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Municipal Affairs
April 9, 2009

New Framework Simplifies Gas Tax Process

The Department of Municipal Affairs has created a new framework and guide to assist municipalities in Newfoundland and Labrador to develop an Integrated Community Sustainability Plan (ICSP) under the federal Gas Tax Agreement.

In an effort to encourage regional cooperation, $200,000 was allocated under Budget 2009 to assist municipalities with administrative costs when three or more municipalities agree to work together to prepare a collaborative ICSP.

"The ICSP is meant to be a strategic planning document that is constantly evolving and updated as necessary," said the Honourable Dianne Whalen, Minister of Municipal Affairs. "By following the steps outlined in the new framework, municipalities should be able to develop efficient and effective plans. We would also encourage more municipalities to consider how they may work together as they think about strategies to strengthen their communities."

The $82 million Canada-Newfoundland and Labrador Agreement on the Transfer of Federal Gas Tax Revenues was announced in August 2006. Municipalities and Inuit Community Governments in the province can use this funding towards environmentally sustainable municipal infrastructure projects, such as water, wastewater management, solid waste management, public transit, community energy systems, and roads and bridges.

Eligible recipients who have signed the Gas Tax Agreement are expected to develop an ICSP that sets out their environmental, social, cultural, governance and economic objectives over a five-year time frame.

The department, in consultation with Municipalities Newfoundland and Labrador and the Newfoundland and Labrador Association of Municipal Administrators, has developed a framework and guide to simplify the process and to enable municipalities to incorporate relevant existing plans including community or land use plans. These documents build on the work of the Municipal Sustainability Self-Assessment created by Municipalities Newfoundland and Labrador.

Each ICSP should include public input and describe the environmentally sustainable infrastructure projects that will be developed with gas tax funding. Under the Gas Tax Agreement, municipalities must complete an ICSP by March 31, 2010.

"I urge municipalities to take advantage of this unique opportunity to begin planning for their long term sustainability," said Minister Whalen. "The gas tax fund is a significant investment in municipal infrastructure for Newfoundland and Labrador and the ICSP is part of the terms of agreement."

Officials from the Department of Municipal Affairs are currently holding information sessions with individual municipalities across the province to discuss the framework and to offer assistance.

The framework and guide can be found on the Municipal Affairs website at www.gov.nl.ca/ma/icsp.html

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Media contact:

Susanne Hiller
Director of Communications
Municipal Affairs
709-729-1893, 697-3760
susannehiller@gov.nl.ca

BACKGROUNDER

Gas Tax Funding for Newfoundland and Labrador

  • In August 2006, Canada and Newfoundland and Labrador signed the Canada � Newfoundland and Labrador Agreement on the Transfer of Federal Gas Tax Revenues 2006-2015.

     
  • Between 2006 and 2010, Newfoundland and Labrador�s share of the federal gas tax funding is $82.25 million.
  • Allocation of over $82.2 million in federal gas tax revenues to
    Newfoundland and Labrador

    Fiscal year

    Gas Tax Revenues

    2006-07

    $19,740,000

    2007-08

    $13,160,000

    2008-09

    $16,450,000

    2009-10

    $32,900,000

    TOTAL

    $82,250,000

    • Gas tax funds are to be invested in environmentally-sustainable municipal infrastructure. Eligible project categories include water, wastewater, solid waste, public transit, community energy systems, municipal capacity building, and transportation infrastructure, where it can be demonstrated that they will enhance environmental sustainability outcomes.
       
    • These investments will result in significant environmental benefits, such as cleaner air, cleaner water and reduced greenhouse gas emissions.
       
    • The intra-provincial allocation formula provides $21.88 million for the implementation of Newfoundland and Labrador's Regional Waste Management Strategy. The remaining funds are distributed on a per capita basis, while also providing $6.03 million to ensure a base level of funding for the smallest jurisdictions.
       
    • An Oversight Committee, with representatives from the provincial and federal governments and Municipalities Newfoundland and Labrador (MNL), monitors the program and develops new directions and initiatives.
       
    • The governments of Canada and Newfoundland and Labrador work with municipalities to enhance community sustainability and to encourage cooperation in infrastructure projects among municipalities and between municipalities and First Nations on reserve.

    Examples of Eligible Projects

    Water Infrastructure

  • Drinking water supply systems, treatment and distribution systems, and water metering systems
  • Wastewater Infrastructure

  • Sanitary sewer systems and storm water systems
  • Solid Waste Infrastructure

  • Waste diversion, material recovery facilities, organics management, collection depots, waste disposal landfills, thermal treatment, and landfill gas recuperation
  • Community Energy Systems

  • Cogeneration or combined heat and power projects (where heat and power are produced through a single process)
  • District heating and cooling projects where heat or cooling is distributed to more than one building.
  • Transportation Infrastructure

  • Active transportation infrastructure (e.g. bike lanes), local roads, arterial roads, regional roads and bridges that enhance sustainability outcomes, including construction, reconstruction, and rehabilitation of roads, bridges and other ancillary works, parks or sidewalks, lighting and traffic control.
  • Capacity Building

  • Collaboration: building partnerships, strategic alliances, participation, consultation and outreach.
  • Knowledge: use of new technology, research, monitoring and evaluation.
  • Integration: planning, policy development and implementation, such as environmental management systems and life cycle assessment.
  • Public Transit

  • Rapid transit such as light rail, ferries and park and ride facilities.
  • Buses, and transit bus stations.
  • Technologies to improve transit, priority signaling and traffic information and transit operations.
  • 2009 04 09                                                     4:25 p.m.
     


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