Appearance before the Standing Committee on Public Accounts of Canada: Auditor General Report on the Investing in Canada Plan. Indigenous Services Canada. May 11, 2021

Logistics

Date: Tuesday, April 27, 2021
Time: 11:00 a.m. to 1:00 p.m.
Location: Videoconference (Zoom)
Subject: OAG Report 9. Investing in Canada

Appearing

• Christiane Fox, Deputy Minister, Indigenous Services Canada
• Kelly Gillis, Deputy Minister, Infrastructure
• Romy Bowers, President and Chief Executive Officer, CMHC
• Matthew Shea, Matthew Shea, Assistant Deputy Minister, Corporate Services, PCO
• Peter Wallace, Secretary of the Treasury Board
• Karen Hogan, Auditor General Office

Supporting Witnesses

• Joanne Wilkinson, Assistant Deputy Minister, Regional Operations, ISC
• Claudia Ferland, Director General, Regional Infrastructure Delivery Branch, ISC
• Gerard Peets, Assistant Deputy Minister, Policy and Results, INFC
• Sean Keenan, Director General, Policy and Results, INFC
• Michel Tremblay, Senior Vice-President, Policy and Innovation, CMHC

Context

At this meeting, the Committee will discuss Report 9 — Investing in Canada.

The two hour meeting will include witnesses from the Privy Council Office (PCO), Infrastructure Canada (INFC), Treasury Board Secretariat (TBS), Canada Mortgage and Housing Corporation (CMHC) and Auditor General's Office. Infrastructure is the federal lead for the appearance.

Five minute opening remarks will be given in the following order: Auditor General, INFC, CMHC, and ISC. No remarks will be provided by PCO or TBS.

Committee members and Indigenous issues

Greg Fergus [Lib]. Frequently asks questions or raises concern over Indigenous issues, including those related to racism. During the March 11th PACP meeting, Mr. Fergus asked: "Is there a direct correlation between these new [water] advisories and the outdated funding formula that is used for indigenous communities? What will it take for the government to update its formula?"

At that same meeting, Mr. Fergus asked: "Just like Mr. Webber, I find the drinking water advisories in Indigenous communities concerning. Could you please tell us how many advisories on drinking water quality were posted when the government committed to solving the problem? Have any new water quality advisories been added to the list?"

Lloyd Longfield [Lib]. Mr. Longfield has spoken to water advisories, including asking a friendly question of the Minister of Indigenous Services to speak to outcomes and next steps related to improving water infrastructure. (Question Period, October 8, 2020)

Kody Blois [Lib]. During the March 11th PACP meeting, Mr Blois asked about water advisories. In the House, he has frequently raised the lobster fishery dispute in Nova Scotia, which was centered in his riding of Kings-Hants.

Francesco Sorbara [Lib]. Has supported and spoken in favour of initiatives that support Indigenous peoples on various legislative items.

Jean Yip [Lib] has previously asked questions to understand the inclusion of Indigenous peoples, particularly surrounding incarcerated Indigenous women (Public Accounts 2018) and questioned Indigenous Services about not promptly informing clients and service providers about changes to some services (Public Accounts 2018).

Luc Berthold [CPC]. During Wet'suwet'en blockades, in the House Mr. Berthold called for an to end the rail blockades to stop the impact on businesses. He has spoken about Coastal GasLink and pushed to pass Bill C-3, An Act to Amend the Judges Act, on public safety including that related to Indigenous women.

Philip Lawrence [CPC]. During debate on the Citizenship Act, Mr. Lawrence regularly referenced Canada's relationship with Indigenous peoples. At both Agriculture committee and on the Greenhouse Gas Pollution Pricing Act, he highlighted farmers, along with Indigenous peoples, being among the first environmentalists.

Len Webber [CPC]. During the PACP March 11th meeting, Mr. Webber asked: "We know that we want to promote careers on reserve and we strongly encourage and welcome Indigenous operators. Do any of their reserves restrict these water supply jobs to Indigenous or band workers only? If so, has this created any continuity issues in operations of the plant? Is it a factor in finding qualified people to fill these positions?"

Matthew Green [NDP]. During the January 26th meeting on Public Accounts, Mr. Green asked for a comparison of compensation paid by CIRNAC in 2019-20 to previous years. He also asked for an enumeration of liability of the Crown to Indigenous communities based on existing legal contracts and treaties.

Maxime Blanchette-Joncas [BQ] participated in the Fisheries Committee (FOPO) study on the Atlantic fisheries, including discussion on moderate livelihood.

Meeting Proceedings

The meeting is scheduled from 11:00 a.m. and 1:00 p.m. via the web platform Zoom.

All witnesses will be asked to connect to the meeting at 10:30 a.m. The Zoom link will be sent directly from the House of Commons to the witnesses.

The Chair will open the meeting and provide instructions for the meeting proceedings. He will then introduce all witnesses. Deputy Ministers will then deliver remarks as per standard practice (5 minute maximum each). It is recommended to speak slowly and at an appropriate level to ensure the interpreters can hear you. All witnesses are requested to mute your microphone when you are not speaking.

While simultaneous translation will be available, witnesses are asked to respond to questions in either English or French, but to limit switching back and forth between languages as this often creates technology/interpretation challenges.

Following the opening remarks, there will be rounds of questions from Committee members (as listed below).

Committee members will pose their questions in the following order:

• First round (6 minutes for each Party)
  • Conservative Party of Canada
  • Liberal Party of Canada
  • Bloc Québécois
  • New Democratic Party of Canada
• Second and subsequent rounds, the order and time for questioning be as follows
  • Conservative Party of Canada (5 minutes)
  • Liberal Party of Canada (5 minutes)
  • Bloc Québécois (2.5 minutes)
  • New Democratic Party of Canada (2.5 minutes)
  • Conservative Party of Canada (5 minutes)
  • Liberal Party of Canada (5 minutes)

The meeting can be watched via Parlvu, however there is a 70-second delay.

Teleconference access may be possible and will be confirmed with support staff closer to the appearance date.

If pressed on IICP funding breakdowns for Budget 2016 and 2017

Budget 2016 and 2017 investments for Indigenous Services Canada can be broken down as follows:

• Budget 2016
  • Water and wastewater ($1.83B)
  • Housing ($416.6M)
  • Health ($319.9M)
  • Culture & Recreation ($76.8M)
  • Solid Waste ($408.9M)
• Budget 2017
  • Water and wastewater ($49.1M)
  • Housing ($600M)
  • Health ($153M)
  • Other community infrastructure ($352.1M)
  • Transformation
    • Engagement and proof of concept ($15M)
    • Indigenous Homes Innovation Initiative ($25M)
    • Smart Cities Challenge ($15M)
    • Asset Management Program ($15M)
  • Operation Return Home ($8.5M)

An additional $1.79 billion was confirmed through the 2020 Fall Economic Statement.

If pressed on non-IICP ISC funding related to Infrastructure Canada (Gas Tax Fund, Ventilation)

• Indigenous Services Canada also distributes funding through the Federal Gas Tax Fund.
• These funds are allocated to ISC and delivered through the First Nations Infrastructure Fund.
• As part of a larger $150M Fall Economic Statement 2020 announcement, under ISC, $22.5M will be committed to improve ventilation in public buildings in Indigenous communities.

