Appearance before the Standing Committee on Public Accounts on OAG Report 3: Access to Safe Drinking Water in First Nations Communities, June 14, 2022

Appearing From Indigenous Services Canada

• Christiane Fox, Deputy Minister, Indigenous Services Canada
• Nelson Barbosa, Acting Director General, Community Infrastructure Branch, Regional Operations

Appearing from the Office of the Auditor General

TBC

Background

The Standing Committee on Public Accounts is chaired by an Opposition member (MP John Williamson, CPC - New Brunswick Southwest). Government policy, and the extent to which policy objectives are achieved, are generally not examined by the Public Accounts Committee. Instead, the Committee focuses on government administration – the economy and efficiency of program delivery as well as the adherence to government policies, directives and standards. The Committee seeks to hold the government to account for effective public administration and due regard for public funds.

Below is the motion, that was adopted by the committee on April 28, 2022:

That the committee invite the Auditor General and officials from Indigenous Services Canada to appear at the Standing Committee of Public Accounts on Tuesday, June 14, 2022, to provide an update on the status of the lifting of long-term drinking water advisories in Indigenous Communities.

DM Fox appeared before PACP on OAG Report 3 – Access to Safe Drinking Water in First Nations Communities on April 29, 2021. Ms. Hogan, the Auditor General of Canada, indicated in her remarks that Indigenous Services Canada (ISC) has not provided the support needed to ensure First Nation communities have ongoing access to safe drinking water. She said some long-term advisories were lifted as a result of interim measures, and this did not address long-term issues. She said ISC did not have a regulatory regime, and was constrained with an outdated funding formula. She said ISC should be working with First Nation communities on lasting solutions.

Members from the Conservative party asked DM Fox about the Government's investments in drinking water, the role of ISC in hiring practices in First Nation communities for their drinking water facilities, the percentage of water systems at risk, and whether the Government had a new date in mind to eliminate all advisories. Members from the New Democratic Party and the Bloc Quebecois expressed concerns with the number of communities with drinking water advisories, whether ISC was taking the Auditor General seriously, and when did the department realize it would not be able to fulfil a former commitment by the Prime Minister to lift all long-term boil water advisories by March 2021.

There were two follow-ups from the meeting, including how many drinking water advisories were eliminated, and whether the Department was consulted when the Prime Minister promised to eliminate all long term drinking water advisories by March 2021. The responses to these follow-ups were provided to the Committee in June 2021.

Committee members and Indigenous issues

MP Blake Desjarlais (NDP) who is Métis, has indicated publically that he grew up without clean drinking water or power. (PACP, March 3, 2022) He also raised the issue of drinking water during Routine Proceedings in the House of Commons on April 4, 2022. He said the Métis Settlements General Council predicts it is missing over $3 million in unpaid taxes due to oil and gas companies, which could have gone toward "basic infrastructure that goes into clean water, roads and building communities. We often talk about reconciliation as if it is this thing that is going to cost us billions of dollars, but we often do not even give Indigenous peoples the tools they need."

MP Desjarlais consistently asks whether Métis settlements have been consulted on various issues. This includes a question he posed to DM Fox when she appeared on Report 11: Health Resources for Indigenous Communities on March 3, 2022, on whether the Government had engaged First Nations in the nursing staffing process, including Métis settlements.

MP Nathalie Sinclair-Desgagné (BQ) raised the importance of drinking water in the context of adequate housing during Routine Proceedings in the House of Commons on April 4, 2022. She said, "there is the issue of first nations housing. It is not right that there are still problems with access to clean drinking water and a lack of social housing in a G7 country." She also raised the issue of housing in Indigenous communities during the DM's appearance on Report 11 (March 3, 2022 – PACP)

MP Philip Lawrence (CPC), who put forward the motion for this follow-up study, asked DM Fox during her April 29, 2021 appearance on this report: "We had the pledge to have all drinking water advisories done initially by this spring. What is the recalibrated goal, now that the government has acknowledged that obviously we won't be achieving that goal?"

MP Eric Duncan (CPC) has expressed an interest in the issue of drinking water during PACP's examination of Report 13: Health and Safety of Agricultural Temporary Foreign Workers on March 31, 2022. He was concerned about the living accommodations of temporary foreign workers. "I understand the need to partner with provinces and jurisdictions, but in four years.... Can you name the province that would be objecting to running drinking water or electricity in accommodations … There's literally zero that's been done."

MP Jeremy Patzer (CPC) has not been particularly vocal on drinking water issues. However, on March 3, 2022, during the Report 11: Health Resources for indigenous Communities appearance, he asked DM Fox and the Auditor General whether the Government visited First Nation communities during the pandemic, the cost of charters during the pandemic, and why Manitoba received more personal protective equipment than other provinces.

MP Michael Cooper (CPC) has not been vocal on Indigenous issues and drinking water. However, on May 3, 2022, he expressed concerns on the House of Commons Standing Committee on Justice on the over-representation of Indigenous people in the criminal justice system.

Meeting Proceedings

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

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 the witnesses. The DM will deliver her remarks as per standard practice (5 minutes maximum). It is recommended to speak slowly and at an appropriate level to ensure the interpreters can hear you. All witnesses are requested to mute their microphones unless they are 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 when on Zoom.

