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Proceedings of the Standing Senate Committee on
Energy, the Environment and Natural Resources

Issue 16 - Evidence, October 25, 2001 


OTTAWA, Thursday, October 25, 2001

The Standing Senate Committee on Energy, the Environment and Natural Resources, to which was referred Bill S-18, to amend the Food and Drugs Act (clean drinking water), met this day at 9:36 a.m. to give consideration to the bill.

Senator Nicholas W. Taylor (Chairman) in the Chair.

[English]

The Chairman: Senators, I call the meeting to order.

I would ask the two witnesses to introduce themselves, please.

Ms Louise Comeau, Director, Sustainable Communities and Environmental Policy, Federation of Canadian Municipalities: I am Louise Comeau from the Federation of Canadian Municipalities. I am the director of the Sustainable Communities and Environmental Policy Department. With me is Sylvestre Fink, who is our environmental policy analyst. Mr. Fink supervises the day-to-day activity on our water program.

Thank you for inviting us to present to you. Our organization is interested in the activity of the committee and in Bill S-18. The Federation of Canadian Municipalities has been working with its membership on issues around water, which are of increasing concern.

The FCM is the national association of municipal governments. Our 1,000 municipal government members represent about 80 per cent of Canadian municipalities. We operate using a grass-roots oriented structure. Our 72-member board meets regularly to manage our work day-to-day. We also hold an annual conference, which usually attracts 1,500 to 2,000 municipal representatives. It was at our June 2001 conference in Banff that we matured our position on water, drinking water and waste water.

The position that was approved by our membership, and is now our mandate, uses a pollution-prevention approach, as opposed to cleaning it up after the fact. The latter approach was taken with respect to Walkerton and North Battleford. We have decided that certain significant kinds of material coming into the system should be controlled at the source.

Our pollution-prevention approach focuses on land-use planning and watershed management; consideration of drinking-water quality standards; monitoring and testing of water sources and treated water, particularly source water protection; and managing impacts by agriculture and other industry sectors that put materials into the water system.

A major concern of ours is full-cost pricing, particularly in those communities with the population base to support a cost structure that covers capital and operating costs of water systems. Full-cost pricing is not the case anywhere in Canada today. We are working on our federal budget submission, which I will address later, on infrastructure investment. In addition, we believe our approach should focus on operator training.

The approach we have adopted is based on the principle that every Canadian should have access to water that is pathogen-free. Bill S-18, a bill to amend the Food and Drugs Act, is one way of attaining that objective.

You will have heard in some presentations already, particularly from the Canadian Water and Wastewater Association, which represents the staff component of the municipal family as we represent the political component, that historically drinking water has been lumped in with water in the environment and is considered a natural resource. As you have clearly indicated with this bill, drinking water is not a natural resource. Municipal drinking water is an asset that is part of a system that delivers safe drinking water to citizens. Emphasis should be placed on water safety and the quality of the environment to ensure the health of citizens.

This point is particularly important because many of Canada's drinking water systems were not designed to cope with the volume and kind of various materials currently being flushed into the system, particularly by the agriculture sector. This is why a multi-prong approach is necessary.

You also heard from the CWWA and Health Canada that a system is currently in place to set water quality guidelines and that this system currently works well. Some confusion remains to be addressed about who does what and who should do what when. Inconsistencies in approach have appeared as provinces have accepted these guidelines and converted them into regulation, but we are seeing movement in this area.

Turning the guidelines into national standards could ensure consistency across Canada. Initially, however, it may be more feasible to focus on national standards for microbial parameters on components that we are trying to manage, like E.coli, as opposed to everything in our water. Switching to the new legislative framework envisioned by the proposed bill may be confusing and may not produce better results than improvements and modifications to the current system.

