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AWATERSHEDSECURITYFUNDFORBRITISHCOLUMBIA
PositionPaper
Version1.0:UpdatedNovember2019
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TABLE OF CONTENTS
1. OVERVIEW 3
2. WHY B.C. NEEDS A WATERSHED SECURITY FUND 4
2.1THREATS 4
2.2ANENDURINGLEGACYFORB.C. 5
2.3DELIVERINGON-ANDINTEGRATING-PROVINCIALPRIORITIES 7
3. FUND INVESTMENTS & BENEFITS 8
3.1PARTNERSHIPS 8
3.2PLACES 10
3.3PEOPLE 13
4. FUND SCOPE & STRUCTURE 15
5. SUMMARY 15
APPENDIX: OPTIONS FOR FUND DESIGN & OPERATION 16
A.HowshouldtheFundbestructured? 16
B.HowshouldtheFundbefunded? 17
C.Whatscaleoffundsarerequired? 19
This Position Paper was produced through collaboration between the POLIS Water Sustainability Project (Rosie Simms and Oliver Brandes); BC Freshwater Legacy Initiative (Tim Morris), a project of Tides Canada; First Nations Fisheries Council (Susi Porter Bopp); and the BC Wildlife Federation (Claudia Ferris). We wish to acknowledge the late Alan Martin from the BC Wildlife Federation for his exceptional vision, leadership, and insight on this work. This Paper also benefited from reviews from Lisa Matthaus and Danielle Paydli.
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1.OVERVIEWDiversegroupsacrossBritishColumbiaarecallingontheProvincetoestablishadedicatedWatershedSecurityFundtocatalyzeandsupportcomprehensivewaterplanningandstrategicpartnershipinitiatives.Thesegroupsinclude:IndigenousleadersandtheFirstNationsFisheriesCouncil;Unions;B.C.WaterLeaders(over20groupsrepresentingpolicyexperts,salmonandwildlifeorganizations,andenvironmentalNGOs);localgovernments;wildlifeandrecreationorganizations;anddozensoflocalwatershedandcommunityorganizations.
TheSelectStandingCommitteeonFinanceandGovernmentServices’Budget2020ConsultationReportformallyrecommendsthattheprovincialgovernment“AdvancewatersustainabilityinBritishColumbiabyprovidingadedicated,sustainable,annualfundingsourceforFirstNations,localgovernment,localwatershedprotectionsagenciesandcommunitypartnerships.”1
BuildingontheSelectStandingCommittee’srecommendation,thisPositionPaperoutlinesthecontext,benefits,anddetailsofestablishingaWatershedSecurityFundforBritishColumbia.Itincludes:
● BackgroundandrationaleforaWatershedSecurityFund;● OverviewofFundbenefitsandtheactivitiesitwouldsupport;and● AtechnicalsupportingAppendixwithdetailsonoptionsforFundstructure,funding
mechanisms,andgovernance.
1 Budget 2020 Consultation Report. Source: https://www.leg.bc.ca/content/CommitteeDocuments/41st-parliament/4th-session/fgs/reports/FGS_41-2-2_Budget-2020-Consultation-Report_2019-08-07.pdf
Fundataglanceo Providessustainablefundingtoequipcommunitiestobuildresilienceinthefaceof
achangingclimateandgrowingwatershedthreats
o SupportsreconciliationwithFirstNationsandpartnershipswithlocalgovernments,farmers,businessesandcommunitygroups
o Investsinsmartplanningandcommunitycapacity,reducingcostsandcreatingjobso Fulfillsgovernment’scommitmentstoclimateadaptation,reconciliation,andrural
economies
o CreatesapowerfullegacyforB.C.throughaProvincialendowmentsupplementedbyothersustainablefundingsources,suchasasurchargeonwaterrentalfees
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2.WHYB.C.NEEDSAWATERSHEDSECURITYFUND
2.1THREATSFreshwatersecurityisanincreasingconcernforBritishColumbians.Manyregionshavesufferedrecentdroughtsandfloodsunderminingecologicalfunction,economicactivity,livelihoods,andfishsurvival.Waterandwatershedissuesareattheforefrontofconflictsaroundresourceextractionandlanduse(e.g.LNG,mining,andforestry).Communities—particularlyIndigenousandrural—arefacingthreatstodrinkingwaterandlong-termboilwateradvisories,costlyfloodingdisasters,2andincreasingcumulativeimpactsonlocallandsandwaters.CommunitiesImpactedbyMoreExtremeDroughts,Floods&ForestFires
HydrologicalinstabilityandmoreextremeextremesarealreadypartofB.C.’srealityandwillincreasinglyshapethefutureastheclimatecrisistakeshold.Fromthecompoundingimpactsofmassiveforestfiresthatcompromisewatershedhealthandunderminedrinkingwatersecurity,todevastatingfloodsanddroughtsthatputcommunitiesatrisk,theimpactsaresignificantandcostly.
