Indigenous and Northern Affairs Canada (INAC) Presentation Capital Facilities and Maintenance Program INAC Information Session:  Sudbury November 17, 2015                                           Thunder Bay   November 26, 2015 CIDM # 702697 v4

Agenda Community Infrastructure Organization Program Streams Infrastructure Investment Overview Program Updates

Community Infrastructure Organization Capital Operations Capital Planning & Program Support Engineering Services Asset Management Sheila Silva, Director Sheila.Silva@aandc.gc.ca 416-973-8019 Community Infrastructure Organization Special Projects Jon Paul Blais Manager JonPaul.Blais@aandc.gc.ca 807-624-1573 Jody Knibbs Acting Manager Jody.Knibbs@aandc.gc.ca 807-624-5908 (To Be Determined) Manager - Robert Thomson Head Robert.Thomson@aandc.gc.ca 416-973-1261 Gus Foresto Manager Gus.Foresto@aandc.gc.ca 807-624-1544 Works with First Nations to develop their infrastructure projects related to water; wastewater; diesel generating stations (DGS); electrification; and project funded through the Contaminated Sites Management Program, regional Fuel Tank Program, and First Nation Infrastructure Fund (FNIF) program Oversees the implementation of the First Nations Water and Wastewater Action Plan (FNWWAP); Circuit Rider Training Program (CRTP); Annual Performance Inspections; Enhanced O&M, & Training Manages the housing program, Ministerial Loan Guarantees (MLGs), & core capital Collaborates with various stakeholders to develop regional First Nations Infrastructure Investment Plans (FNIIPs) Conducts internal technical reviews and provides technical input on First Nation’s infrastructure projects and programs Oversees regional asset management exercises and O&M funding Manages the Integrated Capital Management System (ICMS) Reviews and assures quality of information submitted in the Asset Condition Reporting System (ACRS) Working with the First Nations to complete the Budget 2012 New Schools Projects (Fort Severn/ Poplar Hill bundle, and Pikangikum); and commence the Budget 2014 Schools Bundling Projects Collaborates with First Nations to manage municipal transfer service agreements (MTSAs)

Ontario Region Minor Capital Reform PREVIOUS PROGRAM STREAMS NEW PROGRAM STREAMS Capital Investments Asset Management Proposal-based program stream Provides funding on a needs basis to communities to: Build or acquire new public infrastructure assets Carry out significant upgrades, renovation or recapitalization of existing assets Scalable program controls based upon risk Major Capital O+M Minor core capital Formula-based program stream Provides funding to communities to assist in the management of AANDC-funded assets, including operating, maintaining, repairing, modifying, replacing and decommissioning/disposing of the asset. Risk-based program controls focused on outputs and outcomes Minor non-core capital .

INAC Ontario Region Infrastructure Investments Elements of Prioritization and Ranking Contractual Obligations resulting from Recipient Contracts for Approved Projects National Priority Funding Evaluation by Category and Activity Categories: Water, Wastewater, Education, Other Community Infra., etc., Activities: Protection of Health and Safety and Assets., etc. National Water and Wastewater Ranking Framework National Schools Priority Ranking Score Project Risk Assessment for projects greater than $1.5M General Assessment scores Population served by the Project

First Nation Infrastructure Investment Plan (FNIIP) Proposals submitted for the 2015-2016 FNIIP process (related to the upcoming 2016-2017 fiscal year) were due September 30, 2015. The funding allocation process for 2016-2017 proposal-based projects will be based on all FNIIP proposals submitted by November 15, 2015 As of the November 15, 2015 deadline, the status of the 2015-2016 FNIIPs includes: 84 = Received 39 = Still Outstanding 123 = Total FNIIPs expected Proposal-based projects included with FNIIPs received after November 15, 2015 will not be considered for 2016-2017 funding. Overdue FNIIP reports may cause funding halts for all non-essential capital funding

Budget 2012 and Budget 2014 Schools First Nations are to submit any requests for school projects on their FNIIP From there, INAC Ontario Region takes this information and provides input into the national school prioritization process. Major school projects for on-reserve council operated programs are funded based on a national priority process and allocations from HQ Budget 2012 Schools (Fort Severn/Poplar Hill First Nations bundle and Pikangikum First Nation) are currently under construction and are scheduled for September 2016 opening for the new school year Budget 2014 Schools include the bundling of planning and construction activities to ensure economies of scale, allowing even more schools to be built. Communities to be included are expected to be identified later in 2015-2016

First Nation Infrastructure Fund & Building Canada Fund First Nation Infrastructure Fund (FNIF) $5.4M per year available in INAC Ontario Region over 5 years starting in 2014-2015 To access this funding, projects must be on the FNIIP, as projects are identified, prioritized, and selected for funding through the annual FNIIP process Building Canada Fund (BCF) $15M per year available nationally over 10 years starting in 2014-2015 INAC Headquarters (HQ) accepts and prioritizes applications from INAC regional offices

First Nation Infrastructure Fund & Building Canada Fund The six (6) categories of projects eligible for both FNIF and BCF funds are: 1) Planning and Skills Development 2) Roads and Bridges 3) Connectivity 4) Solid Waste Management 5) Energy Systems 6) Disaster Mitigation

Water and Wastewater (W&WW) Safe Drinking Water for First Nations Act Aim: To ensure that residents on First Nation lands have access to levels of protection for W&WW similar to those experienced by all other Canadians The regulations will focus on 11 essential regulatory components found in the Act The Institute on Governance (a neutral, independent third party) reviewed and summarized each provincial/territorial regulations as they relate to the 11 essential components. The summaries were mailed out with a letter from INAC Regional Director General, Ontario Region to First Nations on October 6, 2014 Three consultation sessions planned with Phase I completed (Atlantic, Yukon & NWT) and draft regulations developed. Feedback will be requested from First Nations and Technical Advisors towards drafting the Regulations No decisions have been made regarding compliance and enforcement; four models are being explored: a First Nation(s) aggregate, the provincial government, various federal departments, or a combination Input is requested e-mail: ProprePNh2o-cleanFNh2o@aadnc-aandc.gc.ca or call 1-800-567-9604

First Nation Water and Wastewater Action Plan (FNWWAP) FNWWAP program is set to sunset on March 31, 2016 Ontario Region is currently working with First Nations and Tribal Councils to explore alternative water and wastewater service delivery models. This includes support for hub type delivery models

Annual Performance Inspections (APIs) Summary Number of : 2013-2014 2014-2015 High Risk Water Systems 48 40 Medium Risk Water Systems 52 37 Low Risk Water Systems 61 78 High Risk Wastewater Systems 13 9 Medium Risk Wastewater Systems 32 42 Low Risk Wastewater Systems 26 21 It is important that we consider ways of bringing the risk ratings down from high to medium or low through upgrades, where possible

Integrated Capital Management System (ICMS) Update Asset Management Received as of November 5, 2015: Ontario Region DCI 460649 20 of 35 (Triennial ACRS) DCI 460649 34 of 87 (ACRS Proj. Annual Report) DCI 41701 68 of 122 (Community Infrastructure and Housing Annual Report)

Questions and Discussion