Environment Committee on Feb. 27th, 2024

[The Chair, Liberal, Francis Scarpaleggia]

I call the meeting to order.

Good afternoon everyone, and welcome to meeting number 99 of the Standing Committee on Environment and Sustainable Development.

Please be advised that the sound checks were completed. All our witnesses for the first hour are joining us by video conference.

We will start with Professor Alain Pietroniro, from the Forum for Leadership on Water, or FLOW.

Mr. Pietroniro, you have five minutes for your opening remarks. Please go ahead.

[Alain Pietroniro, Professor, Forum for Leadership on Water]

Thank you, Mr. Chair.

Thank you for the opportunity to speak on behalf of FLOW. I'll be covering topics around water monitoring today, so let's get right at it here.

Water monitoring and the data it produces are fundamental and key to addressing a myriad of environmental issues, contributing to water research, supporting water management, creating sound water policy and underpinning the economic prosperity of Canada. Climate change adaptation and resilience strategies also will require improved and integrated water monitoring to ensure future prosperity for Canadians.

We know that Environment and Climate Change Canada, through its national hydrological service, conducts hydrometric water quantity monitoring across Canada. This national network is comanaged with all the provinces and territories through a cost-sharing agreement that dates back to 1975. This arrangement ensures consistent and standardized data collection across Canada, data that are quality-assured and readily available in real time as well as maintained in a historical archive. This comanagement approach allows for federal and provincial network operators to work together in a collaborative framework and is an ideal model for other national monitoring programs to follow.

That said, the network of hydrometric monitoring stations has not recovered to the level it was at in the early 1990s, and it's well recognized that more stations are required to effectively address Canada's current and evolving water information needs, particularly as we know that the impacts of climate change are being realized through accelerations in the water cycle, affecting floods, droughts and ecosystems. Although provincial investments in expanding the network have increased substantially—largely as a response to floods and water management challenges at the local level—overall, the number of stations has slightly decreased. This has been largely due to federally funded stations within the network being reduced substantially in the mid-1990s.

There was a significant increase in the federal monitoring budget in 2017, but that funding was focused on fixing a long-standing and significant infrastructure and technical debt in the program. The new funding focused on the modernization of the network, managing inflationary operating costs and addressing loss of infrastructure from fire and floods, leaving very little for network expansion. More funding needs to be allocated for targeted network expansion.

One case for expansion is to address the lack of monitoring on indigenous lands, which comprise a substantial area of Canada. Past external audits have identified indigenous lands as a federal priority for hydrometric monitoring, and this issue was recently reinforced in an internal program audit in 2023, which highlighted this concern and identified a course of action for moving forward with this by 2025. This will require additional funding and extensive indigenous consultations. An indigenous partnership culminating in a water monitoring agreement should be the goal of this effort.

ECCC also houses the water quality monitoring program. It has been recognized that water quality and quantity monitoring need to be more integrated. However, fragmentation of water programs in ECCC has impeded the integration efforts. A report produced by a blue ribbon panel in 2017 identified this, along with other issues related to water monitoring requirements within ECCC.

Another important water monitoring program that deserves more attention is groundwater monitoring. This program is carried out largely by the provinces and through rural municipalities in Canada, but national scoping and data collation resides at Natural Resources Canada. There are important linkages between surface water and groundwater, but there is limited to no interaction between ECCC and NRCan monitoring programs.

The Forum for Leadership on Water provides numerous submissions calling for all water monitoring programs to be part the Canada water agency. The motivation for this is based on the co-operative approaches required for successful integrated monitoring among multiple levels of governments and with first nations. The agency would facilitate this co-operative type of approach and allow for multiple levels of government—including first nations, NGOs and industry—to contribute to an integrated approach. No one federal department can achieve this.

FLOW has been made aware that none of these water monitoring programs will be incorporated into the Canadian water agency. However, we hope there is potential for additional water monitoring components to be included in the CWA at a later stage.

