Question Period Note: FEDERAL GAS TAX FUND PROGRAM IN QUEBEC

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About

Reference number:
INFC-072020-INFC-0008
Date received:
Dec 4, 2019
Organization:
Department of Housing, Infrastructure and Communities
Name of Minister:
McKenna, Catherine (Hon.)
Title of Minister:
Minister of Infrastructure and Communities

Issue/Question:

Eligibility of municipal buildings under the Gas Tax Fund

Suggested Response:

  • The federal Gas Tax Fund provides up front, predictable, long-term funding for municipalities to help them build and revitalize their public infrastructure.

  • For the 2019-2024 period, the federal Gas Tax Fund will deliver $2.5 billion to support communities of all sizes in the province of Quebec.

  • In Budget 2019, Infrastructure Canada provided a one-time top up of more than $504 million to Quebec municipalities.

  • Quebec is responsible for delivering the federal funding through its own program. The agreement between Canada and Quebec helps ensure that Federal Gas Tax Fund investments go to infrastructure projects that directly benefit municipalities in Quebec.

  • The federal Gas Tax Fund supports infrastructure projects primarily for public use or benefit such as amateur sport facilities, cultural and tourism infrastructure, rather than buildings that are used by municipal administrations.

Background:

  • The Federal Gas Tax Fund was established in 2005 and originally designed to provide municipalities with $5 billion in predictable funding over five years. The program was extended and legislated as a permanent source of federal infrastructure funding for municipalities.

  • The renewed Federal Gas Tax Fund (signed in 2014) has been indexed at two per cent per year, to be applied in $100 million increments. From 2014 to 2024, the GTF will provide municipalities with close to $22 billion in infrastructure funding.

  • Eligible categories of investment are broad and include public transit, local roads and bridges, drinking water and wastewater infrastructure, community energy systems, culture, recreation, disaster mitigation and capacity building.

  • Municipalities in Quebec are requesting that municipal buildings be eligible for funding under GTF. On June 21, 2019, Quebec has announced its new program, the “programme sur la Taxe sur l’essence et la contribution du Québec” (TECQ 2019-2023) which defines investment categories that apply in Quebec. According to TECQ 2019-2023, only energy retrofits on municipal buildings can benefit from the program.

Additional Information:

None