Jacques Lavoie Senior General Counsel Canadian Nuclear Safety Commission June 20, 2014 Toronto, Ontario E-Docs. #4

1. Year in Review • at the CNSC • 2013-2014 Jacques Lavoie Senior General Counsel Canadian Nuclear Safety Commission June 20, 2014 Toronto, Ontario E-Docs. #4454797

2. CNSC – Mandate • Regulates the use of nuclear energy and materials to protect the health, safety and security of Canadians and the environment; implements Canada's international commitments on the peaceful use of nuclear energy; and disseminates objective scientific, technical and regulatory information to the public Nuclear Safety and Control Act, s. 9 Canadian Nuclear Safety Commission

3. CNSC Regulates All Nuclear-Related Facilities and Activities • Uranium mines and mills • Uranium fuel fabricators and processing • Nuclear power plants • Waste management facilities • Nuclear substance processing • Industrial and medical applications • Nuclear research and educational • Cyclotron • Export/import control Canadian Nuclear Safety Commission

4. Independent Commission • Court of Record & administrative tribunal - quasi-judicial • Reports to Parliament through Minister of Natural Resources Canada • Power to issue summons, examine persons under oath, compel the production of documents, enforce orders (NSCA, s.20) • Commission hearings are public and Webcast live, then archived • Legal Services and Secretariat assist the Commission and CNSC Staff Transparent, Science-based Decision-making Canadian Nuclear Safety Commission

5. Our Commission Members Dr. Michael Binder President and Chief Executive Officer, CNSC Dr. Ronald J. Barriault Practising physician and member of the Canadian Medical Association, College of Family Physicians of Canada and the New Brunswick Medical Society Charlo, New Brunswick* Dr. J. Moyra J. McDill Professor, Department of Mechanical and Aerospace Engineering, Carleton UniversityOttawa, Ontario* Mr. André Harvey Former president, Bureau d’audiences publiques sur l’environnement (BAPE) Québec, Québec *No longer members since March 2014 Dr. Sandy McEwan Chair, Department of Oncology, University of Alberta Edmonton, Alberta Mr. Dan D. Tolgyesi Former President, Quebec Mining Association Québec, Québec Ms. Rumina Velshi Former director, Planning and Control, Darlington New Nuclear Project Toronto, Ontario Deep Geologic Repository Joint Review Panel Temporary Members Dr. Stella Swanson Biologist and Environmental Consultant Rockglen, Saskatchewan Dr. Gunter Muecke Professor, Department of Geology, Dalhousie University Halifax, Nova Scotia Dr. James F. Archibald Professor,Department of Mining, Queen’s University Kingston, Ontario Canadian Nuclear Safety Commission

6. Major Nuclear Facilities Located Across Canada • 22 Nuclear Power Reactors on 5 Sites • 6 active uranium mines/mills in • northern Saskatchewan • 3, 300 licences / 2,500 licensees • 840 staff • Resources: $161.5 m • (70% cost-recovered from licensees) Midwest McClean Lake Cigar Lake Rabbit Lake Key Lake McArthur River Gentilly-2 Point Lepreau Darlington Bruce A and B Pickering A and B Canadian Nuclear Safety Commission

7. Darlington • Point Lepreau NB • Pickering • Gentilly QC A2 A3 A4 1 2 A1 A2 A3 A4 A1 In service 1977/2012 Mwe 750 In service 1977/2012 Mwe 750 In service 1978/2003 Mwe 750 In service 1979/2003 Mwe 750 In service 1971/2005 Mwe 515 In service 1992 Mwe 881 In service 1971 Safe storage state In service 1972 Safe storage state In service 1971/2003 Mwe 515 In service 1990 Mwe 881 In Safe Shutdown since Dec. 28, 2012 Return to service Nov. 23, 2012 B5 B6 B7 B8 3 4 B5 B6 B7 B8 In service 1985 Mwe 882 In service 1984 Mwe 882 In service 1987 Mwe 882 In service 1986 Mwe 882 In service 1993 Mwe 881 In service 1993 Mwe 881 In service 1983 Mwe 516 In service 1984 Mwe 516 In service 1985 Mwe 516 In service 1986 Mwe 516 Canadian Nuclear Power Reactor Fleet • Bruce Licence application received for continued operation and refurbishment Operable status (Average age – 25 Years) In service within design life In service / Returned to service Safe storage state Canadian Nuclear Safety Commission