Finally, at this point it's not clear how the CWA will provide any oversight, input or vision for water monitoring in Canada. Therefore, FLOW is proposing that, at a minimum, a water monitoring table be established by the CWA to facilitate dialogue and promote coordination among the water monitoring programs housed in different federal departments.

[The Chair, Liberal, Francis Scarpaleggia]

Thank you, Professor.

We'll go now to Tim Faveri, vice-president, sustainability and stakeholder relations, at Nutrien Ltd. He's joined by Mr. Mike Nemeth, senior adviser, agricultural and environmental sustainability, at Nutrien Ltd.

I assume it's Mr. Faveri who will be speaking.

[Tim Faveri, Vice President, Sustainability and Stakeholder Relations, Nutrien Ltd.]

Yes, it is.

[The Chair, Liberal, Francis Scarpaleggia]

Please go ahead.

[Tim Faveri]

Thank you, Mr. Chair, for the introduction and the invitation to appear today.

Mike and I are joining you from Calgary. I'd like to honour our company's practice by acknowledging that we come to you from Treaty No. 7 territory.

I'll start with a few words about Nutrien, now the world's largest producer and provider of crop inputs and services. Our global business spans four operating segments across 13 countries, including our retail division—also known as Nutrien Ag Solutions—and the manufacturing and mining of potash, nitrogen and phosphate fertilizers. We have fertilizer production and sales of over 30 million tonnes, and our retail business serves over 500,000 growers and 150 million acres around the world. Also, we are proudly headquartered in Canada.

With this comes great responsibility to safely and sustainably feed a growing world. We call it “feeding the future”. That's our purpose, which is more important than ever. By some estimates, the use of fertilizer accounts for approximately 50% of global crop yields. It's critical for growers to meet the continued, growing demand for food, fuel and fibre.

Water is an essential input to our operations, especially in mining and fertilizer production. Waterways are crucial natural infrastructure assets for the transport of our products to market. In 2022, Nutrien achieved WAVE certification verifying our company's commitment to the use of credible, water-related data and best practices for water stewardship performance. Less than 2% of Nutrien's water intake is from water-scarce regions.

Agriculture is also highly dependent on water, but localized challenges exist regarding availability and quality, which can vary significantly by region and are often intensified by the effects of climate change. Nutrien is committed to working collaboratively to address water-related challenges and opportunities. We support water stewardship in agriculture, starting at the farmer's field through the use of practices like 4R nutrient stewardship products and digital tools that support sustainable agriculture and water stewardship in the entire agri-food value chain.

With water, you must always be proactive. Nutrien occupies a unique position in the value chain as an input producer and retailer, leveraging that role to ensure the protection of the environment while demonstrating a business case to our customers. We've had success in using a carrot, not stick, approach with our customers to reduce greenhouse gas emissions through carbon markets. We see the same opportunity and potential for markets to positively benefit water and biodiversity.

Several years ago, we initiated a pilot with value-chain partners to try to understand how we can support growers in driving positive water outcomes on the farm and in the watershed through management practices, products and solutions, all based on good agronomy. We brought together diverse stakeholders within the Lake Winnipeg basin—ALUS Canada, the Water Council, BASF, General Mills and J.R. Simplot—with counsel from the likes of Agriculture and Agri-Food Canada, the Manitoba Association of Watersheds, Ducks Unlimited Canada and more.

Phase one plainly demonstrated the water, soil health, biodiversity, climate and—most importantly for growers—financial return of on-farm water stewardship plans. The social return on investment was $6.50 for every dollar invested in on-farm practices, 15 times the amount for every dollar invested in wetlands enhancement.

Phase two, which began last fall, will run for two years with a focus on implementing the water stewardship plans, documenting and assessing the environmental outcomes and value from actions taken, scaling this work with other stakeholders in the region, and continuing to build the business case for investing in on-farm water stewardship.

We've appreciated the support of the Government of Canada to date. We ask the committee to support continued investment in these efforts and to examine the potential for market-based mechanisms to drive adoption.

With that, I thank the chair and the members for their time.

[The Chair, Liberal, Francis Scarpaleggia]

Thank you very much.