Bill S-18's reporting and inspection requirements that would parallel the current system could prove to be quite onerous. We certainly have concerns about the Criminal Code aspect of it and issues related to criminal liability. The implications of such liability are unclear at this time. They could become financially debilitating and place water distribution systems and their operators at risk. Municipal governments are particularly concerned about managing these responsibilities given that water systems were not originally designed to handle all the materials now in them. We need a two-prong approach consisting of a major investment in infrastructure and an upstream control.

The current state of our infrastructure does not allow a move to national standards at this time unless accompanied by the kinds of dollars we need to match the investment to the responsibility. There is a major deficit in our infrastructure, particularly in the smaller communities. Larger centres are managing, as they have the population base. Please note that Walkerton and North Battleford were small communities surrounded by agricultural operations.

The distribution system is ageing. There are gaps in our knowledge of the overall state of the infrastructure. We continue to take stock and we work with the numbers that we have, but we actually are not confident that we understand the full state of our infrastructure. We use the CWWA estimates. In 1997, these showed that a $5.4 billion additional investment would be required through 2012 to bring all water and waste-water treatment plants up to the latest equipment and techniques and to extend central water supply and waste-water collection systems to all residents of municipalities. These figures do take into account expected population growth.

As I mentioned, FCM has been working actively on the federal budget process. We have proposed some ideas, which I believe represent a maturing of the approach and the understanding of municipal governments. We are seeking a change in the way that the federal government, together with provincial and municipal governments, invests in infrastructure. The problem is that a third infrastructure program, which is now in place, is short term and ad hoc. In fact, this type of program has had the effect of interfering with long-term planning of municipal governments. Long-term planning and major capital investments wait until municipalities know whether or not there will be another infrastructure program.

We are arguing for a permanent approach to infrastructure investment. This approach should start with water. We know that that requires a change from the status quo, as it is not appropriate to subsidize water systems in perpetuity.

We know there is a base level of investment required for any community. Communities with smaller populations that would never have the revenue to cover capital, therefore, operating costs, would remain as part of the present tripartite system. Communities with larger populations, the larger urban centres, would have access to a revolving fund. This model is similar to one in the United States where municipal governments have access to low-interest or no-interest loans. However, they are required to generate the capital and operating revenue to repay their loans.

Over time, we are moving to full-cost pricing, a principle FCM members have been working on. We believe that this approach, combined with upstream, comprehensive source protection and watershed planning, is fundamental.

In our budget submission, we urge that analysis be undertaken now around how these measures would work. We seek to phase in a permanent infrastructure program, particularly for water, as the existing program phases down, within the next two to three years. It would include different funding mechanisms to meet different needs, for instance grants for watershed planning, source protection and operator training.

Although the bill appears well-intentioned, FCM finds that it has the potential to create confusion among regulators, policy-makers and municipal operators. Rather than enacting new legislation, FCM believes the best strategy at this point is to provide stable funding sources to municipal governments and to invest in specific water-related programs like the rehabilitation and construction of water and waste-water infrastructure, full-cost recovery, and conservation of the most effective and cost-effective ways to ensure safe drinking water for all Canadians.

Senator Spivak: I want to congratulate you on your work. The municipalities are now beginning to flex their muscles, as they should, because that is where the local authority is.

In your presentation, you did not really address the problem of agricultural pollution. You probably have seen the recent report on the Great Lakes.

Ms Comeau: Yes, I did.

Senator Spivak: That appears to be an urgent matter. I wanted to ask you about approval and disapproval. In my province of Manitoba, there are frequent disputes between the municipal authorities and others who want to intervene in municipal affairs. These disputes are resolved in various ways. How urgent, do you think, is the threat of agricultural wastes in the water system? How should decisions to respond be reached?

Ms Comeau: We believe the agricultural-waste threat is urgent. Manure management, for example, and a move toward large factory livestock operations are having a significant impact on municipal water systems. This is why we are arguing that a more upstream approach be taken instead of efforts at cleanup after the fact. Through the watershed planning process and source protection process, we could identify ways to restrict. This would not necessarily be at the municipal end; this would clearly involve the province. The process requires all stakeholders to accept the watershed-planning principle, and crosses political boundaries, as one watershed contains more than one municipal government.