8. Nuclear Power Plants — Status Darlington • Ontario government — new builds on hold • Federal court referral of EA back to Panel • Refurbishment EA approved for existing reactors • Licence renewal hearing November 2014 Pickering • Decision on licence renewal released August 9, 2013 • Public hearing on hold-points — held May 2014 • End of commercial operation planned for 2020 Bruce • Refurbishments of units A1 and A2 completed in 2012 • Renewal hearing in early 2015 • Current operating licence extended until April 15, 2015 Point Lepreau • Refurbishment completed and returned to service on November 23, 2012 Gentilly-2 • Québec decided to decommission, not refurbish • In safe shutdown since December 28, 2012 Canadian Nuclear Safety Commission

9. Significant Commission Decisions 2013 • Public Hearing for Pickering was held February 20 and May 29-31 • Commission issued a one-site Power Reactor Operating Licence to OPG. • The licence will be for September 1, 2013 to August 31, 2018. OPG Pickering Nuclear Generating Station • The public hearing on hold-points washeld May 2014 Canadian Nuclear Safety Commission

10. Significant Decisions 2013 (cont’d) • Cameco Cigar Lake Project • Public Hearing held in Saskatoon, April 3, 2013 • Commission issued licence authorizing the construction and operation of project located in northern Saskatchewan. • Licence valid for 8 years: July 1, 2013 to June 30, 2021. • Cameco Beaverlodge Mining – • Public Hearing held in Saskatoon, April 3-4, 2013. • The Commission renewed the Waste Facility Operating Licence at the decommissioned Beaverlodge mine and mill site for a period of 10 years. Canadian Nuclear Safety Commission

11. Significant Decisions 2013 (cont’d) SLOWPOKE-2 Research Reactors • ÉcolePolytechnique de Montréal • University of Alberta • Royal Military College of Canada • Saskatchewan Research Council • Public Hearing held in Ottawa, May 15, 2013 • These non-power reactor operating licenceswere renewed for July 1, 2013 until June 30, 2023. • Key Lake, McArthur River and Rabbit Lake Uranium Mine Projects • Public Hearing held in La Ronge, Saskatchewan, October 1-3, 2013. • Cameco’s licences renewed with 10 year licence terms Canadian Nuclear Safety Commission

12. Significant Developments Gentilly -2, NPP in Québec • Decision by Québec to close G2 Sept. 2012 • Defueling & Safe storage state – 2014-15 Ontario’s Long Term Energy Plan • Released December 2013 – Darlington New build on hold • Refurbishment for Bruce and Darlington in 2016 and Pickering shutdown - 2020 CNSC Public Meeting in December 2013 • Meeting on GE Hitachi fuel fabrication facilities in Peterborough and Toronto Canadian Nuclear Safety Commission

13. Significant Developments (cont’d) Uranium mining • Recent licence renewals in 2013:Cigar Lake, Key Lake Mill, McArthur River Mine, Rabbit Lake Mine and Mill • Millennium new mine - environmental assessment and licensing – Project on hold. • Gunnar – Legacy Site hearing – August 19, 2014 • Remediation decision – Fall 2014 • Kiggavikmine proposal – environmental assessment review ongoing in Nunavut Nuclear Cooperation Agreements (NCAs) • China – 1994, supplementary NCA protocol and arrangement signed in July 2012 • India – signed March 2013 • Kazakhstan – signed November 2013 (Not yet in force) Canadian Nuclear Safety Commission