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. Note that the webcast is transmitted with a slight delay and could be up to a minute behind the live proceedings: https://parlvu.parl.gc.ca/Harmony.

A real time audio feed maybe available from Parliament. Access information will be shared with officials if the information is provided to the department.

Question:

Mr. Kody Blois: I want to go to 3.38. At that point, there was about 60, this was November 2020, there was 60. There was a commitment to try to have at least 33. Did I hear that it's 27 that got eliminated since November of 2020? Is that fair?

Ms. Christiane Fox: That 27 that got eliminated since November, no, not quite. I believe that in the November report, there was about 96 that had been lifted and as of March, there was 106. Those are the data points that I have in terms of lifts.

Mr. Kody Blois: Maybe I could ask for a submission because I don't want to spend too much more time. It's point 3.38 on the Auditor General's report that talks about as of November 20th, there were still 60 in effect, and the department thought that there could be up to 33 that would be eliminated by March 31, 2021. If you could get that information to the committee, I would certainly appreciate it. The Auditor General's report, Ms. Fox, also talks about one third of water that's used in communities is not through the public utility model in a sense that this is coming from wells and other sources. I know that's generally the domain of the local community, the indigenous community, is there any programming in place, as quickly as you can, is a part of your mandate as well and the department to support outcomes in that space?

Ms. Christiane Fox: The focus is on public utility. If ever there would be conversations about needs outside of that we are always talking to communities about their needs, but the program is focused on public utility.

Answer:

As of November 1, 2020, there were 60 long-term drinking water advisories in effect on public systems on reserve in 41 First Nations communities; 96 long-term advisories had been lifted since November 2015, and 4 systems with a long-term advisory had been deactivated (totaling 100 long-term advisories addressed, as noted in the OAG report). In November 2020, the department estimated that 32 of the 60 remaining long-term drinking water advisories would be lifted by March 31, 2021. Between November 1, 2020 and March 31, 2021, 10 long-term drinking water advisories were lifted, resulting in 106 lifted since November 2015.

First Nations are the owners and operators of their water and wastewater systems. Indigenous Services Canada provides funding and advice to First Nations in the planning, procurement, design, construction, operation and maintenance, and commissioning of their water and wastewater facilities. As contracts for construction are between the First Nation and the contractor, target dates to lift advisories are estimated based on the best available information, provided by the First Nation's project management team. Estimated construction completion dates are subject to change, and target dates are updated regularly as new information becomes available. The pandemic has impacted many water and wastewater projects, resulting in delays. Necessary public health measures, contractor and human resources shortages, and supply chain interruptions continue to create delays in meeting targets. Between November 2020 and March 2021, much of the country was impacted by the pandemic's second wave, which was particularly acute in First Nations communities, and the third wave had started in some regions.

In addition to pandemic-related impacts, other challenges common to many infrastructure projects have impacted project timelines. These factors include manufacturing and shipping delays for parts; shortened winter road seasons; weather; and contractor coordination.

Question:

Mr. Luc Berthold: Ms. Fox, was your department consulted in 2015 when the government came out and said that it was going to fix all the problems by 2021?

Ms. Christiane Fox: I wasn't with the department then. I started in September 2020, so I don't know whether the subject was discussed in 2015.

Mr. Luc Berthold: Would you be able to get back to the committee with that answer? I'm interested in finding out about any advice that may have been issued on the likelihood of achieving the target. When I was a mayor, the city had to deal with a drinking water issue. It took 10 years to fix, so I find it hard to believe that the government t thought it could actually identify and fix all of the problems that existed in 2015 by 2021.

Answer:

The Prime Minister first made the commitment to end all long-term drinking-water advisories by March 2021 during the 2015 federal election campaign. Following the election, public servants provided advice to the new government on the implementation of all commitments, including this one. The advice provided by Indigenous Services Canada on the long-term drinking water advisory commitment was based on the best available information regarding what was required to meet the commitment. Since 2016, the department has publically reported on progress towards achieving the objective. In every community with a long-term drinking water advisory, there is work underway and an action plan in place to resolve it. We remain committed and continue to work with First Nations partners to lift all long-term drinking water advisories and ensure access to clean and safe drinking water for generations to come.

Overview of 2021 Report by the Office of the Auditor General (OAG)

• In February 2021, the Office of the Auditor General tabled a report on access to safe drinking water in First Nations communities, which put forward five recommendations for ISC to work with First Nations communities to strengthen efforts to eliminate all long-term drinking water advisories and prevent new ones from occurring. ISC developed a detailed management response and action plan on how the department was addressing the report's recommendations.
• The report focused on whether Indigenous Services Canada (ISC) provided adequate support to First Nations communities to ensure they have access to safe drinking water.
• The report examined the progress against the Government of Canada's commitment to eliminate all long-term drinking water advisories on public water systems on reserves, whether necessary funding was provided to operate and maintain drinking water infrastructure, and reviewed the progress towards developing a regulatory regime for drinking water in First Nations communities.
• According to this report, ISC did not provide the support necessary to ensure that First Nations communities have ongoing access to safe drinking water.
• The recommendations and ISC responses are provided in the table below.