We are looking to models where communities have overcome this problem. New Glasgow, Nova Scotia, is one example, where all of the municipal governments and stakeholders have come together within a watershed to develop a watershed plan.

Senator Spivak: Often, it is the province that is luring all of these hog operations to come in - so they basically override the initiatives of the municipalities. Are you saying that stakeholder coalitions can combat this trend?

Ms Comeau: Without a doubt, lobbying activity and the perception of economic benefit have permitted major development of livestock operations. These operations have had significant environmental impact, which has not been properly addressed.

My view is that public concern and pressure as a result of North Battleford and Walkerton are beginning to change that. For the first time, we have publicly acknowledged and identified the contribution of the agricultural sector to this problem. That was not the case two years ago.

Senator Spivak: Given the urgency of this problem, I think a sharp, surgical strike is needed. This bill and the penalties that would flow from it will strongly focus attention on the need to address the problem. We have to cut through the internecine fighting within agricultural development and the trend towards agri-business.

Bill S-18 sets firm requirements. It provides criminal penalties. That is why I believe it is a good approach. I am wondering why you are lukewarm about it.

Ms Comeau: We have identified the question of liability and where it would rest, to avoid the possibility that it may come to rest on municipal governments with no capacity to control materials entering the water system and no access to resources to actually fix the water system.

Senator Spivak: I do not know where that liability lies.

Senator Adams: I would like to thank the witnesses for appearing here today. You said that your organization represents 80 per cent of the Canadian population and that you have a 72-member board. How far north does your membership extend? Nunavut, where I live, is a long way from Ottawa. Are you based in Ottawa?

Last May, your organization met to discuss the issue of drinking water. In Nunavut, we call most of our small communities hamlets, rather than cities or anything like that.

How much sway does your organization have with municipalities?

Ms Comeau: Regarding membership, FCM has direct membership from individual municipalities, including those in the North. Within our membership and on our board, all provincial and territorial association are represented. Through that network, all municipal governments in Canada are members.

Our team works hard to increase membership. Our national office is in Ottawa. We work directly with members and with provincial and territorial associations. Our mandate is to represent municipal governments at the federal level.

Senator Adams: In Nunavut, we do not farm or raise cattle. The capital of Nunavut is where our own government is based. Without consulting the municipalities, or the hamlets, our Department of Public Works will go ahead and build a sewage lagoon. We had problems a few years back in Baker Lake with such a lagoon. It was an issue of the lagoon being located at the top of a hill and the sewage draining downhill into the lake. We would like to have notice of such lagoons being built before the government goes ahead and builds them. What I really want to know is if your organization is active in the North.

Ms Comeau: Our organization does have participation from the North. Iqaluit is part of FCM and represented on our board, although travel costs have been prohibitive.

We have two effective mechanisms through which to work on projects with municipalities. Although we do not set rules for municipal governments, we do develop policies that they approve. We work with them to implement approved policies at our board and membership level. As well, we have developed an effective program called the Green Municipal Funds. In the February 2000 federal budget, FCM received an endowment to encourage municipal investment in projects with a high standard of environmental performance. Qualifying projects must perform at least 30 to 55 per cent better than currently. Forty per cent of these projects concern water. We are working hard to increase our capacity and experience and understanding of what the opportunities are.

We have a green funds water project with Iqaluit. Because of the weather conditions up there, we are looking at on-site systems for purification of water, as opposed to distribution, which can freeze and so on. The same program is operating in Dawson City.

We do, therefore, have mechanisms through our policy work, our advocacy work and our program work. The department that Mr. Fink and I represent has 25 staff. In addition to green funds, we manage several programs that help municipal governments retrofit buildings, look at renewable energy technologies and make progress on climate protection. We are now working on brown fields redevelopment, which we hope will be expanded in terms of our green funds.