We'll go now to Chief Billy-Joe Tuccaro, who I think many of us met when he was here a couple of weeks ago.

Welcome to the committee, Chief Tuccaro. You have five minutes, please.

[Chief Billy-Joe Tuccaro, Mikisew Cree First Nation]

Thank you very much. Good afternoon, everyone.

First and foremost, I'd like to thank our Creator, my elders and my community members.

I'd also like to thank you for inviting me to speak to the committee today.

Today I sit on my Treaty 8 homeland as the chief of Mikisew Cree First Nation. We are the largest first nation downstream from the world's largest resource-extractive industrial development in the northeastern part of what is now known as Alberta.

For as long as the sun shines, grass grows and the rivers flow—this is what we were promised in Treaty 8. It was understood by our ancestors that this was about the spirit and intent to recognize a nation-to-nation relationship. Our way of life and who we are as Mikisew people depend on water for all aspects of our traditional cultural inherent rights. It connects us to our ancestors. It is what connects us as human beings. For us, water is boss.

Our elders remind us that, before we are born into this world, we have lived our first nine months in water. It sustains and gives us life. We are dependent on water. Without water, we will die. Water holds memory that is transferred to us. That is our relationality. As Mikisew people, we rely on our local water sources on a daily basis as we hunt, harvest and fish as intended in our promised treaty.

I will speak about how Canada got into this situation, and I will talk about fresh water as it relates to Mikisew in two ways: its quality and its impact on our health; and its quantity and its impact on our culture.

For decades, Canada has participated in the approval of the oil sands industry, mine by mine, with no mechanism for managing the cumulative effects. Canada and the Alberta Energy Regulator have authorized the withdrawal and use of water from the Athabasca River and the accumulation of truly staggering volumes of semi-solid toxic waste.

Canada told all of us that they would find a solution to tailings. The government has issued three federal reports saying that they would find a solution to the tailings. Thirty years later, there is none.

In our traditional territory, there are now at least 1.8 trillion litres of process-affected water. This is highly toxic liquid waste that is formed by various industrial processes. That number continues to grow daily, and the waste in those ponds would fill enough swimming pools to reach three-quarters of the way around the earth. Tailings ponds are the largest industrial waste site on the planet.

Industry is telling us that their best option is to treat and release all the dirty water, and what they're not telling you is that their plan for all those tailings is to put them in pits, cover them with water and walk away. Is this truly an option? For whom? Industry? We are being told that the same two levels of government that approved the industry and then turned a blind eye to our concerns about health and accumulating waste will approve these regulations.

Canada is trying to work with us on solving the issues, but it's facing increasing pressure from industry. Industry's approach does not meet Mikisew Cree standards. It will not protect the Athabasca River. We say, “No way.” We say that Canada cannot turn the Athabasca oil sands into Canada's largest hazardous waste disposal.

While we suffer the disproportionate impacts of industrial development, other non-first nation governments benefit from the development. Our traditional territory continues to be altered and extracted from at a fast pace, which has impacted and continues to impact our watersheds. I have witnessed our watersheds, which I once drank from or swam in as a child, become so polluted that we are now fearful of drinking and/or swimming.

I have witnessed large sores on the moose and fish we hunt and harvest. I've witnessed friends and family fighting or dying from cancers that we believe were caused by naphthenic acids or carcinogens in our watersheds.

In the last nine months, we lost two of our previous chiefs, who succumbed to cancers: the late chiefs Peter Powder and Steve Courtoreille. Our nation is grieving. We're not only grieving friends and family, but we're grieving the impacts on our lands and water.

The health impacts go beyond cancer and other diseases. Our people don't use the land anymore because they just don't trust the water. This is a direct cultural impact. We are seeing increasing rates of opioids, addiction and mental health issues because of the water crisis we face—

[The Chair, Liberal, Francis Scarpaleggia]

Chief Tuccaro, we have gone a bit over time. We had extra time because other witnesses took less time, but I'm hoping we'll leave enough time for questions, because I'm sure there will be many questions for you.