ClimateRiskAssessment:The2019PreliminaryStrategicClimateRiskAssessment3forBritishColumbiaindicatesthatseasonalandlong-termwatershortagesarehighlyrankedrisksfacingtheprovince.And,recenteventsinsummer2019demonstratetheimpacts:• Forthethirdyearinarow,theOilandGasCommissionsuspendedwaterdiversionsinthe
PeaceandLiardbasinsduetodroughtconditions.4• FLNRORDissuedaFishProtectionOrderfortheKoksilahRiverduetoextremelylowflows
threateningfishsurvival—cuttingoffwaterforirrigationofforagecropsandindustrialuse.5• Withrecordlowlakelevelsandseverelyreducedflows,CatalystPaperbeganpumpingwater
directlyfromCowichanLakeovertheweirintotheCowichanRivertosustainthebareminimumflowsfortheRiver—acostlyandunsustainableintervention.6
NegativeImpactsonIndigenousRights&RelationshiptoLand&Water
Waterissacred,alive,andthelifebloodofFirstNations’traditionalterritories.Accesstohealthyfreshwaterisessentialtothecontinuedsurvivaloffishandotheraquaticspecies,andtotheprotectionofAboriginalTitleandRightsandTreatyRights.Buttoday,FirstNationsacrossB.C.arefacingescalatingwaterchallenges,includingdroughtsthatthreatensalmonsurvivaland
2 The estimated cost of total B.C. flood response in 2017 alone was more than $73 million. Source: https://www2.gov.bc.ca/assets/gov/public-safety-and-emergency-services/emergency-preparedness-response-recovery/embc/bc-flood-and-wildfire-review-addressing-the-new-normal-21st-century-disaster-management-in-bc-web.pdf 3 Preliminary Strategic Climate Risk Assessment report. Source: https://www2.gov.bc.ca/gov/content/environment/climate-change/adaptation/risk-assessment 4 BC Oil and Gas Commission Directives. Source: https://www.bcogc.ca/publications/directives 5 News Release: Water Use Restricted on Koksilah River to Protect Fish Populations. Source: https://news.gov.bc.ca/releases/2019FLNR0215-001616 6 News Story: Water Pumping has started at Cowichan Lake. Source: https://www.cowichanvalleycitizen.com/news/water-pumping-has-started-at-cowichan-lake/
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communitywatersecurity,anddegradedwaterqualityfromintensifyingcumulativeimpactsontheland.Urban/RuralDisparityinDrinkingWaterSourceProtection
B.C.’sdrinkingwaterprotectionframeworkismarkedbymassivedisparities—fromtheworld-classregimesservingmajorurbancentersinVictoriaandVancouver,tothelimitedornon-existentsourcewaterprotectionsinruralandIndigenouscommunities.Recentconflictsoverlogginganddrinkingwater(includinginYmir,Glade,Peachland,andUnionBay)—aswellasagricultureanddrinkingwater(e.g.intheHullcarValley)—demonstrategrowingcommunityconcernaboutlanduseanddrinkingwatersafety.
AuditorGeneral’sReportonDrinkingWater:
The2019AuditorGeneralreport“TheProtectionofDrinkingWater:AnIndependentAudit”findstroublinggapsinProvincialoversightandprotectionofdrinkingwater,notingthatthelackofaccountabilitytoensuredrinkingwaterisprotectedis“ofgraveconcern.”7
LossofWildSalmonHabitat
WildsalmonandtheirhabitatsareinseriousdeclineacrossB.C.,withwidespreadramificationsforIndigenousnations’foodsecurityandwell-being,commercialandrecreationalfisheries,andcommunityandecologicalhealth.TheprovincialgovernmenthaslimitedConstitutionalresponsibilityforsalmoninthemarinecontext—thebestwayfortheProvincetoleadonsalmonisbyprotectingandrestoringfreshwaterhabitatandwatersheds.
WildSalmonAdvisoryCouncil:Throughoutthe2018-19WildSalmonAdvisoryCouncilengagementprocess,communitymembersandexpertsconsistentlyraisedhabitatprotectionandrestorationaskeypriorities.SubmissionsemphasizedthatregulationofactivitiesaffectingfreshwaterandnearshorehabitatsrequiresadditionalfocusbytheProvince,alongwithwatershed-levelplanningandlawsandenforcementforforestry,agriculture,mining,andothersectors.8
2.2ANENDURINGLEGACYFORB.C.B.C.currentlyfacesaforkintheriverwithtwostreamsahead.Ontheonehand,business-as-usualwillseecontinuedlossofnaturalcapitalandgrowingwatershedthreats,insomecasesreachingtippingpointswithirreparableconsequences.Thisistherealityinmanyregionsoftheworldthatfailedtotacklewaterissuesuntilitwastoolate.9Thecosts—human,financial,andecological—areenormous.
7 Auditor General Protection of Drinking Water Report. Source: https://www.bcauditor.com/sites/default/files/publications/reports/OAGBC_Protection-of-Drinking-Water_RPT.pdf 8 Wild Salmon Advisory Council Report. Source: https://engage.gov.bc.ca/app/uploads/sites/426/2019/03/Wild-Salmon-Advisory-Council-Report.pdf 9 California and Australia are two prime examples of places that have experienced catastrophic droughts.
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Byinvestinginthesecurityofourwatersheds,theB.C.governmenthasatremendousopportunitytochooseadifferentwayforward.Thispathcapitalizesontheprovince’smostpowerfulresource—theingenuityandcollaborativespiritofBritishColumbians—togetaheadofwatershedthreatsandcreateanenduringlegacyforcommunitiesacrosstheprovince.Thislegacylookslike:
1) ReconciliationinAction.AWatershedSecurityFundcanenableIndigenouscommunitiestobuildthecapacitynecessarytoimplementIndigenouspolicies,laws,andgovernancestructures,whileworkingwiththeProvinceandnon-Indigenouscommunitiestoundertakecollaborativelandandwaterstewardship.
2) Healthy&ResilientCommunities.Throughinvestmentsincollaborativewatershedplanningandclimateadaptation,aWatershedSecurityFundcangreatlyimprovetheabilityofruralandurbancommunitiestosecuretheirdrinkingwatersourcesandwithstandtheimpactsofachangingclimate.Atthesametime,aWatershedSecurityFundcanincreasepublicawarenessaboutwaterandwatersheds,buildpublicconfidence,andemphasizeactionsallBritishColumbianscantaketoensurethesecurityoftheirhomewatersheds.
3) RobustLocalEconomies.Ruraleconomieshistoricallydependentonresourceextractionaresufferingfromindustrydownsizingorclosures,particularlyintheforestrysector.AWatershedSecurityFundcanhelpcatalyzelocaleconomicdevelopment:fromnewjobsandtrainingprogramsinrestoration,monitoring,andplanning;toleveragingprivatesectorinvestmentininnovativewatertechnologies;toenhancingsustainableagricultureandtourism.AWatershedSecurityFundwouldsupportfarmerstoinvestinecosystemservicessuchasnaturalriparianbuffers,utilizeefficientwatertechnologies,andhelpbuildB.C.’ssustainableagriculturesector.