Overview of 2021 Report by the Standing Committee on Public Accounts

• In April 2021, the Standing Committee on Public Accounts (the Committee) reviewed the Office of the Auditor General's audit and recommendations, as well as ISC's detailed management response and action plan. Further to this review, in June 2021, the Committee presented its own report, entitled Access to Safe Drinking Water in First Nations Communities with four recommended actions and associated deadlines. The Committee's report was re-adopted on February 8, 2022, following the fall 2021 election. The report echoed the findings of the Auditor General's report and recommended that ISC provide the Committee with a series of reports over the coming years to report on progress related to each of the four recommended actions.
• The Government Response addressed the Committee's four recommendations and included the first four progress reports requested by the Committee, outlining current activities to-date to improve access to safe drinking water in First Nations communities. It reflects the Minister of Indigenous Services commitment to improving water infrastructure and building a sustainable foundation that ensures that First Nations communities have access to safe drinking water now and into the future. It also reflects the implementation of a historic settlement agreement resolving national class action litigation on safe drinking water in First Nations communities.
• The recommendations and ISC responses are provided in the table below.

OAG Recommendations

• ISC should work with First Nations communities to strengthen efforts to eliminate all long‑term drinking water advisories and prevent new ones from occurring.
• ISC should work with First Nations communities to implement long-term solutions to ensure that water systems provide ongoing access to safe drinking water.
• ISC should work with First Nations to proactively identify and address underlying deficiencies in water systems to prevent recurring advisories.
• ISC, in consultation with First Nations, should make it a priority to identify the amount of funding needed by First Nations to operate and maintain drinking water infrastructure, and amend the existing policy and funding formula to provide First Nations with sufficient funding to operate and maintain drinking water infrastructure.
• ISC, in consultation with First Nations, should develop and implement a regulatory regime for safe drinking water in First Nations communities.

Work with First Nations communities to strengthen efforts to eliminate all long-term drinking water advisories

• Since November 2015, 132 long-term drinking water advisories on public systems on reserves have been lifted. Projects are now underway in 34 communities to resolve the remaining 29 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 an additional $1.043 billion over two years, starting in 2022-23, to support water and wastewater infrastructure projects. The funding will ensure that ISC can continue to support First Nations in the planning, procurement, construction, and commissioning of water and wastewater projects.
• Budget 2021 also announced an additional $125.2 million over four years, starting in 2022-23, and $31.3 million ongoing thereafter, to continue to support First Nations communities' reliable access to clean water and to help ensure the safe delivery of health and social services on reserve.
• Most recently, Budget 2022 proposes to provide $398 million over two years, starting in 2022-23, to support community infrastructure on reserve, of which at least $247 million is expected to be directed toward water and wastewater infrastructure.
• 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.
• As of December 31, 2022, with the support of federal funding, First Nations have launched 873 water and wastewater projects, including 108 new water and wastewater treatment plants and lagoons, and 555 projects to renovate or upgrade existing infrastructure.
• ISC 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.
• ISC 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.

Implement long-term solutions to provide access to safe drinking water

• The Department continues to support and prioritize long-term measures to ensure that First Nations have ongoing access to safe drinking water.
• Funding commitments since 2016 have provided First Nations communities with dedicated, long-term stable funding, including targeted funding to enhance capacity, training measures, and retain water and wastewater operators.
• The Department supports various capacity building initiatives, through investments of approximately $20 million annually.
• ISC is working closely with First Nations communities to ensure they have the resources necessary to operate water systems and ensure sustainable access to safe drinking water on reserve.

Proactively identify and address deficiencies in water systems to prevent recurring advisories

• ISC works with First Nations to conduct annual performance inspections of water systems and triennial asset condition assessments 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 as part of the 2020 Fall Economic Statement, to further increase support for the operation and maintenance of water systems, enabling First Nations to better sustain their infrastructure.
• Budget 2021 committed $1.043 billion to support water and wastewater projects and an additional $125.2 million, with $31.3 million ongoing, to support the continued provision of environmental public health services on reserve, including water quality monitoring programs.
• In addition, Budget 2022 proposes to provide $398 million over two years, starting in 2022-23, to support community infrastructure on reserve, of which at least $247 million will be directed toward water and wastewater infrastructure to continue to address all remaining long-term drinking water advisories on public systems on reserve, and prevent new ones from occurring.
• The Government of Canada recognizes that skilled water and wastewater operators are also essential to ensuring long-term access to safe drinking water in First Nations communities. The Department supports operator training and retention through its Circuit Rider Training Program, capacity-building initiatives, and ongoing work with partner organizations.
• 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.

Identify funding needed for 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. 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.
• These additional funds will enable an increase to 100 percent, up from 80 percent, of formula-based funding for operations and maintenance, and will support First Nations to better sustain the approximately 1,200 water and wastewater systems across the country.
• The increased 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 multi-year funding agreements, which can provide long-term predictability and stability in the management of operator support programs, such as the Circuit Rider Training Program.
• A new operation 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.
• In 2022-2023, ISC expanded two proposal-based initiatives that support capacity development in the management of on-reserve assets:
  1. enhanced the supports available under the Asset Management Program with 37.5 million over the next four years; and,
  2. implemented the Extended Asset Condition Reporting System inspections to provide First Nations with comprehensive information about each asset's current, ongoing and future lifecycle needs.

