The Public Transit Infrastructure Fund (PTIF) will provide short-term funding of $3.4 billion to help accelerate municipal investments to support the rehabilitation of transit systems, new capital projects, and planning and studies for future transit expansion to foster long-term transit plans.

Governance

• Canada will enter into Bilateral Agreements (BA) with provinces and territories to deliver the PTIF. The provinces and territories in turn, will enter into agreements with eligible ultimate recipients to manage projects.
• Canada will retain the flexibility to enter into agreements with other types of recipients, if deemed necessary to allow funds to flow into the economy quickly.
• An Oversight Committee (OC) co-chaired by federal and provincial/territorial officials will be established to report on project progress and program outcomes, monitor and mitigate risks, and audit and evaluation for each province and territory.

Project Identification and Approval

• Provinces and territories will be responsible for identifying projects, in collaboration with municipalities, to be funded through the PTIF.
• Provinces and territories will be required to submit a project list to Infrastructure Canada (INFC) for approval.
• All proposed project must provide basic information, including the name of the municipality, title and description of the public infrastructure project, eligible investment category, financial information, planned start and end dates as well as identification of outcome the project will support. Please refer to Annex A - for a full list of eligible investment categories and related subcategories.

Eligible Recipient(s)

• Eligible recipients include: provinces and territories; municipal or regional governments, established by provincial or territorial statute; or a transit agency or authority, established by a provincial, territorial, or local government. Please refer to Annex B for complete list of eligible recipients.

Eligible investment areas are targeted at meeting immediate public transit priorities that will strengthen communities and grow the economy. Eligible investments will include:

1. 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 (including rehabilitation or enhancement of existing guide ways, maintenance and storage facilities, or other existing public transit capital assets; refurbishment or replacement of existing rolling stock; and replacement or enhancement of transit stations);
2. Expenditures to support the asset management capacity of a public transit system;
3. 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; and
4. Projects for system expansion can be funded, which may include active transportation, if they can be completed within the program timeframe, subject to any additional flexibility that may be provided by the Minister on a case by case basis. Any unspent allocations would remain with the federal government.

The PTIF will be largely managed through funding agreements between Canada and each province and territory, which will be responsible for the administration of the programs and may further distribute funds to the eligible recipients for eligible projects. At the request of provinces or territories and at Canada's discretion, or, in order to ensure flexibility to allow the full amount of funding to flow into the economy quickly, Canada may enter into agreements with the following eligible recipients:

1. Organizations designated by a province or territory and agreed to by Canada,
2. Municipal or regional governments established by or under a provincial or territorial statute, and
3. Transit agencies or authorities established by a provincial, territorial, or local government.

Infrastructure projects in the provinces located partially or entirely on reserve, or on any Crown lands or lands set aside by the Crown that are designated to become reserve lands, may be considered for funding under the PTIF provided that the proponent demonstrates the project is aligned with objectives of the fund and has benefits that extend beyond the on-reserve community.

Eligible Costs

For the PTIF, infrastructure is defined as publicly or privately owned tangible capital assets in Canada primarily for public use or benefit, as well as planning or feasibility studies to address infrastructure issues or due diligence.

Eligible costs are costs considered by INFC to be direct and necessary for the successful implementation of an eligible project, excluding those explicitly identified in Section 11 - Ineligible Costs. Costs of Aboriginal consultation, and where appropriate, accommodation will be considered eligible.

Eligible costs can be incurred starting April 1, 2016, but can only be reimbursed by INFC subject to the signing of a funding agreement between INFC and the recipient and meeting the conditions outlined in Section 13 - Basis of Payments.

Where federal-provincial/territorial funding agreements are signed, provinces and territories may apply up to 1% of their funding allocation of each program towards program administration costs.

Ineligible Costs

Ineligible costs for the PTIF include the following:

1. Costs incurred prior to April 1, 2016;
2. Costs incurred after March 31, 2018. The Minister of Infrastructure and Communities may provide some flexibility regarding the deadline for incurring eligible costs should there be a demonstrated need;
3. Costs incurred for cancelled projects;
4. Land acquisition; leasing land, buildings and other facilities; leasing equipment other than equipment directly related to the construction of the project; real estate fees and related costs;
5. Financing charges, legal fees, and loan interest payments (including those related to easements (e.g. surveys);
6. Any goods and services costs which are received through donations or in kind;
7. Provincial sales tax and Goods and Services tax/HST, for which the ultimate recipient is eligible for a rebate, and any other costs eligible for rebates; and
8. Costs associated with operating expenses and regularly scheduled maintenance work.