4) FreshwaterHabitatforFishandWildlife.Throughinvestmentsinrestoration,conservation,andenvironmentalflowprotection,aWatershedSecurityFundwouldensurecriticalhabitatissafeguardedforsalmonandotherfishandwildlife.
Power&Leverage:
AB.C.governmentinvestmentinaWatershedSecurityFundwouldunleashamuchlargertotalprovincewideinvestmentbyleveragingcontributionstoprojectsandinitiativesfromawiderangeofothersources.ThesesourceswouldincludelocalgovernmentandIndigenouscapacityandresources,fundingfromphilanthropicorganizations,andleveragingthemarketthroughprivatesectorinvestmentinwatershedsolutions.Thisdoesnotincludethein-kinddollarcontributionsfromthethousandsofenergizedandknowledgeablevolunteersthatengageinwatershedwork.10AWatershedSecurityFundwouldalsoallowtheProvincetoleverageandensureongoingimpactfromothershort-termfundingcommitments,suchastheB.C.SalmonRestorationandInnovationFundandcurrentfundingcommitmentstolanduseplanning.
10 When the B.C. government created the Living Rivers Trust in 2002 (a fund that no longer exists) it was calculated that for every dollar invested by the Trust, an additional $7 dollars in leverage was generated.
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2.3DELIVERINGON-ANDINTEGRATING-PROVINCIALPRIORITIESWatershedsecurityislinkedtoasuiteofexistingProvincialmandatesandprioritiesrelatedtoland,economy,andreconciliation.Currently,governmentinitiativesonlanduseplanning,watersustainabilityandmanagement,forestry,climateadaptation,andreconciliationarebeingpursuedseparatelybydifferentbrancheswithinmultipleministries.11Thiscreatesseveralchallenges,includingFirstNationsengagementfatigue,inefficiencyinprogramdeliveryanduseofresources,andalackofclarityonhowthevariousinitiativeslinkandcomplementeachother.ThecreationofaWatershedSecurityFundoffersgovernmentanopportunitytodelivereffectivelyonmultipleexistingcommitmentsandprovidesamechanismtointegratevariouspolicyprioritiesatthelandscapelevel.
11 Including Ministries of Forests, Lands, Natural Resource Operations and Rural Development, Indigenous Relations and Reconciliation, Environment and Climate Change Strategy, and Health.
WatershedSecurityFund
Reconciliation
RuralDevelopment
ModernizedLand-usePlanning
SalmonStrategy
ClimateResilience
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3.FUNDINVESTMENTS&BENEFITSAWatershedSecurityFundisaninvestmentinthesecurityandwell-beingofallBritishColumbians.Returnsonthisinvestmentwouldbebroad-basedbenefitstocommunities,localeconomies,andhomewatersheds.TheFundwouldinvestinthreeprimaryareas:1. Partnerships-supportIndigenouscapacityandinitiativesforstrongandlastingwatershed
partnerships,withadditionalinvestmentinpartnershipswithlocalgovernmentsandcommunityorganizations.
2. Places-supportwatershed-scaleplanning,monitoring,andnaturalassetinitiativesinkeyregionsoftheprovincethatconnectlandandwater.
3. People-prioritizethecreationofgoodlocaljobs,supportfarmerstoproducesustainablelocalfood,andstrengthencommunityconnectionwithwatersheds.
Eachoftheseareasisoutlinedbelow,withdetailsonthefundingneedandstrategy,concreteexamples,andthelinktorelevantProvincialmandatesandpolicypriorities.
3.1PARTNERSHIPSa.IndigenousPartnerships
Inresponsetothreatsandimpactstowatershedsintheirterritories,FirstNationsaretakingleadershipinprotectinglocalrivers,lakes,andaquifers,includingestablishingwatermonitoringprograms,developingandimplementingwaterplans,policies,anddeclarations,andarticulatingandapplyingIndigenouswaterlaws.FundingNeed:IndigenouscommunitiesinB.C.oftenlackthenecessaryfinancialresourcestoundertakecriticalnation-buildingworkaswellasthemanagethedemandsplaceduponthembyCrowngovernmentsandindustrytorespondtodevelopmentpressuresintheirterritories.12ThislackofcapacityputsIndigenouscommunitiesatadistinctdisadvantageinadvancingthekindofgovernment-to-governmentrelationshipsenvisagedbyB.C.’scommitmenttoreconciliationandtheimplementationoftheUnitedNationsDeclarationontheRightsofIndigenousPeoples.FundingStrategy:ByinvestinginIndigenouscapacity,theWatershedSecurityFundwouldsupportIndigenouscommunitydevelopmentandlaythefoundationforCrown-Indigenousrelationshipsleadingtomeaningfulactionandreconciliationonthegroundandinthewater.
