Question Period Note: Water and Wastewater

About

Reference number:
ISC-2023-QP-83434236
Date received:
Jun 21, 2023
Organization:
Indigenous Services Canada
Name of Minister:
Hajdu, Patty (Hon.)
Title of Minister:
Minister of Indigenous Services

Suggested Response:

All Canadians should have access to safe, clean, and reliable
drinking water.
• As of December 31, 2022, more than $3.03 billion of targeted
funding has been invested to support 1,058 water and
wastewater projects, of which 525 are now complete and 533 are
ongoing. These projects will serve 470,000 people in 589 First
Nations communities.
• First Nations, with support from Indigenous Services Canada,
have lifted 139 long-term drinking water advisories to date,
along with 252 short-term advisories, preventing them from
becoming long-term.
• Initiatives are underway in 27 communities to resolve the
remaining 31 long-term advisories.

Background:

Overview of Parliamentary Budget Officer Report and Findings
On December 1, 2021, the Parliamentary Budget Officer tabled a report on budget sufficiency for water
and wastewater infrastructure in First Nations communities, entitled Clean Water for First Nations: Is the
Government Spending Enough? This report responds to a request by Independent Senator Renée
Dupuis; it analyzes spending on water and wastewater, estimates investment needs, and compares these
to actual and planned investments.
According to this report, current capital funding is more than sufficient to meet current and future water
and wastewater infrastructure needs from 2016-2017 to 2025-2026. The report also concludes that the
funding available for operations and maintenance from 2016-2017 to 2025-2026 will only cover two-thirds
of the funding needs, with an average gap of approximately $138 million per year.
The report estimates that capital funding required to address current and future water and wastewater
needs is $3.1 billion and the actual spending and planned funding is $6.35 billion, inclusive of Provincial
and Territorial transfers. The report also estimates operations and maintenance needs to be $419 million
per year and the actual spending and planned funding is an average of $291 million per year. As such,
there is an average funding gap of $138 million per year for operations and maintenance funding.
Overview of 2021 Report by the Standing Committee on Public Accounts
In February 2021, the Office of the Auditor General (OAG) 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.
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 Indigenous Services Canada’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 Indigenous Services Canada 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 addresses the Committee’s four recommendations and includes the 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 Government Response has been ratified at the Cabinet
Committee on Operations and was tabled on June 9, 2022.
On June 14, 2022, the Deputy Minister appeared before the Committee to provide an account of progress
since April 2021 against the Department’s detail management action plan to address the 2021 OAG audit
recommendations.
Water and Wastewater Program
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 verifying the monitoring of drinking water quality in all water systems at
the tap, which includes providing advice and guidance about drinking water safety and wastewater
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Last updated / Dernière mise à jour 6/29/2023 10:52 AM
disposal, and reviewing infrastructure project proposals from a public health perspective.
As part of Budget 2016, the Government of Canada committed to end 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 3 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.
As part of the 2020 Fall Economic Statement, an additional $1.5 billion was announced 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.
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 minor and major capital 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 help ensure the safe
delivery of health and social services on reserve.
Budget 2022 committed 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 will support 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 and short-term drinking water advisory, including
long-term solutions.
As of December 31, 2022, more than $3.03 billion of targeted funding has been invested to support 1,058
water and wastewater projects, of which 525 are now complete and 533 are ongoing. These projects will
serve 470,000 people in 589 First Nations 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.
Atlantic First Nations Water Authority
The Atlantic First Nations Water Authority (“the Water Authority”) is a First Nation owned, not-for-profit
organization incorporated in 2018 to manage the delivery of safe, clean drinking water and wastewater in
participating First Nation communities in Atlantic Canada.
Budget 2022 committed $173.2 million over ten years (2022/23 to 2031/32) to support the implementation
of a Service Delivery Transfer Agreement with the Water Authority. The Water Authority will control,
operate, and maintain water and wastewater systems on reserves in up to 17 Atlantic First Nations
communities.
The Water Authority is a professional utility, focused on the provision of water and wastewater services
for member communities. It will not be a political organization.
The Water Authority’s service delivery model is opt-in and reflects the culmination of years of engagement
with First Nation leaders, community members, water operators, technical experts, public health and
educational institutions, other federal departments as well as levels of government.
New Proposed First Nations Drinking Water and Wastewater Legislation
As part of the Safe Drinking Water for First Nations Class Action Settlement Agreement, the Government
of Canada is committed to making all reasonable efforts to develop and introduce proposed legislation,
in consultation with First Nations, to replace the Safe Drinking Water for First Nations Act which was
enacted in 2013 and repealed in 2022. In alignment with the United Nations Declaration on the Rights of
Indigenous Peoples, since 2018, the Government of Canada has been working with rights-holders,
including Modern Treaty and Self-Governing First Nations, through their own representative institutions
and First Nation organizations, including the Assembly of First Nations, to advance repeal and
replacement of the 2013 Safe Drinking Water for First Nations Act.
On Friday, February 17, 2023, a consultation draft of a legislative proposal was shared with First Nation
rights holders and First Nation organizations for feedback by April 23, 2023. First Nations continue to
express the need for recognition of their rights, sustainable funding for drinking and wastewater
services, source water protection, and ongoing engagement on water issues that affect First Nations.
Indigenous Services Canada continues to work with First Nations and First Nations organizations on new
proposed First Nations water legislation.
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).
Redacted
Table 1: Drinking Water Advisories (DWA) Progress Since November 2015
Region
Long Term
DWA (LT
DWA) in
effect
No. of
Communities
affected by LT
DWAs
LT DWAs
added since
Nov. 2015
LT DWAs
lifted since
Nov. 2015
No. of LT
DWAs
Deactivated
since
November
2015
Short Term
DWAs that
have been in
effect for 2-
12 months
Short Term
Lifted DWAs
that had
been in
effect for 2-
12 months
ATL 0 0 2 7 0 2 12
QC 0 0 0 3 0 0 3
ON 23 20 38 71 3 3 75
MB 3 3 12 13 0 1 25
SK 5 4 15 21 2 3 66
AB 0 0 1 4 0 0 38
BC 0 0 2 20 0 3 33
YK 0 0 0 0 0 0 0
Total 31 27 70 139 5 12 252
Table 2: Long-term Drinking Water
Advisory Status, as of June 9, 2023
Number %
LTDWAs lifted 139 82%
LTDWAs in effect: 31 XX
▪ Complete (lift pending) 15 9%
▪ Construction phase 13 8%
▪ Design phase 1 1%*
▪ Feasibility study 2 1%
Total (139 lifted + 31 in effect) 170 100%
*numbers have been rounded to the nearest whole number

