Thank you, Mr. Vician. Anything further, Mr. Bromley?

Thank you, Mr. Chair. I appreciate those remarks and that information. I think the next question is about biomass and I’m wondering what is the plan for significant replacement of fuel oil heating, particularly in our thermal communities for say with wood pellets or woodchips and I’m talking about for residences, for municipal buildings and so on. I’m not talking about any GNWT facilities. So what’s the plan, the energy planning that’s going on to get biomass replacement of fuel oil heating for residences and municipal buildings particularly in our thermal communities? Thank you.

Thank you, Mr. Bromley. Mr. Minister.

Thank you, Mr. Chair. As part of our energy priority investments, our alternative energy priority investments, we’ve identified biomass as probably one of the biggest and most important parts of this initiative and this is something that we’ve identified significant investments over the three years of the $5 million and we’re working and participating with the Department of ENR on the development of a draft Biomass Strategy. We are also participating in the Biomass Working Group. For your information, or you may already be aware, this group includes representation from the Government of the Northwest Territories departments, the Arctic Energy Alliance and the federal government. I don’t want to get into the details at this point because the strategy is scheduled to be released in the next few weeks, but I’d like to reassure the Member that there is a component in the Biomass Strategy which includes working with the private sector and further development of the biomass market in the Northwest Territories and ITI will be participating in these actions. Thank you, Mr. Chair.

I appreciate those remarks. Again, I think there probably are some important opportunities for communities here. Is there a plan to involve them or the Association of Municipalities or something like this in a meaningful way at some point soon in the planning? Again, because I think these are important opportunities that the communities should be brought into as soon as possible just to help build the capacity there in the uptake. Thank you.

That is my understanding, and working with ENR we’ll be working closely with the NWT Association of Communities and engaging communities. I’d like to point out that our expectation is because of the fact that our government has had tremendous success in promoting the use of biomass in the Northwest Territories and you can see it in the large number of government buildings that are using wood pellets. So I expect that we’ll have similar success with communities, although because of the fact that there’s biomass available in every community in the Northwest Territories except maybe in the Nunakput region perhaps. Thank you, Mr. Chair.

Just to add to the Minister’s comments, the fact that it’s cheaper we’re saving money on every front there. So I’m sure that will be attractive to communities. So my last question is just of the $5 million over three years, how much is planning for this year in the budget? It’s not obvious to me. It may be here, but I just haven’t caught it yet. Thank you.

The Government of the Northwest Territories has identified $2 million this year. It’s located in the budget of ENR. So that’s where it’s identified right now, Mr. Chair. Thank you.

Just in follow-up to that, is there a planned expenditure with ITI next year, then? When does ITI start spending some money on, I presume it would be ITI working with the private enterprise and so on getting the uptake? Thank you.

Our expectation is that the money would be available from existing ITI funding programs. If there was a requirement for additional funding, we would have to look at the $2 million that’s available from... We’d have to work with ENR for any incremental requirements.

Thank you, Mr. McLeod. Anything further, Mr. Bromley?

No, I guess not, Mr. Chairman. Just a comment that I think we’re still hoping to get a briefing on this and maybe that will answer some of the other questions. I don’t want to take up more time.

Thank you, Mr. Bromley. Thank you, Mr. McLeod. Thanks, committee. We’re on page 12-21, Industry, Tourism and Investment, activity summary, energy, operations expenditure summary, $5.731 million.

Page 12-22, Industry, Tourism and Investment, activity summary, grants and contributions, contributions, $5.225 million. Mr. Yakeleya.

Just on the Taltson River hydro electrical for this, I know there are some

discussions here on the project. I just want to ask the Minister about this project here. Certainly businesswise it’s a good business opportunity for the mines and you don’t have to tell me what the benefits of it are, I just want to know about the start-up of the project. You had listed some numbers and it’s a joint initiative by other proponents to look at this hydro development. Are we foreseeing anything on issues that will be run into like we’re seeing with the Deh Cho Bridge Project? Cost overruns, I mean, you’re looking at hydro and the Deh Cho Bridge. They’re megaprojects that we haven’t yet secured, or have we secured power agreements with the mines? Are we going ahead? Have we heard the environmental issues? Politically are we looking at serving the mines rather than the communities? This is something I want to make sure that when I bring it to my region that I have some information here.

Thank you, Mr. Yakeleya. Mr. McLeod.

Thank you, Mr. Chairman. As the chair of the Ministerial Energy Coordinating Committee, if I could pass the question on to the Premier who is responsible for the Power Corporation if I may, Mr. Chairman.

Thank you, Mr. McLeod. Mr. Premier.

Thank you, Mr. Chairman. The question about the Taltson River hydroelectric facility, the project, as it is right now, has gone through its environmental work, the regulatory piece. In fact, they’re looking at the transmission line and adjustment there. The work around the partnership agreement as well as the power purchase agreements is ongoing. The work that is involved in this, as Members are aware, is taking quite some time to come up with the project as it is. We have entered in and are working on a partnership with, as Members are aware, Deze with the NWT Metis and the Akaitcho, as well as our energy piece through the Hydro Corporation. We’ve done a lot of work on there not only on the feasibility, but also the environmental, the hydrology, and a lot of the work beforehand, as Members are aware through the expenditures. Now we’re getting down to the point where we are getting closer to the power purchase agreements. One of the difficulties there with having a power purchase agreement in place is that depending on the final outcome of the regulatory process is if there are adjustments that need to be made, then we would have to make adjustments to the potential project which then could affect power purchase agreements. So we need, it’s almost a parallel process. Once we get the final results of the regulatory, then we’ll have a much clearer understanding of our positions that we can work out with industry on that. To date things have come

along much better and we’re hoping that we’ll be able to have a deal ready very close to the timing that, for example, a decision would be made on the next potential mine in the Northwest Territories. For the estimations for the cost estimates a lot of work has been done in that area and has been part of our process through the environmental work and regulatory process.

Thank you, Premier Roland. Mr. Yakeleya.

Thank you, Mr. Chairman. Thank you, Mr. Premier. I ask this question in all sincerity regarding this project. I do support the business case. You are having aboriginal landowners be a part of it. You don’t have to sell me on the greenhouse and thousands of trucks that go up the winter road. You are looking at a business case here. A lot of people say we’re more focused on the diamond mines than reducing costs or lowering costs to our communities. That’s the political world. It does make a business case.

There are power purchase agreements that need to be negotiated. Mr. Premier has indicated they are close. To date I haven’t seen one. Yet we’re still proceeding on a good-faith basis, just like with the bridge. Now we’re coming to cost overruns to the tune of $200 million on the bridge. I have to ask these questions. I have to ask these about the Taltson project.

There is potential for other mines that are going to be opening up to have the agreement. They are talking about Peace River having a nuclear plant. Certainly they want to see it up here in the Northwest Territories. This is an opportunity to hook up to the grid in Alberta. This is something we’re approving, we’re okaying, but we have to know for sure about the Taltson that we have some agreements in place. I think the Premier said they were close to some. But we’ve been hearing this for a long time. What’s securing us to say yes, we feel comfortable? That’s what I’m getting at. That’s why I ask this question. I need to ask it to have a good sleep tonight.

Thank you, Mr. Yakeleya. Any comments, Mr. McLeod?