EXAMPLES:NicolaWatershedGovernanceProject&CowichanWatershedBoardIntheNicolaValley,theProvincehasinvestedresourcestoenablethefiveNicolaFirstNationstobuildinternalcapacitytoengageasequalpartnersinthegovernment-to-governmentNicolaWatershedGovernanceForum.IntheCowichan,theCowichanValleyRegionalDistrictandCowichanTribesaredemonstrating‘reconciliationinaction’viathelongstandingco-chairedCowichanWatershedBoard.13
12 Capacity gaps are the top barrier for First Nations to participate or engage in water management or governance issues. Source: https://www.fnfisheriescouncil.ca/wp-content/uploads/2015/09/BC-Systematic-Review-Project-Report_Sept-15-2016.pdf 13 News Release: MOU to Address Water Governance in the Nicola Watershed. Source: https://news.gov.bc.ca/releases/2018ENV0012-000484; Pathways and Partnerships: A framework for collaboration and
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b.LocalGovernmentPartnerships
Localgovernmentsareonthefrontlinesofclimatechangeimpactsandareleadingavarietyofinnovativewatershedinitiativestoproactivelyrespond—fromeco-assetmanagement,towaterconservationprograms,towatershedplanningandmonitoring.AseriesofrecentUnionofBCMunicipalitiesresolutionsdemonstratethatimprovingwaterandwatershedmanagementisapriorityforlocalgovernments.14Somelocalgovernmentsarefindingwaystogeneratefundingforwatershedprotectionviaserviceareasandparceltaxes(e.g.RegionalDistrictofNanaimo,CowichanValleyRegionalDistrict,RegionalDistrictofKootenayBoundary).15FundingNeed:Recentappliedresearchshowsthatlocalgovernmentsfacemajorlimitationsingeneratingsufficientandsustainablerevenuesforwatershedsecurity.16Forexample,inruralareas,theparceltaxapproachisineffectiveduetolowpopulations/taxbases.Giventhemulti-jurisdictionalnatureofwatershedmanagement,somelocalgovernmentsarereluctanttoengageintheseinitiativeswithouttheProvinceasanactivefunderandimplementationpartner.FundingStrategy:AWatershedSecurityFundwouldcatalyzeandsupportpartnershipswithlocalgovernmentsindatacollectionandmonitoring,watershedplanning,eco-assetmanagement,waterconservationprograms,andclimateadaptation.
Example:In2008,theRegionalDistrictofNanaimolauncheditsDrinkingWaterandWatershedProtectionProgram,supportedbyanannualparceltax.Throughpartnerships,theProgramhasmadecriticaladvancesinwatershedcharacterization,awarenessbuilding,andwaterconservation.17Accordingtothe10-yearProgramReview:“Ourinvestigationleftuswithlittledoubtthat,directlyasaresultoftheprogram’swork,thereisalreadyamuchbetterunderstandingofaquifersandstreamsintheregionthanelsewhereonVancouverIslandormuchoftheprovince.”18
c.CommunityPartnerships
HundredsofcommunityorganizationsacrossB.C.aretirelesslyworkingonprojectstoimprovewatershedhealth,engagingthousandsofvolunteersintheprocess.Fromrestoringwetlandsandsalmonhabitat,tocommunity-basedmonitoring,todevelopingcommunity-ledwatershedplans,communityorganizationsarethebackboneofwatershedsecurityintheprovince.
reconciliation in the Cowichan Watershed. Source: https://cowichanwatershedboard.ca/wp-content/uploads/2019/04/CWB_PathwaysAndPartnerships_Final_web.pdf 14 In 2019, the UBCM Resolutions Committee noted that the UBCM membership has endorsed numerous resolutions supporting improved watershed protection and management and the incorporation of the voice of local governments into water management processes (2018-B34, 2017-B115, 2016-B25, 2015-B32, 2014-B88). 15 Regional District of Nanaimo, 10 Year Action Plan Implementation Review. Source: https://www.rdn.bc.ca/dms/documents/dwwp-reports/region-wide-reports/10_year_action_plan_implementation_review_-_september_2018.pdf; Watershed Governance Dispatch: CVRD Establishes New Drinking Water and Watershed Protection Service. Source: https://poliswaterproject.org/polis-research-publication/dispatch-cvrd-service/; RDKB Bylaw 1678, 2018. Source: https://www.rdkb.com/LinkClick.aspx?fileticket=sVh2iQGDJEk%3D&tabid=657 16 Sustainable Funding for Watershed Governance Initiative. Forthcoming publications. 17 Average water demand per connection in RDN operated Water Service Areas decreased by 31% between 2004 and 2017 18 Regional District of Nanaimo, 10 Year Action Plan Implementation Review. Source: https://www.rdn.bc.ca/dms/documents/dwwp-reports/region-wide-reports/10_year_action_plan_implementation_review_-_september_2018.pdf
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Fundingneed:Mostcommunityorganizationsareoperatingonashoestringbudget.WiththesupportofaWatershedSecurityFund,modestfundingforcommunity-basedinitiativeswouldgoalongway.
Fundingstrategy:Relativelymodestinvestmentsincommunityorganizationswillyieldsignificantleverageintermsoflocalknowledge,expertise,andvolunteerhoursandcommitment.
Example:TheFraserValleyWatershedsCoalitionisacommunity-drivengroupthatbringstogethervolunteerstobuildurbanwetlands,restoresalmonhabitat,organizeriverclean-ups,andcontrolinvasivespecies.19Thisisjustoneofthemanywatershedorganizationsacrosstheprovincethatareputtingbootsonthegroundandinthestreamstokeepwatershedshealthyandfunctioning.
ProvincialGovernmentMandate/PolicyLinks:
● Cross-governmentmandatecommitmenttoreconciliationandUNDRIPimplementation,includingBill41–DeclarationontheRightsofIndigenousPeoplesAct
● FLNRORDmandate:WorkwiththeMinisterofIndigenousRelations,FirstNationsandcommunitiestomodernizelanduseplanningandsustainablymanageB.C.’secosystems,rivers,lakes,watersheds,forestsandoldgrowth.
● CollaborativeStewardshipFrameworkandEnvironmentalStewardshipInitiatives
3.2PLACESa.WatershedPlanning&ActionB.C.hasafulllegislativeandpolicytoolboxwhenitcomestowatershedplanning—includingDrinkingWaterProtectionPlans(undertheDrinkingWaterProtectionAct),WaterSustainabilityPlans(undertheWaterSustainabilityAct),andarevitalizedlanduseplanningframeworkcurrentlyindevelopment.Planscanberegionallytailoredandintegratedtoaddressspecificwater/watershedchallenges,includingchangingwaterandlandusetobuildclimateresilience,protectdrinkingwater,andensurehealthycommunities,economies,andecosystems.Fundingneed:FewofB.C.’sintegratedwatershedplanningtoolshavebeenputtouse,despitegrowingevidenceofdetrimentalcumulativeimpacts,conflictsoverwaterandlanduse,andincreasingriskstosourcedrinkingwater.TheexistingFLNRORDcommitmentof$16millionphasedoverthreeyearstoinitiatemodernizedlanduseplanningisinsufficienttobuildacomprehensiveplanningprogramthatmeetstheneedsofB.C.’scommunitiesandwatersheds.