If pressed on non-IICP ISC funding not related to Infrastructure Canada

• It is important to note that ISC received more funding for infrastructure through sources of funding that are not captured in the Investing in Canada Plan. This represents approximately $1.2 billion in Budget 2016:
  • $969.4 million over five years for education infrastructure on reserves, and
  • $255 million over two years for energy, sustainability and connectivity, as well as fundamental community infrastructure.
• Budget 2018:
  • $172.6 million for water and wastewater
• Budget 2019:
  • $739 million over five years for water and wastewater
  • $89 million for other community infrastructure
• Fall Economic Statement 2020:
  • $1.5 billion for 2020-2021 and an additional $114.1 million per year ongoing for water and wastewater

Data collection

• A robust quarterly reporting process is in place that allows the department to provide regular updates on its portfolio of infrastructure projects for projects funded through targeted government investments announced through the Budget process.
• In partnership with regional offices and other reporting stakeholders, who work directly with First Nations, processes have been developed to ensure consistency of data across the country.
• The data collected ranges from project status to budget expended to estimated timelines to completion.

Reporting: Limitations

• Reporting on thousands of projects on a quarterly basis introduces some limitations. The amount of information required needs to be limited to allow for timely and non-cumbersome updating, but still needs to be relevant to what is needed to report to Canadians on the investments.
• This information is held in two systems of record to report the findings: financial information is tracked through the department's official financial system while infrastructure project records are tracked though the department's asset management system, which provides a complete picture of the infrastructure's life-cycle.
• We continue to work on ensuring data accuracy between those two systems, as more and more automated links are being developed between these databases to enable further analysis.

Performance of IICP funds

• Community infrastructure is one of several priorities that have been identified as essential to the Government of Canada's commitment to move forward in the spirit of reconciliation and to support First Nations in creating lasting, positive change.
• As of December 31, 2020, ISC funding delivered under the IICP, in collaboration with First Nations communities and partners, has supported more than 4,963 completed and ongoing infrastructure projects in First Nations communities across the country. These projects include physical infrastructure (including health and solid waste) and capacity building initiatives that support training and self-management opportunities.
• This includes projects related to water and wastewater, housing, health facilities, culture and recreation, solid waste management, other fundamental community infrastructure (including roads and bridges, connectivity, fire protection, and energy) as well as transformation of infrastructure service delivery and asset management initiatives.

If pressed on delays: funding agreements and timelines

• On an annual basis, Indigenous Services Canada provides funding to regions, who work closely with First Nations communities to identify infrastructure needs based on community priorities.
• Funding agreements between regions and First Nations communities, which have to be renewed on a yearly basis, are the mechanism through which money is transferred to First Nations annually. It can take several months for the funds to be transferred to the First Nations because of this process.
• Funding is transferred to communities incrementally as progress is made on the project. Timelines for various projects can vary, and in the case of schools and water treatment plants, projects may take several years to complete.

If pressed on impacts of COVID-19 on IICP programs delivered by ISC

• The COVID-19 pandemic has affected the progress of major projects in some First Nations communities and created delays in meeting targets for completion of some infrastructure projects. This has led to some reallocation in 2020 to 2021.
• Indigenous Services Canada is monitoring the situation and working with Chiefs and Councils to mitigate the effects of the pandemic on communities. We continue to support and work with them as they review project schedules and work to reduce the financial impact and delays on these important infrastructure projects.
• Additional reallocation is expected this year related to pandemic delays on projects for which funding came to an end in March 2021.
• As the pandemic is still underway, the impact it may have on the planned spending that was reallocated from last year is not known.
• Delays and cost increases for materials such as lumber and construction material will also affect overall work and costs to projects that have not yet started.

If pressed further on delays: remoteness

• Remote communities are also more susceptible to harsh environment conditions, such as weather, natural disasters, and winter road failures, which can lead to delays in construction.
• Indigenous Services Canada will continue to work with First Nation communities to develop flexible funding options should delays occur.

A-base vs. B-base funding

• Infrastructure funding has two streams, A-base and B-base.
• A-base represents permanent ISC funding and is allocated yearly to First Nations and supports mostly operation and maintenance and smaller infrastructure projects.
• B-base represents targeted funding and supports larger investments for water and wastewater, housing, health, schools, other community infrastructure including fundamental infrastructure, the Lubicon Lake Band community build-out related to a settlement agreement reached in October 2018, and transformation projects.

A-base distribution

• Legacy funding forming part of the departmental A-base is allocated directly to First Nations to manage within their authorities
• These funds are used to support all community-level investments including salaries, utility bills, operations and maintenance and minor capital projects
• These funds are also provided to communities who fall under 10-year grant provisions, or block funding agreements

What is the Lubicon Lake Band community buildout?

• In the spirit of partnership and reconciliation — and after decades of negotiations — an agreement was reached in October 2018 to settle the long-standing Lubicon Lake Band land claim, including treaty benefits for community members.
• This historic settlement agreement, signed by the Government of Canada, the Government of Alberta and Lubicon Lake Band, includes monetary compensation, lands and community infrastructure, and will provide capital to invest in economic development opportunities.
• The agreement also includes the delivery of 15 essential infrastructure assets in the new community over a period of eight to ten years. Budget 2017 committed significant investments to support the delivery of a community infrastructure plan for the Lubicon Lake Band community buildout.

Background

For Indigenous Services Canada, 'Legacy funding' refers to existing infrastructure funding that had been established prior to 2016 and continues thereafter. For the department, this funding mostly forms part of the departmental A-Base for infrastructure, which is allocated to First Nations to manage within their authorities.

This funding is used to support all community-level investments including salaries, utility bills, base operations and maintenance, and minor projects. This funding is also provided to communities who have grant provisions, block funding agreements, and to Self-Governing First Nations, all of which are not required to report on this funding. A community's reporting requirements on expenditures under the Infrastructure A-base are very minimal and as such the Department cannot report on these legacy funds in the same way it reports on targeted investments.

It should be noted that to maximize financial impact to address the infrastructure needs of First Nations communities, some projects are supported using multiple sources of funding. The department works closely with Indigenous communities to encourage the maximization of revenue from multiple sources including but not limited to other governmental departments, provincial governments and their own revenue sources.

Distinctions-based funding for IICP managed by CIRNAC

Examples of funding being delivered through the IICP by Crown-Indigenous Relations and Northern Affairs Canada and other participating departments with Indigenous partners are:

• Budget 2016
  • Inuit Housing ($80 million)
• Budget 2017
  • Indigenous Community-Based Climate Monitoring Program ($72.7 million)
  • Climate Change Preparedness in the North Program — Implementation of Adaptation Actions in the North ($55.9 million)
  • First Nation Adapt Program — Flood Plain Mapping ($27M)
  • Yukon University ($26 million)

Funding processes

• All funding options are reviewed through various senior management committees, based on an approved framework to ensure appropriate accountability and risk management.
• Funding can be allocated annually or multi-year depending on asset and budget. Once funding is determined, it is distributed through the regional offices to First Nations through contribution agreements.
• In-year funding management is constantly reviewed and adjusted to ensure all funding is expended.

