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The Canadian government's infrastructure plan includes over $120 billion in investment for public transit, green infrastructure, and social infrastructure. The plan is divided into two phases, with Phase 1 focusing on immediate investments in transit, water and wastewater infrastructure, affordable housing, and more. Phase 2 will involve discussions on long-term transit funding and key challenges in increasing ridership and reducing congestion.
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Overview • The government’s historic infrastructure plan to invest more than $120 billion in infrastructure over 10 years includes $60 billion in new funding for public transit, green infrastructure, and social infrastructure • Funding will be delivered in two phases: Laying the Foundation for Canada’s Future • Focuses primarily on immediate investments that target capital rehabilitation to optimize the performance of existing assets • $11.9 billion in new funding for public transit, green and social infrastructure investments Phase 1 Building for Tomorrow • Focused on three funding streams: public transit, green and social infrastructure • To be released in the next year Phase 2
Phase 1 – Laying the Foundation for Canada’s Future • $11.9 billion in short-term funding • Primarily focused on the next 2 years, in four key areas: Transit $3.4B for public transit infrastructure $5B to renew water and wastewater infrastructure and address the challenges of climate change Green • $3.4B for affordable housing, early learning and child care, cultural and recreational infrastructure, and community health facilities on reserve Social • Funding for capacity building, asset management and infrastructure data to help inform investment decisions Evidence-based Decisions Beyond the infrastructure plan, Budget 2016 also included over $5.8 billion in additional infrastructure investments in post-secondary education, broadband and federal assets
Phase 1 – Public Transit Infrastructure Fund • $3.4 billion to support public transit to strengthen communities and boost economic growth • Up to 50% federal support of total eligible costs per project in for provinces and up to 75% in territories • Allocation of funds Funds allocated to provinces and territories based on ridership using 2014 CUTA data - table is on Infrastructure Canada website Within each jurisdiction, transit systems will receive a base amount of no less than $50,000 - remainder will be distributed based on overall ridership
PTIF - Eligible Investments • Capital projects for the rehabilitation, optimization and modernization of public transit infrastructure, or that improve the efficiency, accessibility and/or safety of public transit infrastructure • Expenditures to support the asset management capacity of a public transit system • Expenditures to support the design and planning for the future expansion and improvements to public transit systems, including transportation demand management measures and studies and pilot projects related to innovative and transformative technologies • Projects for system expansion can be funded, which may include active transportation, if they can be completed within the program timeframe
How PTIF Works • Infrastructure Canada will sign agreements with provinces and territories (PTs) • Negotiations were initiated in late April • PTs and municipalities/transit agencies identify projects that contribute to the program objectives • PTs provide project lists to Infrastructure Canada for approval • PTs are responsible for the administration of the program • Distribute funds, collect information on results and provide reports to Canada, manage audit requirements, etc.
PTIF - Financial Details • Costs can be incurred starting April 1, 2016 • Payments will generally be made semi-annually • Projects must be incremental and must be completed by March 31, 2018 • Would not have taken place within the first two years of the program; or • Would not have been undertaken without the federal funding.
Phase 2 Discussion: • How should we focus our long-term transit funding to achieve the outcomes we want in respect of reducing congestion, cutting air pollution, strengthening communities and supporting economic growth? • How do we allocate funding in a way that is fair, but that also helps us to achieve meaningful outcomes? • What should be the focus/eligible categories? (SOGR, expansion, active transportation, technology, etc.) • What criteria or conditions for funding need to be in place? • How do we ensure the process for identifying and approving projects supports the outcomes we want? • What is the role of the various levels of government and the local and regional transit agencies in this process?
Phase 2 Discussion: • What are the key challenges in respect of increasing transit ridership and reducing congestion? • What role does capital funding play in addressing these challenges? • How can we support ridership growth in municipalities of various sizes (small/rural, mid-sized, big cities)? • What role does or should active transportation play in this? How can the federal government better support active transportation? • How do we measure success in this regard? • How will new technologies and innovation (eg. autonomous/connected vehicles) change the way we plan or think about public transit and related investments? • Where are the greatest opportunities for innovation in respect of our public transit systems, from a technology perspective or otherwise? • What are the barriers to implementing innovations and new technologies?