19 Fraser Valley Watersheds Coalition. Source: https://fvwc.ca
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Fundingstrategy:AprimaryobjectiveoftheWatershedSecurityFundshouldbetoinvestinintegratedwatershedplanning—doneinpartnershipwithIndigenousnations—toreduceconflicts,economiccosts,andharmsexperiencedbycommunities,andtobuildcommunityandecosystemresilienceinthefaceofclimatechangeandcumulativeimpacts.
Example:TheGitanyowLax’yipLandUsePlanintheSkeenawatershedisregardedasaleadingexampleoflanduseplanningthatemphasizesIndigenouspriorities,watersustainability,andlong-termresilience.EmbeddedintheGitanyowHuwilpRecognition&ReconciliationAgreement,itintegrateslandandwaterandislegallyenforcedthroughGitanyowAyookxw(law)andProvinciallaw.20
b.NaturalAssetManagement&Infrastructure
Ecosystemfeaturessuchaswetlandsandaquifersprovideservicesbetterthanengineeredassets,buthistoricallyhavenotbeenconsideredinlocalgovernmentassetmanagementplans.21AcrossB.C.,localgovernmentsarenowlookingtonaturalassetaccountingaspartofoverallassetmanagementstrategiestoreducecostsandrisk,andtoboostcommunitylivabilityandresilience.22
Fundingneed:Scalingupnaturalassetmanagementwouldhaveatransformativeimpactonurbanplanningandinfrastructure.However,provincialandfederalinfrastructurefundingprogramsstillprioritizefundsforhardinfrastructurewithlimitedfundingsupportfornaturalassets.
FundingStrategy:TheWatershedSecurityFundwouldprovidegrantsfortownsandcitiestoinvestinnaturalassetmanagementandtosupportnaturalinfrastructuretobuildclimateresilienceandsaveresidents’money.
Example:TheTownofGibsonswasNorthAmerica’sfirstcommunitytoexperimentwithstrategiestointegratenaturalassetsintoassetmanagementandfinancialplanning.TheGibsonAquiferisalreadyformallylistedasanassetwithintheTown’sassetmanagementframework.TheTownrecognizesnaturalassetmanagementiscriticalgiventhehighcostsofreplacingandupgradingbuiltinfrastructure.23
20 Gitanyow Huwilp Recognition and Reconciliation Agreement. Source: http://www.gitanyowchiefs.com/images/uploads/land-use-plans/Gitanyow-R-R-Agreement-2012.pdf 21 Municipal Natural Assets Initiative, Primer on Natural Asset Management. Source: https://mnai.ca/media/2019/06/MNAI-Org-Charts.pdf 22 Municipal Natural Assets Initiative, Primer on Natural Asset Management. Source: https://mnai.ca/media/2019/06/MNAI-Org-Charts.pdf 23 Towards an Eco Asset Strategy for the Town of Gibsons. Source: https://gibsons.ca/wp-content/uploads/2017/12/Eco-Asset-Strategy.pdf
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c.WatershedMonitoring&AssessmentsAsignificantopportunityexistsinB.C.toimproveknowledgeandunderstandingofwatershedhealthandpressures.Thisinformationisessentialtosupportgooddecision-making,andforbuildingcommunityunderstandingandawareness.Fundingneed:Despiteprovincialgovernmentcommitmentstodeveloping‘StateofWater’reporting,24B.C.lacksanintegratedprovincialframeworkforwatermonitoring,datacollection,andwatershedassessments.Costlyandconcerningexamples,suchascontaminationoftheHullcarAquifer,demonstratetheconsequencesofineffectivemonitoring.Greatpotentialexiststodevelopamodernandsophisticatedframeworkbybuildingonthemanyexistingprovincial,federal,Indigenous,andcommunitymonitoringprograms.Integratingknowledgefromdifferentsystemstoundertakecomprehensivewatershedassessmentswouldformthebasisforcollaborationandsounddecision-making.
FundingStrategy:TheWatershedSecurityFundwouldsupportcapacityinwatermonitoring,fundregionalwaterdatahubs,andstrengthenaccesstodecision-readyinformationforprovincial,Indigenousandlocalgovernmentdecision-makers.
Example:TheSkeenaKnowledgeTrustwasestablishedin2017toaddresstheneedforgreaterknowledgemanagementandmoreinformeddecision-makingpertainingtosalmonandsalmonhabitatwithintheSkeenaRiverwatershedandestuary.TheTrust’sactivitiesincludebutarenotlimitedto:bridgingandcollectinginformationfromvariousknowledgeholders;informationorganizationandmanagementtofacilitatedataintegration;promotingdatasharingandcollaboration;andpubliceducation.25
ProvincialGovernmentMandate/PolicyLinks:
● Cross-governmentmandatecommitmenttoreconciliationandUNDRIPimplementation,includingBill41–DeclarationontheRightsofIndigenousPeoplesAct
● CleanB.C.commitmenttocollaboratewithIndigenouspeoplesonaclimatechangeadaptationstrategy(for2020)
● FLNRORDmandatetomodernizedlanduseplanning● IndependentHullcarReport;AuditorGeneral;andProvincialHealthOfficerrecommendations
regardingdrinkingwaterprotection● WaterSustainabilityActimplementation● WildSalmonStrategy
24 Living Water Smart: British Columbia’s Water Plan. Source: https://www2.gov.bc.ca/assets/gov/environment/air-land-water/water/water-planning/livingwatersmart_book.pdf 25 Skeena Knowledge Trust. Source: http://www.skeenatrust.ca
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3.3PEOPLEa.TheBlueEconomyAlthoughunderappreciated,manyemploymentandeconomicopportunitiesareconnectedwithwatershedsecurityinboththepublicandprivatesector.Theseincludejobsinwatermonitoringtechnologyandscience,ecologicalengineeringandrestoration,landuseandwatershedplanning,communityeducation,andwatermanagementandconservation.Anincreasingnumberofjobsarealsoassociatedwithdevelopingnewtechnologies,fromdatamanagementandanalysistonewtechniquesforwaterre-useandtreatment.Fundingneed:The‘blue’economyisahiddensectorinB.C.’seconomy.Animportantopportunityexiststobuildthissectorandsupporttrainingandre-traininginIndigenousandruralcommunitiestodrivecommunityeconomicdevelopment.Fundingstrategy:Investinthe‘blue’economyinthreekeyways:1)prioritizethecreationofnewjobsinfundingdecisions;2)buildpartnershipswithcommunitycollegesandregionaluniversitiestosupporttraining,re-training,jobfairs,internandapprenticeshipprograms;and3)supportthedevelopmentofacleantechnologyclusterforB.C.’swatershedsecurity.