Develop and implement a regulatory regime for safe drinking water in First Nations communities

• The Government of Canada continues to work in partnership with First Nations, not only to lift all long-term drinking water advisories on public systems on reserves as quickly as possible, but to build a robust foundation, including legislative and regulatory reform, to increase sustainable access to clean drinking water on reserves for generations to come.
• Canada and the Assembly of First Nations are advancing co-development of a draft framework to inform the development of proposed legislation to replace the Safe Drinking Water for First Nations Act.
• The Department will also engage with other interested First Nations, modern treaty holders and self-governing groups to support co-development of a legislative framework.
• It is anticipated that proposed replacement legislation will include the ability to develop federal regulations for safe drinking water on reserve.

OAG Recommendation No. 1

3.40 Indigenous Services Canada should work with First Nations communities to strengthen efforts to eliminate all long-term drinking water advisories and prevent new ones from occurring.

OAG Recommendation No. 2

3.54: Indigenous Services Canada should work with First Nations communities to implement long-term solutions to ensure that water systems in First Nations communities provide ongoing access to safe drinking water.

OAG Recommendation No. 3

3.61: Indigenous Services Canada should work with First Nations to proactively identify and address underlying deficiencies in water systems to prevent recurring advisories.

OAG Recommendation No. 4

3.77: Indigenous Services Canada, in consultation with First Nations, should make it a priority to

• identify the amount of funding needed by First Nations to operate and maintain drinking water infrastructure
• amend the existing policy and funding formula to provide First Nations with sufficient funding to operate and maintain drinking water infrastructure

OAG Recommendation No. 5

3.90: Indigenous Services Canada, in consultation with First Nations, should develop and implement a regulatory regime for safe drinking water in First Nations communities.

Drinking Water Advisories

• Responsibility for safe drinking water on reserves is shared between First Nation communities and the Government of Canada.
• First Nations are the owners and operators of their water and wastewater systems and are responsible for issuing or rescinding drinking water advisories, generally based on the advice of an environmental public health officer.
• ISC provides advice and financial support to First Nation communities for their public water and wastewater systems and ensures that drinking water quality monitoring programs are in place.
• 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.
• Resolving short-term advisories before they become long-term is an important part of the overall work to eliminate 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.
• Short-term drinking water advisories are put in place for various reasons such as water line breaks, equipment failure, or poor filtration/disinfection during water treatment.
• 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.
• A drinking water advisory that has been in effect for more than 12 months can point to a more systemic issue and are referred to as long-term drinking water advisories.
• For First Nation communities with a drinking water advisory currently in place, ISC provides supplies such as, bottled water, and hand sanitizer where needed.

Drinking Water Advisories and timelines

• The COVID-19 pandemic has extended completion timelines of infrastructure projects across the country. In some cases, this has had an effect on getting equipment and resources into communities, especially in remote and northern areas.
• Additionally, other challenges common on any infrastructure project, have impacted project timelines. These factors include manufacturing and shipping delays for parts, shortened winter road seasons, weather and contractor coordination.
• ISC 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.

Resolving long-term drinking water advisories

• The Government of Canada continues to work in partnership with First Nations, as owners and operators of their water systems, not only to lift all long-term drinking water advisories on public systems on reserves as quickly as possible, but to build a sustainable foundation and increase sustainable access to clean drinking water on reserves for generations to come.
• Approximately 45 percent (15) of the remaining long-term drinking water advisories are expected to be in a position to be lifted by the end of December 2022.
• Initiatives to address all remaining long-term drinking water advisories are at various stages:
  • 3% are at the feasibility study phase
  • 9% are in design phase
  • 41% are under construction
  • 47% are complete and additional issues are being addressed
• ISC is supporting First Nations in their pandemic response and recovery. Necessary public health measures, contractor and human resources shortages, and supply chain interruptions continue to create delays in meeting targets.
• As part of the 2020 Fall Economic Statement, an additional $309.8 million in funding was announced to support and accelerate on-going work to lift all long-term drinking water advisories on public systems on reserves. This funding has enhanced work already underway to address outstanding long-term drinking water advisories and mitigate delays.
• Budget 2022 proposes to provide $398 million over two years, starting in 2022-23, to support community infrastructure on reserve, of which at least $247 million will be directed toward water and wastewater infrastructure. This funding will continue the important work to complete water and wastewater projects to ensure the lifting of long-term and short-term drinking water advisories from public systems on reserve.
• The Department continues to work in partnership with First Nations, not only to lift all long-term drinking water advisories on public systems on reserves as quickly as possible, but to build a sustainable foundation and increase sustainable access to clean drinking water on reserves for generations to come.

Background (as of June 10, 2022)

Safe Drinking Water Litigation

There are five court actions relating to safe drinking water on-reserve filed by First Nations against Canada: two have recently been settled/approved by the courts (Class Actions), and three are ongoing (two representative actions and the Isnardy proposed class action).

Representative Actions

There are two representative actions: one filed by 4 First Nations in Alberta (Tsuut'ina Nation, Sucker Creek First Nation, Ermineskin Cree Nation and Blood Tribe); and one filed by the Okanagan Indian Band in British Columbia.