Additional Information:

If pressed on long-term drinking water advisory progress
• Much work remains, but the results are encouraging. First
Nations, with the support from Indigenous Services Canada,
have lifted 252 short term advisories, preventing them from
becoming long term and 139 long-term drinking water advisories
to date.
• Indigenous Services Canada 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.

If pressed on lifting long-term drinking water advisories by 2025
• Canada continues to collaborate with First Nations to lift all
long-term drinking water advisories on public systems on
reserves as quickly as possible.
• Since November 2015, 139 long-term drinking water advisories
have been lifted; 31 remain in 27 First Nations. Initiatives are
underway to address all remaining long-term drinking water
advisories.
• Approximately 45 percent of remaining long-term drinking water
advisories are expected to be lifted by the end of December
2023. Indigenous Services Canada is working with First Nations
to ensure needed support is provided.

If pressed on new funding for water from Budget 2022
• Budget 2022 committed $398 million over two years, starting in
2022-23 to support community infrastructure on reserve, with at
least $247 million directed toward water and wastewater
infrastructure.
• This will enable the completion of water and wastewater projects
to ensure the lifting of long-term and short-term drinking water
advisories. 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, including
long-term solutions.

If pressed on capital funding investments for clean drinking water
in First Nations communities
• From 2016 to 2024, Canada will commit over $5.6 billion to build,
repair, manage and maintain water systems on reserve.
• This includes $1.043 billion through Budget 2021 to support
water and wastewater projects. $125.2 million over fours years,
and $31.3 million ongoing, was committed in Budget 2021 to
support First Nations communities’ reliable access to clean
water.
• Budget 2022 committed $398 million, to support infrastructure,
with at least $247 million for water and wastewater to continue
addressing long-term drinking water advisories, and preventing
new ones.

If pressed on new funding for the Atlantic First Nations Water
Authority
• Budget 2022 committed to provide $173.2 million over ten years,
starting in 2022-23, to support the transfer of water and
wastewater services in 17 communities to the Atlantic First
Nations Water Authority.
• This long-term, sustainable funding will support the Atlantic
First Nations Water Authority to deliver high-quality water and
wastewater services to participating First Nations.
• The Water Authority’s model supports Indigenous self-determination
and accountability over how water and
wastewater services and assets are being planned, prioritized,
funded, managed and delivered to participating Atlantic First
Nations.

If pressed on operations and maintenance funding increases
• Budget 2019 provided $605.6 million over four years, with $184.9
million ongoing, to support operations and maintenance of
water and wastewater assets.
• The 2020 Fall Economic Statement announced further
investments of $1.5 billion, including $616.3 million over six
years, and $114.1 million ongoing, for this purpose.
• This enabled an increase to 100 percent, up from 80 percent, of
formula-based funding for operations and maintenance, and will
support First Nations and First Nations operators to better
sustain water and wastewater systems across Canada.

If pressed on how increased operations and maintenance funding
will achieve results
• Increased operations and maintenance funding will allow First
Nations to improve water operator salaries and better retain
qualified operators in their communities, train new operators to
build water maintenance capacity, improve or maintain asset
condition ratings, and ensure longer lifecycles for water assets.
• The Department will continue to support operator training and
retention and will work with partners to expand capacity building
and operator support for First Nations. The Department will
continue to support hands-on training to operators through the
Circuit Rider Training Program.

