the ability to procure sufficient feedstock quantftfes on schedule. Labour risks are higher for facilitfes where supply chains are not yet actfve; or for Proponent’s for whom large feedstock requirements, or development of new (or expanded) supply chains, demand significant additfons to the local labour force. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 28 | P a g e Raw RI Score: Approximately 80 logging crews currently operate in the SW NS region. We expect that half of the rated quantfty of low-grade roundwood (200,000 GMT/yr) can be procured by the existfng workforce during conventfonal operatfons, without the need for additfonal harvestfng actfvity or equipment operators. In the past five years, this quantfty of low-grade roundwood has been left behind during conventfonal operatfons due to lack of markets and therefore can be easily recovered by the existfng contractor base. We expect that the remaining half of the rated quantfty of roundwood (200,000 GMT/yr) will be procured from new harvestfng actfvity that would not otherwise occur under existfng markets. Current logging capacity is likely insufficient for this portfon of the rated quantfty. We estfmate that an additfonal 20 logging crews (and an equivalent number of additfonal harvesters and forwarders) will be required to ensure the total rated quantfty is recovered annually (Appendix B). Over a period of five years, logging capacity scale-up is likely to be successful with contfnued development of training programs, sawmill- contractor relatfons, co-financing arrangements, and stable demand for low-grade roundwood. Labour availability risk is partfcularly high for the transportatfon phase of the supply chain. The number of truckers operatfng in SW NS has been declining rapidly in recent years, and most drivers are over the age of 40. Long wait tfmes are common and there is often a need to contract trucking companies located in Central NS due to lack of available capacity in SW NS. The contfnued decline of the forestry workforce in the region over the past three years can be largely attributed to the exit of truckers.15 Risk of labour availability is assessed as high. Raw RI Score is 8 out of 10. Score 8 Notched Salience: The contfnued development of the High Performance Logging (HPL) initfatfve will mitfgate risks associated with increased partfal harvestfng in the region. The machine operators program offered by New Brunswick Community College (NBCC) and an in-field operator training consultancy (Forest Liaison) under HPL provide training specific to partfal harvestfng systems. A number of other organizatfons in the province have expressed interest in developing similar programs or supportfng the contfnued development of HPL, including the Nova Scotfa Apprentfceship Agency and the Nova Scotfa Community College (NSCC) – Lunenberg Campus. In recent years, the Canadian Woodlands Forum (CWF) has also demonstrated a proof-of-concept forestry truck operator program in collaboratfon with Class 1 licensing in Nova Scotfa. Together with traditfonal on-the-job training provided by logging contractors and some equipment suppliers, programs of this kind promise to increase workforce productfvity, recruitment, and retentfon when adequately resourced. Raw RI Score is notched down by 50%. Notched salience is 4.0. Score 4.0 Impact Level: RI Impact Level is deemed high. The success of worker recruitment programs remains highly uncertain, partfcularly for the truck operator workforce. Score 9.99 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 39.96 out of 100. Score 39.96 15 FETF-AFRY estimate that 20-30% of current workers will leave the forest industry over the next five years; Forestry Economic Task Force (FETF)- AFRY. (November 2022). Nova Scotia Forest Fibre Supply Analysis (Final Report). 105 pp. (p.78) Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 29 | P a g e 3.14 Feedstock Transportation Costs Rationale: Transportatfon can be one of the most significant cost components of biomass supply chains. The average transportatfon cost and percentage of total feedstock cost attributable to transportatfon should be known. Raw RI Score: Transportatfon costs in the supply basin are approximately $0.18/GMT/loaded km, which works out to $26.50/GMT for the maximum transport distance of 150 km.16 Although transportatfon costs have increased considerably in recent years, the contributfon of transport costs to final delivered costs is less than 50% for the rated pulpwood price ranges for distances up to 150 km. Risk is assessed as moderate-to-high owing to diesel price volatflity and contfnued logging truck and chip truck capacity shortages in the region. Raw RI Score is 6 out of 10. Score 6 Notched Salience: No adjustment. Score 6.0 Impact Level: RI Impact Level is deemed moderate. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 39.96 out of 100. Score 39.96 3.15 Transportation Distances Rationale: Transport distances of 50-100 km for biomass feedstocks are typical but larger distances can be common. When the average transport distance from suppliers to the Proponent is high, the supply chain is subject to greater sensitfvitfes to risks, such as increases in diesel cost, weather impacts, mechanical breakdown, and the demand for feedstock from competftors closer to the source. Raw RI Score: The available low-grade roundwood supply for new bio-projects is widely dispersed across both private and public forests in SW NS.17 Nearly half (48%) of the available pulpwood supply is situated within an 80 km road distance from Caledonia, which serves as the center point of the analysis. These reserves are primarily concentrated in Queens and Lunenburg countfes (where all potentfal project sites are located), and Annapolis County (as illustrated in Figure F-1, Appendix F). Accessing over 70% of the available roundwood necessitates procurement from distances exceeding 120 km from Caledonia, including areas with large supply potentfal like Digby County. Risks associated with diesel price increases, feedstock transportatfon costs, road infrastructure, and road regulatfons contribute to the moderate risk associated with transportatfon distance. No transportatfon distance risk is associated with sawmill residuals because of the close proximity between Freeman Lumber and the four potentfal bio -project development sites. Raw RI Score is 5 out of 10. Score 5 Notched Salience: No adjustment. Score 5.0 Impact Level: RI Impact level is deemed moderate. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 33.30 out of 100. Score 16 H.C. Haynes Ltd. (2023). Nova Scotia Wood Prices, July 16, 2023. Available at http://hchaynesnovascotiaprices.blogspot.com/ 17 Forestry Economic Task Force (FETF)-AFRY. (November 2022). Nova Scotia Forest Fibre Supply Analysis (Final Report). 105 pp. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 30 | P a g e 33.30 3.16 Transportation of Feedstock Requires Specialized Equipment Rationale: Requirements for specialized transport equipment can increase supply chain risk. Where there is low availability in required transportatfon equipment, equipment owners have increased leverage over transportatfon prices and supply chain resiliency can be lower. Raw RI Score: Increasing annual pulpwood productfon in the region by 400,000 GMT/yr will require the purchase of additfonal trucks. Assuming 30 GMT per truckload, ~13,000 additfonal two-way pulpwood trips will be required annually. Assuming two trips per day and a 50-week work year, approximately 25 additfonal trucks would need to be added to the transport fleet in the supply basin to deliver the rated quantftfes of biomass. This represents a ~35% increase in current logging truck capacity (60-70 logging trucks). Transportatfon equipment risk is therefore assessed as moderate-to-high. Chip truck capacity scale-up will also be required to improve scheduling and wait tfmes, but not to the same extent as for logging trucks. Raw RI Score is 7 out of 10. Score 7 Notched Salience: No adjustment. Score 7.0 Impact Level: RI Impact Level is deemed moderate. Score 3.33 Loaded RI Score Loaded RI Score (Notched Salience  Impact Level) is 23.31 out of 100. Score 23.31 3.17 Delivery Routes through Local Communities Rationale: Biomass transportatfon can become a nuisance to local communitfes, especially if large numbers of trucks pass through residentfal and school areas. Local communitfes often have the power to force regulatfons regarding truck transport, impeding a Proponent’s ability to transport feedstock. This risk is greater in greenfield projects than operatfonal ones. Raw RI Score: The four potentfal bio-project development sites are located in proximity to actfvely managed forests and wood processing facilitfes, including four sawmills and the Brooklyn Power Corp. 28 MW biopower facility. No risk from local communitfes is foreseen. Raw RI Score is 2 out of 10. Score 2 Notched Salience: No adjustment. Score 2.0 Impact Level: RI Impact Level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 6.66 out of 100. Score 6.66 3.18. Transportation Regulations & Local Weight Limits Rationale: In many regions, transportatfon is regulated based on seasonal road conditfons. These regulatfons (e.g., “frost laws”) often take the form of weight restrictfons or limits on the number of trucks Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 31 | P a g e allowed on roads. Such regulatfons can impede the Project’s ability to source sufficient feedstock or increase the cost of doing so at certain tfmes of the year. Raw RI Score: Road weight limits are a constraint to the efficiency of wood fibre transportatfon in SW NS.18 Road classificatfons of relevance to forest supply chains in Nova Scotfa differentfate between maximum weight roads (62.5 tonnes Gross Vehicle Weight (GVW)), intermediate weight roads (49.5 tonnes GVW), and low weight roads (41.5 tonnes GVW). Lower weight roads reduce payloads from 25-33 GMT/truck to 18 GMT/truck. Special permits to increase GVW are available from the Department of Service Nova Scotfa but local forestry professionals contacted by Ecostrat indicated that permit applicatfons are seldom granted. As a result, logging trucks must often be routed around low weight roads, increasing transportatfon distance and cost. The Government of Nova Scotfa contfnues to work towards increasing allowable weight limits wherever possible. In 2019, the maximum allowable weight limits of a number of roads in SW NS were increased. The current share of low weight roads in the SW NS road network remains significant at approx. 