• Alberta Action

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, initiated litigation 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 of Rights and Freedoms. 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 since the fall of 2015. Since then, the parties have entered into "without prejudice" exploratory discussions aimed at advancing resolution of the litigation and addressing First Nation interests around drinking water infrastructure. The Alberta abeyance expires on June 30, 2022, while discussions continue to explore potential resolution, and clarify the interests of the First Nations.

• Okanagan Indian Band Action

Okanagan Indian Band also filed litigation against Canada in August 2019, seeking declarations that Canada has breached its fiduciary duty, breached the honour of the Crown, violated the Charter of Rights and Freedoms, and breached its obligations under the Constitution by failing to create and sustain safe drinking water conditions on First Nations' reserves. Canada is also engaged in exploratory discussions with the Okanagan Indian Band to advance potential resolution of their litigation. The Okanagan abeyance expires at the end of October 2022.

Isnardy Proposed Class Action

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. The claim alleges that the Crown created, sustained and allowed unsafe drinking water conditions, and seeks 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 rights) of the Charter of Rights and Freedoms and, breached its obligations under paragraph 35(1) of the Constitution Act, 1982. The proposed class action proceeding was amended in August 2020 to extend representation to all First Nations people (status and non-status), Inuit and Métis people living on and off reserve. The Isnardy proposed class action is currently inactive as the Court was advised of the death of the representative plaintiff. No new representative plaintiff has been identified.

Class Actions

Curve Lake First Nation and Chief Emily Whetung, on her own behalf and on behalf of all members of the First Nation, filed a class action claiming 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 Moonias as plaintiffs. The plaintiffs seek declarations that Canada has breached its fiduciary duty, breached the honour of the Crown, violated the Charter of Rights and Freedoms, 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; One billion dollars for breaches of Charter rights; One billion dollars for breaches of fiduciary duty, negligence and nuisance; and, $100 million in punitive damages.

Tataskweyak Cree Nation also filed a class action involving any First Nation band that has had a drinking water advisory lasting a year or more since 1995. The Cree Nation claims Canada breached its fiduciary duties, breached the Honour of the Crown, breached the Charter of Rights and Freedoms, the Constitution, and is liable for individual causes of action like nuisance and negligence.

Both the Curve Lake/Neskantaga action and the Tataskweyak Cree Nation actions were certified as class actions with the consent of Canada. In fall 2020, Canada (Department of Justice and ISC) engaged in exploratory discussions with the class action representative plaintiffs along with their counsel. In July 2021 an Agreement in Principle was negotiated, and on September 15, 2021, Canada entered into a Settlement Agreement signed on the basis of the Agreement in Principle. The settlement agreement provides for the dismissal of the Tataskweyak and Curve Lake safe drinking water-related litigation against Canada and sets out measures designed to address impacts of harm and forward-looking investments. It also contains a release of liability for Canada.

On December 22, 2021, the Federal Court and the Court of Queen's Bench of Manitoba jointly approved the Settlement Agreement. The 60-day appeals period closed on February 21, 2022. No appeals were received during this time, marking February 22, 2022, as the Implementation Date for the Settlement Agreement. On April 13, 2022, Canada fulfilled its requirements under the Settlement Agreement to transfer compensation funds and legal fees of approximately $2 billion to third party trusts.

Regulatory regime for safe drinking water

• The Safe Drinking Water for First Nations Act, currently being considered for repeal, came into force in 2013 and allows Canada to develop federal regulations to ensure access to safe, clean and reliable drinking water and the effective treatment of wastewater.
• Federal engagement with First Nations on regulations paused in 2015 as First Nations called for repeal and replacement of the Act, citing: a lack of adequate, predictable and sustainable funding; lack of recognition of Aboriginal water rights; potential infringements on Aboriginal and treaty rights; lack of adequate source water protections; and, insufficient engagement.
• Federal legislation is a prerequisite for the development and implementation of federal regulations for drinking water on First Nations lands.
• Regulations cannot be developed without first addressing the concerns of First Nations with the Act. Therefore, no enforceable federal regulations governing the provision of drinking water on First Nations lands were developed under the 2013 Act.

Co-development process for a new legislation

• Several Assembly of First Nations resolutions were passed in 2018 and 2019 calling for the repeal of the Safe Drinking Water for First Nations Act and the creation of a First Nations-led engagement process to co-develop a new legislation on water and wastewater.

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 Nations communities. Budget 2016 also included $141.7 million in new funding to continue providing independent public health advice, guidance, and recommendations to improve drinking water monitoring and testing on reserves.
• 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 Nations 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.
• Budget 2021 committed an additional $1.043 billion over 2 years, starting in 2022-23, to support water and wastewater projects. The funding will enable ISC to continue to support the planning, procurement, construction, and commissioning of water and wastewater projects for both new builds, as well as system repairs and upgrades in First Nations communities.
• Budget 2021 also announced $125.2 million over four years, beginning in 2022-23, and $31.3 million on-going thereafter to continue to support First Nations communities' reliable access to clean water and to help ensure the safe delivery of health and social services on reserve. This is the first time funding for this important public health function has been stabilized since the 1970s.
• Most recently, Budget 2022 proposes to provide $398 million over two years, starting in 2022-23, to support community infrastructure on reserve, of which at least $247 million will be directed toward water and wastewater infrastructure.
• This new funding will enable the completion of water and wastewater projects to ensure the lifting of long-term drinking water advisories and short-term drinking water advisories from public systems on reserve. It will also support infrastructure projects to increase sustainable access to clean drinking water on reserve.
• New funding will support feasibility and design studies, and the construction, repair, or upgrade of water systems affected by a long-term or short-term drinking water advisory, including long-term solutions.

