This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 03 OTTAWA 002047 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR WHA/CAN, WHA/MEX, AND OES/ENV (VAN HOOGSTRATEN) 
EPA FOR THE ADMINISTRATOR 
 
E.O. 12958: N/A 
TAGS: SENV ENRG CA MX
SUBJECT: U.S./CANADA ENVIRONMENTAL DISCUSSIONS AND CEC 
COUNCIL MEETING 
 
¶1.  (U)  Sensitive but unclassified.  Not for distribution 
outside USG channels. 
 
¶2.  (SBU)   Summary: On the margins of the 12th annual 
meeting of the Council of the Commission for Environmental 
Cooperation (CEC) in Quebec City June 21-22, EPA 
Administrator Stephen Johnson reviewed a wide range of water, 
air quality, climate change, and other environmental issues 
with Canadian Environment Minister Stephane Dion.  The CEC 
meeting served to update the U.S., Canadian, and Mexican 
delegations on CEC activities and goals, and the member 
countries approved the organization's Strategic Plan for the 
next five years.  End summary. 
 
Bilateral Environmental Discussions 
----------------------------------- 
 
¶3.  (SBU)  Minister Dion began the meeting with Administrator 
Johnson by stating that he believes the overall environmental 
relationship between the two countries is very positive. 
Dion said that transboundary water issues have become a key 
element of the relationship, and noted that the proposed 
outlet at Devils Lake, North Dakota, where flooding has 
caused hundreds of millions of dollars in damages, has 
already been discussed directly by President Bush and Prime 
Minister Martin.  Dion commented that, in his opinion, the 
International Joint Commission (IJC) remains the best forum 
to resolve the dispute, with an IJC-like process the second 
best solution.  Administrator Johnson stated that the good 
news on Devils Lake is that it is now receiving appropriate 
high level attention in Washington. 
 
¶4.  (SBU)  The Administrator noted that water issues will 
become increasingly important for both countries, for three 
primary reasons: 1) security of water systems and potential 
vulnerabilities; 2) water quality and the related issue of 
invasive species; and 3) sustainability of supply and aging 
water infrastructure.  Johnson further noted that he has been 
actively involved in putting together a collaborative 
strategy on the Great Lakes, where there are more than 100 
conservation programs at local, state, and federal levels. 
More than 30 million Americans, he observed, depend on the 
Great Lakes for drinking water.  Dion agreed that water 
quality in the Great Lakes and St. Lawrence will become 
increasingly important for Canada as well, and suggested that 
the two countries find a way to approach water issues in the 
same regular, comprehensive fashion used for air quality. 
Johnson noted that the timing for instituting regular 
discussions on water quality may be good, as IJC is preparing 
a report on Great Lakes water quality, and that EPA will soon 
release a draft strategy on the Great Lakes for public 
comment. 
 
¶5.  (SBU)  With regard to climate change, Dion stated that 
Canada is comfortable with both the U.S. and European (i.e., 
Kyoto signatories) approaches to reducing greenhouse gas 
(GHG) emissions.  As it prepares to host the 11th Conference 
of Parties (COP-11) to the UN Framework Convention on Climate 
Change in Montreal in November, Dion said that Canada will be 
seeking some kind of declaration to bridge the rhetorical gap 
between Kyoto's signatories and non-signatories.  Dion 
observed that differing approaches to climate change have not 
stopped extensive cooperation between the United States and 
Canada.  He also noted that domestically, Canada has the 
biggest challenge of all the Kyoto signatories in reducing 
GHG emissions.  Dion said that Canada should view this as an 
opportunity to promote energy diversity and security, and 
that plans for a carbon market will also present an 
opportunity to increase Canada's overall energy efficiency. 
 
¶6.  (SBU)  On air quality, Dion said that he was very pleased 
with the work of the Canada/U.S. Air Quality Committee, 
although he expressed some frustration with the slow process 
of negotiating an annex on Particulate Matter (PM).  Johnson 
noted that a major priority for the Administration is to get 
the Clear Skies Initiative passed, as it would write into law 
current EPA regulations which will reduce sulfur dioxide, 
nitrous oxides, and mercury emissions by up to 70 percent. 
Johnson added that there has been a clear demonstration of 
negative health effects of PM, and programs to reduce PM 
create a variety of options for cross border cooperation. 
 
¶7.  (SBU)  Administrator Johnson noted that there is now an 
excellent opportunity to settle the matter of the Teck 
Cominco Metals smelter mine.  Pollutants from the British 
Columbia facility have built up over time in Washington 
state's Lake Roosevelt, and EPA is considering various 
assessment and clean-up options.  Dion commented that Canada 
could not accept an "extraterritorial" application of U.S. 
law, but said a Memorandum of Understanding on joint 
investigation of the problem could prove satisfactory. 
Regarding the "Victoria M," a derelict U.S. vessel mistakenly 
scuttled in Canadian waters, Administrator Johnson commented 
that no firms submitted proposals when EPA put out recovery 
of the vessel for a fixed-price bid.  Johnson added that EPA 
has now asked the U.S. Navy for a specific proposal. 
 
