The Government of Canada has released information on how new and previously unspent federal infrastructure funding will be allocated to provinces and municipalities.

The announcement includes information on two new funding programs introduced in the 2016 federal budget, as well as information on how restrictions on previously unspent funding under the New Building Canada Fund have been relaxed to facilitate the money being allocated in a timely fashion.

New Funding

In their 2016 budget, the Government of Canada committed to a long-term, multi-stage infrastructure funding plan. Phase 1 of that plan introduced two new municipal infrastructure funding programs: the Clean Water and Wastewater Fund (CWWF) and the Public Transit Infrastructure Fund (PTIF). Key information available on these new programs is as follows:

  • Eligible project costs will be retroactive to April 1, 2016 to allow the funding to be utilized immediately.
  • The federal contribution on individual projects has increased to a maximum of 50%, up from the 33% that was used previously in similar programs such as the Small Communities Fund.
  • Alberta’s allocation under the PTIF is $347.2 million. This funding will be distributed so that each recognized transit system in the province receives a base amount of $50,000, with the remaining funds to be distributed based on the ridership of each program.
  • Alberta’s allocation under the CWWF is $196.7 million. This funding will focus on projects that meet immediate priorities for clean water and wastewater, including:
    • The rehabilitation and optimization of water, storm water, and wastewater related infrastructure
    • The improvement of asset management approaches including studies and pilot projects
    • Planning of future upgrades to wastewater treatment and collection infrastructure to meet applicable regulatory requirements
    • New construction projects, including the construction of naturalized systems for management and treatment of wastewater and stormwater may be considered if they can be completed within the program timeframe

At this point, the details of how the Government of Alberta will further allocate the funding and share responsibility with municipalities for the remaining 50% of project costs not covered by the federal government is not known, and the AAMDC looks forward to working with the Government of Alberta to determine these details.

More information will be shared with members as it becomes available.

Existing Funding

The New Building Canada Fund (NBCF) was introduced by the previous federal government in 2014. It included a number of subcomponents, including the Small Communities Component and the Provincial Territorial Infrastructure Component (PTIC). As much of this funding, particularly under the PTIC, has not yet been allocated, the following changes to the NBCF have been made:

  • Removal of the mandatory P3 screen across the NBCF
  • Under the PTIC component:
    • Modifying the highways and roads category to reduce minimal traffic volumes in order to reflect the varying needs of diverse communities
    • Adding five new categories: Tourism, Culture, Recreation, Passenger Ferries Services Infrastructure, and Civic Assets and Municipal Buildings
    • Adjusting cost sharing requirements for projects delivered as P3s to increase federal funding share
    • Adjusting the cost sharing proportions for disaster mitigation projects – in recognition that a number of significant disaster mitigation assets in Canada are now provincially owned, federal funding can be up to 50% for these projects

As details of how these changes will impact the allocation of PTIC funds becomes available, the AAMDC will update members. In Alberta, there is approximately $300 million of unallocated funding.

 

Enquiries may be directed to:

Wyatt Skovron
Policy Analyst
780.955.4096

Kim Heyman
Director, Advocacy and Communications
780.955.4079

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