Transfer of Federal Gas Tax Revenues

Year
2006
Number
B86
Sponsor(s)
Smithers

WHEREAS at the Federation of Canadian Municipalities Conference held June 2005 in St. Johns, Newfoundland, the federal government promoted the Gas Tax Agreement and outlined eligible projects including public transit, roads, bridges, capacity building, and water and sewer utilities; AND WHEREAS the Agreement between Canada, British Columbia and Union of British Columbia Municipalities on the Transfer of Federal Gas Tax Revenues Under the New Deal for Cities and Communities entered into on September 19, 2005 restricts the use of the funds to projects which contribute to reduced greenhouse gas emissions, clean water, or clean air; AND WHEREAS this restriction causes financial hardship to municipalities that require gas tax revenues to maintain roads, streets and other infrastructure: THEREFORE BE IT RESOLVED that the Union of BC Municipalities request that the Gas Tax Agreement be amended to provide eligibility for capital projects contributing to environmental, economic, social or cultural sustainability and that the intended outcomes under the Agreement be expanded to encompass these four elements of sustainability.

Provincial Response

Ministry of Community Services One of the choices made by the federal government in developing the framework for the transfer of federal gas tax revenues under the Gas Tax Agreement GTA was to ensure that municipal infrastructure investments in communities resulted in the achievement of the environmentally sustainable outcomes of reduced green house gas emissions, cleaner air and cleaner water. A National Evaluation of the GTA program will be conducted by March 31, 2009, and as part of the evaluation process it is important for the Province of British Columbia to be able to demonstrate that infrastructure investments under the GTA have contributed to the achievement of the desired environmental sustainability outcomes. A successful program evaluation is essential to support renewed funding.

Convention Decision
Endorsed as Amended