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May 15, 2018 Economy Committee 543 STANDING COMMITTEE ON THE ECONOMY Hansard Verbatim Report No. 29 – May 15, 2018 Legislative Assembly of Saskatchewan Twenty-Eighth Legislature STANDING COMMITTEE ON THE ECONOMY Ms. Colleen Young, Chair Lloydminster Ms. Vicki Mowat, Deputy Chair Saskatoon Fairview Mr. David Buckingham Saskatoon Westview Mr. Terry Dennis Canora-Pelly Mr. Delbert Kirsch Batoche Mr. Warren Michelson Moose Jaw North Mr. Doug Steele Cypress Hills Published under the authority of The Hon. Mark Docherty, Speaker STANDING COMMITTEE ON THE ECONOMY 541 May 15, 2018 [The committee met at 18:31.] future direction for the Water Security Agency. Our water infrastructure across Saskatchewan, including the 69 dams The Chair: — Welcome this evening to the Standing under Water Security Agency’s purview, are a key economic Committee on the Economy, and I will go through the cornerstone for the province. This network includes 49 committee members that are here this evening: myself, Colleen structures that have been provincially controlled as well as 20 Young, as Chair. Substituting in for Vicki Mowat, we have dams, mostly in southwest Saskatchewan, transferred by the Cathy Sproule. We have on the other side here as committee, federal government to provincial control. Considering many of substituting for David Buckingham, tonight we have Laura these structures are decades old, they require significant capital Ross. We have Delbert Kirsch, Terry Dennis, Doug Steele, and investment to ensure they remain safe and operationally Warren Michelson. reliable. This evening the committee will be considering the estimates This year, Water Security Agency will invest an all-time record for the Water Security Agency, the estimates for the Ministry of of over $43 million in these facilities, bringing our cumulative Environment, and Bill No. 124, The Environmental investments since 2010 to over $103 million. By way of Management and Protection (Environmental Handling comparison, this year’s capital investment will be 15 times what Charges) Amendment Act, 2018. it was just over a decade ago. General Revenue Fund Another $13.7 million will be invested as part of a 10-year, Water Security Agency $100 million project to rehabilitate the M1 canal, a significant Vote 87 piece of the province’s infrastructure. Built in the 1960s, the M1 canal is 22.5 kilometres long. It’s a water supply canal that Subvote (WS01) serves one provincial park, three potash mines, four regional water pipelines, five towns, six reservoirs, 13 wetlands, and The Chair: — We will now begin our consideration of vote 87, 56,000 irrigated acres. Water Security Agency, subvote (WS01). Minister Duncan is here with his officials this evening, and I’ll let you introduce This year’s M1 investment will increase canal capacity, who you have with you here joining us and make any opening improve reliability, and alleviate seepage on the last 4.6 remarks you’d like. kilometres of this system, which will bring the project to a close. Hon. Mr. Duncan: — Thank you, Madam Chair, and good evening to the committee members. It’s our pleasure to be here About $10 million of the program will be devoted to the with you this evening to consider the estimates for the Water transferred federal dams, including $4.2 million to Highfield Security Agency. dam, a facility just south of Rush Lake. We are in the second year of a three-year transition of ownership of these dams as I’m joined this evening by officials from the Water Security well as additional lands and equipment associated with the Agency. To my left is Susan Ross, she is the president and CEO dams. The reservoirs created by these dams are important water [chief executive officer]. To my right is Sam Ferris; he’s supply sources for municipalities and producers in southwestern vice-president of regulatory. As well with us is John Fahlman, Saskatchewan, and we’ll be hiring additional new staff over the vice-president, technical services and chief engineer. Lionel coming year to help us facilitate the ongoing transition. Diederichs, the vice-president, corporate services and chief financial officer; Clinton Molde is the executive director of As the committee will know, the Water Security Agency integrated water services. Doug Johnson is executive director of ambitiously set a new course to change how drainage is special projects. Thon Phommavong is executive director of managed in Saskatchewan. After two years of diligent work, the environmental and municipal management services. Marjorie strategy is seeing real results. A record 693 quarter sections Simington is general counsel. As well . That’s it this evening were brought into drainage compliance in the 2017-18 fiscal for the officials that are here. year. If you compare the last year of the old regulations in 2014-15 to the first full year of the new agricultural