Historical spending on water and wastewater infrastructure

• Between 2011-2012 and 2020-2021, a total of $3.15 billion has been invested towards improving water and wastewater infrastructure in First Nations communities. This amount reflects targeted and permanent departmental funding.
• In 2011-2012, the Department invested $174 million towards water and wastewater infrastructure improvements; through historic investments, this has increased to approximately $480 million annually.
• Between 2011-2012 and 2020-2021, at total of $1.56 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.
• In 2011-2012, the Department invested $127 million towards the operation and maintenance of water and wastewater infrastructure; through these recent increases, in 2020-2021 $294 million was invested. This funding continues to ramp up over the coming years.

Background on the Office of the Parliamentary Budget Officer's December 2021 Report

The Office of the Parliamentary Budget Officer has undertaken an analysis of budget sufficiency for water and wastewater infrastructure in First Nation communities and has published its report on December 1, 2021. The report, entitled Clean Water for First Nations: Is the Government Spending Enough?, covers 2016-2017 to 2025-2026 estimates investment needs and compares these to actual and planned investments.

The report concludes that for 2016-2017 to 2025-2026 there is $6.35 billion in current and future funding available to meet $3.1 billion in water and wastewater capital needs; therefore, capital funding is sufficient. The report also identifies an average annual operations and maintenance funding need for water and wastewater of $429 million, whereas the average annual funding available is $291 million, leaving a funding gap of approximately $138 million per year over the span of ten years covered by the report.

Response to the Parliamentary Budget Office's 2021 report

• In December 2021, the Office of the Parliamentary Budget Officer published a report of its findings related to the adequacy of spending on water and wastewater in First Nations communities.
• The findings of the report recognize that we have closed the gap in capital funding for First Nations water and wastewater systems.
• ISC has significantly increased the operations and maintenance funding provided to First Nations by almost four times since 2019-2020. Now, 100% of the water and wastewater operations and maintenance funding formula will be covered, up from 80%.

Successes related to water and wastewater on reserve

• Since 2015, and as of June 10, 2022, with the support of ISC, First Nations have lifted 132 long term drinking water advisories to date, which means that over 7,037 homes and 528 community building now have access to reliable, clean drinking water.
• As of December 31, 2021, more than $2.29 billion of targeted funds have been invested to support 873 water and wastewater projects, of which 454 are now complete and 419 are ongoing.
• These projects will serve 466,000 people in 587 First Nations communities.
• Of the 873 water and wastewater projects, a total of 663 projects are new water and wastewater treatment plants or lagoons, or renovations and upgrades to existing water and wastewater systems.

Clean drinking water and an award for Shoal Lake #40

• In September 2019, a ground breaking ceremony was held in Shoal Lake 40 First Nation, Ontario to celebrate the awarding of the contract for construction of a water treatment and distribution system.
• The project was designed as a pilot to see whether an Indigenous-specific tender process could better serve Indigenous communities.
• The plant was built on time and on budget over 18 months, by a partnership between Shoal Lake #40's Kekekoziibih company and Sigfusson Northern Ltd.
• Following completion of the project in the fall of 2021, seven long-term drinking water advisories that had been in place since February 1997 were lifted. The new plant provides a reliable supply of safe, clean drinking water to 292 residents.
• The Ontario Public Works Association presented the 2022 Public Works Project of the Year for Small Municipalities and First Nations award to Shoal Lake #40 First Nation in May 2022.

Innovation leads to clean drinking water for Wawakepewin First Nation

• In April 2022, the long-term drinking water advisory affecting Wawakapewin First Nation's Public Water System in Ontario was lifted. The advisory had been in effect since 2004.
• The advisory was lifted following the drilling of two new wells and the installation of a modular water treatment plant to serve the community.
• The project used a design-build approach to expedite completion. The plant was shipped to this ultra-remote First Nation over the winter road in 2021.
• All 15 homes in the community now have access to safe, clean drinking water.

Water and wastewater transfer initiatives

• Since 2016, the Government of Canada has made significant investments in infrastructure projects on and off reserves for First Nations peoples and communities. More recent investments support building partnerships with First Nations organizations that will advance our shared objective of transformational change. These investments are currently administered by ISC. They include housing, schools, water and wastewater systems, roads, bridges and lot servicing.
• First Nations organizations pursue transfer on a voluntary basis. The transfer of housing and infrastructure services to First Nations-led organizations/institutions are intended to accelerate the movement towards self-determination as well as to move decisions back to First Nations on funding and service delivery.
• ISC is accessing $53.8 million over eight years from Budget 2017, ending in 2025-2026, to support engagement and proof of concept work. This work contributed directly to the co-development of processes and discussions on the transfer of housing and infrastructure services to First Nation organizations.
• Through Budget 2021, ISC is accessing $55.1 million over four years for institution building. This will support transfer organizations to build their capacity, detail their asset management plan, scope of service delivery and standards, as well as refining their business plan.
• Budget 2022 announced $173.2 million in new funding over ten years to support the implementation of a Service Delivery Transfer Agreement with the Atlantic First Nations Water Authority. Implementation of the agreement is expected to begin in late 2022.Once fully operational, the Water Authority will support up to 17 participating First Nations communities in Atlantic Canada to upgrade, maintain and manage their water and wastewater services with the possibility of serving more communities in the future.

