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### Viewing cable 06OTTAWA1323, U/S DOBRIANSKY AND CEQ CHAIRMAN CONNAUGHTON

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06OTTAWA1323 | 2006-05-03 17:38 | 2011-04-28 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Ottawa

`

    VZCZCXRO2822
    RR RUEHGA RUEHHA RUEHQU RUEHVC
    DE RUEHOT #1323/01 1231738
    ZNR UUUUU ZZH
    R 031738Z MAY 06
    FM AMEMBASSY OTTAWA
    TO RHEHAAA/WHITE HOUSE WASHINGTON DC
    RUEHC/SECSTATE WASHDC 2323
    RUEAEPA/EPA WASHDC
    INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE

` `

    UNCLAS SECTION 01 OF 05 OTTAWA 001323

    SIPDIS

    SENSITIVE
    SIPDIS

    WHITE HOUSE FOR CEQ CHAIRMAN CONNAUGHTON

    E.O. 12958: N/A
    TAGS: SENV ENRG TBIO CA
    SUBJECT: U/S DOBRIANSKY AND CEQ CHAIRMAN CONNAUGHTON
    ADVANCE ENVIRONMENT, ENERGY AND HEALTH AGENDA IN OTTAWA
    VISIT

    ¶1. (U) Summary: Under Secretary for Democracy and Global
    Affairs Paula Dobriansky and Council on Environmental Quality
    (CEQ) Chairman Connaughton visited Ottawa April 24/25 at the
    direction of the President and at the request of the Canadian
    Government to discuss a number of significant environment,
    energy and health issues.  It was clear from both the tone
    and substance of their meetings that the new Harper
    government is anxious to improve relations with the U.S. and
    to cooperate on a broad range of bilateral and multilateral
    issues, including air quality, climate change, Devils Lake
    and other transboundary water issues, alternative energy
    development and avian influenza. Canadian NGOs also expressed
    interest in a continued dialogue on promoting democracy.

    ¶2. (SBU) Connaughton told Canadian interlocutors that the
    U.S. is committed to fulfilling commitments made on Devils
    Lake in the August 2005 press announcement.  He noted that
    Governor Hoeven of North Dakota will make decisions on the
    operation of the Devils Lake (DL) outlet and that the U.S.
    would convene a meeting of Canadian and U.S. technical
    experts to choose among three options for an advanced
    filtration system at DL, with a decision expected by the end
    of May.  Thereafter, the U.S. would proceed with design and
    installation work.  He also emphasized the need for further
    scientific studies throughout the Red River Basin and Lake
    Winnipeg to determine whether biota found in Devils Lake are
    already present in Manitoba, and told Canadian officials that
    if species from the lake pose no risk, both sides should be
    prepared to "declare victory" and turn our attention to
    preventing the introduction of invasive species into the Red
    River Basin.

    ¶3. (SBU) Minister of Environment Ambrose signaled a major
    shift in Canada's climate change policy, indicating that the
    government would not negotiate new Kyoto targets and would
    not participate in the Clean Development Mechanism (CDM) of
    the Kyoto Protocol.  Instead the government will pursue a
    "made-in-Canada" strategy aimed reducing greenhouse gas
    emissions.  She expressed interest in working toward Canadian
    participation in the Asia Pacific Partnership for Clean
    Development and Climate (APP), a forum, she said, that
    operates on principles that the new Canadian government
    shares.  Noting that President Bush and Prime Minister Harper
    discussed the APP in Cancun and agreed to have follow-up
    discussions in Ottawa, Under Secretary Dobriansky welcomed
    Canada's interest in the Partnership, and explained its
    objectives as well as its consensus procedures for expanding
    membership.  End Summary.

    ¶4. (U) Key meetings during the visit of U/S Dobriansky and
    CEQ Chairman Connaughton included a breakfast with the
    Ministers of Environment, Natural Resources and Foreign
    Affairs, an interagency discussion on Devils Lake hosted by
    the Department of Foreign Affairs and International Trade
    (DFAIT), a discussion with Minister of Environment Rona
    Ambrose and senior staff on climate change and air quality, a
    meeting with the Deputy Minister of Natural Resources on
    alternative energy issues, and a business roundtable.  In
    addition, U/S Dobriansky met with senior Canadian health
    officials to discuss the way forward on avian influenza
    cooperation in the North American (SPP) context, and she
    engaged Canadian NGOs in a roundtable discussion on promotion
    of democracy.