40%. Risk associated with transportatfon regulatfons and weight limits is assessed as moderate-to-high. Raw RI Score is 7 out of 10. Score 7 Notched Salience: Improving road infrastructure and weight limits is a stated objectfve of public and private forest sector interests in the province that is actfvely being addressed. The Government of Nova Scotfa plans to spend over $1 billion on road and bridge projects between 2023 and 2030. Organizatfons such as the Nova Scotfa Department of Public Works, the Forest Nova Scotfa Transportatfon Committee, the Forestry Economic Task Force, the Nova Scotfa Innovatfon Hub, and a forestry sector transitfon team funded by the Government of Nova Scotfa are working to contfnue increasing the coverage of maximum and intermediate weight roads in SW NS. Raw RI Score is notched down by 25%. Notched Salience is 5.25. Score 5.25 Impact Level: RI Impact Level is deemed moderate due to the uncertainty associated with the transportatfon regulatfons and weight limits in the short and mid-term. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 34.97 out of 100. Score 34.97 3.19. Road Infrastructure Rationale: Feedstock cost and availability can be a functfon of the accessibility of road infrastructure. Problems with road networks will translate directly to risks to feedstock supply. Raw RI Score: Primary highways in SW NS track the coastline and are undivided. A major infrastructure project involving the twinning of the major highway connectfng Halifax County with Lunenberg, Queens, Shelburne, and Yarmouth countfes along the southwest coast (Highway 103) is underway and expected to be completed by 2028. Secondary and tertfary roads in the region can impose constraints on efficient transportatfon owing to their NW-SE orientatfon (e.g., Highways 8, 10, and 12), conditfon, and weight designatfon. SW NS has one of the greatest concentratfons of land classified as “remote-access” by the NS DNRR, which indicates areas with low populatfons and very few roads or trails.19 Approximately 40% of these roads have a low weight designatfon (41.5 tonnes GVW maximum) due to inadequate width, the presence of small bridges, and other factors. Risk associated with road infrastructure is assessed as moderate-to-high. Score 7 18 Forestry Economic Task Force (FETF)-AFRY. (November 2022). Nova Scotia Forest Fibre Supply Analysis (Final Report). 105 pp. 19 Province of Nova Scotia. (2017). State of the Forest 2016. Nova Scotia Department of Natural Resources (DNR). Renewable Resources Branch. 90 pp. (p.68) Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 32 | P a g e Raw RI Score is 7 out of 10. Notched Salience: Improving road infrastructure and weight limits is a stated objectfve of public and private forest sector interests in the province that is actfvely being addressed. The Government of Nova Scotfa plans to spend over $1 billion on road and bridge projects between 2023 and 2030. Organizatfons such as the Nova Scotfa Department of Public Works, the Forest Nova Scotfa Transportatfon Committee, the Forestry Economic Task Force, the Forestry Sector Council, and a forestry sector transitfon team funded by the Government of Nova Scotfa are working to contfnue increasing the coverage of maximum and intermediate weight roads in SW NS. Raw RI Score is notched down by 25%. Notched Salience is 5.25. Score 5.25 Impact Level: RI Impact Level is deemed moderate. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 34.97 out of 100. Score 34.97 3.20. Number, Size, Mix, & Locations of Suppliers Rationale: In general, a portiolio of multfple suppliers of various sizes is important for ensuring steady and uninterrupted feedstock supply with minimal price fluctuatfons. If a small number of large suppliers provide a high proportfon of total feedstock, a disruptfon or supplier breach will have a greater impact on the supply chain. In such cases, the risk of disruptfon is lower, but the impact of those disruptfons is higher. Conversely, a large number of small suppliers is less likely to have the capacity to withstand internal disruptfons and may be more likely to breach. Here, the risk of disruptfon is higher, but the likely impact is lower. The number of suppliers and the ratfo of small to large suppliers should be optfmized. There is no pre-determined number or optfmal ratfo of suppliers—either too many or too few can pose higher degrees of risk. Raw RI Score: There is a significant disparity in the range of sawmilling capacitfes in the region. The Freeman Lumber sawmill (110 MMBF) produces over 85% of the sawmill residuals in SW NS. The next largest sawmill has a capacity of only 3.5 MMBF. There is therefore so me risk associated with the size of suppliers in the BDO Zone, as any productfon decreases that result from operatfonal slowdown or shutdown by Freeman Lumber cannot be compensated for by other suppliers. The logging contractor populatfon in the area is estfmated at approximately 80 crews, or 160 to 240 operators. There are at least twelve larger contractors that have multfple crews and equipment complements available and therefore no significant risk associated with logging contractor size is foreseen. There is however some risk that roundwood supplies located in the countfes of Shelburne and Yarmouth will be difficult to access, as most equipment operators in the region reside in areas that are greater than one hour drive distance from these areas. Some of the forestry professionals contacted by Ecostrat emphasized that one of the keys to worker retentfon in the region is to reduce work site travel tfmes. Raw RI Score is 5 out of 10. Score 5 Notched Salience: No adjustment. Score 5.0 Impact Level: RI Impact Level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 16.65 out of 100. Score 16.65 Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 33 | P a g e 3.21. Suppliers Subject to Same External Risk Factors (Non-Weather & Equipment Based) Rationale: When a single risk event can impact the feedstock productfon ability of all (or most) suppliers, then feedstock risk is higher and supply chain resiliency is lower. Resilience is maximized when biomass supply chains exhibit diversity in their locatfons, productfon practfces, and other elements of supply chain structure such that the impact of single, high-risk events have varying impacts on suppliers. Raw RI Score: Suppliers operatfng in the SW NS BDO Zone are exposed to various common external risks relatfng to inputs (e.g., energy) and outputs (e.g., final product markets). These risks are common to all areas of North America and are considered low-to-moderate. Raw RI Score is 3 out of 10. Score 3 Notched Salience: No adjustment. Score 3.0 Impact Level: RI Impact Factor is deemed high. Although unlikely, major economic shifts can have significant impact on the entfre forest products industry in the BDO Zone. Score 9.99 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 29.97 out of 100. Score 29.97 3.22. Seasonal Weather Impacts on Feedstock Supply Rationale: Seasonal weather impacts are defined as deriving from natural weather variatfons (e.g., spring thaws, rainy seasons, or dry seasons) as opposed to singular weather events (like fires, droughts, or hurricanes). Seasonal weather changes can be a significant risk factor affectfng feedstock availability, quality, and price. Raw RI Score: Secondary and tertfary roads are typically closed to logging truck traffic for six weeks during the spring period (early-March to mid-April). This is compensated for by concentratfng harvestfng in areas with roads that are not affected by spring weather conditfons and, in areas with roads that are affected, by ensuring a sufficient number of logging trucks are scheduled to transport harvested quantftfes before late-February/early-March. Wood supply risks from spring load restrictfons are also mitfgated by maintaining log yard inventories and transportfng partfal loads. Risk is assessed as low. Raw RI Score is 2 out of 10. Score 2 Notched Salience: No adjustment. Score 2.0 Impact Level: RI Impact Level is deemed moderate. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 19.98 out of 100. Score 13.32 3.23. Long-Term Weather and Climate Trends Rationale: In certain regions, climate trends and significant potentfal changes to future weather patterns can create feedstock risk. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 34 | P a g e Raw RI Score: Forest fires are a common occurrence in SW NS. The large tracts of poorly stocked woodlands in SW NS are partly attributed to repeated fires.20 However, total area burned has been declining since the 1920s, with significant interannual variatfon.21 Hurricanes are also common on a decadal tfme scale and can have a significant impact on tfmber stocks on sites with shallow soils. Anthropogenic climate change may exacerbate forest fire and hurricane actfvity. Risk is deemed moderate owing to the greater vulnerability of SW NS to potentfal increases in forest fires and hurricane actfvity relatfve to other regions in North America. Raw RI Score is 4 out of 10. Score 4 Notched Salience: No adjustment. Score 4.0 Impact Level: RI Impact Level is deemed moderate due to the uncertainty in the impact of climate change on the frequency of forest fires, hurricanes, and other natural disturbances. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 26.64 out of 100. Score 26.64 3.24. Government Subsidies for Feedstock Production or Utilization Rationale: Feedstock that is directly subsidized through government programs can pose greater long-term risk than feedstock that is not. Subsidies may be subject to amendment or repeal, sometfmes with minimal notfce. This risk indicator refers to direct feedstock subsides only; it does not apply to government subsidies that pertain indirectly to the operatfons of the Proponent, such as Loan Guarantees, or to the markets for products produced by the Proponent. Raw RI Score: No direct subsidies for feedstock productfon/utflizatfon were identffied. Raw RI Score is 1 out of 10. Score 1 Notched Salience: No adjustment. Score 1.0 Impact Level: Raw RI Impact level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 3.33 out of 100. Score 3.33 3.25. Local, Provincial, & National Laws, Regulations, & Permitting Pertaining to Biomass Rationale: Feedstock productfon directly dependent on local, provincial, or natfonal laws or government regulatfons can pose greater long-term risk than feedstock that is not, since laws and regulatfons may be subject to amendment or repeal. If utflizatfon of biomass requires specific permits (e.g., percentage removal of Forest Residues or corn stover, allowable cut limits, air emission, storage permits, rights-of- way, overweight permits for trucks, cross-border permitting for shipment of biomass, chain of custody, or certfficatfon of sustainability), the likelihood of obtaining such permits and/or complying with permitting requirements should be examined. 20 Neily et al. (2017). Ecological Land Classification for Nova Scotia. Prepared by the Nova Scotia Department of Natural Resources. Report FOR 2017- 13. (p.181) 21 Taylor et al. (2020). A review of natural disturbances to inform implementation of ecological forestry in Nova Scotia, Canada . Environmental Reviews. 18 August 2020. https://doi.org/10.1139/er-2020-0015 Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 35 | P a g e Raw RI Score: The maximum sustainable annual supply of roundwood as determined by the province’s allowable cut limits (the Provincial Timber Objectfve) under ecological forestry regulatfons was used to inform selectfon of the rated quantfty of roundwood.22 There is low-to-moderate risk that allowable cut limits on Crown land will be reduced as a result of the planned increase in protected area coverage from 14% to 20% by 2030. The expected reductfon in allowable cut levels on Crown land could have a moderate impact on the ability of a new project to procure the rated quantfty of low-grade roundwood. No regulatfons relevant to biomass procurement from privately owned working forests were identffied. Raw RI Score is 3 out of 10. Score 3 Notched Salience: No adjustment. Score 3.0 Impact Level: RI Impact Level is deemed moderate. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 19.98 out of 100. Score 19.98 3.26. Backlash Against Biomass Development, Procurement or Usage in the Region Rationale: Public backlash against biomass development in the Proponent region can directly impact Proponent’s ability to procure, transport, trans-load, store, or utflize feedstock by affectfng local policies, regulatfons, and Proponent’s ability to obtain necessary permitting. Raw RI Score: Public oppositfon to the conduct of forestry operatfons on public lands is not considered a significant risk owing to the province’s new ecological forestry regulatfons. However, on private lands, regulatfons that provide sustainability assurances are restricted to the Wildlife Habitat and Watercourse Protectfon (WHWP) Regulatfons, which require buffer zones around watercourses and wetlands and minimum tree and coarse woody debris retentfon levels. Partfal harvestfng and the associated retentfon of up to 75% of standing trees is not a requirement on private lands. Although partfal harvestfng has increased on private lands since the 1980s (partfcularly smaller woodlots), over half of forest operatfons on private lands stfll involve clearcutting (subject to the WHWP Regulatfons). Clearcutting is regarded by many stakeholders to represent a potentfal long-term risk to soil productfvity and ecological integrity in certain areas of SW NS. The risk of public oppositfon is also dependent on how recovered biomass is utflized and whether the Mi’kmaq of Nova Scotfa are consulted regarding bio-projects that could impact rights or traditfonal use. Plans to use wood as a fuel in the province’s fleet of coal power plants and in dedicated biopower facilitfes (notably the 28 MW Brooklyn Power unit in SW NS and the 60 MW Point Tupper unit in Cape Breton) have been met with some degree of negatfve public attentfon. There is therefore some risk that any future projects involving the conversion of logs into electricity will face negatfve public attentfon due to low energy conversion efficiencies and uncertain net carbon benefits. Projects that involve value-added products (e.g., liquid biofuels, engineered wood products, biochar) or high-efficiency energy conversion technologies (e.g., cogeneratfon, heatfng) are not a significant risk of negatfve public opinion in Nova Scotfa. With regards to First Natfons consultatfon, proponents of any new bio-project are advised to contact the Kwilmu'kw Maw-klusuaqn Negotfatfon Office (KMKNO) to ensure that project scope and operatfons are acceptable. Score 3 22 Forestry Economic Task Force (FETF)-AFRY. (November 2022). Nova Scotia Forest Fibre Supply Analysis (Final Report). 105 pp. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 36 | P a g e Raw RI Score is 3 out of 10. Notched Salience: No adjustment. Score 3.0 Impact Level: RI Impact Level is deemed moderate. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 19.98 out of 100. Score 19.98 3.27. Feedstock Sustainability, Including Risks to Soil Quality, & Surface & Groundwaters Rationale: Public concerns about the sustainability of feedstock productfon can jeopardize biomass feedstock operatfons. Sustainability certfficatfon schemes should be utflized where applicable to ensure that feedstock comes from sustainable sources. Soil sustainability can be defined as the management of soil in a way that does not exert any negatfve or irreparable effects on the soil or any other systems. There is a diversity of approaches to soil sustainability in jurisdictfonal guidelines for biomass harvestfng and productfon. Different feedstock types have unique thresholds at which feedstock removal causes significant negatfve consequences on the soil. Excessive nutrient runoff from biomass feedstock productfon can accumulate in surface waters and result in algal blooms and hypoxia, which can lead to habitat loss for aquatfc species higher up the food chain and alter aquatfc ecosystem food webs. Damage to aquatfc ecosystems can cause a social and regulatory backlash. Water intake issues can also increase risk. Raw RI Score: In Nova Scotfa, there are public concerns around the environmental sustainability of forestry, partfcularly with regards to clearcutting and commercial use of wood for bioenergy applicatfons. For public lands, these concerns have been addressed by the NS DNRR through the banning of full-tree harvestfng (2013), development of ecological forestry practfces that decrease clearcutting (2018), a commitment to increasing protected area coverage from 14% to 20% by 2030 (2021), and on-going development of long-term license agreements and planning horizons on Crown land. The province has also transferred control of a portfon of Crown lands to organizatfons that aim to advance the concept of ecological forestry through smaller-scale approaches to productfon and marketfng. Since 2015, approx. 