14. Significant Developments (cont’d) Long-term waste management • Low and intermediate level radioactive waste • Deep Geologic Repository (DGR) • Public hearings – Sept 16 through Oct 30, 2013 • 25 hearing days / over 200 interventions / 20,000 pages of documentation • Additional hearing days requested by Joint Review Panel • Ongoing remediation – Legacy Sites • Port Hope and Port Granby • Long-term management of spent fuel • Nuclear Waste Management Organization’s Adaptive Phased Management (APM) - 2035 • Community selection process - 15 communities remain on shortlist • 1 from Saskatchewan, 14 from Ontario Canadian Nuclear Safety Commission

15. CNSC - Litigation • Darlington New Build JRP – Judicial Review • Federal Court decision of Justice Russell • Decision released May 14, 2014 • The EA challenge allowed in part • Court found that the Panel failed to comply with the CEAA and the Agreement that established the Panel in three areas: • gaps in the bounding scenario regarding hazardous substance emissions and on-site chemical inventories;  • consideration of spent nuclear fuel; and •  deferral of the analysis of a severe common cause accident. • EA Report to be returned to the panel (or a duly constituted panel) for further reconsideration and determination of the specific issues laid out by the Court • CNSC, AG and OPG appealed the decision on June 13, 2014. • Expect to have a hearing in the later half of 2015. Canadian Nuclear Safety Commission

16. CNSC – Litigation (cont’d) • Darlington Refurbishment EA challenge • Greenpeace, CELA, Lake Ontario Water Keeper, and Northwatch commenced an application for judicial review on April 12, 2013 • Respondents AG Canada, DFO and OPG • An oral hearing of the CNSC’s motion for leave to intervene in the application was held on Tuesday, Sept. 24 2013 in Toronto; the motion was dismissed. • Hearing proceeded before Phelan J. on May 6 in Toronto • The parties have requested to make supplementary submissions to the Court respecting the new build decision of Russell J. of the Federal Court • Awaiting a decision of the Court Canadian Nuclear Safety Commission

17. Amendments to Regulations • Regulations under the NSCA • Packaging and Transport of Nuclear Substances Regulations • If approved, the Packaging and Transport of Nuclear Substances Regulations 2014 would be expected to be published in the Canada Gazette, Part I for 75 day consultation period. Canadian Nuclear Safety Commission

18. 2013 Jurisprudence - SCC • Aboriginal Law: Duty to Consult, Abuse of ProcessBehn v. Moulton Contracting Ltd.   (May 9) The duty to consult exists to protect the collective, not individual, rights of Aboriginal peoples. The doctrine of abuse of process is characterized by its flexibility, and abuse occurred here.  • Environmental Law: Duty to Report Castonguay Blasting Ltd. v. Ontario (Environment)  (Oct. 17) Ontario’s Environmental Protection Act requires the Ministry of the Environment be immediately notified when a contaminant is discharged into the environment; there are two pre-conditions: the discharge must have been out of the normal course of events; it must have had, or was likely to have, an adverse environmental impact. Labour Law: Mandatory Random Alcohol & Drug TestingCommunications, Energy and Paperworkers Union of Canada, Local 30 v. Irving Pulp & Paper, Limited (June 14) A unilaterally imposed policy of mandatory, random and unannounced testing for all employees is not appropriate.  Random testing in a dangerous workplace may be OK if it represents a proportionate response in light of both legitimate safety concerns and privacy interests. Canadian Nuclear Safety Commission

19. 2013 Jurisprudence – FCA & FC • Judicial Review: Criteria for being added as a respondent - Forest Ethics Advocacy Assn. v. National Energy Board (October 4) (FCA) “Directly affected” means whether the relief sought in the application for judicial review will affect a party's legal rights, impose legal obligations upon it, or prejudicially affect it in some direct way. If a party meets this criteria, the party should be added as a respondent. • Aboriginal Law: Sandy Pond v. Canada (Attorney General) (October 31) (FC) The provisions of the 2006 Metal Mining Effluent Regulations that are challenged in this application were lawfully enacted by the Governor in Council pursuant to the authority conferred by the Act. The fact that regulations enacted pursuant to the Act may have negative environmental consequences does not, per se, render those regulations invalid. Employment Law: Dismissal without causeAtomic Energy of Canada Ltd. v. Joseph Wilson (July 2) (FC) The Canada LabourCode does not support the principle that federally regulated employers may only dismiss employees for cause.  An employer can dismiss an employee without cause so long as it gives notice or severance pay.  Canadian Nuclear Safety Commission