Hence, while we do operate within a legislative framework, we have good opportunities to make use of peer pressure.

Senator Adams: You spoke earlier about sewage lagoons. Were you referring to the type where the water is sprayed and it freezes in the process? I know of a company here in Ottawa that operates such systems. Something like that would be ideal where I live. The only problem there, however, is that blowing air at high pressures is difficult because of the low temperatures. Such systems are only good to about minus 20 degrees Celsius. As you know, refrigerants are no good at that temperature. Is that the type of stuff you were talking about? Do you know if that company here in Ottawa has gone bankrupt?

Ms Comeau: I have heard of the project. I am not familiar with whether the company has gone bankrupt, but I assure you that the projects we are working on in the North are really trying to focus on on-site purification of the water. This means splitting the grey water from other water and making sure that the system itself within the building manages whatever the community needs, as opposed to relying on central plans and distribution systems.

Senator Christensen: I am not surprised that Mayor Everitt of Dawson City is involved with this project. I was on your board of directors 25 years ago, but expect times have changed since then.

I expect the farm problem and contamination were major discussion topics at your recent conference. I would like to know how the road-salt issue is being addressed. Road salting is a municipal program. It is contaminating our groundwater, rivers and lakes, and ends up in our drinking system. Will Bill S-18 address this problem?

Ms Comeau: Road salt is about to be regulated under CEPA. We have been working on this initiative. After heavy debate at board and membership level, our members have been encouraged to accept three important conclusions. First, the science panel conclusion that road salt can reach concentrations harmful to the environment is a fact beyond question. Second, there are cost-effective ways of reducing the amounts of road salt used. We have worked on identifying those methods and informing our members about them. Third, Minister Anderson will shortly announce his intentions. Once that is gazetted, it launches a two-year process that will focus on the risk-management opportunities with road salt. We will then be engaged and intend to work with our members in the CTA to ensure that our members know of all the opportunities they have at their disposal.

In summary, we believe that road salt is toxic, that it needs to be managed and that there are ways to reduce its use and save our communities money. We intend to work with our members to have them focus on those aspects of it. We do not share the view of the Salt Institute that this problem must be stopped at all costs.

Senator Christensen: Do you believe that Bill S-18 will be another tool to help in that area?

Ms Comeau: I am not sure. There are parallel processes in play. Road salt will be regulated under CEPA; therefore, we will have to manage dual compliance regimes. This could lead to difficulties.

The Chairman: In addition to that, I read a headline recently that Calgary is proud to be introducing calcium chloride to replace sodium chloride order to keep the streets free of snow. Does calcium chloride behave differently than sodium chloride? I know it melts ice faster, but what does it do to the environment?

Mr. Sylvestre Fink, Policy Analyst for Environmental Issues, Community Energy Systems, Federation of Canadian Municipalities: The problem with calcium chloride appears to be its cost. Right now, it costs 15 to 20 times more than conventional road salt.

The Chairman: What does it do the snow and the road surface?

Mr. Fink: Studies have shown that calcium chloride is as effective as road salt when used in a brine solution, which means mixed with water; when applied before snow falls; and when using all other best practices available. The problem is the price. That is why the CTA has concluded that there are no viable alternatives to road salts right now.

If more municipalities used calcium chloride, the price would come down.

FCM has concluded that road salt can be managed and that the negative and harmful effects can be brought to manageable levels in the following ways: by introducing proper management techniques, by using best practices, by using brine solutions, by building smart road systems, with sensors in the roads, and by storing the salt properly. Much more road salt leaches into the water system because of improper storage than through its application on roads.

Senator Finnerty: Why not use sand?

Mr. Fink: Salt is used mostly in the eastern provinces, Quebec, and Ontario. We have encountered the most resistance to banning road salt in these areas because sand on its own is not as effective. However, it all comes down to best practices. We are advocating the use of sand as well.