Prioritization

• Current allocations processes allow a fair and consistent approach to project funding decisions. Given limited funding, ISC must prioritize investments using priority ranking frameworks.
• There are two main priority ranking frameworks — National and asset specific, such as water and wastewater and school facilities.
• Project proposals with the highest priority ranking frameworks score represent ISC's most urgent funding priorities and are typically the projects that receive funding first.

Primary vs. asset specific frameworks

• Primary principles of the National priority ranking framework process are:
  • protection of human health and safety,
  • support of operation and maintenance,
  • preservation of assets, and
  • community growth.
• Asset specific (water and schools) priority ranking frameworks assign priority for a proposed project using weighted, scored criteria grouped according to:
  • project type,
  • health and safety,
  • asset management, and
  • financial considerations.

Funding mechanisms

• ISC provides both contribution and grant-based funding to support infrastructure. For First Nations partners, contribution funding can be provided under four funding approaches: set, block, flexible or fixed.
• The block approach provides the most flexibility in allowing partners to address their community's priorities. To qualify for block funding, ISC assesses the recipient's delivery of the program under the department's General Assessment process.
• The New Fiscal Relationship (NFR) grant-based funding is available to First Nation partners that submit an expression of interest and meet the following two criteria: financial performance as measured through an assessment of the audited financial statements of the First Nation for the proceeding five-years and demonstration of financial governance practices through the development and implementation of a Financial Administrative Law.
• NFR grant funding and block-based funding approaches are not used to fund major capital projects.

Background

• The Watay Project is connecting 16 First Nation communities in remote, northern Ontario to the provincial electricity grid, thus ending their dependence on costly, emissions-intensive diesel-generated electricity.
• This First Nations-led and owned project will provide these communities with clean, safe and reliable energy that will have a positive impact on the health and safety of community members while also expanding infrastructure and economic development opportunities.
• The Wataynikaneyap Transmission Project is currently underway. The first connection (Pikangikum First Nation) was expedited and took place in December 2018. The next two connections, previously planned for September 2021 and January 2022, have been delayed and are scheduled to take place in Spring/Summer of 2022. The final community connection and project completion are currently scheduled for 2023. Wataynikaneyap Power are working with their contractor to assess the project schedule, cost and operational impacts of the COVID-19 pandemic. An updated schedule and cost forecasts will be communicated to the department at a future date.

Northern Ontario Grid project: funding roles and timelines

• Canada's contribution to the Watay Project is $1.495 billion, which is based on Canada's avoided cost of diesel-related supports. The contribution payments will flow in two tranches that are expected to happen in close proximity to each other.
• Canada will provide $709.8 million at the time of 'substantial completion' currently scheduled for 2023 and $785.0 million at 'final completion' soon after.
• These milestones will be verified by an independent engineer and will be based on definitions in the Engineering, Procurement and Construction (EPC) contract. Canada's contribution is capped at $1.495 billion with no responsibility for cost overruns.
• The timing of Canada's contribution payments is based on several factors, one being that the Watay Project takes place under Ontario's legislative framework for the electricity system, under which all transmission assets are privately owned and financed.
• Within this framework of privatized electricity, transmission companies are required to have some long-term capital at risk to ensure they do not walk away from a project if something unexpected occurs (e.g., forest fire, ice storm) that would require significant additional capital investments.
• Canada's contribution could not be made entirely as an upfront contribution as it would leave Watay Power undercapitalized.
• Most important, by holding off making any contribution until the project has reached substantial completion, Canada has transferred financial risk to Watay Power and Ontario should the project not be completed for reasons outside of Canada's control.
• As Canada has no money invested or obligated to be paid until the project reaches substantial completion, if something goes wrong before then, there is no reason for Canada to increase its contribution to realize the value from its investment.
• However, the other parties will have an incentive to contribute additional funds for cost overruns to avoid losing money invested up to that point.

Northern Ontario Grid project: project completion timeline

• The Watay Project is connecting 16 diesel-dependent First Nation communities in remote, northern Ontario to the provincial electricity grid. The first connection (Pikangikum First Nation) was expedited and took place in December 2018.
• The original schedule had the remaining 15 connections staggered over 2021, 2022 and 2023. In fall 2020, Watay Power reported to the Ontario Energy Board that the next two connections have been delayed from September 2021 and January 2022 to take place in spring/summer 2022.
• Watay Power also stated that they are continuing discussions with their contractor to assess the schedule, cost and operational impacts of the COVID-19 pandemic and are in the process of finalizing further updated plans, schedule and cost forecasts, which will be communicated at a future date.

If pressed on COVID Response

• Budget 2021 continues to support communities responding to COVID-19:
  • $478.1 million for the public health response;
  • An additional $760.8 million for the Indigenous Community Support Fund and $117 million for the Indigenous Community Business Fund;
  • $150.6 million over two years, for the Post-Secondary Student Support Program and the Inuit and Métis Nation Post-Secondary Education Strategy;
  • $112 million in 2021-22 to extend support for children on reserve to attend school safely; and
  • $33.4 million for small and medium enterprises.

If pressed on Anti-Indigenous Racism

• Incidences of mistreatment of Indigenous peoples in healthcare and policing are unacceptable and will not be ignored.
• This budget proposes to invests $126.7 million over three years to support initiatives to address anti-Indigenous racism in Canadian healthcare. This funding will support patient advocates, health system navigators, and cultural safety training for medical professionals.
• Additionally, $103.8 million over five years is proposed to enhance safety in Indigenous communities through the development of more holistic alternatives that support Indigenous visions of community safety and wellness models.

Mental Wellness

• The mental health of Indigenous peoples across Canada is of the utmost importance to the Government of Canada.
• Building on recent significant annual investments of $425 million through the Mental Wellness program, Budget 2021 proposes a further $597.6 million over three years to implement a comprehensive, distinctions-based, Indigenous-led approach to mental wellness.
• The strategy will renew funding for the Indian Residential Schools Health Supports Program and Crisis Line, stabilizes and expands community-based supports and capacity, increases substance use treatment and prevention, and supports workforce development.

Economic Prosperity

• For Indigenous Peoples 'Building back better' requires more than a return to normal.
• For that reason, Canada is working to enhance economic resilience and prosperity through:
  • $6 billion over five years, with $388.9 million ongoing, to support infrastructure in Indigenous communities;
  • $64 million over three years for Aboriginal Entrepreneurship; and
  • $36 million over three years to build capacity for local, economically-sustainable clean energy projects in First Nation, Inuit, and Métis communities and support economic development opportunities.

If pressed on Infrastructure

• Continuing to make the necessary investments to close gaps and reduce inequalities in fundamental community infrastructure must not be postponed, even in the current fiscal context.
• $4.3 billion over four years, starting in 2021-22, for the Indigenous Community Infrastructure Fund, a distinctions-based fund to support immediate demands, as prioritized by Indigenous partners
• $1.7 billion over five years, starting in 2021-22, with $388.9 million ongoing, to cover the operations and maintenance costs of community infrastructure in First Nation communities on reserve.