35,000 ha of Crown land in SW NS has been transferred to the Mi’kmaw Forestry Initfatfve (MFI) of the Assembly of Mi’kmaw Chiefs (20,000 ha) and the Medway Community Forest Cooperatfve (15,000 ha). Feedstock sustainability risk is heightened on private lands, where ecological forestry regulatfons do not apply. Although there has been a gradual shift towards partfal harvestfng on private lands since the 1980s, clearcutting remains common on private woodlots in SW NS. There have also been a few instances of full- tree harvestfng in recent years. Some areas of SW NS may be sensitfve to nutrient depletfon resultfng from repeated clearcutting, partfcularly lands south of Kejimkujik Natfonal Park, within and adjacent to the Tobeatfc Wilderness Area. Full-tree harvestfng would exacerbate nutrient depletfon risk if it becomes more common. Due to the disproportfonate contributfon of private working forests to total wood supply and uncertainty regarding the long-term effects of clearcutting, risk of feedstock sustainability is assessed as moderate. Raw RI Score is 4 out of 10. Score 4 Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 37 | P a g e Notched Salience: The concept of ecological forestry and its relevance to balancing objectfves at a landscape-scale is being actfvely artfculated by many stakeholders at provincial and regional levels, including the DNRR, the Mi’kmaw Forestry Initfatfve (MFI), WestFor, and the Medway Community Forest Cooperatfve (MCFC), among others. A guiding principle of the Western Woodlot Services Cooperatfve (WWSC) – which provides advisory services to small private woodlot owners in SW NS – is that of sustainable forest management (including partfal harvestfng). Given recent trends in regulatfon and discourse around ecological forestry in the province, and given the number of organizatfons actfvely artfculatfng and implementfng the concept, we expect that an increasing proportfon of private woodlot owners will adopt ecological forestry practfces over tfme. Risk is notched down by 25%. Notched Salience is 3.0. Score 3.0 Impact Level: RI Impact Level is deemed moderate. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 19.98 out of 100. Score 19.98 3.28. GHG Emissions from Production, Harvest, & Transport Rationale: Understanding a project’s overall emissions and the carbon intensity throughout the feedstock supply chain is essentfal to reducing risks related to carbon pricing mechanisms and related regulatfons. Greenhouse gas (GHG) emissions from productfon, harvest, and transportatfon can be a significant challenge to Proponent claims of carbon neutrality for biomass projects. Carbon emissions from harvested soils, as well as emissions from harvestfng machinery or delivery trucks, can make it difficult to achieve net-zero GHG emissions. If a Proponent’s financial model relies on carbon neutrality/GHG regulatory pricing frameworks, it is essentfal to investfgate the feedstock’s carbon emission status. Raw RI Score: The GHG impacts of biomass-based projects depend largely on the type of product being produced. For bioenergy projects, the use of stemwood is generally understood to result in long carbon payback tfme horizons such that life cycle GHG emissions relatfve to fossil energy projects may increase (up to 100 years). In contrast, it typically takes less than 20 years for systems fueled with logging residues or sawmill residues to become carbon neutral/negatfve because waste products do not require accountfng for re-growth of the trees from which they are procured. Due to the dependence of the SW NS BDO Zone ratfng on stemwood, there is a risk that a new bio-project (partfcularly a project convertfng biomass to electricity only) will be unable to classify as carbon neutral. However, a large proportfon of low grade roundwood available from conventfonal forest operatfons is produced from trees with sawable sectfons. In these cases, roundwood could be treated the same as logging residues and sawmill residuals under GHG accountfng protocols. Further, there is evidence that net GHG emissions from pulpwood recovered during existfng operatfons could be reduced considerably relatfve to business-as-usual.23 Raw RI score is 5 out of 10. Score 5 Notched Salience: Overall, there is significant uncertainty associated with carbon accountfng and pricing frameworks globally. Renewable content mandates, clean fuel policies, and sustainable forest management schemes can support bio-projects that result in significant GHG emissions reductfons compared to fossil fuels. Raw RI is notched down by 50%. Notched Salience is 2.5. Score 2.5 Impact Level: RI Impact Level is deemed moderate. Score 23 Steenberg et al. (2023). Life-Cycle Greenhouse Gas Emissions from Forest Bioenergy Production at Combined Heat and Power Projects in Nova Scotia, Canada. Forest Science 69(3): 286-298 Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 38 | P a g e 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 16.65 out of 100. Score 16.65 3.29. Geographic Location Influence on Feedstock Variability Rationale: Feedstock from different regions may differ in quality due to variatfons in soil quality, topography, harvest practfces, weather, fertflizer applied, etc. Raw RI Score: There is no significant risk associated with feedstock quality variability resultfng from geographic factors. Raw RI Score is 1 out of 10. Score 1 Notched Salience: No adjustment. Score 1.0 Impact Level: RI Impact Level is deemed low. Score 3.33 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 3.33 out of 100. Score 3.33 3.30. Capacity of Supply Chain Components & Equipment to Scale Rationale: Scale-up risk increases if supply chain components or underlying feedstock infrastructure necessary for these components cannot scale to handle Proponent feedstock requirements and throughput capacity. Capacity to scale should be demonstrated. Raw RI Score: Half of the total rated quantfty of low-grade roundwood is expected to be sourced from existfng operatfons in the supply basin, as driven by lumber markets (Appendix B). The remaining half consists of standing low-grade roundwood that can only be procured by increasing harvestfng actfvity. Recovering this additfonal 200,000 GMT/yr of low-grade roundwood would constftute a 60% to 80% increase in annual roundwood productfon in SW NS given harvestfng levels over the 2016 to 2020 period (Appendix B). Approximately twenty additfonal logging crews, each consistfng of two to three equipment operators and at least one single-grip harvester and one forwarder, will be required. Approximately thirty additfonal logging trucks and ten chip trucks will also be required to ensure the reliable and tfmely supply of wood fibre for a new project.24 There is a risk that logging and trucking capacity will be unable to scale-up to this extent owing to labour shortages, equipment shortages, and profit uncertainty associated with accessing marginal or distant stands. In the longer term (e.g., >5 years), an expected increase in partfal harvestfng and protected area prevalence in SW NS adds further uncertainty, as this will reduce productfon per hectare and will likely increase harvestfng costs (which could impact available quantftfes). Although increased partfal harvestfng is accounted for in the third-party report that was used to select the rated quantfty of low-grade roundwood, the data and assumptfons underlying the model remain uncertain (see 3.5) and therefore risk is assessed as moderate-to-high. Raw RI Score is 8 out of 10. Score 8 24 Forestry Economic Task Force (FETF)-AFRY. (November 2022). Nova Scotia Forest Fibre Supply Analysis (Final Report). 105 pp. (p.14-15) Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 39 | P a g e Notched Salience: As identffied by the Forestry Economic Task Force (FETF), scale-up risks could be mitfgated if current sawmill-contractor support measures, road infrastructure and regulatfon improvement initfatfves, and provincial workforce policies and programs are strengthened.25 Freeman Lumber has incrementally built its contractor base over the past five years in part through downpayment assistance and supply chain management. Contfnuing to improve relatfons between the mill and contractors will serve to reduce the debt burden of equipment ownership and improve operatfonal efficiencies. Contfnued road infrastructure improvements and weight limit increases will have important long-term consequences for wood supply reliability and cost. Contfnued development of formal training programs (e.g., High Performance Logging) available for equipment operators and worker recruitment and retentfon programs would further mitfgate risks of scale-up. Raw RI Score is notched down by 25%. Notched Salience is 6.0. Score 6.0 Impact Level: RI Impact Level is deemed moderate. Score 6.66 Loaded RI Score: Loaded RI Score (Notched Salience  Impact Level) is 39.96 out of 100. Score 39.96 25 Forestry Economic Task Force (FETF)-AFRY. (November 2022). Nova Scotia Forest Fibre Supply Analysis (Final Report). 