Gas Tax Fund: Results for Canadians
Permanent, flexible funding for municipalities

Building Infrastructure in Ontario

The Gas Tax Fund (GTF) is the largest component of the Building Canada plan – the Government of Canada’s $33-billion long-term infrastructure initiative.

The GTF targets exclusively municipal infrastructure to improve water and air quality and reduce greenhouse gas emissions. The GTF combines stable, long-term funding with local decision making to enable Canadian municipalities to revitalize and develop their core public infrastructure. Budget 2008 made the GTF a permanent federal program at $2 billion a year starting in 2014.

Since its launch, the GTF has delivered $1.1 billion to the provinces and territories resulting in more than 2,234 projects across the country with an estimated value of $3 billion. More than 85 percent of national GTF investments have focused on the renewal of existing infrastructure, with the three largest investment areas being water/wastewater, public transit, and local roads and bridges. Other eligible investment areas include solid waste management, community energy systems and capacity building.

Ontario will receive $1.866 billion in Gas Tax funding by 2010. By 2007, the province had received $446 million, with 44 percent of the funding going toward public transit. The City of Toronto will spend its entire allocation to upgrade public transit. This includes 712 new hybrid diesel buses, 156 new subway cars and a variety of other upgrades and improvements to the transit system.

Other priorities for the province include local roads and bridges, solid waste and water/wastewater projects.

In the western Ontario Township of Malahide, $171,769 in Gas Tax funds were allocated to an energy-efficient road rebuilding and resurfacing project. The selection of a cold in-place pavement recycling process reduces the energy intensity of the 10-year life extension project by an estimated 60%. In nearby Huron County a new bridge over the Maitland River will connect farm communities more directly to their local municipal hub of Goderich. Gas Tax funds will pay for about half of the cost of the bridge.

The City of Hamilton is expanding its household organics (green cart) collection program, using $19 million in Gas Tax funding to set up the program and build a central composting facility. The goal is to divert 65 percent of Hamilton’s waste from landfills. Curb-side audits after three months of operation showed a 55 percent diversion rate. Along with substantial environmental benefits, the city profits financially by avoiding the $100 million expense of creating another landfill.