If pressed on Health Care

• Canada is continuing to address the unique challenges faced by Indigenous communities during the pandemic by investing:
  • $354 million over five years to increase the number of nurses and other medical professionals in remote and isolated First Nation communities.
  • $107.1 million over three years to continue efforts to transform how health care services are designed and delivered by First Nation communities
  • $81.5 million over three years to continue work towards the development and implementation of a Distinctions-based Data Strategies.

Background

Proposed Indigenous investments as outlined in the Budget 2021 text include:

Socio-economic gaps

• Over the last six years, this government has taken numerous steps and made unprecedented investments in Indigenous communities to close socio-economic outcome gaps between Indigenous peoples and non-Indigenous Canadians.
• This includes establishing a legislated mandate for Indigenous Services Canada to take into account socio-economic gaps that persist between Indigenous individuals and other Canadians
• As part of this legislated mandate, Indigenous Services Canada reports to Parliament on an annual basis on the progress made in addressing the socio-economic gaps that persist between Indigenous and non-Indigenous Canadians.

Data Gaps

• Owing to data limitations, it can be challenging to track ongoing progress in reducing socio-economic gaps between Indigenous and non-Indigenous people in Canada
• We are taking active measures to address current data limitations through funding research; new data collection both on and off reserve; sharing data in federal custody with Indigenous partners, provinces and territories; and advancing First Nations, Inuit and Métis data governance capacity.

COVID-19

• This government also recognizes that Indigenous and northern communities face unique challenges in responding to the current pandemic, which may exacerbate socio-economic gaps.
• To date this government has committed close to $4 billion to help Indigenous and Northern communities work to control the spread of the virus, vaccinate their members and facilitate the economic recovery of their communities.
• Budget 2021 continues to support communities responding to COVID-19:
  • $478.1 million for the public health response;
  • an additional $760.8 million for the Indigenous Community Support Fund and $117 million for the Indigenous Community Business Fund;
  • $150.6 million over two years, for the Post-Secondary Student Support Program and the Inuit and Métis Nation Post-Secondary Education Strategy;
  • $112 million in 2021-22 to extend support for children on reserve to attend school safely; and
  • $33.4 million for small and medium enterprises.

Water and wastewater investments by Budget

• Budget 2016 provided $1.83 billion to improve water and wastewater infrastructure on reserves, ensure proper facility operations and maintenance, and strengthen capacity by enhancing the training of water system operators in First Nation communities.
• Budget 2017 provided $49.1 million over three years, starting in 2018-2019, to improve water and wastewater infrastructure on reserves.
• Budget 2018 provided $172.6 million to improve access to clean and safe drinking water on reserves. Budget 2018 also provided support for repairs to high-risk water systems, recruitment, training and retention initiatives, and the establishment of innovative First Nations-led service delivery models.
• Budget 2019 committed $739 million over five years, which includes: $133.4 million over two years, starting in 2019-2020, to support urgent repairs to vulnerable water and wastewater systems; $605.6 million over four years, starting in 2020-2021, and $184.9 million per year ongoing, to support the operations and maintenance of water and wastewater infrastructure in First Nation communities.
• As part of the 2020 Fall Economic Statement, an additional $1.5 billion was announced to help meet the Government of Canada's commitment to clean drinking water in First Nations communities. Funding includes:
  • $616.3 million over six years, and $114.1 million per year ongoing thereafter, to increase the support provided for operations and maintenance of water and wastewater infrastructure on reserves;
  • $553.4 million to continue funding water and wastewater infrastructure on reserve to prevent future drinking water advisories from occurring; and
  • $309.8 million to support and accelerate on-going work to lift all long-term drinking water advisories on public systems on reserves by helping to respond to project delays including those due to COVID-19.
• In addition, Budget 2021 committed $4.3 billion over four years to support infrastructure projects in First Nations, Inuit and Métis Nation communities, and $1.7 billion over five years, with $388.9 million ongoing, to cover the cost of operations and maintenance costs of community infrastructure in First Nations communities on reserve.

Historical spending on water and wastewater infrastructure

• Budgets 2016, 2017, 2018, and 2019, and the Fall 2020 Economic Statement have made historic investments in First Nations water and wastewater infrastructure.
• Between 2010-2011 and 2019-2020, a total of $2.92 billion has been invested towards improving water and wastewater infrastructure in First Nations communities. This amount reflects targeted and permanent departmental funding.
• In 2010-2011, the Department invested $250 million towards water and wastewater infrastructure improvements; through historic investments, this has increased to approximately $490 million annually.
• Between 2010-2011 and 2019-2020, at total of $1.39 billion has been provided to support the operations and maintenance of water and wastewater infrastructure on reserve.
• While operations and maintenance funding has increased annually over that time, significant increases in operations and maintenance funding support through Budget 2019 and the 2020 Fall Economic Statement have only begun to make an impact this past fiscal year.

Water and wastewater projects

• As of December 31, 2020, more than $1.82 billion of targeted funding has been invested to support 694 water and wastewater projects, of which 393 are now complete and 301 are ongoing.
• These projects will serve 463,000 people in 581 First Nation communities.
• Of the 694 water and wastewater projects, a total of 535 projects are new water and wastewater treatment plants or lagoons, or renovations and upgrades to existing water and wastewater systems.

Background

How the report's recommendations are being addressed

• Since November 2015, 106 long-term drinking water advisories on public systems on reserves have been lifted. Projects are now underway in 33 communities to resolve the remaining 52 advisories.
• Where interim solutions have been put in place to provide clean water to communities sooner, long-term solutions are being implemented in each community to address their long-term water needs.
• Budgets 2016, 2017, 2018, and 2019 and the 2020 Fall Economic Statement have made historic investments in First Nations water and wastewater infrastructure.
• In addition, Budget 2021 committed $4.3 billion over four years to support infrastructure projects in First Nations, Inuit and Métis Nation communities, and $1.7 billion over five years, with $388.9 million ongoing, to cover the cost of operations and maintenance costs of community infrastructure in First Nations communities on reserve.
• With support from the Government of Canada, First Nations have replaced or renovated water and wastewater infrastructure, built capacity by training operators, lifted long-term drinking water advisories, and prevented short-term advisories from becoming long term.
• First Nations have used Government of Canada funding to launch 694 water and wastewater projects, including 99 new water and wastewater treatment plants and lagoons, and 436 projects to renovate or upgrade existing infrastructure.
• The government of Canada continues to work collaboratively with the Assembly of First Nations and other First Nations partners to develop a legislative framework to address the concerns of the existing Safe Drinking Water for First Nations Act.

Resolving long-term drinking water advisories

• The Government of Canada remains steadfast in its commitment to ending all long-term drinking water advisories for First Nations communities on reserves.
• As announced on December 2, 2020, additional funds include $309.8 million to continue work to lift all long-term drinking water advisories on public systems on reserves.
• Since November 2015, First Nations, with support from ISC, have since lifted 106 long-term drinking water advisories.
• Projects are now underway in 33 communities to resolve the remaining 52 long-term drinking water advisories, and the Government is committed to completing long-term solutions where interim solutions have been used to provide clean water to communities sooner.

