version 1.0: updated november 20192 table of contents 1. overview 3 2. why b.c. needs a watershed...

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



● CleanB.C.commitmenttocollaboratewithIndigenouspeoplesonaclimatechangeadaptationstrategy(for2020)

● FLNRORDmandatetomodernizedlanduseplanning● IndependentHullcarReport;AuditorGeneral;andProvincialHealthOfficerrecommendations

regardingdrinkingwaterprotection● WaterSustainabilityActimplementation● WildSalmonStrategy

24 Living Water Smart: British Columbia’s Water Plan. Source: https://www2.gov.B.C..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



● 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.B.C..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.B.C.laws.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