    Devils Lake

    ¶5. (SBU) Devils Lake was discussed in a number of meetings
    Q5. (SBU) Devils Lake was discussed in a number of meetings
    during the visit, with the most detailed discussion taking
    place at a meeting hosted by DFAIT on April 24.  Peter Boehm,
    Assistant Deputy Minister (ADM) for North America was joined
    in the meeting by David McGovern, ADM for International
    Affairs at Environment Canada, as well as a representative
    from the Privy Council Office.  Connaughton told Canadian
    officials that both governments are implementing the elements
    of the framework agreed to in August 2005.  None of the
    original 13 species of concern to Canada and Manitoba were
    found in Devils Lake during jointly conducted biota studies
    last year.  The U.S. has conducted an engineering study of
    advanced filtration systems for the DL outlet and has three
    options to choose from -- one involving ozone treatment and
    two using ultra violet (UV) light treatment.  CEQ is
    convening a meeting of U.S. and Canadian experts to review
    the options, and hopes to have a decision on what type of
    advanced filtration system would be best.  Once an option has
    been selected, the U.S. will pursue design and construction
    of the system.  Obtaining funding for such a system will be

    OTTAWA 00001323  002 OF 005

    an important part of the effort, one that will require
    Congressional approval and, more specifically, cooperation
    from the North Dakota congressional delegation.  Regarding
    Canadian questions about whether North Dakota would refrain
    from pumping water until an advanced filter is in place,
    Connaughton said that decisions on when to pump water rest
    with Governor Hoeven, who is governed in his decisions by the
    permit issued for the outlet.  That permit has several
    restrictions based on water quality and water levels in the
    Sheyenne and Red Rivers.  The USG, he said, does not have
    authority to stop the state from pumping when it operates
    under the terms of the permit.

    ¶6. (SBU) Connaughton emphasized that further scientific
    studies need to be undertaken as a matter of priority to
    solidify or modify preliminary conclusions about the lack of
    any current, significant risk to the Sheyenne and Red Rivers,
    as well as Lake Winnipeg, from biota in DL.  The
    International Joint Commission (IJC) is being asked to
    undertake this task, through their Red River Board, including
    testing and monitoring in Manitoba.  Funding these studies
    may cost on the order of $200,000.  Both governments will
    have to provide funding to the IJC for this effort. The CEQ
    Chairman also noted that if the studies further affirm no
    real risk, then both governments should recognize there is no
    need for an advanced filtration system and should be prepared
    to "declare victory" and move on.  He told Canadian officials
    that neither country required this level of mitigation for
    domestic water transfers unless there was an identified risk
    -- and thus far, there is no identified risk at Devils Lake
    that would justify construction of the advanced filtration
    system.  Alternatively, if a significant new risk is
    identified, he indicated Governor Hoeven already committed to
    immediately halting water transfers.

    Climate Change and Air Quality

    ¶7. (SBU) Minister of the Environment Rona Ambrose and senior
    staff from Environment Canada and the Privy Council Office
    hosted a working dinner on April 24 to discuss air quality
    and climate change issues.  Ambrose made it clear that her
    government would not focus its efforts on meeting Kyoto
    Protocol targets, but would focus instead on reducing air
    pollution, counting on associated improvements in greenhouse
    gas emissions.  She also told Dobriansky and Connaughton that
    Canada will not pursue negotiations under Art. 3.9 of Kyoto
    on a second round of greenhouse gas emissions commitments,
    nor would it participate in the Protocol's Clean Development
    Mechanism (CDM).  She expressed interest in Canadian
    participation in the Asia Pacific Partnership for Clean
    Development and Climate (APP), noting that the government
    first needs to "get its house in order" by putting together a
    "made-in-Canada" solution to address climate change
    objectives.  Dobriansky briefed the Minister in detail on
    developments in the APP, including the outcomes from the
    January launch in Sydney, Australia and a recent meeting in
    Berkeley, California.  The U/S welcomed Canada's interest in
    APP and agreed that it would be useful for Canada to fashion
    its national approach to these issues and then see how it
    would fit into the APP context.  Dobriansky noted that there
    was a process outlined in the APP charter for expansion, and
    that Canada, Indonesia and a few other countries might be
    good candidates for inclusion when the time is right.
    Qgood candidates for inclusion when the time is right.