Long-term solutions to access to safe drinking water

• The Department continues to support long-term measures to ensure that First Nations have ongoing access to safe drinking water.
• Budgets since 2016 dedicated funds to First Nation communities for long-term stable funding, including funds to train operators of water and wastewater systems, with the goal of skill retention in their communities.
• Annually, ISC spends approximately $15 million on First Nations water and wastewater operator training.
• The Government of Canada is working closely with First Nation communities to ensure they have the resources they need to operate water systems to ensure everyone has access to safe drinking water on reserve.
• The Government of Canada continues to support the First Nations-led engagement process for the co-development of a long-term strategy to ensure that drinking water systems are sustainable.

Proactively identifying and addressing deficiencies in water systems to prevent recurring advisories

• The Government of Canada works with First Nations to conduct performance inspections of water systems annually and asset condition assessments every three years to identify deficiencies including expanding the extended asset condition assessment process to better support planning for operations and maintenance and recapitalization needs. Based on these assessments, ISC will continue to proactively work with communities to address those deficiencies and prevent recurring advisories.
• On December 2, 2020, additional funds were announced to further increased support for the operation and maintenance of water systems, enabling First Nations to better sustain their infrastructure.
• The Government of Canada supports operator training and retention and working with partners to expand capacity building and operator support for First Nations.
• The Department supports the First Nations–led engagement process for the development of a long-term strategy to ensure drinking water systems are sustainable.
• ISC supports the development of a more holistic asset management approach that allows for better forecasting and the ability to account for future infrastructure investment requirements while engaging on operations and maintenance policy reform.

Investments in operations and maintenance

• As part of Budget 2019, the Government of Canada invested $605.6 million over four years, with $184.9 million per year ongoing, to support the operations and maintenance of First Nations' community water and wastewater assets.
• On December 2, 2020, an additional $1.5 billion was announced which includes $616.3 million over six years, and $114.1 million per year ongoing, to increase the support provided for operations and maintenance of water and wastewater infrastructure on reserves.
• These funds will enable First Nations to better retain qualified water operators in their communities, including through improved salaries, according to First Nations priorities.
• These funds will also enable the stabilization of funding for operator support programs through the establishment of multi-year funding agreements to strengthen these programs.
• A new operations and maintenance policy is being co-developed with First Nations to ensure sufficient funding is provided to communities to operate and maintain drinking water infrastructure.

Development and implementation of a regulatory regime for safe drinking water in First Nations communities

• A new legislative framework for safe drinking water in First Nation communities is being co-developed in full partnership with the Assembly of First Nations.
• Best efforts will be made to introduce this new legislation that will support safe drinking water in First Nation communities.

New investments in clean drinking water in First Nations communities

• ISC is working in partnership with First Nations to improve access to safe drinking water and end long-term drinking water advisories on public systems on reserves.
• Since 2016 and until 2021, the Government of Canada has committed $2.79 billion to support safe drinking water and the treatment of wastewater on reserves.
• On November 30, 2020, an additional $1.5 billion was announced to help meet the Government of Canada's commitment to clean drinking water in First Nations communities.
• With these new investments combined, by 2025 Canada will increase the annual funding it provides to support the operations and maintenance of water and wastewater systems on a permanent basis by almost four times.
• In addition, Budget 2021 committed $4.3 billion over four years to support infrastructure projects in First Nations, Inuit and Métis Nation communities, and $1.7 billion over five years, with $388.9 million ongoing, to cover the cost of operations and maintenance costs of community infrastructure in First Nations communities on reserve.

COVID-19 and timelines for drinking water advisories

• Much work remains, but the results are encouraging. First Nations, with support from ISC, have lifted 106 long‑term drinking water advisories to date.
• ISC is also providing sustainable investments to prevent short-term advisories, expand delivery systems, build capacity of and retain local water operators, and support regular monitoring and testing.
• To date, through these investments, First Nations have lifted 179 short‑term advisories, preventing them from becoming long‑term.
• ISC remains committed and will continue to work in partnership with communities to end all long-term drinking water advisories on public systems on reserve.

Water issues other than long-term drinking water advisories

• First Nations are owners of their water and wastewater systems and are responsible for their daily operation and management.
• ISC is providing sustainable investments to prevent short-term advisories, expand delivery systems, build capacity of and retain local water operators, and support regular monitoring and testing.
• ISC knows its plan is working and will continue working with First Nations to improve access to clean water on reserve.

Training and certification of water operators

• ISC knows that regular and proper maintenance is essential to ensuring access to well-functioning water systems.
• Budgets 2016 and 2018 dedicated funds to First Nation communities to train operators of water and wastewater systems, with the goal of skill retention in their communities.
• Annually, ISC spends approximately $15 million to support First Nations water and wastewater operator training, including funding the Circuit Rider Training Program.
• ISC is working closely with First Nation communities to ensure they have the resources they need to operate water systems to ensure everyone has access to safe drinking water on reserve.

Short-term drinking water advisories

• ISC knows that water needs are dynamic, and short‑term advisories can arise for a number of reasons such as water line breaks, equipment failure, and maintenance or weather issues.
• Budget 2019 dedicated an additional $739 million over five years, to support ongoing efforts to eliminate and prevent long-term drinking water advisories.
• While most of these situations are resolved quickly by the community operators, ISC continues to work closely with those communities that require support.

Lead in Drinking Water

• Since 2003, ISC has been supporting the monitoring of drinking water for lead in First Nation community water systems south of 60 degrees parallel.
• In March 2019, Health Canada published a revised guideline for lead in drinking water. All regions have started to implement this enhanced monitoring.
• This enhancement includes testing every drinking water fountain or cold-water tap where water is used for drinking or food preparation in children's facilities.

COVID-19 and drinking water

• ISC is working with communities to minimize the impact of COVID-19 on the continued provision of safe, clean drinking water.
• ISC remains in contact with all communities and back-up plans are in place to support continuity of water and wastewater service provision throughout the pandemic.
• Emergency support for system operation remains available to First Nations communities, including through the Circuit Rider Training Program. As well, Operations and Maintenance funding continues to flow to First Nations communities to support effective water operations.
• Environmental Public Health Officers continue to work directly with First Nations to assist them in monitoring drinking water quality, which includes providing advice and guidance from a public health perspective.
• This includes supporting the role of Community-based Water Monitors to ensure the health of their communities through the consistent monitoring of the drinking water supply and prompt notification of any unsatisfactory samples.
• ISC continues to work closely with individual communities and partners to coordinate resources and keep communities safe.

COVID-19 and drinking water advisories

• During a Boil Water Advisory or Do Not Consume Advisory, tap water can still be used to wash hands with soap and water and for personal hygiene.
• If a Do Not Use Advisory is in place, bottled water with soap or hand sanitizer with at least 60% alcohol should be used to wash hands.
• Letters have been sent to First Nations communities currently on a drinking water advisory. For these communities, ISC provides supplies such as bottled water, and hand sanitizer where needed.

Background

Indigenous Services Canada is working in full partnership with First Nation communities, including with First Nations technical advisors and leaders, to support sustainable First Nations-led approaches to ensure that on-reserve water systems are safe. This includes Technical Services Advisory Group in Alberta (TSAG), the Ontario First Nations Technical Services Corporation (OFNTSC), the Atlantic Policy Congress, and technical service delivery Hubs pilot projects in Ontario. ISC also works directly with First Nations to assist communities in monitoring drinking water quality in all water systems, which includes providing advice and guidance about drinking water safety and wastewater disposal, and reviewing infrastructure project proposals from a public health perspective.