20. Developments in Legislation and International Conventions in 2013-2014 Nuclear Terrorism Act (Canada) Convention on the Physical Protection of Nuclear Material (CPPNM) International Convention for the Suppression of Acts of Nuclear Terrorism (ICSANT) Bill C-22 – Nuclear Liability and Compensation Act Canadian Nuclear Safety Commission

21. Bill C-22 – Canada Nuclear Liability Compensation Act (NLCA) • June 10, 2013, the Minister of Natural Resources announced intention to: • Table a new bill in Parliament to strengthen Canada’s nuclear liability regime • Join the IAEA Convention on Supplementary Compensation for Nuclear Damage (Convention) • Following the announcement in June: • Canada signed the Convention on December 3, 2013, and it was tabled in Parliament on December 6 • Energy Safety and Security Act (Bill C-22) was tabled in Parliament on January 30, 2014 • The Nuclear Liability and Compensation Act portion of Bill C-22 will: • Replace the Nuclear Liability Act with stronger legislation to better deal with liability and compensation for a nuclear accident within Canada • Implement Canadian membership in the Convention to address liability and compensation for damage within member countries arising from trans-boundary and transportation nuclear accidents Canadian Nuclear Safety Commission

22. Bill C-22 – Canada Nuclear Liability Compensation Act (NLCA) • Operator absolutely and exclusively liable for damages within Canada or its exclusive economic zone, or within a Contracting State and its exclusive economic zone, caused by ionizing radiation emitted: • From operator’s nuclear installation, or • From nuclear material being transported to or from operator’s nuclear installation • Operator liable for nuclear damage caused by natural disasters, including those of exceptional nature • Legislation does not apply to nuclear incident that results from act of war, hostilities, civil war or insurrection, other than terrorist activity • Operator not liable for damage suffered by person who intentionally caused nuclear incident or caused nuclear incident through gross negligence • Operator has no right of recourse against any person other than individual who intentionally caused the nuclear incident by an act or omission Canadian Nuclear Safety Commission

23. Bill C-22 – Canada Nuclear Liability Compensation Act (NLCA) • Liability limit for nuclear power plant operators will be increased from $75 million to $1 billion: • Phase in over 3 years – $650 million limit set at proclamation • Minister must review limit regularly and it may be increased by regulation • Rationale for liability amount: • Sufficient to deal with consequences of controlled releases of radiation • Within capacity of insurers to provide insurance at reasonable costs • Brings Canada more in line with liability limits in other countries. • Lower liability amounts for operators of low-risk nuclear installations • Operators required to cover full amount of liability with insurance provided by an insurer approved by Minister • Subject to Minister’s approval, operators permitted to cover up to 50% of their liability with other forms of financial security • Operator’s financial security can not be used to pay operator’s costs of administering claims, court costs, legal fees or interest on compensation Canadian Nuclear Safety Commission

24. Nuclear Terrorism Act An Act to Amend the Criminal Code • Royal Assent – June 19, 2013 • Amendments to the Criminal Code in force November 1, 2013 • to help prevent the acquisition of nuclear material, radioactive material and devices by individuals or groups with malicious intent. • Final stage completed in order to permit Canada to ratify the Amendment to the Convention on the Physical Protection of Nuclear Material (CPPNM) and the International Convention for the Suppression of Acts of Nuclear Terrorism (ICSANT). Canadian Nuclear Safety Commission

25. Nuclear Terrorism Act (cont’d) • amends the “Criminal Code to create four new offences relating to nuclear terrorism: • possessing or trafficking nuclear or radioactive material or a nuclear or radioactive device, or committing an act against a nuclear facility or its operations, with the intent to cause death, serious bodily harm or substantial damage to property or the environment; • using or altering nuclear or radioactive material or a nuclear or radioactive device, or committing an act against a nuclear facility or its operation, with the intent to compel a person, a government or a domestic or international organization to do, or refrain from doing, anything; • committing an indictable offence for the purpose of obtaining nuclear or radioactive material or a nuclear or radioactive device or to obtain access or control of a nuclear facility; and • the threat to commit these offences. Canadian Nuclear Safety Commission