water The safety, security, and management of Saskatchewan’s water management strategy in 2017-18, we saw a 310 per cent supplies and related infrastructure remains a top priority for the increase in approvals, going from 147 quarter sections to 693. government and for the professionals at the Water Security Agency. This year’s Water Security Agency budget will once This budget also provides $1.2 million of strategic new again take several key steps forward in realizing the goals of investments in the budget. These investments will allow the our 25-year water security plan. Water Security Agency to enhance its water management strategies, respond to extreme weather events, as well as better The WSA [Water Security Agency] has achieved several assist and safeguard communities across Saskatchewan. noteworthy milestones over the past year and will also be expanding several critical initiatives in the upcoming one. We The investments will collectively improve Water Security are holistically looking at how we manage water for the good of Agency’s core expertise of hydrology, the science of the our economy, the good of our environment, and the good of our movement and quality of water. This includes a $500,000 way of life. initiative in the 2018-19 budget for the modernization of Saskatchewan’s flood plain maps used for both community So I’d like to share just a few of those achievements and the planning and emergency preparedness. New and updated 542 Economy Committee May 15, 2018 mapping is a crucial component for both the province’s were provided as part of the dam transfer? emergency preparedness as well as our climate resiliency strategy. Hon. Mr. Duncan: — 10.1 million for ’18-19. WSA will also invest $400,000 to enhance its flow forecasting Ms. Sproule: — And that 10 million is being used for tools. This will improve snow and rain runoff forecast rehabilitation of the existing structures. Is that correct? modelling as well as water routing on Saskatchewan’s major dams and systems such as the Souris and Qu’Appelle. Hon. Mr. Duncan: — That’s correct. Complementing these initiatives will be a $340,000 budget Ms. Sproule: — All right. Thank you. I want to turn to the investment in the hydrometric system, enhancing the WSA’s estimate figures on page 128 of this year’s estimates. And it’s a water management and forecasting capabilities. This initiative significant jump this year in the estimates for Water Security will help the WSA determine water supplies, allocate water, and Agency. The transfers for public services, if I can just confirm forecast the flows. The net result of the $1.2 million investment that, 24 million is for the Water Security Agency operations. Is will be to improve the WSA’s ability to determine peak water that correct? level and flow information, operate reservoirs, and provide the public with timely information on lakes and river systems. Hon. Mr. Duncan: — Yes, that’s correct. The budget also provides $2 million for the emergency flood Ms. Sproule: — And then the public services capital damage reduction program. The long-term success of this investment of 28 million, could you describe to the committee program is unquestionable. Since 2010, WSA has invested what that entails? almost $75 million in flood mitigation to assist in excess of 3,300 applications to prevent flood damage. It has also Hon. Mr. Duncan: — Ms. Sproule, just a clarification: you cost-shared construction of almost 800 permanent works that want a breakdown of where the capital dollars are actually . will serve to protect our citizens from flooding now and into the where we’re allocating those? future. Ms. Sproule: — Yes. Thank you. [Inaudible] . mainly After August 1st, 2018, the program will evolve to the flood because in the last three years there were no transfers for public damage reduction program for the remainder of the budget year. services capital in the estimates. This is the first year we see it The initiative will grant urban and rural municipalities as well in the last four years. So I just want to understand what that as individuals, businesses, and non-profit organizations with means. funding for permanent flood mitigation projects which address ongoing flooding risks. [18:45] Madam Chair, I hope that I’ve given the committee a high-level Hon. Mr. Duncan: — So I’ll have Lionel Diederichs, he’s our overview of the good work that’s been done by the Water CFO [chief financial officer], speak to the specifics. And just Security Agency. And with that, we would be pleased to take keep in mind some of them will be smaller, you know, in the the committee’s questions. thousands of dollars, so we could provide that list. But I think Lionel will go through kind of at a higher level, and then maybe The Chair: — Thank you, Minister. I’ll now open the floor to identify where some of the larger projects are.
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