Example:In2020,theAquaHackingChallengewillbehostedinBritishColumbiaforthefirsttime.YoungtechentrepreneursfromacrosstheprovincewillbeengagedtocreateinnovativesolutionstosomeofB.C.’sleadingwaterissues—demonstratingtheemploymentandinnovationpossibilitiesforthisfield.
b.SupportingB.C.FarmersSupportinglocalandsustainablefoodproductioninBritishColumbiaisahighpriority:withoutwater,thereisnofood.EnsuringwatershedsecurityforfoodproductioninB.C.mustbeacoreobjectiveoftheWatershedSecurityFund.Fundingneed:FarmersinBritishColumbiaarefacingsignificantchallengesaswatersuppliesbecomemorescarceandlessdependable.Atthesametime,large-scaleagriculturalproductionisalsohavingsubstantialimpactsonmanywatershedsinB.C.,impactingwaterqualityandquantity.Fundingstrategy:supportfarmerswithfundingforinvestinginecologicalgoodsandservices,smallwaterstorageprojects,andwater-friendlycropplanning,alongwithupgradestoequipmentandtechnologiesthatenhancewaterefficiencyandreducerun-off.
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Example:TheProvinceofManitobarecentlycreateda$52millionendowmentfund,calledGrowingOutcomesinWatersheds(GROW),to“helpproducerswithsmallretentionprojects,naturalhabitatrestorationandenhancementincludingwetlands,riparianareamanagement,soilhealthimprovementsandshelterbeltandeco-bufferestablishments.”26
c.ConnectingPeopletoPlaceBritishColumbiansintuitivelyunderstandtheimportanceofwaterandconsistentlyrankfreshwaterastheprovince’smostimportantnaturalresource.27Anopportunityexiststocapitalizeonthisconnectiontowaterbysupportingplace-basededucationandawareness-buildingthatimprovesresidents’understandingoftheirhomewatershedsandopportunitiestotakeaction.Fundingneed:Furtherinvestmentsarerequiredtoraisethevisibilityandunderstandingoftheimportanceofwatershedstocommunityandpersonalwell-being,andtoencouragecitizenengagementandparticipationinactivitiesthatimprovewatershedsecurity(e.g.waterconservationprograms,habitatrestoration).Fundingstrategy:Supportprojectsandeventsthatbuildcommunityappreciationandengagementinwatershedsecurity,suchaswaterfestivals,watershedtours,riverclean-ups,andwatershedbranding(e.g.signagedescribingthewatershedanditsfeatures).
Example:TheOntarioGreenbeltFoundation,anindependentFoundationsupportedwithProvincialfunding,hasverysuccessfullyraisedthelevelofawarenessandcitizenconnectiontothegreenbeltregionofsouthernOntario.InOntariopublicopinion,pollinghasshowntheGreenbeltisthemosteasilyrecalledgovernmentinitiativeforprotectingtheenvironment.28
ProvincialGovernmentMandate/PolicyLinks:
● Cross-governmentmandatecommitmenttoreconciliationandUNDRIPimplementation,includingBill41–DeclarationontheRightsofIndigenousPeoplesAct
● Ruraljobsandforestryjobtransitions-InteriorForestPolicyRenewalandCoastForestSectorRevitalizationInitiative
● LivingWaterSmartPlancommitmentstoeducationandenhancingwatershedawareness
26 News Release: Province Announces $52 Million Grow Fund to Support Wetland Protection and Watershed Management. Source: https://news.gov.mb.ca/news/index.html?item=45394 27 2018 BC Freshwater Public Opinion Insights (McAllister, 2018). Source: https://d3n8a8pro7vhmx.cloudfront.net/freshwateralliance/pages/2377/attachments/original/1537895583/2018_water_polling_toplines_S25.pdf?1537895583 28 Public Opinion on the Greenbelt (Environics, 2015). Source: https://d3n8a8pro7vhmx.cloudfront.net/greenbelt/pages/2545/attachments/original/1449265610/2015-12-07_OVERALL_Environics_Poll_-_FINAL_(1).pdf?1449265610
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4.FUNDSCOPE&STRUCTURETheaccompanyingTechnicalAppendixprovidesmoredetailsonFunddesign,scope,andgovernance.Ataglance,aneffectiveWatershedSecurityFundwillbe:1) IndependentandExternal.Bycreatinganexternal,independentFund,governmentcan
ensureFundsustainability,buildagovernancestructuretoreflectreconciliationcommitments,andmoreeasilysupportabroadrangeofinnovativepartnershipsandprograms.
2) SustainableOngoingFunding.ThethreatsimpactingB.C.’swatershedsarelong-term.Itwill
taketimetodevelopthenecessarylong-termsolutionsandbuildcommunityresilience.Therefore,fundingavailabilityshouldbesustainableandongoing.TherecommendedapproachisfortheProvincetocreateanendowmentfund,withannualreturnssupplementedbyanongoingcontributionfromresourcerevenues,suchaswaterrentalfees.