As part of Budget 2016, the Government of Canada committed to end by March 2021 all long-term drinking water advisories affecting public systems on reserve. Phase 1 of the Investing in Canada infrastructure plan supports this goal by providing an unprecedented $1.8 billion over five years for First Nation communities to significantly improve on-reserve water and wastewater infrastructure, ensure proper facility operation and maintenance, and strengthen capacity by enhancing the training of water system operators. Budget 2016 also included $141.7 million over five years in new funding to the Department to improve drinking water monitoring and testing on reserve. In addition, Budget 2017 provided $49 million over three years to address advisories as part of the expanded scope which added 24 long-term drinking water advisories to the Government's commitment. Budget 2018 committed an additional $172.6 million over three years to support initiatives to accelerate, where possible, the pace of construction and renovation of affected water systems, support repairs to high-risk water systems and assist efforts to recruit, train and retain water operators. These funds will also support efforts to establish innovative First Nations-led service delivery models. Budget 2019 commits an additional $739 million over five years, beginning in 2019-20, with $184.9 million per year ongoing. This investment will support ongoing efforts to eliminate and prevent long-term drinking water advisories by funding urgent repairs to vulnerable water systems and the operation and maintenance of water systems so that First Nations communities can effectively operate and maintain their public drinking water systems.

Over $1.5 billion in additional investments were announced on November 30, 2020, to help meet the Government's commitment to clean drinking water in First Nations communities, including increased support for operations and maintenance of water and wastewater infrastructure on reserves, funding for water and wastewater infrastructure construction, repairs and other initiatives, and funding to continue work to lift all long-term drinking water advisories on public systems on reserves as soon as possible. Funding includes: $616.3 million over six years, and $114.1 million per year ongoing thereafter, to increase the support provided for operations and maintenance of water and wastewater infrastructure on reserves; $553.4 million to continue funding water and wastewater infrastructure on reserve to prevent future drinking water advisories from occurring; and $309.8 million to support and accelerate on-going work to lift all long-term drinking water advisories on public systems on reserves by helping to respond to project delays including those due to COVID-19.

In addition, Budget 2021 committed $4.3 billion over four years to support infrastructure projects in First Nations, Inuit and Métis Nation communities, and $1.7 billion over five years, with $388.9 million ongoing, to cover the cost of operations and maintenance costs of community infrastructure in First Nations communities on reserve.

As of December 31, 2020, more than $1.82 billion of targeted funding has been invested to support 694 water and wastewater projects, including 393 that are now completed. These projects will serve 463,000 people in 581 First Nation communities.

It should be noted that Drinking water advisories are issued to protect the public from drinking water that is potentially unsafe, or confirmed to be unsafe, based on water quality testing. Drinking water advisories are issued by First Nations in their communities and off-reserve by provincial, territorial or municipal governments.

Communities may also choose to issue a drinking water advisory as a precautionary measure, such as when there are emergency repairs in the water distribution system or if a community does not have a trained Water System Operator or Community-Based Drinking Water Quality Monitor in place. Some drinking water advisories are short-term to advise residents of a temporary water quality issue on a specific water system (e.g.: equipment failure).

The government is working closely with First Nations by providing sustainable investments, expanding delivery systems, building capacity of and retaining local water operators, as well as supporting regular monitoring and testing on all drinking water systems to prevent short-term and re-occurring advisories.

In 2014, Tsuu T'ina Nation, Sucker Creek First Nation, Ermineskin Cree Nation and Blood Tribe, with reserves located within Treaties 6, 7 and 8 territories, sued Canada alleging that Canada created and sustained unsafe drinking water conditions on their reserves and throughout Canada. The First Nations claim declarations and damages for breach of fiduciary duty, breach of the honour of the Crown, and breaches of sections 7 and 15(1) of the Charter. The Assembly of First Nations has passed resolutions supporting this litigation. This action has been stayed by the Federal Court on consent of the parties for one-year periods since the fall of 2015. During this timeframe, the parties have entered into "without prejudice" meetings and discussions aimed at resolution of outstanding issues around drinking water infrastructure, and to resolve the proceedings by agreement or by narrowing the issues through an exploratory discussion pathway. The stay expired on September 19, 2019. As of June 26, 2020, all four First Nation plaintiffs agreed to seek a six-month stay of the litigation to pursue exploratory discussions, and the Court granted approval of the six-month abeyance on July 3, 2020. This abeyance expired on January 3, 2021; the parties to the litigation agreed to extend the abeyance for another six months to continue exploratory discussions, staying the litigation until July 27, 2021.

Okanagan Indian Band filed a claim in August 2019, seeking declarations that Canada has breached its fiduciary duty, breached the honour of the Crown, violated Charter rights, and breached its obligations under the Constitution by failing to create and sustain safe drinking water conditions on First Nations' reserves.

Curve Lake First Nation and Chief Emily Whetung, on her own behalf and on behalf of all members of the First Nation, claim that Canada has failed to address the inadequacies of their access to potable water and the resulting human consequences. On May 29, 2020, the Curve Lake First Nation amended their Statement of Claim on the class proceeding to include the Neskantaga First Nation and Chief Christopher Moonias as plaintiffs. The Plaintiffs seek declarations that Canada has breached its fiduciary duty, breached the honour of the Crown, violated the Charter and, breached its obligations under the Constitution by failing to address the inadequacies of their access to potable water. The Plaintiffs further seek the immediate construction of appropriate water systems; $1 billion for breaches of Charter rights; $1 billion for breaches of fiduciary duty, negligence and nuisance; and, $100 million in punitive damages.

Tataskweyak First Nation filed a national class proceeding involving any First Nation band that has had a drinking water advisory lasting a year or more since 1995. The Band claims Canada breached its fiduciary duties, breached the Honour of the Crown, breached the Charter, section 36(1)(c) of the Constitution Act, and is liable for individual causes of action like nuisance and negligence. Both the Curve Lake/Neskantaga class action and the Tataskweyak Cree Nation class action have been certified with the consent of Canada.

Michael Daryl Isnardy (Toosey First Nation in BC), filed a proposed class action proceeding as an individual plaintiff in the Federal Court, representing aboriginal and First Nation persons unable to consume or use water from their community water systems on First Nation reserves. He claims the Crown created, sustained and allowed unsafe drinking water conditions, and is seeking declarations that Canada breached its fiduciary duty and duty of care to the community, violated sections 7 (life, liberty and security of the person) and 15(1) (equality right) of the Charter and, breached its obligations under paragraph 35(1) of the Constitution Act. The proposed class action proceeding was amended in early August 2020, to extend representation to all First Nations people (status and non-status), Inuit and Métis people living on and off reserve. The Court has been advised of the death of the plaintiff in this proposed class action. Plaintiff's counsel has yet to advise on whether an alternate representative Plaintiff will be sought following the passing of Michael Isnardy, or if the claim will be discontinued.

Funding

• Budget 2021 committed $4.3 billion over four years to support infrastructure projects in First Nations, Inuit and Métis Nation communities, including housing.
• Through Budget 2018, the Government has invested $600 million over three years for First Nations housing; $500 million over 10 years for Métis Nation housing; and $400 million over 10 years for Inuit-led housing.
• This is in addition to the $290 million over 10 years to support housing in Nunavut announced in Budget 2017.