Would it be okay to stop this portion and then open up the questions in a couple of minutes?

[Chief Billy-Joe Tuccaro]

That sounds great to me.

Thank you very much.

[The Chair, Liberal, Francis Scarpaleggia]

Thank you.

Lastly, we have Elizabeth Hendriks, vice-president of restoration and regeneration at World Wildlife Fund-Canada, who is joining us by video conference.

You have five minutes, Ms. Hendriks, for your opening remarks.

[Elizabeth Hendriks, Vice-President, Restoration and Regeneration, World Wildlife Fund-Canada]

I want to thank the committee for inviting me to share my expertise on fresh water and the impacts of climate change, and for undertaking this study.

I'm grateful for online technology today. I am on Mi'kma'ki lands, the ancestral and traditional lands of the Mi'kmaq people. However, the land and waters I will be speaking to today are the traditional homelands and territory of first nations, Inuit and Métis people, and remain home to diverse indigenous people. The water and land was and remains native land, and it is important to keep this front and centre.

As was mentioned, my name is Elizabeth Hendriks. My role at WWF Canada is vice-president of restoration and regeneration.

Today my testimony will illustrate two core points. First, we are facing the dual crisis of climate change and biodiversity. Freshwater impacts are core in that story. Second, with federal investment we can address these crises by stewarding, protecting and restoring nature. This investment will have cobenefits for our communities, economy and the nature that we depend on for our survival.

The challenge in Canada and around the world is that we are witnessing the devastating impacts of a planet that is out of balance. Climate change is a real and present threat, and we're regularly reminded of how much our world has changed with extreme weather events.

Recently at the Globe Forum in British Columbia Premier Eby spoke frankly of the climate impacts to that province. Parts of the province are experiencing high levels of drought and there is concern that water levels in the dams will prevent their ability to generate power at the level needed to serve customers.

Here in Nova Scotia, in 2022, our government put out an analysis of climate change impacts for the future. This report said that by 2050 warmer temperatures would mean that wildfires would be the biggest threat to Nova Scotia, yet just one year after that 2022 report, we watched a massive wildfire devastate the Halifax region.

Unfortunately, the climate crisis isn't the only crisis before us. The planet's biodiversity is shrinking and quickly. There is a slow yet persistent disappearance of nature and the diversity of life on this planet. It is bad for nature and it is bad for us. Specifically, freshwater ecosystems are undervalued and understudied. Fresh water is critical for community and species health. There is also a real cost to Canadians.

In Manitoba, financial predictions are that the average potential crop yields could fall by 10% to 30% due to higher temperatures and lower soil moisture. Hailstorms in Winnipeg and Calgary combined to cause more than $250 million in damages, and in Regina, unexpected significant snowfall events and resulting road maintenance costs in 2022 produced a municipal operating deficit. The city is directly linking the growing operational costs with climate change.

Operational costs of managing water are also putting major pressures on municipal budgets in Quebec. In 2023, Quebec public security officials announced 89 communities affected by spring flooding, while places like Sutton, Quebec, were addressing the costs of drought conditions.

There is a solution. We can tackle the biodiversity crisis and the climate crisis by protecting and restoring nature. We can address climate risks to communities and economies by addressing freshwater challenges in our communities. Because nature is habitat, it's the building block for biodiversity. It stores carbon. It absorbs floods. It holds the earth in place, preventing landslides and erosion. It keeps fresh water available and accessible for food production, sanitation and basic needs, and nature keeps our communities resilient.

Nature-based solutions can help our towns and cities be more climate resilient and natural disaster-resilient, too. Do you know a healthy silver maple can absorb 220 litres of water per hour? That is a lot more than a concrete culvert.

Healthy terrestrial ecosystems can ensure healthy freshwater ecosystems that collect, store and filter water. Restoring blue carbon, peatland and wetlands can absorb significant carbon emissions and support our communities.

The strength of the federal government lies in reconciliation and investment via the power of convening and capacity building. Here's where you come in, because you're all committed to promoting responsible, innovative and effective water resource management through this study. You have a voice and authority, and your expertise carries a lot of weight in your parties and in your home communities and ridings, ridings with voters who are all experiencing the real impacts of climate change.