105 pp. (p.14-15) (p.79) Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 40 | P a g e APPENDIX B: HARVESTING ACTIVITY AND AVAILABILITY OF ROUNDWOOD PULPWOOD AVAILABILITY FOR NEW PROJECTS IN SW NS A recently published wood supply report for the province of Nova Scotia is used to inform the estimation of low-grade roundwood availability for a new project in SW NS.26 The report, entitled ‘Nova Scotia Forest Fibre Supply Analysis’ (FETF- AFRY, 2022), estimated the total availability of roundwood using the province’s estimation of sustainably available wood supply (the NS DNRR Provincial Timber Objective), which adjusts wood supply estimates on the basis of nutrient budget modeling, site access and operability, and other factors. This estimate was further adjusted by FETF-AFRY (2022) to account for the impact following the implementation of ecological forestry as recommended in the “Lahey Report”, and given the current demand for roundwood. The rated quantity of roundwood (400,000 GMT/yr) is expected to account for potential nutrient budget deficiencies, as it constitutes 75% of the total sustainable annual wood supply. The province expects to provide an update to its sustainable supply calculations some time in late 2023 / 2024. Sustainable wood supply estimates are provided at the county level and have been adjusted in Table B-1 to calculate the available volume within the supply basin – only partial volumes are included from Hants and Halifax counties, as only part of the supply basin falls within those areas. On that basis, we estimate that there is a surplus of 526,899 GMT/yr of low- grade roundwood (“pulpwood”) available for new projects within the supply basin (Table B-1). With input from local forestry professionals, the final rated quantity of 400,000 GMT/yr, or approximately 75% of the modeled availability, was selected to provide a conservative estimate of available roundwood volume to new projects. Using the ratios of modeled availability by species type (Table B-1), it is assumed that 60% of this total (240,000 GMT/yr) is comprised of softwood pulpwood and that 40% of this total (160,000 GMT/yr) is comprised of hardwood pulpwood. Table B-1: Low-grade roundwood (pulpwood) available from private and Crown lands within supply basin by county County Softwood pulpwood (GMT/yr) Hardwood pulpwood (GMT/yr) Percentage overlap of county with supply basin Total pulpwood (GMT/yr) Yarmouth 25,219 18,444 100% 43,663 Shelburne 37,183 22,916 100% 60,099 Digby 47,250 30,252 100% 77,502 Queens 34,783 35,995 100% 70,778 Annapolis 49,490 35,923 100% 85,413 Lunenburg 61,169 35,389 100% 96,558 Kings 24,293 37,725 100% 62,018 Hants 65,838 6,271 33% 23,796 Halifax 30,694 23,709 13% 7,072 TOTAL 345,225 222,915 - 526,899 26 Low-grade roundwood available to a new project is defined as roundwood sectioned from tree stems and branches that either (1) can not be utilized in the production of solid wood products (i.e., that cannot be utilized by a sawmill), (2) could be utilized for pulp and paper production but is not due to lack of markets, and (3) cannot be utilized in the production of pulp and paper products. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 41 | P a g e Map B-1. Annual pulpwood availability in the supply basin by county PULPWOOD PRODUCTION FROM EXISTING HARVESTING ACTIVITY The Nova Scotia Registry of Buyers of Primary Forest Products tracks annual roundwood flows in the province for buyers that purchase >5,000 m3/yr. In the past three years, the total amount of roundwood purchased by buyers located in Western NS has averaged approx. 800,000 GMT/yr (75% private, 25% public) (Figure B-1). We estimate that 700,000 GMT/yr of this total consists of high quality roundwood (merchantable sawlogs) purchased by sawmills. Purchases of low- grade roundwood are restricted to a wood-based siding product manufacturer (Maibec CanExel), which has an annual consumption of ~100,000 GMT/yr. Other low-grade roundwood that could be brought to market during conventional forest operations is left in-woods following processing or left standing. To estimate low-grade roundwood that could be made available for new projects without additional harvesting, we assume that sawlog/pulpwood production ratios in the existing operations in SW NS average 70/30. For a 700,000 GMT/yr sawlog productio n, the total amount of pulpwood produced as a by-product of conventional forest operations is estimated at 300,000 GMT/yr. On the basis of this information, the availability of pulpwood from existing harvesting activity in the supply basin was set as 200,0000 GMT/yr. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 42 | P a g e Figure B-1: Roundwood supply from Crown and private lands in the supply basin, 2000 -2020 (Nova Scotia Registry of Buyers of Primary Forest Products) PULPWOOD PRODUCTION FROM NEW HARVESTING ACTIVITY The remaining 200,000 GMT/yr of the rated quantity is expected to come from additional harvesting activity. Assuming that additional harvesting activity will involve more marginal stands, a sawlog/pulpwood ratio of 60/40 was selected for new harvesting activity. Using this assumption, procuring the additional 200,000 GMT/yr of low-grade roundwood would require an annual roundwood production increase of 500,000 GMT/yr (300,000 GMT/yr sawlogs, 200,000 GMT/yr pulpwood). This would represent a 60% to 80% increase in annual roundwood production in SW NS relative to average harvest levels between 2016 and 2020 but would remain below levels sustained over the 2000 -2008 period. Accessing this material would require harvesting on an additional 3,000 ha/yr to 5,000 ha/yr of working forest (assuming roundwood production levels of 100 GMT/ha to 150 GMT/ha). LOGGING AND TRUCKING CAPACITY SCALE-UP REQUIREMENTS We estimate that an additional 10 to 20 logging crews and an equivalent number of additional harvesters and forwarders would be required to secure the 200,000 GMT/yr of low-grade roundwood from new harvesting activity. This estimate assumes a logging crew productivity of 10-12 truckloads (25-30 GMT) of low-grade pulpwood per week and a 48-week work year. This would represent a 12.5% to 20% increase in logging capacity (current logging capacity in the supply basin is approx. 80 crews). Given the current shortage of trucking capacity in SW NS, we estimate that trucking capacity would need to be increased by up to 25 logging trucks. This assumes an average payload of 30 GMT, two trips per day, 5 working days per week, and a 50-week work year. This would represent a ~35% increase in trucking capacity given current levels (60-70 logging trucks operate annually in the supply basin). Additional chip trucks will also likely be required to ensure timely delivery of sawmill residuals. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 43 | P a g e APPENDIX C: SAWMILL RESIDUAL ESTIMATION Sawmill residuals production in the supply basin was estimated through outreach to sawmills and local experts and using the Ecostrat sawmill residual model. Through outreach, we were able to obtain direct estimates of the annual production of wood chips, sawdust, shavings, and bark from Freeman Lumber. We were also able to obtain estimates of residuals production from three other sawmills from a forestry professional with experience working with these mills. The sawmill residual model was used to produce estimates of wood chip, sawdust, shavings, and bark production as a function of lumber production (MMBF/year) for the remaining four sawmills. The model uses generic conversion factors for sawmills. The final residuals estimates must be adjusted using local data because of regional differences in log sizes and dimensions and sawmill product output and efficiency. The adjustment factors calculated for the four sawmills ranged from 0.30 to 0.57. A final adjustment factor of 0.4 was selected on the basis of that calculated for Freeman Lumber. A final residuals availability estimate of 233,643 GMT/yr was calculated using this procedure (Table C-1). The final rated quantity of 150,000 GMT/yr effectively assumes a capture rate of ~65% for a new biomass-based project in the BDO Zone for the rated price of $25-$60/GMT. This assumption is supported by feedback received from sawmill owner-operators and by the extra milling capacity of Freeman Lumber, which is expected to increase annual availability of sawlogs by up to 300,000 GMT/yr as a result of increased harvesting activity for the rated quantity. Table C-1: Sawmill residuals quantity and price estimates Estimated total quantity (GMT/yr) *after applying 0.4 adjustment factor Rated quantity (GMT/yr) Rated price range ($/GMT FOB) Wood chips 153,958 100,000 $40-$60 Bark 19,876 15,000 $25-$35 Sawdust 32,701 20,000 $25-$35 Shavings 27,108 15,000 $25-$35 Total 233,643 150,000 $25-$60 Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 44 | P a g e APPENDIX D: SAWMILLS Map D-1. Sawmills within and adjacent to supply basin Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 45 | P a g e APPENDIX E: CURRENT COMPETITION Map E-1. Current competitors for feedstock within 150-km drive distance from Caledonia, NS Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 46 | P a g e APPENDIX F: OTHER CHARTS AND FIGURES Figure F-1: Biomass supply curve: potential availability as a function of distance from Caledonia, NS Figure F-2: Nominal diesel prices in Halifax, Nova Scotia, 2013–2023 Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 47 | P a g e Figure F-3: Real diesel prices in Halifax, Nova Scotia, 2013–2023 (2023 CAD) Figure F-4: The size of the forestry and logging workforce in Nova Scotia, 1997 -202127 27 Source: Statistics Canada. Table 36-10-0489-01 (formerly CANSIM 383-0031): Labour statistics consistent with the System of National Accounts (SNA), by job category and industry. (accessed May 20, 2022). Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 48 | P a g e Table F-1: Forestry and logging workforce initiatives and programs available to Nova Scotians Program / Initiative Associated Organizations Objective Forest Machine Operator Program (High Performance Logging) Canadian Woodlands Forum, BioApplied, Forest Liaison Forest operations workforce development Mechanized Forest Equipment Operator program New Brunswick Community College (NBCC), High Performance Logging Forest operations workforce development Forestry Operator Training Forest Liaison Forest operations workforce development Class 1 Driver – Tractor Trailer Maritime Environmental Training Institute (METI) Transportation workforce development *Unnamed program currently in development Nova Scotia Community College (NSCC), High Performance Logging Forest operations workforce development *Unnamed program currently in development Nova Scotia Apprenticeship Agency, Canadian Woodlands Forum Forest operations workforce development *Unnamed program currently in development Canadian Woodlands Forum Transportation workforce development Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 49 | P a g e APPENDIX G: INFRASTRUCTURE INFRASTRUCTURE OVERVIEW: SW NOVA SCOTIA Evaluated Sites • Kaizer Meadow Industrial Park, District of Chester, Lunenberg County • Bridgewater Business Park, Bridgewater, Lunenberg County • Freeman Lumber, Greenfield, Queens County • Port Mersey Commercial Park, Brooklyn, Queens County Executive Summary The four SW NS BDO Zone project development sites are located within Lunenberg and Queens counties. Each site has unique attributes that are expected to contribute to the successful construction and operation of new biomass-based facilities. consultation with the Mi’kmaq of NS is recommended for any projects that could impact rights or traditional use. A simple statement to that effect would be a respectful signal and something that the Municipalities involved, as well as potential proponents, should consider whether it’s legally required or not. Details are provided below (“Site Overviews”). All sites have access to the same core regional infrastructure and service, and share many site -level commonalities, including industrial zoning and on-site office, manufacturing, and warehouse space. The regional road network includes a primary highway (#103) that links SW NS to the seaport, rail, and logistical infrastructure of Halifax Regional Municipality (HRM). Secondary and tertiary roads connecting the working forest land base to forest processing facilities and major highways are frequently trafficked by the regional forest industry. The nearest intermodal railway and seaway access points are located in Halifax, 100 to 150 km from the evaluated sites. Regional electricity generation and transmission capacity is owned and operated largely by Emera and its subsidiary Nova Scotia Power (NSP). Access to renewable energy is expected to continue expanding as the 824 MW Muskrat Falls hydroelectric generating station in Labrador comes online. The station is connected to Nova Scotia’s transmission infrastructure via a major undersea transmission line (Maritime Link). The region and the four sites are well serviced by other essential utilities, including water, waste management systems, and modern telecommunications. The federal and provincial governments have been actively extending fibre optic coverage in the region in collaboration with Bell Canada. Dependable emergency services and efficient public works contribute to a positive business environment. Affordable living options, a moderate climate, an appealing coastal landscape, and a Maritime culture have resulted in net immigration, ensuring good workforce attraction. Site Locations & Regional Access The four potential biomass-based project development sites are located in Lunenberg and Queens counties, in close proximity to primary and secondary highways relevant to the efficient transportation of primary forest resources (e.g., roundwood and sawmill residuals) and finished products (Map G-1). Primary and secondary roads are classed as maximum weight, permitting gross vehicle weights of up to 62.5 tonnes. Road infrastructure continues to improve as a result of federal and provincial infrastructure investment programs (see “Regional Infrastructure Investment”). The four sites are strategically located near highway #103, which connects the region to the rail and port infrastructure of HRM and is in the process of being upgraded. Given the lack of direct railway services in the region, new bio-projects will require intermodal containerized transport (drayage) of finished products in order to access the Canadian National Railway and Via Rail trunk lines located in HRM and which service Canadian and U.S. markets. Transloading logistics and infrastructure capacity in HRM is adequate for purposes of drayage. Reliable access to seaborne and air cargo transport is also made possible by Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 50 | P a g e Highway #103. All sites are within 100-150 km of the Port of Halifax, a major international port that handles over 19 million tonnes of cargo annually. Halifax Stanfield International Airport is located 100-200 km from the evaluated sites and has an annual cargo capacity of over 41,000 tonnes. Map G-1. Locations of the four evaluated infrastructure sites in relation to major roadways and railways Regional Infrastructure Investment Major investments in road and municipal infrastructure are made annually by the Government of Canada and the Government of Nova Scotia. The 2014 Economic Action Plan of Canada introduced the New Building Canada Fund, dedicating $426 million in capital funding to Nova Scotia from 2014 to 2023. Significant emphasis has been given to highway development, with top investments including the Sackville-Bedford-Burnside Connector ($86 million), Highway 103 twinning ($66 million), and Highway 101 twinning ($34 million). The Highway 103 project is of direct relevance to new bio-projects in the SW NS BDO Zone, as the highway is the principal arterial road connecting SW NS to HRM. Continued improvements are being made to Hwy 103 under provincial funding. Projects include replacement of the current Highway 102/103 interchange structure, the continued twinning of Hwy 103 in Lunenberg County, as well as general enhancements to existing road layouts (Map G-2). Infrastructure improvement projects are also offered for secondary and tertiary roads; Nova Scotia’s Capital Plan 2023-24 indicates a total investment of approximately $100 million for secondary highways and gravel roads. Between 2023 and 2030, the Government of Nova Scotia expects to spend more than $1 billion on road and bridge infrastructure improvements. These investments are of direct benefit to the wood procurement and final product sales of biomass-based projects located in SW Nova Scotia. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 51 | P a g e Map G-2. Highway 103 Interchange Planning SW Nova Scotia will also benefit from continued federal and private sector investments in general infrastructure improvements. A federal investment of $58 million in 2023/24 will be directed towards critical areas such as environmental sustainability, public transit networks, and water and sewage systems. The Michelin manufacturing facility in Bridgewater, which is the single largest employer in the region, will benefit from approx. $150 million in public-private sector funding for an infrastructure expansion project aimed at enhancing the company's facilities and bolstering the production of electric vehicle tires in Nova Scotia. By leveraging these targeted investments, SW Nova Scotia can further enhance local infrastructure and provide better commercial access for prospective businesses in the region. Healthcare The healthcare system in SW Nova Scotia employs an integrated approach, combining primary to tertiary services and harnessing advanced technology like Electronic Health Records and telemedicine for streamlined operations and predictive care. Community engagement and inclusivity form a core pillar of this model, as evidenced by the numerous community health centers and comprehensive mental health programs, which have contributed to a significant 20% improvement in mental health outcomes over the past five years. Alongside a 12% increase in skilled healthcare professionals over the last decade, attributable to a targeted workforce development strategy, the system emphasizes environmental sustainability, leading to a 30% reduction in carbon emissions through energy-efficient facilities. This dedication to continuous growth and improvement is further exemplified by Bridgewater's announcement of a $25 million expansion to its general hospital, underscoring Southern Nova Scotia's ongoing commitment to investing in its healthcare infrastructure. Education & Technical Training Nova Scotia benefits significantly from globally recognized universities, colleges, and technical institutes. These institutions, including Acadia University, Dalhousie University, Saint Mary's University, Nova Scotia Community College, and several local technical colleges, provide the region with a steady stream of highly skilled professionals. Located in Wolfville, Acadia University is known for its Business, Computer Science, and Engineering programs, while Saint Mary's Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 52 | P a g e University in Halifax offers strong programs in Commerce, Engineering, and Arts. The Nova Scotia Community College (NSCC), provides vocational training to more than 20,000 students each year. The NSCC campuses in Lunenburg and Shelburne contribute to the technical skill base of the region, producing a workforce ready to meet the demands of various industries. Forestry workforce development institutions in the Canadian maritime region are advanced relative to other areas of North America. The High Performance Logging (HPL) initiative of the Canadian Woodlands Forum (CWF), BioApplied, New Brunswick Community College (NBCC), and Forest Liaison has been in development since 2011. The objective of the initiative is to increase recruitment and retention of a skilled equipment operator