Distinction-based First Nations Housing Strategy

• First Nations have led the co-development of a National First Nations Housing Strategy to ensure housing reform is reflective of their needs, endorsed by the Special Chiefs Assembly on December 5, 2018.
• The Assembly of First Nations, Indigenous Services Canada and the Canada Mortgage and Housing Corporation meet regularly to advance the national strategy and plan for its implementation.
• This collaboration ensures that housing and infrastructure reforms target a long-term approach to support the transition to First Nations care, control and management of housing, in a way that respects regional differences and First Nations' readiness.

Distinction-based Inuit Housing Strategy

• Improving Inuit housing is a priority for the Government.
• The Inuit Nunangat Housing Strategy, which was released in April 2019, was co-developed with Inuit and will be delivered by Inuit.
• The Strategy provides long-term vision and direction for Inuit housing premised on self-determination.
• Work is already well underway to deliver the Government's Inuit housing investments. This includes work facilitated directly by Inuit.

Distinction-based Métis Housing Strategy

• Improving Métis housing outcomes is a priority for the Government.
• During summer 2018, leaders from the Métis Nation and Government of Canada signed the Canada-Métis Nation Housing Sub-Accord, which will improve Métis access to — and control of — affordable and social housing.
• This Sub-Accord reflects a shared commitment to narrow the core housing need gap and further Indigenous self-determination in this important area of social policy.

Indigenous Homes Innovation Initiative

• Supporting Indigenous‑led solutions is the only way to address the unacceptable socioeconomic gap between Indigenous and non-Indigenous people in Canada.
• This $36 million fund is designed to support Indigenous-led, community-driven projects that could serve as blueprints for new approaches.
• The Indigenous Steering Committee selected 24 innovators; two projects received implementation funding and the other 22 projects continue to work towards this goal.
• The Indigenous Taskforce of the Royal Architectural Institute of Canada is participating as mentors, to support the Innovators throughout the accelerator period.

Insufficient COVID-19 Related Infrastructure

• Poor housing conditions can contribute to the spread of COVID-19.
• ISC is working with communities to identify and support local surge health infrastructure needs to screen, triage, and isolate in case of an outbreak.
• Approaches include re-tooling existing community infrastructure, or purchasing and installing mobile structures.
• As of January 31st, 97 community spaces were identified for re-tooling and 389 mobile structures were funded.
• ISC will continue to work closely with partners to keep communities safe.

Background

As of December 31, 2020, ISC and Canada Mortgage and Housing Corporation (CMHC) together reported a total of 21,429 housing units built, renovated and retrofitted. Of that amount, ISC is responsible for 9,567 housing units divided as follows:

• 3,067 new unit constructions, 2,020 of which are completed, and
• 6,500 unit renovations and upgrades, 4,069 of which are completed.

CMHC is responsible for 11,862 homes, of which 9,351 are completed.

ISC has been collaborating with the Assembly of First Nations and its Chiefs Committee on Housing and Infrastructure and federal partners to co-develop a National First Nations Housing and Related Infrastructure Strategy, supported by $600 million over three years announced in Budget 2018. The Strategy was endorsed at the December 5, 2018, Special Chiefs Assembly, outlining the path forward to transition the care, control and management of housing to First Nations.

CIRNAC has worked in partnership with Inuit Tapiriit Kanatami, Inuit land claim governments and organizations, CMHC and Employment and Social Development Canada to develop the Inuit Nunangat Housing Strategy, which was made public on April 4, 2019. The Strategy is premised on self-determination with Inuit recipients holding the responsibility, decision‑making powers and capacity to meet housing needs at the regional level. Budget 2018 allocated $400 million over 10 years to support Inuit-led housing in the Inuit regions of Nunavik, Nunatsiavut and Inuvialuit, with an additional $290 million over 10 years for Nunavut from Budget 2017 through CMHC to the Government of Nunavut.

Canada and the Métis Nation signed the Canada-Métis Nation Accord in April 2017, with a number of year one priorities that parties agreed to collaborate on, including a Métis Nation Housing Strategy. On July 19, 2018, the Métis Housing Sub-Accord was finalized, outlining the design, delivery and administration of housing services undertaken by the Governing Members of the Métis Nation to address the purchase of new houses, the repair of existing houses and the provision of rent-supplements to families most in need. The Housing Sub-Accord, funded at $500 million over 10 years announced in Budget 2018, reflects a shared commitment to narrow the core housing needs gap and further Indigenous self-determination in this important area of social policy.

The Indigenous Homes Innovation Initiative was launched on April 11, 2019, by the Minister of Indigenous Services and co-chairs of the Indigenous Steering Committee. 342 applications were received and 24 were selected by the Steering Committee as part of the Accelerator process. The Accelerator, launched January 20, 2020 provides Indigenous Innovators with funding and supports to further develop their idea into implementable proposals. In November 2020, the Indigenous Steering Committee has approved two projects to move to implementation. The Initiative is being done in partnership with Infrastructure Canada's Smart Cities Challenge and addresses the Government of Canada's commitment to a process specific to Indigenous communities that reflects their unique realities and needs.

Progress on investments to support school infrastructure

• Schools provide students with a safe place to learn and grow, and act as a gathering place for community events and cultural activities.
• Indigenous Services Canada continues to work with Indigenous partners to address the education infrastructure gaps that exist across the country.
• As of December 31, 2020, the department has invested more than $1.13 billion of targeted funds to support 196 school-related infrastructure projects, 129 of which are complete, including:
  • the construction of 66 new schools (benefiting approximately 19,000 students), 25 of which are complete, and
  • renovations or upgrades to 84 existing schools (benefiting approximately 14,000 students), 70 of which are complete.

An alternative approach to education infrastructure delivery

• Indigenous Services Canada is using an alternative delivery approach for some school infrastructure projects in First Nations communities by bundling certain projects together to include multiple communities.
• This approach:
  • allows community members to take a leading role in all aspects of project delivery, from design to construction;
  • increases support for Indigenous enterprises and generates greater competitiveness to attract larger construction contracts and experienced consultants and construction firms; and
  • empowers communities and supports a path to self-determination by equipping First Nations with the knowledge, skills, tools and resources to deliver community-led infrastructure projects.

Education infrastructure policy review

• A short-term School Space Accommodations Standard (SSAS) is currently being co-developed in partnership with the Assembly of First Nations.
• This revised policy will:
  • allow for an increase in the base Gross Floor Area (GFA) to reflect education infrastructure standards across Canada;
  • add space to meet First Nations students' unique needs, such as space for language and culture, a Knowledge Keepers' office, and outdoor learning;
  • reiterate that First Nations determine the design of school spaces in accordance with their own needs; and
  • contain revised language to support full-day kindergarten education programs
• A long-term review of the SSAS and other education infrastructure policies are also underway.

Background

There are a total of 458 federally supported schools located in First Nations communities across Canada. Of these, 392 are band operated, 42 are self-governing, two are private, seven are federal and 15 are provincial schools.

The Government has committed to investing $1.47 billion until 2021-2022 in First Nation school facilities (includes $500 million from Budget 2014 and $969.4 million from Budget 2016).