26. Amendment to the Convention on the Physical Protection of Nuclear Material • Prime Minister announced Canada’s ratification on March 24, 2014 at the Nuclear Security Summit • The Amendment to the Convention on the Physical Protection of Nuclear Material – “makes it legally binding for State Parties to protect nuclear facilities and material in peaceful domestic use, storage and transport. It also provides for expanded cooperation between States regarding rapid measures to locate and recover stolen or smuggled nuclear material, mitigate any radiological consequences of sabotage, and prevent and combat related offences.” AMENDMENTS TO THE CPPNM Canadian Nuclear Safety Commission

27. International Convention for the Suppression of Acts of Nuclear Terrorism • Canada signed September 14, 2005 • March 25, 2014 - Prime Minister Stephen Harper announced the ratification of the Convention at the Nuclear Security Summit Canadian Nuclear Safety Commission

28. Nuclear Liability and Compensation Act • Bill C-22 – Energy Safety and Security Act • Increases the absolute liability threshold for operators of nuclear facilities from $75 million to $1 billion • Increases the absolute liability threshold for operators of nuclear facilities from $75 million to $1 billion • CNSC President Michael Binder appeared before Standing Committee on Natural Resources on June 5, 2014 • The report of the Standing Committee was tabled on June 11, 2014 and was reported back with amendments. • Debates on Bill C-22 were tentatively scheduled for June 16-20 Canadian Nuclear Safety Commission

29. IAEA Convention on Supplementary Compensation for Nuclear Damage • Enacting Bill C-22 will allow Canada to ratify the IAEA Convention on Supplementary Compensation for Nuclear Damage. • Once in force, the convention will help address nuclear liability issues for transboundary and transportation incidents and provide access to supplementary compensation from an international pool of up to $500 million. Canadian Nuclear Safety Commission

30. Other Developments 2013-2014 • AECL – Highly enriched uranium from Atomic Energy of Canada Ltd. to be transported to Savannah USA • NRU current plans to end isotope production in 2016 • Nordion - purchased by U.S. based Sterigenics • TRIUMF – has announced that it will purchase cyclotron for the production of medical isotopes • National emergency exercise - May 2014 (IAEA & USNRC observing) Canadian Nuclear Safety Commission

31. Other Developments (cont’d) • Strateco :BAPE proceedings on uranium & application to Québec Superior Court • As the Bureau d’audiences publiques sur l’environnement (BAPE) proceedings are underway, Strateco has filed, with the BAPE, an application to have Monsieur Louis-Gilles Francoeur removed as the President and Member. According to Strateco, as a journalist for Le Devoir, Mr. Francoeur has written a number of articles that criticize the project, evidence that he is biased on the topic. • This does not affect the legal proceedings initiated by Strateco, by which it seeks to invalidate the MDDEFP Minister's decision of November 7, 2013, to refuse a certificate of authorization for the underground exploration phase of the Matoush project. Canadian Nuclear Safety Commission

32. 2014 and beyond • Court challenges – Darlington New Build and Darlington Refurbishment – awaiting decisions of the courts • Change in Commission meeting / hearing protocol and Code of Conduct • Darlington Refurb licensing hearings scheduled for Nov 2014 • Decisions from the Sixth Review Meeting of the Convention on Nuclear Safety • Future of AECL – GoCo concept / isotope production to end (2016) • International Physical protection Advisory Services Mission (IPPAS) – Prime Minister’s announcement at Nuclear Security Summit on March 25, 2014 Canadian Nuclear Safety Commission

33. THANK YOU! Questions?Jacques.Lavoie@cnsc-ccsn.gc.ca Canadian Nuclear Safety Commission

34. Visit the CNSC website at: nuclearsafety.gc.ca Canadian Nuclear Safety Commission