Back-pocket information for the Canada Water Agency's Appearance at the Standing Senate Committee on National Finance (NFFN)

Overview

The Canada Water Agency’s 2026-2027 fiscal year Main Estimates total $81 million.

• Inclusive of both voted and statutory authorities, $69 million (85%) of this funding is allocated directly to the Freshwater Stewardship Program with $11.9 million (15%) towards Internal Services.
  • This internal service rate is lower than other similar size departments whose rate is closer to 20%.
• The $81 million is approximately a 50/50 split between funding provided to contribution recipients and spending for operating and workforce costs.
  • Transfer Payments/ Contributions: $42 million in contribution funding supports the freshwater ecosystem initiatives, EcoAction Program and working with First Nations, Inuit, and Métis partners on pre-engagement for the Canada Water Act review, on the development of the National Freshwater Data Strategy and the National Water Security Strategy, and advancing participation of Indigenous peoples in freshwater management in eight Freshwater Ecosystem Initiatives.
  • Operating and Employee Workforce Costs: $39 million supports the Agency’s workforce ($29 million for 217 staff), internal services and freshwater stewardship operating investments.

The Comprehensive Expenditure Review

• As an outcome of the CER exercise, and as outlined in Budget 2025, the Agency will deliver annual savings of $0.7M in fiscal year 2026-2027, $0.7M in fiscal year 2027-2028, $1.2M in fiscal year 2028-2029, $1.2M in fiscal year 2029-2030, and $1.2M ongoing. These savings will be achieved by modernizing operations at the Agency.
• The Agency’s spending reductions will involve a decrease of approximately 13 fulltime equivalents by 2028-2029. The Agency is not entering a workforce adjustment situation in relation to this savings exercise at this time.

Multi-year CWA financial profile

The Agency’s budgets are steady around $72-$80M per year then decrease by $38 million when the 10-year Strengthened Freshwater Action Plan budget announced in Budget 2023 ends.

Details on 2026-2027 fiscal year Main Estimates

• The Agency’s (CWA) reference levels in the 2026-2027 Main Estimates total $81 million, $77 million (95%) in voted appropriations and $4 million (5%) for statutory authorities.
• The Agency’s reference levels of $81 million will invest in:
  • The Freshwater Policy and Engagement program ($6.5 million) focused on engaging partners and stakeholders to coordinate and collaborate on freshwater policy initiatives ($4.9 million in operating expenditures and $1.6 million in contribution expenditures).
  • The Freshwater Management program ($59.7 million) captures work to support reduced loading of phosphorus to priority water bodies, information being available to support decision-making, and the restoration of priority ecosystems.
  • $19.1 million for operating expenditures
  • $40.6 million in contribution expenditures
  • Enabling Services for Freshwater Stewardship (Internal Services) of $10.7 million.
  • Statutory authorities for employee benefit plan costs of $4.1 million.

Questions and answers

Question 1: What is the total investment in the Randle Reef project?

Brief answer: The total project investment, including Agency and partner contributions, is $159.6 million (excluding $18.3 million of HST and contingent liabilities).

Detailed answer:

• This project is a key action to restore one of fourteen remaining Canadian Great Lakes Areas of Concern (AOC) being addressed through the Great Lakes Freshwater Ecosystem Initiative as part of the Fresh Water Action Plan (FWAP).
• Randle Reef is an area of highly contaminated sediment located on the south shore of Hamilton Harbour in the western end of Lake Ontario, was the second largest polycyclic aromatic hydrocarbon (PAH) contaminated sediment site in Canada, after the Sydney Tar Ponds. Owing to the long history of contamination (more than 150 years) from multiple sources, it was not possible to apply the polluter pay principle. Instead, a shared responsibility model has been adopted with the Government of Canada, Government of Ontario and the local community, participating equally in the design and implementation of a solution.
• Contributions towards the project were approximately a third each from:
  • federal government (the Agency)
  • Government of Ontario
  • Other Partners (City of Hamilton, City of Burlington, Halton Region, Stelco)

Question 2: How much of the Canada Water Agency’s contribution funding is flowed to First Nations, Metis, and Inuit associations?

Brief answer: The Canada Water Agency flowed $5.3 million (13%) of its 2025-2026 fiscal year $40 million contribution funding to First Nations, Metis, and Inuit associations.

Question 3: What is the multi-year funding profile of the Canada Water Agency?

Brief answer: On average, the Canada Water Agency will have approximately $80M in annual reference levels, of which approximately $38M is contribution funding, until the end of fiscal year 2032-2033.