The Department has also committed to providing support for early childhood education programming on reserve (K4/K5) through the expansion of existing facilities or construction of new facilities.

Comprehensive Violence Prevention Strategy

• $724.1 million was announced to launch a comprehensive Violence Prevention Strategy, a key component of the Government of Canada's National Action Plan on the Final Report of the Inquiry on Missing and Murdered Indigenous Women and Girls.
• This strategy will help improve the safety of Indigenous women, children, LGBTQ and two-spirit people facing gender-based violence across the country.
• Canada Mortgage and Housing Corporation will support the construction of new shelters and transition housing, and Indigenous Services Canada will provide operational funding.

12 new shelters

• In May 2020, we announced $44.8 million over five years to build 10 new shelters in First Nations communities and two in the territories to help protect Indigenous women and children fleeing domestic violence.
• $40.8 million over four years and $10.2 million ongoing is also being provided to support operational costs for these new shelters.
• Sixty-nine applications were received and we anticipate the selection of successful applicants will be completed in the spring.
• This funding is in addition to previously announced COVID-19 supports for Indigenous women and girls.

Shelters for Inuit women

• Our Government recognizes that more support is needed for Inuit women experiencing and escaping violence.
• Following the Fall Economic Statement, our Government announced our commitment to fund Inuit specific shelters. These new shelters will be built across the four regions of Inuit Nunangat and in urban centres.
• We will continue to work with Pauktuutit Inuit Women of Canada and other Inuit partners to implement this initiative.

Background

Temporary isolation structures

• We are working directly with First Nations communities to assess health infrastructure needs and identify tailored solutions to best respond to COVID-19.
• As of April 7, 116 community spaces were identified for re-tooling and 480 temporary mobile structures were funded.
• The Department is also ensuring that the temporary mobile infrastructures have the necessary supplies and equipment, wrap-around services, and physical distancing measures.
• We will continue to work closely with individual communities and partners to coordinate resources and keep communities safe.

COVID-19 and Drinking Water Advisories

• During a Boil Water Advisory or Do Not Consume Advisory, tap water can still be used to wash hands with soap and water and for personal hygiene.
• If a Do Not Use Advisory is in place, bottled water with soap or hand sanitizer with at least 60% alcohol should be used to wash hands.
• For First Nations communities currently on a Drinking Water Advisory, ISC provides supplies such as bottled water, and hand sanitizer where needed.

Funding Announcement Aug 26 and Oct 30

• First Nation communities need to be able to access necessary services even during the pandemic.
• This is why we are providing $71.5 million to First Nations to adapt their on reserve community infrastructure.
• This includes $12 million for schools on-reserve, which will allow them to invest in minor capital investments that support physical distancing and enhanced health and safety practices to keep students and education workers safe.
• It also includes $59.5 million for other First Nation community infrastructure to support the safe delivery of services, including daycare and long-term care, on reserve.

Background

Funding Announcements of Aug 26 and 30:

Community infrastructure includes daycare centres, band offices and community buildings, fire halls, women's shelters, Aboriginal Head Start on Reserve sites, health facilities, long-term care facilities, and National Native Alcohol and Drug Abuse Program treatment centres.

The $71.5 million will be used for minor capital investment based on the number of assets held in a given community, as well as additional needs-based minor capital investment (taking into consideration additional factors related to program and service requirements for communities re-opening and supporting on-going human health concerns). Funding will flow directly to communities and organizations through established funding agreements and through existing program authorities currently held by the Department.

It should be noted that this funding is not intended to cover the construction of new buildings or other major capital expenditures (e.g. expanding existing space) and will be limited to minor capital investments only. Further, this funding does not preclude any additional public health measures or standards that may emerge moving forward.

ISC's role in delivering the First Nations portion of the federal Gas Tax Fund

• The portion of the Fund allocated to on-reserve First Nations communities (excluding those in the territories) is determined on a per capita basis using on-reserve population data and is sent to Indigenous Services Canada regional offices.
• Regional offices work directly with First Nations on a community-by-community basis to address specific needs and optimize the delivery and impact of funding.
• Using this existing delivery mechanism allows ISC to combine multiple sources of funding to ensure funds are delivered efficiently and in a way that best addresses First Nations' community infrastructure needs.

Bill C-25, including Top Up to the Gas Tax Fund

• Of the $2.2 billion one-time top-up to the federal Gas Tax Fund announced recently as part of the proposed Bill C-25, $29.7 million would be allocated to First Nations on reserves, excluding those in the territories.
• The Bill was introduced in the House on March 25th. Proposed funding allocated to First Nations on reserves through this bill would be used to support projects identified by ISC regional offices, in partnership with First Nations, as high priority, in areas such as roads and bridges, energy, culture and recreation, fire halls and broadband connectivity.

Background

Administered by Infrastructure Canada, the federal Gas Tax Fund is a permanent and ongoing source of funding for infrastructure in communities across Canada. It is intended to provide cities and communities with access to a predictable and permanent source of infrastructure funding. Currently, the fund is sourced from the Consolidated Revenue Fund, with allocations set by legislation.

Under the fund, more than $2 billion is provided annually on a per-capita basis to provinces, territories, and municipal associations, which in turn flow this funding to municipalities to support local infrastructure priorities.

The portion of the Fund allocated to on-reserve First Nations communities (excluding those in the territories) is administered by ISC regional offices through the terms and conditions of the First Nation Infrastructure Fund (FNIF). To be eligible, projects must fall within one or more of the following community infrastructure categories: planning and skills development, solid waste management, roads and bridges, energy systems (including fuel tanks), connectivity, structural mitigation, fire protection, and cultural and recreational facilities.

COVID-related infrastructure funding

• Indigenous communities need to be able to access necessary services even during the pandemic.
• Recent announcements of infrastructure-specific COVID-19 funding build on existing federal investments in the COVID response for Indigenous communities, including the Indigenous Community Support Fund announced in March 2020.
• These investments include specific funding for First Nations to adapt their on-reserve community infrastructure to support COVID-related public health and safety measures, and funding to improve ventilation in public buildings.

Recent funding announcements

• In August 2020, the Government of Canada announced $112 million to support a safe return to elementary and secondary schools on reserves.
• This included $12 million to support schools with retrofits needed to follow public health guidelines and respect adequate physical distancing as school activities resume.
• In October 2020, $59.5 million was announced to support the adaptation of First Nation community infrastructure such as daycare and long-term care facilities, fire halls and band offices to support the safe delivery of services.
• As part of a $150 million federal investment to improve ventilation in public buildings, $30 million will be delivered through Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada for projects that directly benefit Indigenous communities and help address the unique challenges they face.

COVID-related project delays and cost increases

• Infrastructure projects both on and off reserves across the country are experiencing delays and cost increases due to the COVID-19 pandemic.
• For example, a school project in Northern Ontario has experienced project delays due to:
  • limited contractor access to the community, resulting in extended project shut-downs;
  • delays associated with strict protocols and physical distancing measures put in place for contractors and contractor personnel including rapid COVID testing, quarantine, and restriction to travel only by chartered flight; and
  • impacts to contractor accommodations due to physical distancing and other protocols.