Senator Cochrane: I think sand is effective. I have seen it used in my province of Newfoundland, on the hills and so on during wintertime. To me, it is just as effective as salt. I would prefer sand.

Ms Comeau: When looking at alternatives to salt it is important to consider the life cycle of the product. Sand has significant impacts on ecosystems. When sand runs off, it covers the bottom of the water systems, it can interfere with fish reproduction, and it has an effect on turbidity of the water. You have to look at the trade-off here. It is important not to trade-off typhoid for malaria. Sand is effective, and we use it in Aylmer, where I live. However, what happens to the sand in the spring run off has implications for the environment.

Each element that we use, no matter what it is, will impact the environment somehow. The issue, therefore, is first to minimize what you use. The smart road system helps in that regard. Our society takes a "slop and drop" approach in the application of materials. Smart road systems can save us materials and money. They identify road temperature and send a signal to the municipal operator to apply material before icing occurs. Presently, municipalities apply material to melt ice after it has built up. However, if it is applied before there is ice, far less material will be used to maintain road safety.

A second key step to improve road safety in winter conditions is to slow down. Rather than adapting our driving to weather conditions, we would prefer to use large amounts of salt. An effective approach should involve changing our driving behaviour.

Senator Cochrane: I would like to ask you about the positions the FCM has adopted at its conference this year. You mentioned that some municipalities are doing an excellent job, and you mentioned New Glasgow as an example of a model municipality.

Could you give us some other examples of what these model municipalities are doing, how they are doing it, what we can learn from them, and how it is that only these municipalities are able to undertake these projects?

Ms Comeau: Part of the answer is that they have the knowledge. Part of what we do at FCM is to make sure that we spread information on new approaches, best practices and so on. We do this by focusing on peer teaching.

The other part of the answer lies in strong municipal leadership. The mayor of New Glasgow happens to be a real go-getter. Mayor McLean ensures that she makes whatever political connection is needed on an issue. That kind of energetic leadership is not always present, nor the connections and commitment to build a political structure.

However, increasingly, communities are looking at these issues. For instance, more of our members are approaching us for guidance on how best to do watershed planning. It is a very new concept. It is not something that we have been involved in at a municipal level. In Ontario, watershed planning has been done by conservation authorities.

The Grand River Conservation Authority is another excellent model. The community there does all the land-use planning, the water conservation, and the management of its water systems around the ability of its watershed to cope.

I would say that scarcity drives the interest in most of our environmental initiatives. For example, the communities doing more work on waste management are the ones running out of landfill space. Communities with significant limitations on their watershed, such as availability of water, quality of the aquifer, are driven to take a look at their opportunities.

Most communities are not in that situation. In the area of waste water, many communities take sewage sludge from their operations and use it as agricultural fertilizer. The concern is that agricultural fertilizer from sewage sludge can have significant heavy-metal material in it and that needs to be managed.

Toronto, as an example, wanted to improve the quality of its bio-solids by limiting what could come into the waste-water stream. They wanted to pass a sewer-use bylaw restricting what industry could put into the waste-water stream and mandating development of pollution prevention plans. Fines of up to $100,000 dollars would be levied for non-compliance. To develop and pass a sewer-use bylaw, Toronto had to seek the Ontario government's permission.

Municipal acts are very prescriptive. Instead of general provisions permitting municipal governments to act in a broad range of fields, there is what we call prescriptive legislation, which in the case of Ontario can go on for hundreds of pages, listing specifically what the municipality can do. If it is not listed they cannot do it. To act outside of the prescriptive list, provincial permission must be sought and is not always granted. After many years, Toronto finally received permission to enact a sewer-use bylaw, one of the first in the country.

The Chairman: Yesterday, we heard from the Canadian Water and Wastewater Association. They suggested that, instead of this bill going through, the twice-proposed Drinking Water Materials Safety Act would provide the legislative framework and provide the basis for federal involvement. Are you at all familiar with that?

