Commission on the Reform of Ontario's Public Services

Chapter 13: Environment and Natural Resources
The program assesses sites, places them on a National Priorities List, and establishes and
implements appropriate cleanup plans. In addition, the Agency has the authority to conduct
removal actions where immediate action is required or states are involved; enforce against
potentially responsible parties; ensure community involvement; and ensure long-term
protectiveness. 15
Recommendation 13-5: Place greater emphasis on prevention and the polluter-pay principle
for contaminated sites using appropriate financial tools, such as financial assurance.
Identify opportunities to improve performance of the Ontario Clean Water Agency
The Ontario Clean Water Agency (OCWA) operates 187 water treatment and 203 wastewater
treatment facilities for over 170 clients, most of which are municipalities. In 2009, OCWA
essentially broke even on operations, generating $2.4 million in net revenue against total
operating expenses of $143 million. 16
Despite this, OCWA is unique in the Ontario government: it is the only agency that competes
in the marketplace for its business and receives no government funding. And while OCWA
made $11.7 million over the last 10 years, it also ran a deficit on the operations side of its
business over the same period. 17 Additionally, although OCWA services the municipal sector,
the wages it offers skilled water and wastewater operators are not competitive with those
offered in the municipal sector, resulting in skilled operators leaving the agency.
The Ontario Clean Water Agency’s current business model is neither sustainable nor
competitive. It cannot offer appropriate compensation to its skilled operators and it cannot
move quickly and flexibly to pursue more lucrative business opportunities.
Recommendation 13-6: Review the effectiveness of the current governance structure
of the Ontario Clean Water Agency to evaluate the merits of restructuring it as a for-profit,
wholly owned government entity.
15 “Superfund – Basic Information,” Oct. 3, 2011, downloaded from http://www.epa.gov/superfund/about.htm.
16 Ontario Clean Water Agency, Annual Report 2009, p. 38.
17 Ontario Ministry of the Environment.
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