In the face of biodiversity and climate crises, water management through freshwater restoration and protection strategies is going to be critical to mitigating the risks, threats and impacts of climate change.

With that, thank you for your time.

[The Chair, Liberal, Francis Scarpaleggia]

Thank you.

Mr. Kram, you have six minutes.

[Michael Kram, Conservative, Regina—Wascana, SK]

Thank you very much, Mr. Chair.

Thank you to all the witnesses for being here today. I'd like to start with Mr. Faveri from Nutrien.

Mr. Faveri, you talked in your opening statement about on-farm water stewardship plans. Could you elaborate on what these on-farm water stewardship plans are? Are they mandated by governments, or are they partnerships between Nutrien and the farmers? If you could elaborate on that, that would be very helpful.

[Tim Faveri]

Sure. They are highly voluntary, but I'd like to pass it to my colleague, Mike, who runs these programs.

[Mike Nemeth, Senior Adviser, Agriculture and Environment Sustainability, Nutrien Ltd.]

When we say on-farm water stewardship plans, those are voluntary, as Tim stated. What we're doing is piloting those right now in a credible way, using an international water stewardship standard with the farmers and agri-food value-chain members to develop water stewardship plans that work for each farm.

They're full farm. They encompass all aspects of the farm—planting, management of all the fields, crop rotation, 4R nutrient stewardship—and the idea is to make sure that we're tying good agronomic practices that support profitable, productive and resilient farms with producing positive water, biodiversity, climate and social outcomes.

In doing these plans, we're piloting with growers to understand how best to do this water stewardship planning across regions and how it can create value at the farm and also in the value chain, which allows us to really understand the business case for value-chain investments in water stewardship.

[Michael Kram, Conservative, Regina—Wascana, SK]

What is the incentive for the farmer to participate?

[Mike Nemeth]

The incentive for the farmers who are involved right now, actually, was for them to pilot it with us in an innovative way. Nothing like this has been done anywhere else in the world, so piloting it in Canada, piloting it with value-chain members and understanding that there was the potential for value creation for their operations was their incentive.

[Michael Kram, Conservative, Regina—Wascana, SK]

Okay.

Mr. Faveri, in your opening statement, you talked about how you prefer a carrot approach rather than a stick approach to water. Besides the on-farm water stewardship plans, do you have any other examples of where the carrot has worked better than the stick, so to speak?

[Tim Faveri]

Sure.

We've demonstrated this through our sustainable agricultural programs, particularly with nitrogen management and utilizing the federal price on carbon to incentivize growers to shift their practices and become more nutrient efficient by rewarding them through that price on carbon and the amount of greenhouse gas reductions that can be modelled and measured on the field. That has been very successful. We've actually scaled that across western Canada on well over 400,000 acres.

[Michael Kram, Conservative, Regina—Wascana, SK]

This is still for the Nutrien witnesses.

In your opening statement, you talked about how water is a key input for potash mines. Can you give the committee an idea of what type of regulatory process Nutrien has to go through to open a new potash mine? How much money does it cost, and how much time does it take to get the regulatory approvals?

[Tim Faveri]

We haven't broken ground on a nitrogen site or mine site for many years in Canada. Obviously, there are significant regulatory issues and approvals that would need to be created.

What we do know, though, is that our strategy is to utilize our brownfield sites for production expansion. I am probably not the best individual to answer those questions because of our lack of recent development in this area.

[Michael Kram, Conservative, Regina—Wascana, SK]

Is there a chance that the lack of recent development is because of the regulatory burden?

[Tim Faveri]

That is a great question.

The regulatory burden obviously exists, but again, our strategy is around working with the assets that we do have, in line with our market demands.

[Michael Kram, Conservative, Regina—Wascana, SK]

Okay.

Can you give the committee an idea...? If you want to open a new potash mine, are the regulations mostly federal or mostly provincial—or is it both?