Ms Comeau: Yes, we are. I will let Mr. Fink take that question because he has been working closely with Mr. Ellison of CWWA.

Mr. Fink: What Mr. Ellison explained to me that the proposed Drinking Water Materials Safety Act would have worked within the framework of the system established by the current drinking water guidelines. These bills deal mostly with microbial standards. However, the provinces have all adopted the microbial guidelines already, so we are already at that standard of care. The acute health risks come from microbial contamination. The provinces have accepted the guidelines, as set by the federal-provincial drinking water team, as their standard of care.

The Chairman: Are you saying that they have moved up to that standard but we still need this amendment to the Food and Drugs Act?

Mr. Fink: The proposed Drinking Water Materials Safety Act would not have changed the current system; it would only have made what we have now the standard. Bill S-18 will shift the responsibility to the Food and Drugs Act. This will entail an entirely new regulatory regime and, particularly, a new compliance regime. We argue this is unnecessary, because the current system already works quite well.

Senator Grafstein: Let me start with the premise of the bill and your municipalities. FCM has 1,000 municipalities. In the last two years how many of your members have had boil-water advisories?

Ms Comeau: In Newfoundland, there have been about 200 boil water advisories. Some boil-water advisories have occurred as well in Saskatchewan and B.C. I do not have the total number.

Senator Grafstein: You have told us that everything is fine and that FCM is moving along. How many boil-water advisories have your members issued in the last two years as a total number of the thousand members you have?

Ms Comeau: First of all, I do not have the number of boil-water advisories with me. Sorry about that. I think you may have the numbers.

Senator Grafstein: How would I have the numbers?

The Chairman: Order! Senator Grafstein, you have numbers. The witness has said that she cannot answer your question. We understand that.

Ms Comeau: I realize that has been a major priority of yours, which we appreciate. Provincial governments, not by municipalities, issue boil-water advisories. They are a provincial responsibility, and our members are working to comply with existing provincial regulations, standards, and guidelines. Boil-water advisories do not always represent serious health crises. A boil-water guideline is not necessarily an E.coli situation.

Senator Grafstein: I did not say it was.

Ms Comeau: We are aware that major investments have to be made in terms of upgrading these systems, particularly in Eastern Canada. We have been working for 20 years to try and improve infrastructure investment. We know there is an issue about adequate supply of infrastructure and so on. We know Newfoundland is actively engaged on boil-water issues with our members there. Newfoundland has had the worst case in the country.

The Chairman: I think the witness has made her point now.

Senator Grafstein: I have read through your brief carefully. In order to use our limited time best, it would be most helpful if you were responsive to the questions. If you cannot respond, it is okay to say so.

I understand the Sierra Legal Fund, who will be here, did a study about boil-water advisories. The truth is that your association does not keep track of these advisories. The reason is that there is no interest in the municipalities keeping track of this on a national basis.

The facts are that, in the last two years, it has not only been Newfoundland. There are serious problems in Quebec, and they have tried to address them, and in Ontario. Saskatchewan, British Columbia and the North have also had boil-water advisories. The number that I obtained, and I do not know if it is accurate or not, is 800. Eight hundred municipalities have had a boil-water advisory, and the issue is not just E.coli, so that is a foul ball.

I wanted to know whether your association recognized the fact that they have a clear and present danger in their communities. When I look at the evidence I collected out of newspapers, there is a clear and present danger to public health.

I also wish to address your cost model. What does it cost per day, on average, a household in municipalities across Canada for their average intake of clear drinking water? We have evidence to suggest that an average household uses 360 litres per day. My question is, what is the cost per day on average across the country for drinking water through the drinking systems?

Ms Comeau: We would go to CWWA for that information.

Senator Grafstein: Do you know what the consumer is paying for bottled water in each of your member communities?

Ms Comeau: These are not FCM's issues.

Senator Grafstein: I would like to deal with the question of accountability now. You have been very candid by saying there is confusion about who, what, and when. Do you agree that there is confusion about accountability?