Roles and Responsibilities for safe drinking water on reserves

• On reserve, the provision of safe drinking water is a shared responsibility among First Nations communities and the Government of Canada.
• First Nations own and operate their water and wastewater systems, they also design and construct facilities.
• First Nations also monitor water and wastewater systems and issue and rescind drinking water advisories, typically on the recommendation of an Environmental Public Health Officer.
• ISC provides advice and financial support to First Nations communities for their public water and wastewater systems, and ensures that drinking water quality monitoring programs are in place.

What ISC is doing

ISC is working with its partners so that First Nations can design and deliver infrastructure solutions from the ground up that best suit their needs. First Nations organizations with a mandate from their leadership are working with ISC on the development of service delivery models to transfer control to First Nations institutions. ISC recognizes that First Nations communities' needs are unique. Respecting regional variations and individual communities and organizations' readiness is key in this collaborative approach.

Current infrastructure transfer initiatives

• Several First Nations organizations are working toward assuming control over programs and services including water and wastewater facilities and infrastructure, education facilities, housing, solid waste management, road and bridge construction, energy system development, connectivity, cultural and recreational facility development, fire protection, planning and skills development associated with infrastructure management.
• As of December 2021, water and wastewater transfer partners include: Atlantic First Nations Water Authority, Southern Chiefs' Organization in Manitoba, North Shore Mi'kmaq District Council in Atlantic.
• Other transfer partners include : BC First Nations Housing & Infrastructure Council, Alberta First Nations Technical Services Advisory Group, First Nations Capital Infrastructure Agency of Saskatchewan, The Confederacy of Mainland Mi'kmaq & Union of Nova Scotia Mi'kmaq in Atlantic, Chiefs of Ontario and First Nations Infrastructure Institute

Atlantic First Nations Water Authority

• One rapidly evolving example of transferring control of water and wastewater services is with the Atlantic First Nations Water Authority. This Authority will be undertaking water and wastewater services for up to 17 Indigenous communities in Nova Scotia, Prince Edward Island, and New Brunswick.
• Following the signing of a Framework Agreement in 2020, ISC and the Water Authority have developed a Service Delivery Transfer Agreement that is expected to be implemented in late 2022. The Water Authority will become the first Indigenous-led water authority in Canada.
• The Authority, once fully operational, will assume control, responsibility and liability for water and wastewater capital and services for up to 4500 households and businesses.
• ISC is also working in partnership with the North Shore Mi'kmaq District Council (New Brunswick) in the development of a water utility model for their seven-member communities.
• In addition, ISC is working with the Southern Chiefs Organization of Manitoba to scope out a potential water authority that would serve the 34 communities they represent.

Awards related to water and wastewater transfer initiatives

• In May 2022, the Atlantic First Nations Water Authority won the TEREO Innovator Award at the 2022 Canadian Network of Asset Managers in London, Ontario. The TEREO Innovator Award is awarded to organizations that are demonstrating excellence in developing and implementing asset management approaches for business improvement.
• In April 2022, the Atlantic First Nations Water Authority's engineering partner, Dillon Consulting Limited, and Atlantic First Nations Water Authority were honoured with a 2022 Engineering Excellence Award from the Association of Engineering Companies
  • New Brunswick (ACEC-NB) was awarded for its work on the development of 17 Asset Management Plans for water and wastewater systems in participating Atlantic First Nations Water Authority communities.

Standing Committee on Public Accounts (PACP)

Mandate of the Committee

When the Speaker tables a report by the Auditor General in the House of Commons, it is automatically referred to the Public Accounts Committee. The Committee selects the chapters of the report it wants to study and calls the Auditor General and senior public servants from the audited organizations to appear before it to respond to the Office of the Auditor General's findings. The Committee also reviews the federal government's consolidated financial statements – the Public Accounts of Canada – and examines financial and/or accounting shortcomings raised by the Auditor General. At the conclusion of a study, the Committee may present a report to the House of Commons that includes recommendations to the government for improvements in administrative and financial practices and controls of federal departments and agencies.

Government policy, and the extent to which policy objectives are achieved, are generally not examined by the Public Accounts Committee. Instead, the Committee focuses on government administration – the economy and efficiency of program delivery as well as the adherence to government policies, directives and standards. The Committee seeks to hold the government to account for effective public administration and due regard for public funds.

Pursuant to Standing Order 108(3) of the House of Commons, the mandate of the Standing Committee on Public Accounts is to review and report on:

• The Public Accounts of Canada;
• All reports of the Auditor General of Canada;
• The Office of the Auditor General's Departmental Plan and Departmental Results Report; and,
• Any other matter that the House of Commons shall, from time to time, refer to the Committee.

The Committee also reviews:

• The federal government's consolidated financial statements;
• The Public Accounts of Canada;
• Makes recommendations to the government for improvements in spending practices;
• Considers the Estimates of the Office of the Auditor General.

