The Honourable Gail Shea, Minister of Fisheries and Oceans, along with the Honourable Robert Ghiz, Premier of PEI, and the Honourable Carolyn Bertram, PEI Minister of Communities, Cultural Affairs and Labour, announced today that communities across Prince Edward Island can now better plan for their long-term infrastructure needs drawing on the more than $60 million from the federal Gas Tax Fund available between 2010 and 2014.
“This agreement of the Federal Gas Tax will enable the municipalities of Prince Edward Island to maintain and upgrade key infrastructure such as roads, water systems, bridges and public transit,” said Minister Shea. “In a time of economic uncertainty, I’m proud to represent a Government that delivers real results that stimulate our economy, create jobs, and improve the quality of life of the citizens of our province.”
“The building of roads, bridges, and other key infrastructure is an important part of our Government’s Economic Action Plan that aims to stimulate the economy and create jobs across Canada,” said the Minister of Transport and Infrastructure, John Baird. “Today’s extension of the federal Gas Tax Fund is clear example of our Government’s commitment to work with our provincial and municipal partners to get shovels in the ground as soon as possible and provide long-term, stable funding that will help improve the quality of life of Prince Edward Islanders.”
The Gas Tax Fund supports environmentally sustainable infrastructure, such as public transit, community energy, local roads, water, wastewater and solid waste infrastructure improvements. Funding is also available for communities to enhance their capacity to achieve and maintain long-term sustainability. The first phase of the Gas Tax Fund (2005 to 2010) provides $37.5 million to Prince Edward Island communities.
“This $60 million investment will support the long-term sustainability of our One Island Community,” said Premier Ghiz. “Infrastructure spending is also key to improving quality of life, protecting public safety, and providing for our municipal needs. The Government of Prince Edward Island is proud to invest in the long-term development and future sustainability of communities across the province.”
“Gas Tax is a critical program in supporting our municipalities in strategic planning and sustainability,” said Minister Bertram. “Through the collaborative efforts of all orders of government, this new funding will support all our Island communities in important infrastructure improvements and planning for a sustainable future.”
Since its inception, the Gas Tax Fund has supported several infrastructure projects on the Island, including sewer and water extensions in Cornwall, the construction of the new Montague Bridge in the Town of Montague, an energy efficiency retrofit of the community complex in Mount Stewart and numerous capacity building initiatives.
Through its unprecedented Building Canada plan, the Government of Canada is working with the Province of PEI to provide long-term, stable and predictable funding, including the Gas Tax Fund, to help meet infrastructure needs across Canada. The Government of Canada and Prince Edward Island are working on ways to speed up the investment of Building Canada funds to provide economic stimulus. In PEI, these Gas Tax funds are a part of the $302.42 million in federal infrastructure investment as announced on May 21, 2008.
For more information about federal and provincial Gas Tax infrastructure initiatives, please visit www.buildingcanada.gc.ca, www.infrastructure.gc.ca or www.gov.pe.ca/go/infrastructure.
Backgrounder:
The Governments of Canada and Prince Edward Island have signed the Framework Agreement under the Building Canada Plan, which committed to the extension of the Gas Tax program for an additional four years (2010-2014), representing a $60 million transfer of federal funds. This is a 60 percent increase compared to the $37.5 million planned Gas Tax Fund for the period of 2005 and 2010.
The Gas Tax Extension Agreement announced today summarizes the $60 million investment, which has been divided up into three separate funding components:
1. Incorporated Communities with sewer and/or water service - $30 million
The 26 municipalities which supply sewer and/or water services to their residents will receive a direct allocation of funding, which has been determined based on their population. Municipalities will be required to supply the Province with a Capital Investment Plan, outlining how these funds will be spent, and money will be dispersed in equal payments two times per year.
2. Municipal Services provided by the Province - $18 million
In Prince Edward Island, the Provincial Department of Transportation and Public Works looks after the majority of roads and bridges located within municipal boundaries. Therefore, they will receive $18 million for projects specifically related to municipal roads and bridges.
3. Capacity Building Fund and Communities Fund - $12 million
The Capacity Building Fund is for soft cost projects, such as land use studies, official plans and bylaws, etc. This is an application based program, where any Community can apply for assistance for projects related to building their municipal capacity.
The Community Fund is an application-based program primarily for communities that do not receive a direct allocation and wish to undertake infrastructure initiatives.
The provincial government will administer the distribution of the Gas Tax funds.
The Gas Tax Management Committee, which includes representatives from the provincial and federal governments and the Federation of Prince Edward Island Municipalities, will monitor the program and develop directions and initiatives.
Community and regional sustainability planning is crucial in PEI. The gas tax agreement builds on provincial and local initiatives that encourage environmental, economic, social and cultural sustainability and the collaboration of all governments to strengthen community capacity.
Examples of Eligible Projects:
Water Infrastructure: Drinking water supply systems, treatment, pumping and distribution systems, and water infrastructure management systems
Wastewater Infrastructure: Wastewater treatment and pumping systems, sanitary sewer systems, and storm sewer drainage systems and facilities
Solid Waste Infrastructure: Waste diversion, material recovery facilities, organics management, collection depots, waste disposal landfills, thermal treatment, and Regional Waste Management systems
Community Energy Systems: Retrofits of local government-owned buildings, energy systems such as renewable energy, including wind power, combined with heat and power (CHP), cogeneration and district energy
Public Transit: Rapid transit, such as ferries, park and ride facilities and grade- separated bus lanes; transit buses and transit bus stations; technologies to improve transit priority signaling, traffic information and transit operations; public transit facilities including garages, maintenance facilities, and terminals; and public transit for persons with disabilities
Transportation Infrastructure: Construction, reconstruction and rehabilitation of roads, bridges, and railways that enhance environmental sustainability outcomes; sidewalks, commuter bikeways, lighting, traffic control signals, pedestrian signals, storm drainage and utility relocations
Capacity Building: Collaboration: building partnerships, strategic alliances, participation, consultation and outreach; Knowledge: use of new technology, research, monitoring and evaluation; Transportation studies and municipality-wide or regional transportation planning studies; Integration: integrated sustainability planning, Infrastructure planning, policy development and implementation (e.g. environmental management system, life cycle assessment, area road and transportation planning)