¶8.  (SBU)  Regarding trilateral issues, Johnson and Dion both 
noted that the Security and Prosperity Partnership (SPP) 
presents opportunities for trilateral cooperation, but that 
any activities under the SPP need to be handled carefully in 
light of the ongoing work of the CEC.  Both noted approvingly 
that Mexico's recent announcement that it will move to 
low-sulfur diesel fuel was a result of activities within the 
broader SPP framework. 
 
12th Regular Session of the CEC Council 
--------------------------------------- 
 
¶9.  (U)  The 12th regular session of the CEC Council opened 
with brief remarks by the heads of each of the three national 
delegations: Minister Dion, Administrator Johnson, and 
Mexican Head of Delegation Jose Manuel Bulas Montoro.  Also 
addressing the opening session were Quebec Minister of 
Sustainable Development and Environment Thomas Mulcair, 
Arturo Duran, chair of the CEC's Joint Public Advisory 
Committee, and William Kennedy, CEC Executive Director. 
Kennedy took note of the many CEC activities during the year, 
including reports on sound management of chemicals, maize and 
biodiversity, North American power plant emissions, the "Baja 
to Bering" marine priority conservation areas study, and the 
Pollutant Release and Transfer Registry. 
 
¶10.  (SBU)  At the Council's in-camera sessions, the parties 
adopted the CEC Strategic Plan for 2005-2010.  The Strategic 
Plan envisions a results-oriented strategy focused on 
information for decision-making, capacity building, trade and 
environment, and expanding partnerships for environmental 
stewardship.  The Strategic Plan further reaffirms the 
commitments laid out in the "Puebla Declaration," adopted in 
2004 on the tenth anniversary of the North American Agreement 
on Environmental Cooperation, which envisions the CEC as a 
catalyst for regional action and discussion of North American 
environment and economic concerns.  The Council then heard 
from various working groups which had studied specific issues 
over the preceding months, including activities focusing on 
Information, the North American Atlas Framework, Trade and 
Environment, and Capacity Building, as well as a session with 
Business Associations. 
 
¶11.  (SBU)  The Information group, noting that the Puebla 
Declaration calls for credible, balanced and timely 
information on the North American environment, reported that 
its key objectives are strengthening the capacity of decision 
makers to understand continental issues, establishing an 
environmental information and knowledge framework, 
identifying emerging trends and issues, and communicating 
environmental information to facilitate action.  The North 
American Atlas Framework group reported that air quality and 
emissions can be the first part of a comprehensive digital 
data system under the Framework, a system which will 
ultimately contain environmental information in a variety of 
formats, including linked maps and spreadsheets, to identify 
potential problems and areas for action.  The Framework will 
also improve comparability and compatibility of data reported 
by the member countries, and help bridge the gap between 
technical data and policy considerations. 
 
¶12.  (SBU)  The Trade and Environment group operates under 
article 10(6) of the North American Agreement on 
Environmental Cooperation (NAAEC), which mandates the CEC to 
cooperate with the NAFTA Free Trade Commission (FTC) to 
achieve the environmental goals of NAFTA.  The group reported 
that its objectives are to encourage trade in "green" 
products, as well as increase the capacity to identify trade 
related environmental concerns and improve collaboration and 
coordination among members.  The group is also developing 
training materials to identify, analyze, and take enforcement 
action against trade in harmful substances and protected 
species. 
 
¶13.  (SBU)  The Capacity Building group, acknowledging that 
the development of institutional capacities is especially 
important to Mexico, reported on projects to improve training 
for wildlife inspectors and enforcement personnel, to 
establish alliances for integrated environmental enforcement 
in selected industries and regions, and to develop 
instruments to promote effective ecosystem management.  The 
development of an integrated environmental enforcement regime 
for Mexico will promote capacity building in Mexican federal, 
state, and municipal government agencies and in the private 
sector, with incentives for businesses to improve their 
environmental performance. 
 
¶14.  (SBU)  The session for Business Associations included 
the Canadian Chamber of Commerce, the U.S. Council for 
International Business, and Mexico's Confederacion de Camaras 
Industriales.  After a presentation by each of the 
associations, the session focused on how the parties can 
interest the private sector in actions consistent with CEC 
goals, which models may be useful for private sector 
involvement, how achievable goals may be set, and what 
product or report would be most useful for the next Council 
session. 
 
¶15.  (SBU)  The CEC 12th Regular Session concluded with a 
meeting between the Council, the parties, and the Joint 
Public Advisory Committee, comprised of public representative 
appointed by each of the parties.  The parties also released 
a Ministerial Statement announcing the Strategic Plan and 
reaffirming CEC goals. 
 
¶16.  (U)  This message has been cleared by EPA. 
 
Visit Canada's Classified Web Site at 
http://www.state.sgov.gov/p/wha/ottawa 
 
WILKINS