If pressed on training and certification of water operators
• Budgets 2016 and 2018 dedicated funds to First Nations
communities to train operators of water and wastewater
systems, with the goal of skill retention in their communities.
• Annually, Indigenous Services Canada spends approximately
$24 million to support First Nations water and wastewater
operator training, including funding the Circuit Rider Training
Program.
• Indigenous Services Canada is working closely with First
Nations communities to ensure they have the resources they
need to operate water systems to ensure everyone has access
to safe drinking water on reserve.

If pressed on Neskantaga First Nation Water and Wastewater
Treatment
• Canada is working closely with the First Nation to address the
remaining deficiencies at the new plant. Investments have been
made to resolve these issues. Once they have been addressed,
clearance testing is required to remove the boil water advisory.
• The treatment system is capable of producing water that meets
provincial drinking water guidelines. The decision to lift the
advisory lies with the Chief and Council.
• Canada is supporting Neskantaga’s request for a certified third
party operator until the local operators become certified.

If pressed on repeal of the 2013 Safe Drinking Water for First
Nations Act
• The Safe Drinking Water Class Action Settlement commits
Canada to making all reasonable efforts to introduce legislation
repealing the 2013 Safe Drinking Water for First Nations Act by
March 31, 2022, and to develop and introduce replacement
legislation, in consultation with First Nations, by December 31,
2022.
• On June 23, 2022, the 2013 Act was repealed through the Budget
Implementation Act, 2022, No. 1.
• Indigenous Services Canada continues to work with First
Nations on new proposed First Nations drinking water and
wastewater legislation.
If pressed on the status of new proposed First Nations Drinking
Water and Wastewater Legislation
• First Nations have long called for safe drinking water legislation
that meets their needs and reflects their voices.
• As part of the 2021 Safe Drinking Water for First Nations Class
Action Settlement Agreement, Canada is committed to making
all reasonable efforts to develop and introduce new proposed
legislation, in consultation with First Nations, to replace the
Safe Drinking Water for First Nations Act which was enacted in
2013 and repealed in 2022.
• Indigenous Services Canada continues to work with First
Nations on new proposed First Nations drinking water and
wastewater legislation.

If pressed on safe drinking water class action litigation
• On December 22, 2021, Canada approved a settlement
agreement to resolve the class action litigation on safe drinking
water in First Nations communities.
• The settlement provides compensation to First Nations and their
members harmed by long-term drinking water advisories and
forward-looking measures to help ensure safe drinking water for
generations to come.
• Statistics on the number of claims received to date suggested
the need to extend the deadline so that more affected First
Nations and their members are able to successfully submit their
claims.
• Affected First Nations and their members now have until March
7, 2024 to submit claim for their compensation.
• Indigenous Services Canada continues to work closely with First
Nations and First Nations organizations to develop, introduce
and implement new proposed First Nations water legislation.

If pressed on $6 billion to support reliable access to safe drinking
water on reserve
• Canada's $6 billion commitment from the Settlement Agreement
to support reliable access to safe drinking water on reserve is
intended to benefit all First Nations across Canada through
existing funding, including from Budget 2016 through Budget
2021.
• All Canadians should have access to safe, clean, and reliable
drinking water.
• Canada continues to work with all First Nations to address water
concerns. Together, we will develop sustainable, long-term
solutions so that future generations do not worry about whether
their drinking water is safe.

If pressed on $2 billion to compensate individuals and First
Nations deprived of clean drinking water
• The Settlement Agreement includes commitments of
approximately $1.5 billion in compensation for individuals and
$400 million for a First Nation Economic and Cultural
Restoration Fund to compensate individuals and First Nations
deprived of clean drinking water.
• These commitments are available to individual and First Nation
class action members across the country.
• Canada also continues to work with all First Nations to address
drinking water advisories and to improve access to clean water
on reserve.

If pressed on the Shamattawa Safe Drinking Water Class Action
• Canada respects the right of Indigenous groups, including
Shamattawa First Nation, to seek the Court’s assistance on the
important issue of safe drinking water.
• On March 14, 2023, the Federal Court certified the Shamattawa
First Nation claim related to safe drinking water as a class
action. Canada consented to this certification.
• Indigenous Services Canada continues to work closely with First
Nations to help ensure everyone has access to safe drinking
water in First Nations communities.

If pressed on COVID-19 and drinking water
• Indigenous Services Canada is working with communities to
minimize the impact of COVID-19 on the continued provision of
safe, clean drinking water.
• Indigenous Services Canada 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.

If pressed on short-term drinking water advisories
• Budget 2022 committed $398 million over two years, starting in
2022-23, to support community infrastructure on reserve, with at
least $247 million directed toward water and wastewater
infrastructure, which will support ongoing efforts to eliminate
and prevent long-term drinking water advisories.
• While most of these situations are resolved quickly by the
community operators, Indigenous Services Canada continues to
work closely with those communities that require support.
• To date, through these investments, First Nations have lifted
252 short-term advisories, preventing them from becoming
long-term.

If pressed on Lead in Drinking Water
• Since 2003, Indigenous Services Canada has been supporting
the monitoring of drinking water for lead in First Nations
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 begun implementing 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.
• The Department continues to work with First Nations
communities to sample designated taps.