3) Co-GovernanceStructure.TheFundshouldbestructuredtomodelaco-governance
approach,withgovernancerepresentationfromIndigenousandnon-Indigenouswatershedexpertsandknowledgeholders.
4) Target:$40millionperyear.Toensureameaningful,provincewideimpact,thetargetfor
annualexpendituresfortheFundshouldbe$40millionperyear.TheFundcouldbescaleduptothisamountoverthreeyearswhileorganizationalinfrastructureisdevelopedandearlyinvestmentstested.
5.SUMMARYSustainablefundingiscriticaltoadvancereconciliation,equipcommunitiestobuildresilienceinthefaceofgrowingclimateandwatershedthreats,supportrobustlocaleconomies,andsafeguardcriticalsalmonhabitat.
AWatershedSecurityFundwouldinvestincommunityresilienceand‘reconciliationinaction’throughthreeprimaryfundingareas:Partnerships,Places,andPeople.Theseinvestmentscreatebroad-basedbenefitstocommunities,economies,andhomewatersheds.
AWatershedSecurityFundoffersanopportunityforgovernmenttodeliveronandintegratemultiplecommitmentsandpolicyinitiativesonreconciliation,ruraleconomies,land,andwater—andcreatessignificantleverageopportunities.AnEndowmentcreatesapowerfullegacyforB.C.,supplementedbyothersustainablefundingsources,withatargetof$40millioninannualexpenditures.
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APPENDIX:OPTIONSFORFUNDDESIGN&OPERATION
A.HowshouldtheFundbestructured?
a)WhereshouldtheFundlive?AWatershedSecurityFundcouldbeestablishedwithin:1)aspecificgovernmentMinistry;or2)throughanexternalagency.Severalexamplesofbothapproachesexist.GiventheFund’spurpose,therecommendedapproachistoestablishtheFundstructureexternaltogovernmentinanindependentorganization.ThemainbenefitsofcreatingtheFundexternallyare:
1) Creatinganenduringlegacy:theFundshouldenablesustainable,long-termfinancialandcapacitysupport,independentfromchangesinthepoliticallandscape.
2) Operatingasanexampleofreconciliation:asoutlinedbelow,anindependentFundcanbecreatedwithauniqueco-governancestructuretosupportreconciliationinaction.
3) Becomingahubforinnovation&capacitybuilding:staffinanindependentorganizationcouldmoreeasilyengageacrossarangeofgovernments(provincial,federal,Indigenous,local)andwithcommunityorganizationsandnetworks.Staffcouldalsoprovidecapacity-buildingservicesandfacilitatepeerlearningbetweenfundedprojects.
b)HowshouldtheFundbegoverned?ThecreationofaWatershedSecurityFundprovidesauniqueopportunitytoadvancereconciliation,notjustthroughthedisbursementoffunds,butalsoinhowtheFundisstructuredandgoverned.AswithmostindependentFundsorFoundations,itwouldbegovernedbyaBoardorCommittee.ToembodytheProvince’scommitmentstoreconciliationandUNDRIP,thisBoardshouldmodelaco-governanceapproachandcompriseanequalnumberofIndigenousandnon-Indigenouswaterexperts.Itshouldbeco-chairedbyIndigenousandnon-Indigenousleaders.ItwouldbesupportedbyanexpertstafftoactasaSecretariatthatwouldalsoreflectthisco-governancemodel.TheBoardmemberscouldbeappointedbyboththeProvinceandFirstNationsleadershipandrepresent:1)regionaldiversity;2)expertiseinIndigenousandnon-Indigenousgovernance;and3)expertiseindifferentknowledgesystemsrelatedtowaterandlanduse.c)AnExistingorNewOrganization?
TheWatershedSecurityFundcouldbecreatedthroughaneworganizationbycreatinganewnon-profitsociety,oritcouldbepotentiallylocatedinanexistingorganization.Forexample,theVancouverFoundationisawell-establishedplatformforthecreationofavarietyofdifferentkindsoffunds,includingendowmentfunds.ItmaybemorefeasibletoutilizeanexistingorganizationtohosttheFundintheshort-term,whileorganizationaldesignandstructurearedevelopedforthecreationofanewentity.AkeyconsiderationwouldbetheabilitytocreatetheappropriategovernancestructurefortheFundasoutlinedabove.
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B.HowshouldtheFundbefunded?WaterissuesareheretostayinBritishColumbia.Infact,alltrendspointtowardsproblemsbecomingmorechallengingandexpensiveinthefuture.Consequently,ameaningfulinvestmentinwatershedcapacityandcommunitypartnershipsrequireslong-term,sustainablefunding.ArecommendedapproachtoensureongoingfundingistocreateanendowmentandenableannualcontributionstotheFundfromasurchargeorportionofresourcerevenues.
a) AProvincialEndowment
Anendowmentfundisdesignedtoprotecttheprincipalandspendthereturnsthatthefundgeneratesfrominvestment.Endowmentfundsareacommonmechanismusedbyuniversitiesandhospitals.TheyarealsousedbyCommunityFoundations,suchastheVancouverorVictoriaFoundation.29ThereareanumberofexamplesofEndowmentFundsthatofferanalogousmodelsorexamplesforaWatershedSecurityFund,includingtheNewRelationshipTrust,ColumbiaBasinTrust,andManitoba’sGrowingOutcomesinWatersheds(GROW)endowment.