Ms Comeau: Yes. Absolutely.

Senator Grafstein: As I understand, your solution is to continue with business as usual and ask $5.4 billion from the federal government.

Ms Comeau: No, I do not think that is appropriate.

Senator Grafstein: That is what you have said.

Ms Comeau: May I return to my point on the boil-water advisories? I have to explain why you might perceive that FCM would do things that are simply not appropriate for us to do. I would like to be clear on that. When a boil-water advisory is issued, it is because current guidelines are not being complied with. The boil-water advisory is a move toward ensuring compliance. The issue is not whether we need new guidelines. The issue is determining how to enforce our present guidelines. That is a provincial responsibility. FCM is a federal association and is concerned exclusively with federal jurisdiction. Therefore it is inappropriate for me to comment on provincial responsibilities.

On accountability, we have taken a comprehensive position. In this presentation, I have not said a word about money and, in fact, we got to infrastructure as the last point.

Senator Grafstein: Well, it says under your paragraph you do.

The Chairman: Pardon me. The request for $5.4 billion was made of Minister Paul Martin by the Canadian Water and Wastewater Association.

Senator Grafstein: The FCM reaches the conclusion in this paper that additional funding is required.

The Chairman: That is true. However, the figure is taken from a presentation given by the Canadian Water and Wastewater Association to Minister Martin in October 2001.

Ms Comeau: It is unfair to take the view that municipalities do not comply with existing guidelines is because people do not care. The reality is that municipalities do not have the funding to deal with these issues. You cannot continue to year after year under-spending in these areas and expect nothing to happen.

We are not in support of such non-compliance.Our position is that the guidelines are in place and should be enforced. However, enforcement does require resources to ensure the infrastructure can manage the problem.

We also believe that significant changes to water management are required. Critical changes include watershed planning, source protection, operator training and more regular testing. Funding is needed because those areas currently are not being well managed. Resources should be focussed on these areas.

It would be unfair to say that we did not take a more comprehensive position. We know the issue of water management is about more than infrastructure. The question this committee is looking at, however, is whether new guidelines are needed and whether legislation is needed to do that.

The Chairman: Bill S-18 is not a guideline. It sets out the objectives to be attained. You are presenting arguments for more funding, but you have come to the wrong committee for that.

Ms Comeau: I am not asking for more funding.

Senator Grafstein: I find your brief confusing because, while you talk about full-cost pricing, you do not know the price of water in your municipalities. Perhaps you could obtain for this committee a cost model from your members. You have raised full-cost pricing, but we do not know what you are talking about.

Senator Adams: We are paying over $2.

Ms Comeau: That cost probably does not include your full-cost capital and operating costs. We are working now to develop a sustainable model that most municipalities can use. It has been developed on a model used in Hamilton, for which we can provide documentation. The Hamilton model demonstrates that pricing there does not cover the full capital and operating costs of the Hamilton system, but falls short by 80 cents per litre. There is a significant split between the price the consumer pays and the cost to provide the water. We have identified that problem.

Senator Grafstein: How can you know that? You said you did not have the numbers.

Ms Comeau: We have a study from Pollution Probe that lays out an interesting example in terms of Hamilton, which is one of the communities that has gone, in their view, toward fuller-cost pricing. There is this huge gap, which we now have identified.

We have engaged a firm to help us develop a model that communities can use for sustainable asset management. Anybody who applies to our green funds will receive this model and will be required to use it before they receive a grant.

I think we are operating within our jurisdiction and within our mandate.

Senator Grafstein: Do you know the costs to the health system caused by of health problems arising from bad drinking water in Canadian communities?

Ms Comeau: I do not.

Senator Grafstein: I would ask you to read for us a part of your brief, which, although insightful, seems to contain a contradiction. That is the third paragraph on page 3. Read that out for us, and then I will have some questions about this.