Other Responsibilities:

• The economy, efficiency and effectiveness of government administration;
• The quality of administrative practices in the delivery of federal programs; and,
• Government's accountability to Parliament with regard to federal spending.

John Williamson (New Brunswick Southwest)
Conservative
Chair

• Elected as MP for New Brunswick Southwest in 2011, he was then defeated in 2015 and re-elected in 2019 & 2021.
• Currently also serves as a Member of the Liaison Committee
• Previously served on many committees, including PACP for a brief time in 2013
• Prior to his election, M. Williamson occupied different positions. He was an editorial writer for the National Post from 1998 to 2001, then joined the Canadian Taxpayers Federation until 2008. In 2009, he was hired by Stephen Harper as director of communications in the PMO.

Jean Yip (Scarborough - Agincourt)
Liberal
First Vice-Chair

• Elected as MP for Scarborough—Agincourt in a by-election on December 11, 2017, and re-elected in 2019 & 2021.
• Has served on Public Accounts (since 2018), as well as Government Operations and Canada-China committees in the past.
• Before her election, Ms. Yip was an insurance underwriter and constituency assistant.

Nathalie Sinclair-Desgagné (Terrebonne)
Bloc Québécois
Second vice-chair

• Elected as MP for Terrebonne in the 2021 federal election.
• BQ Critic for Public Accounts; Pandemic Programs; and Federal Economic Development Agencies.
• Worked at the European Investment Bank and at PWC London.
• Return to Quebec in 2017 to pursue a career in the Quebec business world.

Eric Duncan (Stormont-Dundas-South Glengarry)
Conservative
Member

• Elected as MP for Stormont-Dundas-South Glengarry in 2019, and re-elected in 2021.
• Vice-Chair of Procedure and House Affairs Committee
• Has served on COVID-19 Pandemic, Procedure and House Affairs and Library of Parliament committees in the past.
• Prior to his election, Mr. Duncan was one of the youngest elected officials in Canadian History as a municipal Counsellor in North Dundas at the age of 18, and was elected mayor at the age of 22 (from 2010 to 2018).

Jeremy Patzer (Cypress Hills-Grasslands)
Conservative
Member

• Elected as MP for Cypress Hills-Grasslands in 2019, and re-elected in 2021.
• Member of the Standing Committee on International Trade.
• Has served on Natural Resources, Industry, Science and Technology and COVID-19 Pandemic committees in the past.
• Prior to his election, Mr. Patzer worked in the telecommunications industry for ten years.

Phillip Lawrence (Northumberland—Peterborough South)
Conservative
Member

• Elected as MP for Northumberland—Peterborough South in 2019, and re-elected in 2021.
• CPC Critic for the Federal Economic Development Agency for Eastern, Central and Southern Ontario.
• Has served on Public Accounts (since 2020), as well as the Justice committees in the past.
• Prior to his election, Mr. Lawrence received his BA from Brock University in Political Science, he attended Osgoode Hall Law School and the Schulich School of business to obtain his law degree and MBA, and volunteered at the Financial Planning Standards Council.

Blake Desjarlais (Edmonton Greisbach)
NDP
Member

• Elected as MP for Edmonton Greisbach in 2021.
• NDP Critic for Treasury Board; Diversity and Inclusion; Youth; Sport; and Post-secondary Education.
• First openly Two-Spirit person and Alberta's only Indigenous Member of Parliament.

Valerie Bradford (Kitchener South – Hespeler)
Liberal
Member

• Elected as MP for Kitchener South – Hespeler in 2021.
• Also sits on the Science and Research committee.
• Prior to her election, Ms. Bradford worked as an economic development professional for the City of Kitchener.

Han Dong (Don Valley North)
Liberal
Member

• Elected as MP for Don Valley North in 2019, and re-elected in 2021.
• Also sits on the Industry and Technology committee.
• Has served on the Ethics, and Human Resources committees in the past.
• Prior to his election, Mr. Dong worked with Toronto-based high-tech company dedicated to building safer communities and served as the leader of the Chinatown Gateway Committee established by Mayor John Tory.

Peter Fragiskatos (London North Centre)
Liberal
Member
Parliamentary Secretary to the Minister of National Revenue

• Elected as MP for London North Centre in 2015, and re-elected in 2019 & 2021.
• Serves as Parliamentary Secretary to the Minister of National Revenue.
• Has served on the Finance, Canada-China, Human Resources, Public Safety, and Foreign Affairs committees in the past.
• Served as a member of the National Security and Intelligence Committee of Parliamentarians (NSICOP).
• Prior to his election, Mr. Fragiskatos was a political science professor at Huron University College and King's University College, as well as a frequent media commentator on international issues.

Brenda Shanahan (Châteauguay—Lacolle)
Liberal
Member

• Elected as MP for Châteauguay—Lacolle in 2015, and re-elected in 2019 & 2021.
• Has served on Public Accounts (2016-2018), as well as Ethics, Government Operations, and MAID committees in the past.
• Has served as a member of the National Security and Intelligence Committee of Parliamentarians (NSICOP).
• Served as a member of the National Security and Intelligence Committee of Parliamentarians (NSICOP).
• Prior to her election, Ms. Shanahan was a banker and social worker, who has also been involved in a number of organizations such as Amnesty International and the Canadian Federation of University Women.