Ottawa: The provinces and the federal government appear to be coming closer to an understanding that will facilitate the development of infrastructure, including electricity infrastructure. Denis Lebel, Minister of Transport, Infrastructure and Communities, launched a formal engagement process last November 30 to bring together the Government of Canada, provinces, territories, the Federation of Canadian Municipalities and others to develop a new long-term plan for public infrastructure beyond the expiry of the Building Canada Plan in 2014. The plan was first launched in 2007.
The Canadian Electricity Association called the announcement "a positive signal for Canada's electricity sector."
“Federal funding and financial support for electricity projects has made some projects economic, but any long-term infrastructure plan must acknowledge that improving federal regulatory processes is an essential precursor to ensuring that projects can go forward in a timely manner, regardless of whether they are funded publicly or privately,” said Pierre Guimond, the immediate past President and CEO of the Canadian Electricity Association.
The CEA cited estimates from the Conference Board of Canada and the International Energy Agency (IEA), which project that to maintain existing assets and meet market growth, investments of at least $293 billion over the next twenty years ($15 billion annually) are required for the renewal of Canada's electricity infrastructure.
"In the last decade, electricity infrastructure projects have faced growing legislative and regulatory complexity, characterized by lengthy and often duplicative regulatory processes, for existing and planned projects," the CEA continued. "Reform of key federal acts will create a stable and predictable climate for investment that will enable these projects – and the immense economic benefits they will create, particularly job creation – to go forward."
The process will proceed in three phases:
Phase I – Taking Stock (Fall 2011-Winter 2012): a review of past infrastructure investments and initiatives and examine their benefits for communities.
Phase II – Identifying Priorities (Winter-Summer 2012): work with partners and stakeholders, as well as with technical experts and academics, to build knowledge around five broad themes:
Infrastructure and the Economy
Infrastructure and the Environment
Infrastructure and Stronger Communities
Financing Infrastructure
Asset Planning and Sustainability
Phase III – Informing the Next Agenda (Summer-Fall 2012): discussions with provincial, territorial and municipal partners and other key stakeholders to develop the next long-term public infrastructure plan.
The federal government supports infrastructure projects with several categories of funding, including:
• Targeted Investments focus on both community and large-scale infrastructure. Funds are targeted toward priorities, such as clean drinking water and public transit, and include commitments under the Building Canada Fund, the Infrastructure Stimulus Fund and the Green Infrastructure Fund.
• Provincial-Territorial Base Funding provides provinces and territories with stable long-term funding geared toward their priorities. This funding is streamlined and flexible with simplified administrative requirements.
• The Gas Tax Fund goes to municipalities to support environmentally sustainable municipal infrastructure projects.
In 2008, the Government of Canada announced that the Gas Tax Fund would become a permanent measure, providing $2 billion per year in predictable and long-term infrastructure funding to Canada’s cities and towns.