EXAMPLESOFENDOWMENTFUNDS
• TheNewRelationshipTrust-Anindependentnon-profitorganizationdedicatedtostrengtheningFirstNationscapacity.TheNewRelationshipTrustwascreatedwithanoriginalsumof$100million,donatedbytheProvinceofB.C.Oftheinitialsum,$20.75millionwasallocatedforspendingonprojectsoverthefirstthreeyearsoftheTrust’soperations.ThebalancewasinvestedinordertoprovideongoingbenefittoB.C.FirstNations.30
• PacificInstituteforClimateSolutions-theProvinceinvested$94.5millioninanendowmentattheUniversityofVictoriatobringtogetherB.C.’sfourresearch-intensiveinstitutionstodevelopclimatechangesolutions.31
• ColumbiaBasinTrust-theTrustwascreatedbylegislationin1995tosupporteffortsbythepeopleoftheBasintocreatealegacyofsocial,economicandenvironmentalwell-beingintheCanadianportionoftheColumbiaRiverBasin.Itreceivedanendowmentof$45millionfromtheProvincealongwith$2millionperyearfrom1995to2010foroperations.32
• Manitoba’sGrowingOutcomesinWatershedsProgram-inJune2019,Manitobaannouncedaninitialof$52millioninanendowmentfundtobeheldattheWinnipegFoundation.ThepurposeoftheFundistosupportwetlandprotectionandwatershedmanagement.33
• ForestEnhancementFund-formedinFebruary2016withaninitialcontributionfromtheB.C.governmentof$85million.InFebruary2017,anadditional$150milliongrantwasprovidedundertheForestCarbonInitiative.Thiscatalyzedexpandedefforts,especiallytoadvanceenvironmentalstewardshipthroughreforestation,improvingdamagedorlow-valueforests,andreducinggreenhousegasemissions.
29 Investing in Perpetuity: Why the Endowment Fund Model Works (Vancouver Foundation) Source: https://www.vancouverfoundation.ca/whats-new/investing-perpetuity-why-endowment-fund-model-works-0 30 New Relationship Trust. Source: https://www.newrelationshiptrust.ca/financial-management/ 31 Examples of B.C.’s Research and Innovation Investments. Source: https://www2.gov.bc.ca/gov/content/governments/about-the-B.C.-government/technology-innovation/research-and-innovation-investments 32 Columbia Basin Trust. Source: https://ourtrust.org/about/our-story/; Columbia Basin Trust Act: http://www.bclaws.ca/civix/document/id/complete/statreg/96053_01 33 News Release: Province Announces $52 Million ‘GROW’ Fund to Support Wetland Protection and Watershed Management. Source: https://news.gov.mb.ca/news/index.html?item=45394
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b) OngoingFundingSourcesInadditiontothereturnsreceivedfromtheinvestmentincomeintheendowment,thereareanumberofoptionsforongoingfundingsources.Forexample,anongoingcontributiontotheFundcouldcomefromasurchargeorportionofresourcerevenues,includingwaterrentalfeesandotherresourceactivitiesinwatersheds.Throughthismechanism,largewaterusersandthosethatbenefitfromwaterwithdrawalsandactivitiesonthelandwouldbesupportinggreatercommunityresilienceandcapacitytomanagetheimpactsofwaterandlanduses.GiventhecriticalrolethisFundwouldplayinbuildingclimateresilience,anotherpotentialsourceoffundingwouldbeanongoingcontributionfromtheB.C.CarbonTax.
Example:ThemajorityoftheHabitatConservationTrustFoundation’s(HCTF)revenuearisesfromsurchargesplacedonhunting,angling,trapping,andguideoutfittinglicensessoldinBritishColumbia.UndertheprovisionsoftheWildlifeAct,surchargesareassessedandcollectedbygovernmentactingasagentofHCTF,whichforwardstherevenuetotheHCTFonasetschedule.TheHCTFoperatesasanindependentnon-profitorganizationandfundson-the-groundconservationandeducationprojects.In2018,itreceived$6.3millioninsurchargerevenue.34
34 Habitat Conservation Trust Fund Financial Statements 2017-18. Source: https://hctf.ca/wp-content/uploads/2019/04/Financial-Statements-2017-18-with-Audit-Report-Signed-Final.pdf
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C.Whatscaleoffundsarerequired?BasedonanassessmentoffundingrequirementstobuildB.C.’swatershedsecurity,anongoinginvestmentofapproximately$40millionperyearisneededtoachievebothaboldandpracticalvision.ThetablebelowoutlinespotentialcategoriesofspendinganddescriptionsofthetypesofprojectsthatcouldbesupportedbythisFund.
Category % $peryear Description
WatershedLandUsePlanning&SourceProtection
25% $10million ● EnablewatershedplanningacrosstheprovinceinpartnershipwithFirstNationsandcommunities
● Ensuredrinkingwatersourceprotectionplansareimplementedinpriorityareas
IndigenousCapacityBuilding&Partnerships
25% $10million ● EnableIndigenouscommunitiestohirelandandwatermanagers;undertakeIndigenouswaterlaws&policydevelopment;strengthengovernancestructures;andsupportgovernment-to-governmentpartnerships
NaturalAssetManagement,Infrastructure&InnovativeTechnologies
20% $8million ● EnablelocalgovernmentsandFirstNationstoundertakenaturalassetmanagementandimplementclimateadaptationsolutionswithafocusonnaturalinfrastructure
● Supportforfarmerstoimplementecosystemservices,waterefficientpractices,andsustainablewaterstorageprojects
● Funddevelopmentanddemonstrationofinnovativewatertechnologiesforintroductionintothemarket
WatershedMonitoring,Restoration,&FishHabitatConservation
12.5% $5million ● Supportforwatershedmonitoringprojects,equipment,datastorage,analysis&communication
● EnableStateofWatershedassessments● Supportrestorationandconservationprojects,
includingsalmonhabitatprotection
CommunitySupport&Education
12.5% $5million ● Accesstoskillstrainingandfundingforcommunitycolleges&trainingprograms
● Supportforpublicinformation&education● Supportcommunity-basedinitiatives&events
thatpromotehealthywatersheds
CoreOperational 5% $2million ● Corestaff,accounting,legaletc.
Total 100% $40million