Ms Comeau: That paragraph reads as follows:

These would be funded from a permanent infrastructure fund...

That is tripartite and does not just include the federal government.

- modelled after the US Clean Water and Drinking Water State Revolving Funds, this Fund would provide local entities with the possibility of borrowing funds at zero or local low-interest rate for the purpose of capitalization.

This is what occurs in the United States today.

Senator Grafstein: Do you know what the precondition of that funding is?

Ms Comeau: Yes.

Senator Grafstein: What is that precondition?

Ms Comeau: The communities have to have in place the proper planning structures to manage their water systems. These include full-cost pricing.

Senator Grafstein: No, the precondition is to meet the federal drinking water enforceable standards; failing that, they receive not a cent.

Ms Comeau: I understand that, but the U.S. federal government has clearer jurisdiction in this area.

Senator Grafstein: No, they do not.

Ms Comeau: In our view, that may be how the Americans have moved forward.

Senator Grafstein: Do not confuse us. The committee will deal with the jurisdiction problem. You have your own problems and we have ours. At the end of the day, however, FCM is proposing a model.

Ms Comeau: That is right.

Senator Grafstein: That model is premised upon the American model.

Ms Comeau: Yes.

Senator Grafstein: The American model is premised upon federal, regulatory, quasi-criminal, legally enforceable standards. It is not based on peer pressure or guidelines.

Ms Comeau: That is right. Senator Grafstein, the way the American model works, the liability is to the state and the funds go to the state. The state capitalizes the funds.

Senator Grafstein: That is not so.

Ms Comeau: It is true.

The Chairman: May I suggest, Ms. Comeau, that you submit to us in writing a detailed description of how this infrastructure model in the U.S. is used.

Senator Spivak: That would be helpful.

The Chairman: It is a good point.

Senator Spivak: For years, a lot of non-governmental groups and environmental groups have argued for water standards like the United States. You do not seem to be in favour of approach. What is wrong with a system that has laws instead of guidelines? I believe the Sierra Club argued for that.

Ms Comeau: That may be so, but I happen to work for the Federation of Canadian Municipalities, and they have a position. Our members have endorsed consideration of national standards.

The question is whether Bill S-18 is the proper vehicle through which to achieve national standards. Despite our brief time to present our position on this bill to this committee, we have tried to emphasize our main concern, which is the liability question. We have also tried to explain to you the other ways in which we are addressing the issue. That is as best as I can say it.

The Chairman: You mentioned the short time. You are quite right. I wanted you to think about making another written submission to us. You have heard our questions and our concerns. Therefore, to make up for the fact that you did not have a whole morning, perhaps you could write to address our concerns.

May I compliment the FCM on its consideration of land-use planning and watershed-based management. In the West, where I come from, that is very important to us because the water is badly contaminated by the time it reaches the end user, at great expense. Throughout the West, not only in Alberta, we have agricultural products, oil and gas products, and manufacturers' products. The surface water run-off from our cities carries salt, PCs, fertilizers and herbicide. We treat our sewage but not our surface water. It is different if the water hurts the fish. We have a law in the West that if the water kills the fish there is a penalty. If it kills people, that is different.

Senator Spivak: If we need you back, would you be willing to return and continue this discussion? This committee is a broadly based group and may need to address these matters further with you.

Ms Comeau: Yes, I would be willing.

Senator Watt: My question is an extension to Senator Adams' question regarding to your membership. Do you also have members from Nunavik, Labrador, and the Indian reserves?

Ms Comeau: We represent municipal governments, not First Nations. We do have members from Labrador and Newfoundland, to the degree that there are municipalities there. The board of directors is elected from the membership, based on population and other factors. We have four or five members from Newfoundland and Labrador, and then it builds across the country in terms of population.

Senator Watt: I wonder if you can provide us with a list of your membership, including members from Nunavik, in the north of Quebec.

Ms Comeau: Certainly.

Senator Watt: Thank you.

The committee adjourned.


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