    ¶8. (SBU)  Ambrose explained her government's interest in
    adopting a "Clean Air Act" for Canada and said the government
    would shortly put forward legislation.  She said that Canada
    could learn a lot from the experience of the U.S. and its
    success in reducing harmful air pollutants, specifically with
    regard to the use of cap and trade systems and other
    market-based measures.  Connaughton highlighted significant
    improvements in air quality that would result from policy
    decisions, technology improvements and new regulations in the
    U.S.  He noted that the Clean Air Interstate Rule and
    associated regulations would result in a 70 percent reduction
    in SO2 emissions from power plants in 28 states, a 60 percent
    reduction on NOx emissions and a 70 percent reduction in
    mercury emissions by 2015.  He also explained that more
    stringent air quality standards, the removal of sulfur from
    diesel fuel and the introduction of new clean-burning diesel
    engines in the U.S. would dramatically improve air quality in
    the U.S. and ease the associated air quality concerns of
    Ontario and Quebec.  Dobriansky and Connaughton repeatedly
    emphasized the need for "mass produced outcomes" in
    addressing both air quality and climate change issues.  As an
    example, Connaughton noted that China's decision to improve

    OTTAWA 00001323  003 OF 005

    efficiency at its power plants by 20 percent by 2020 would
    have a huge impact on both air pollution and greenhouse gas
    emissions, dwarfing the impact of small and isolated projects
    such as those being considered under the CDM of the Kyoto
    Protocol.  He also emphasized the need for focus on efforts
    that bring about improvements in air quality and greenhouse
    gas emissions on a profitable basis and those that have a net
    social benefit (such as demonstrable health benefits), rather
    than those that have a net social cost.  U/S Dobriansky took
    the opportunity to reiterate the U.S. invitation for Canada
    to become a partner in the Coalition Against Wildlife
    Trafficking (CAWT), and noted the link between wildlife trade
    and public health.  Minister Ambrose said they would explore
    membership.

    Energy Discussions

    ¶9.  (SBU)  Clean and alternative energy programs:  U/S
    Dobriansky and Chairman Connaughton discussed a range of U.S.
    clean energy programs, emphasizing the connection between
    energy security and sustainable development.  At the Business
    Roundtable, Chairman Connaughton noted that there are
    considerable profits to be made in methane recapture, but it
    is up to governments to figure out how market forces can be
    brought to bear, especially in countries such as China and
    India.  One industry representative commented that the energy
    industry itself needs to embrace energy efficiency, for the
    sake of continued markets and the energy industry,s own
    long-term interests.  Chairman Connaughton observed that
    among other advantages of clean coal, the continued use of
    coal by the United States and Canada would take pressure off
    worldwide petroleum and natural gas supplies.

    ¶10.  (SBU)  At Natural Resources Canada, U/S Dobriansky and
    Chairman Connaughton discussed the relationship between
    energy security, economic growth, GHG mitigation, and
    pollution control with Deputy Minister Richard Fadden and
    other senior officials.  The Deputy Minister noted that the
    GOC is trying to create a regulatory regime that consciously
    balances environmental concerns with economic growth.  He
    also noted that there are many opportunities for U.S.-Canada
    cooperation in areas such as nuclear energy, clean coal, S&T
    coordination, liquefied natural gas (LNG) and streamlining of
    regulatory regimes.  U/S Dobriansky emphasized the importance
    of cooperative S&T, observing that technology development is
    the core of U.S. clean and alternative energy programs.
    Deputy Minister Fadden remarked that clean coal must be shown
    to work in North America, commenting that it is up to the
    U.S. and Canada to prove that clean coal technologies are
    effective.  Fadden also said that as a demonstration of the
    importance of continued U.S.-Canada energy cooperation,
    Minister of Natural Resources Gary Lunn himself would lead
    the Canadian delegation to next week,s meeting of the North
    American Energy Working Group in Washington.

    ¶11.  (SBU)  Chairman Connaughton visited Iogen, an
    Ottawa-based company that is a leader in the development of
    cellulose ethanol.  The visit was made in support of the
    President's Advanced Energy Initiative.  Accompanied by CEO
    Brian Foody, the Chairman toured Iogen,s laboratories, where
    the company manufactures enzymes that are used to break down
    plant fibers, as well as its extensive test facilities for
    fermentation and production.  The company is finalizing plans
    for its first commercial bio-refinery likely to be in eastern
    Qfor its first commercial bio-refinery likely to be in eastern
    Idaho, where Iogen has signed contracts to purchase barley
    and wheat straw from more than 300 farmers.  Under Iogen,s
    processes, each metric ton of plant fiber produces about 75
    gallons of ethanol.

    Avian Influenza

    ¶12. (U) U/S Dobriansky met on April 24 with Ian Shugart,
    Senior ADM at Health Canada, and with David Butler Jones,
    Chief Public Health Officer and head of the Public Health
    Agency of Canada, to discuss North American cooperation on
    avian and pandemic influenza.  Dobriansky noted that
    President Bush and Prime Minister Harper had recently
    discussed avian influenza at their meeting in Cancun,
    focusing on the need for better coordination through the
    establishment of a trilateral mechanism on border issues
    related to North American responses to possible outbreaks of
    the disease.  She told Shugart and Jones that she had been
    designated as the U.S. foreign affairs point of contact (POC)
    for the trilateral mechanism and that the health POC would be
    William Steiger, the Director of the Office of Global Health

    OTTAWA 00001323  004 OF 005

    Affairs and Special Assistant to the Secretary of Health and
    Human Services for International Affairs.  Dobriansky asked
    about how the GOC would organize itself and when the three
    governments might be able to meet, suggesting the June 6/7
    meeting of the International Partnership on Avian and
    Pandemic Influenza in Vienna as a good opportunity.  Shugart
    said that the GOC is close to designating its POCs and
    alternates for the trilateral mechanism and should be ready
    for a meeting in Vienna.