workforce in the Maritimes by working closely with skilled candidates and logging contractors interested in hiring and retaining entry-level machine operators. The model has been proven through successful program deliveries in 2016 and 2022. The NSCC and the Nova Scotia Apprenticeship Agency have also expressed interest in this model of workforce development. Large forest companies in the region – notably Freeman Lumber – also actively work to develop the contractor base through recruitment and training. In recent years, the CWF has also demonstrated a proof-of-concept forestry truck operator program in collaboration with Class 1 licensing in Nova Scotia. With government and industry support, logging and trucking workforce development programs of this kind could significantly increase supply chain capacity within the BDO Zone. These organizations and initiatives are supported at the provincial level by the Nova Scotia Forestry Sector Council, which works to build the forestry workforce in collaboration with the aforementioned training institutions. Public Safety & Emergency Services All four sites are subject to environmental risks such as hurricanes, floods, or other severe weather conditions. Additionally, their proximity to populated areas presents potential risks to the local community in the event of accidents or malfunctions. Public safety infrastructure in SW Nova Scotia includes several emergency services, including the North Queens Fire Association in Caledonia and the Chester Volunteer Fire Department in Chester County. The Royal Canadian Mounted Police (RCMP) provide general policing and emergency response services. Telecommunications All sites have access to high-speed internet. The telecommunications network in SW Nova Scotia is provided mainly by Bell Canada and Eastlink. The provision of speeds up to 1 Gbps in the region allows for fast and secure data transmission, benefiting various business operations like cloud-based storage and application usage, video conferencing, and real-time data analysis. In close collaboration with the provincial government’s Internet for Nova Scotia Initiative, fibre optic and other high-speed internet services continue to expand in SW NS. Utilities Electricity transmission and distribution is managed by Emera’s Nova Scotia Power (NSP), annually generating, and transmitting over 10,000 gigawatt hours (GWh) of electricity to roughly 520,000 residential, commercial, and industrial customers across the province. Average electricity prices for large-power customers (>5,000 kW) in Nova Scotia over the period 2018 to 2022 are below the national average ($0.11/kWh compared to $0.12/kWh).28 The province’s coal generating fleet is being phased out by 2030 and is expected to be replaced largely by renewable electricity capacity. The current share of renewable electricity in the province’s generation portfolio is ~25% and consists of wind (~20%), hydroelectricity (~12%), and biomass (~3%). The share of renewable electricity is expected to reach 40% by 2030. By this time, most renewable electricity consumed in the province is expected to be sourced from the 824 MW Muskrat Falls hydroelectric facility in Labrador, which has experienced technical problems since its completion in 2021. Construction of 28 Statistics Canada. Table 18-10-0204-01 Electric power selling price index, monthly. https://doi.org/10.25318/1810020401-eng Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 53 | P a g e an undersea high voltage direct-current (HVDC) transmission line connecting Nova Scotia to the facility was completed in 2017. Natural gas distribution infrastructure is not available in SW NS. Other utilities, including water and sewerage, are well-maintained and modernized. Water supply infrastructure in Southern Nova Scotia is efficient and managed by various municipal water services, ensuring a consistent and dependable water supply. Several water treatment facilities that uphold strict water quality standards are present in the region, making the water suitable for domestic, commercial, and industrial usage. Regional Income and Employment The average unemployment rate in SW Nova Scotia stands at 10%. The median after-tax income for households in SW Nova Scotia is $53,129 per annum, with 40.2% of the population below $69,999.29 The individual workforce consists of approximately 65% of full-time workers earning below $60,000 per annum. The average living wage in SW Nova Scotia is $22.55/hour. The largest industries by employment in SW Nova Scotia are forestry, agriculture, fishing, retail trade, healthcare, educational services, and public administration. A breakdown of employment status reveals that 81% of the workforce are employed individuals with a fixed working space, while 12.1% had no fixed working address in the region. SITE OVERVIEWS 1. Kaizer Meadow Industrial Park (Municipality of the District of Chester, NS) • Flexible Zoning regulations • Established bioeconomy manufacturing capacity • Surplus landfill outputs locally Physical Infrastructure Kaizer Meadow Industrial Park is owned by the Municipality of the District of Chester, with several 150-acre lots available for industrial development at $20,000 per acre. The site is strategically located, providing convenient one hour access to the Port of Halifax, Halifax City Centre, and Halifax Stanfield International Airport. The park is zoned for heavy industrial use, including waste-to-energy (landfill gas/biomass) and forestry processing. The availability of three-phase power at land parcels adjacent to the main road makes this site an excellent location for heavy-duty industrial operations. Other on-site energy infrastructure includes propane-based heating equipment and a wind turbine. The site includes a graded, gravel road capable of accommodating industrial transport vehicles as well as weigh scales. Water supply infrastructure includes an onsite well and septic system, an essential infrastructure feature for biomass-based manufacturing facilities. 29 Ibid. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 54 | P a g e Map G-3. Kaizer Meadow Park Overview Logistics The location of the industrial park offers excellent access to the workforce, intermodal transportation infrastructure, and commercial markets of the Halifax Regional Municipality (HRM). The site is conveniently located on a public right-of-way, providing easy access to the nearby provincial series highway, enabling efficient transportation and logistics. Average travel time to HRM during high-traffic periods is less than 1.5 hours. The site’s proximity to both HRM and the working forests of Lunenberg, Queens, Annapolis, and Kings counties advantages enterprises involved in value-added biomass- based manufacturing and marketing. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 55 | P a g e Map G-4. Kaizer Meadow Local Roads and Highways Social Infrastructure and Workforce Kaizer Meadow Industrial Park is located within a one-hour drive distance of HRM and Annapolis Valley, enabling access to a large potential workforce with technical and business development capabilities. The area is also home to a skillset aligned with industrial operations, supported by nearby biotechnology companies. Several organizations involved in the environmental and biomass-based sectors have already established operations within the park, including Sustane Technologies, Full Circle Environmental Solutions, and the Municipality of Chester’s solid waste facility and environmental management centre. Property values in the region are approx. $389,000, below the provincial median. Median income is approximately $54,000. 2. Bridgewater Business Park (Bridgewater, NS) • SW Nova Scotia’s largest industrial park • Cleantech development initiatives • Proven investment attraction leadership Physical Infrastructure Bridgewater Business Park, located in Lunenburg County, is SW Nova Scotia's largest industrial park with over 50 businesses and a workforce exceeding 1,500 individuals. A number of industrial-scale manufacturers are located within the park, the largest of which is a Michelin North America Inc. facility (est. early 1970s) with over 1,200 employees. The Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 56 | P a g e park is also home to several wholesale businesses, government agency offices, and a diverse mix of small and medium- sized enterprises. The park has abundant undeveloped land available with clear municipal support for future expansion for both large and small projects. The park is currently expanding north of Highway 103, with new interchange and connector roads under construction, expected to open for new development by 2025. On-site infrastructure compatible with industrial manufacturing is well-developed within the park, owing largely to the development of the Michelin plant over the last 50 years. The Bridgewater Wastewater Treatment Plant, serving Bridgewater Industrial Park, has a treatment capacity of 5,682 cubic meters per day, ensuring a steady supply of clean water for operational needs. Leveraging the industrial and economic capacity of the park, the Town of Bridgewater has pursued an aggressive renewable energy development strategy (“Energize Bridgewater”). The industrial park’s coastal geography provides an ideal environment for wind energy generation. Several wind energy investments are planned for the area, including the 50 MW Nova Wind Energy project. These pending investments, coupled with the town's sustainability drive, make Bridgewater Industrial Park a prime location for businesses looking to tap into the larger renewable energy sector. Map G-5. Bridgewater Historical Land Expansions Logistics Regional road infrastructure is also conducive to economic development and biomass-based manufacturing facilities. Highway 103 facilitates a <1.5-hour drive to and from Halifax, thereby facilitating inter-city commercial movement and residential transport/commutes. Easy access to the broader SW NS region is made possible by proximity to Highways 8, 10, and 12. Route 325 and Route 331 further extend the road connectivity, linking the town to the Freeman Lumber sawmill and providing multiple routes for transportation of goods and services. A new interchange is also in development, linking the park to over 120 acres of additional development space. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 57 | P a g e Map G-6. Bridgewater Local Roads and Highways Social Infrastructure and Workforce The industrial park has a diverse and skilled labour market, influenced by continued business creation and capacity expansions. The total population within a 30-minute travel time exceeds 60,000 residents, providing businesses with access to a significant workforce and local customer base. Bridgewater's property market is compatible with a range of preferences and income levels, enhancing the appeal for potential workers with an average house price of $397,500 (2022). The median income for full-time employed individuals in the Town of Bridgewater is approximately $53,000. 3. Freeman Lumber (Greenfield, NS) • Significant biomass procurement advantages • Surplus adjacent land parcels available • Flexible heavy industrial zoning Physical Infrastructure Freeman Lumber is a fully optimized lumber manufacturing facility located in Greenfield, Queens County, with a capacity of 135 million board feet (MMBF) per year and a recent production level of ~110 MMBF per year. The site has significant wood fibre procurement advantages due to its large annual throughput of sawlogs (~500,000 GMT/yr), generating over 85% of the sawmill residuals produced within the BDO Zone annually (~250,000 GMT/yr). The mill is located in proximity to the private and public working forests of the region. The site features newly cleared lands specifically zoned for heavy Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 58 | P a g e industrial development and construction. Site infrastructure includes three-phase power, an on-site well and septic system, and a siltation system that can accommodate additional capacity. Biomass handling and receiving infrastructure, including loaders and weigh scales, are also available. The facility uses a fraction of its annual residuals production for internal process heat requirements. Map G-7. Freeman Lumber Facility (Greenfield) Map G-8. Freeman Lumber Local Roads and Highways Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 59 | P a g e Logistics Freeman Lumber is located in close proximity to actively managed private and public forests, including larger tracts managed by WestFor and private companies. All primary and secondary roads in proximity to the site have maximum weight designations and are frequently trafficked by B-train configurations for roundwood and residuals shipping and receiving. An additional secondary road is being constructed to provide easier entry to the newly cleared section of the site. This improves the site's overall accessibility and further facilitates the efficient transportation of goods and materials flowing from the prospective site. Social Infrastructure and Workforce Freeman Lumber is the largest employer in Queen’s County and has a proven track record for hiring, procurement, and logistics. The sawmill has well-established relationships with its workforce of over 180 journeymen, contractors, and business development specialists and with the region’s forest processing facilities and broader logging contractor base. The mill also has an established project management network, including for project construction, operations, and logistics that prospective bio-projects can draw upon. 4. Port Mersey Commercial Park (Brooklyn, NS) • Major land parcels for development • Marine access (60m wharf) • Access to local cogeneration (excess steam, natural gas, diesel and electric) Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 60 | P a g e Physical Infrastructure Port Mersey Commercial Park is a 60-acre site in Queens County. The site was formerly occupied by the Bowater Mersey Paper Company Limited, which procured approx. 350,000 GMT/yr of low grade roundwood for purposes of pulp production up until its closure in 2012. The site retains features that were necessary for the success of the former manufacturing facility, including a 550-foot active wharf, a robust local power grid with capacity for interconnection with an adjacent biomass-based power producer (Brooklyn Power), and significant industrial water supply. The park is owned by the Province of Nova Scotia and is zoned for medium-sized industrial activities. The site also benefits from adjacent provincially-owned land that is eligible for industrial development. The space offers flexible options for a variety of development plans, accommodating both large and small-scale biomass-based projects. The location has already undergone Phase 1 and 2 environmental site assessments. The existing manufacturing and processing facilities onsite have the potential to contribute surplus inputs (i.e., forestry and animal feed byproducts), enabling synergistic business relations and efficiencies. Three-phase power, high-pressure steam, and diesel and natural gas fueling receivers are all available on site. The site also includes a 190-meter-long wharf that can accommodate smaller commercial vessels no longer than 20 meters in length. An offsite treatment facility is available to handle waste and byproducts, which provides lower operational expenses for prospective businesses to the site. Logistics The park provides direct access to Highway No.3 and has a park-owned highway that connects to the nearby 100 Series highway. Port Mersey's proximity to key transport routes is pivotal for the industrial area's success. Paved public access roads accommodate industrial transport vehicles. The site's flat and predominantly paved topology simplifies construction and transportation processes for developers. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 61 | P a g e Map G-9. Port Mersey Local Roads and Highways Social Infrastructure and Workforce The industrial hub of Port Mersey has an established technical workforce and is within a 35 -minute drive of the Town of Bridgewater. The Brooklyn Power facility and a couple biotechnology companies have contributed to the development of a local workforce familiar with bioproduct marketing and biomass supply chain management. Housing trends in the region are reflective of wider Nova Scotia trends, with the 2023 data indicating a steady increase in property values. The average price of a house in Queens County is about CAD $290,900 providing affordable housing options for the region, and relocation incentives for workforce settlement. The region has a median household income of $71,500. Bioeconomy Development Opportunity Zone Rating | BDO Zone Designation: Southwest Nova Scotia Date of Issue: September 20, 2023 BDO Zone Rating: ‘A’ 62 | P a g e APPENDIX H: LEGAL DISCLAIMER This BDO Zone Rating (the “Rating”) is prepared for, and provided to, Nova Scotia Innovation Hub, and is intended to be read and used in its entirety and not in parts. Separation or alteration of any section or page from the main body of this Rating is expressly forbidden. In preparing this Rating, Ecostrat has used information obtained from third pa rties or otherwise publicly available. All such information has not been independently validated, verified, or confirmed by Ecostrat (except where otherwise specifically indicated) and Ecostrat makes no representation or warranty as to the accuracy or completeness of any information provided by third parties or otherwise publicly available. Neither Ecostrat nor the members of the BDO Zone Advisory Committee make any representation or warranty as to the accuracy or completeness of the information and content in this Rating and shall have and accept no liability for any statements, opinions, information or matters (expressed or implied) arising out of, contained in or derived from this Rating or any omissions from this Rating, or any other written or oral communication transmitted or made available to any other party in relation to the subject matter of this Rating. Any use which a third party makes of this Rating, or any reliance on or decisions to be made based on it, are the responsibility of such third parties. 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Access to this Rating and its use by any third party implies acceptance by the third party of the terms and conditions contained in this section and other parts of this Rating. All information included is based on information available on the date hereof and neither Ecostrat nor the members of the BDO Zone Advisory Committee are under any obligation to update the information herein. No investor, security holder, or other person should rely on the content of this report in any way in connection with the purchase or sale of any security.