    ¶13. (SBU) Dobriansky asked about GOC funding for avian
    influenza, and in particular, whether there would be any
    change in the Canadian pledge given in Beijing as a result of
    the election in January.  Shugart said the Beijing pledge was
    a summary of decisions already made to that point, and that
    the new government had not made decisions on large
    investments yet.  However, contributions to organizations
    such as the WHO and FAO are being considered.  The new
    government understands the importance of this issue, he said,
    noting that there was good cooperation between the several
    ministries involved -- health, agriculture, foreign affairs
    and public safety.  The budget will be presented by the
    government on May 2 and may show more details of how avian
    influenza programs will be funded.  Shugart expressed
    interest in asking the World Bank to report in Vienna on
    progress that has been made since Beijing.  He noted that
    Canada was prepared to provide leadership on vaccines and
    that cooperation between Canadian and the U.S. authorities
    (FDA) on the regulatory approval processes was good.
    Dobriansky acknowledged Canadian interest in our national
    implementation plan for avian and pandemic influenza and
    promised to share the plan with Canada formally.

    Promotion of Democracy

    ¶14. (SBU)  U/S Dobriansky met with a number of leaders of
    Canadian NGOs and quasi-governmental organizations to share
    with them the U.S. vision of democratization in the world and
    to hear from them ideas of where the U.S. and Canada could
    better cooperate in the world.  The organizations included
    the Forum of Federations, Canadian Foundation for the
    Americas (FOCAL), the Parliamentary Centre, Friends of Sudan,
    Peace Dividend Trust, Elections Canada, National Judicial
    Institute, and Pearson Peacekeeping Centre.   The U/S laid
    out the U.S. vision for transformational diplomacy, good
    governance, and democratization, with both global and
    specific examples (e.g. BMENA, Forum for the Future, MEPI,
    Community of Democracies) of what we believe is working and
    where we can collaborate more closely.  The Canadian
    representatives shared their views on a number of regional
    issues, suggesting that closer collaboration would help us to
    better advance our shared agenda in democratization and good
    governance.  Haiti, on the one hand, is one of the best
    examples to date of consistent U.S.-Canadian cooperation over
    a sustained period of time, while Cuba is a place where
    Canada needs to work alone to have a positive impact.  The
    Director of the Parliamentary Centre summed up the sentiment
    of the group when he asked if it would be possible to move
    beyond occasional ad hoc discussions with the U.S. to a more
    consistent dialogue as we seek to find synergy in our efforts
    to improve governance and strengthen democratic organizations
    around the globe.  The group agreed that such a four-way
    dialogue between the USG, GOC, and NGOs from both countries
    Qdialogue between the USG, GOC, and NGOs from both countries
    would pay huge dividends for all the parties.

    ¶15. (SBU) Comment:  This visit clearly reflected and
    contributed to a more cooperative relationship between the
    U.S. and the new Canadian government.  Canadian ministers and
    their staffs went out of their way to make themselves
    available for meetings and to show their desire for closer
    cooperation on a broad range of issues, both bilaterally and
    in multilateral forums.  We believe it was particularly
    helpful to clarify our position with regard to implementing
    our agreed framework from August 2005 on Devils Lake.  We
    will have to remind the GOC of the importance of moving ahead
    quickly with further scientific studies and monitoring,
    particularly in Manitoba, to determine whether biota from
    Devils Lake pose a real risk or not.  Discussions on air
    quality and climate change demonstrated that their are great
    opportunities for closer cooperation and sharing of U.S.
    experience, especially as the new government moves to draft
    and introduce new air quality legislation.  And we urge
    Washington to be as forthcoming as possible with regard to
    Canadian interest in joining the APP.  Minister Ambrose made
    it clear that her government sees the need for fashioning a
    "made-in-Canada" approach to air quality and climate change,

    OTTAWA 00001323  005 OF 005

    but she was also anxious to align Canada's policies for
    participation in the APP.  End Comment.

    ¶16. (U) This cable was cleared by Under Secretary Dobriansky
    and CEQ Chairman Connaughton.

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