Infrastructure Canada

Infrastructure Canada
GOVERNMENT OF YUKON

GOVERNMENT OF YUKON

May 29, 2009 14:36 ET

Canada Launches $1-Billion Green Infrastructure Fund

Jobs Created With Construction of Yukon's Mayo B Hydro Facility and Carmacks-Stewart Line

WHITEHORSE, YUKON--(Marketwire - May 29, 2009) - Brian Jean, Parliamentary Secretary to John Baird, Canada's Transport and Infrastructure Minister, and Yukon Premier Dennis Fentie today announced that the enhancement of existing hydro power infrastructure at the Mayo hydro facility along with Phase 2 of the Carmacks-Stewart transmission line will be the first project to be funded under the new $1-billion Green Infrastructure Fund, part of the Government of Canada's Economic Action Plan.

"Under the leadership of Prime Minister Stephen Harper, our Government is targeting investments in green infrastructure to stimulate the economy and improve the environment," said Minister Baird. "This new Green Infrastructure Fund is part of our Government's Economic Action Plan to create jobs and boost the economy through infrastructure investments, while also promoting long-term growth and improving the environment."

"The Mayo B initiative creates a great partnering opportunity for our Government with Yukon First Nations and the Federal Government. Expanding hydro-generated power will reduce our carbon footprint by displacing thousands of tonnes of greenhouse gas emissions each year, creating a greener Yukon," said Premier Dennis Fentie. "By proactively developing green energy, we are not only providing more cost effective energy, but also creating lasting employment for Yukoners."

"The Government of Canada recognizes the importance of supporting infrastructure projects that will boost the economy and create jobs for Canadians while promoting cleaner, greener living," said Brian Jean, Parliamentary Secretary to Canada's Transport and Infrastructure Minister. "We are working to get projects, such as the Mayo hydro project and transmission line initiatives started now to help provide economic opportunities for Yukoners while supporting environmentally sound infrastructure growth."

Due to Yukon's current reliance on diesel for much of its electricity, it is expected that the project will reduce forecast diesel generation in 2012 by over 40%. In turn, this will reduce green house gases from energy production by 50% from current levels.

The Governments of Canada and Yukon will be contributing funding for this project. The Government of Canada will provide up to $71 million for this project. The total estimated cost of the project is $160 million.

Upgrades to the Mayo hydro facility will include building a new powerhouse downstream from the existing one, while Phase 2 of the Carmacks-Stewart transmission line will complete the development of a transmission line connecting Yukon's two grid systems.

This investment also supports the Government of Canada's integrated Northern Strategy that is focused on strengthening Canada's sovereignty, protecting our environmental heritage, promoting economic and social development as well as improving and devolving governance.

The Government of Canada will provide $1 billion over five years for the Green Infrastructure Fund. This Fund supports sustainable energy generation and transmission, along with municipal wastewater and solid waste management infrastructure. The Government is working with provinces, territories and other stakeholders to identify and approve more projects under this Fund.

The Government of Canada is moving forward with one of the largest infrastructure programs in history to create jobs and stimulate the economy. The 2009 Economic Action Plan is accelerating and expanding recent historic federal investment in infrastructure with almost $12 billion in new infrastructure stimulus funding over two years.

To learn more about Canada's Economic Action Plan, visit www.actionplan.gc.ca. For more information on Government of Canada investments in infrastructure, visit www.creatingjobs.gc.ca.


BACKGROUNDER

GREEN INFRASTRUCTURE FUND

Through Canada's Economic Action Plan, the federal government will provide $1 billion over five years for a Green Infrastructure Fund (GIF). This Fund supports sustainable energy generation and transmission, along with municipal wastewater and solid waste management infrastructure. Targeted investments in green infrastructure can improve the quality of the environment and will lead to a more sustainable economy over the longer term.

About the Program

This fund will focus on green priorities such as green energy generation and transmission infrastructure, building and upgrading wastewater treatment systems, and improving solid waste management. Sustainable energy infrastructure, such as modern energy transmission lines, will contribute to improved air quality and lower carbon emissions.

Eligible projects are those that promote cleaner air, reduced greenhouse gas emissions, and cleaner water and fall within any of the following categories: wastewater infrastructure; green energy generation infrastructure; green energy transmission infrastructure and solid waste infrastructure, and carbon transmission and storage infrastructure.

How it Works

The new $1-billion Green Infrastructure Fund will be allocated based on merit to support green infrastructure projects on a cost-shared basis. The fund will focus on a few, large scale, strategic infrastructure projects. The merit of the projects will be based on assessment criteria such as eligibility, leveraging financial investments and project benefits.

Proponents can summarize their project in a letter. If there is interest, proponents will be invited to submit a more detailed proposal that describes the project and its components, cost estimates, expected results and benefits. For all projects selected for funding, eligible recipients will enter into contribution agreements with Canada. These agreements will outline eligible and ineligible costs as well as federal cost sharing and limits.

Who is Eligible?

Eligible recipients include provinces, territories, local or regional governments; public sector bodies, non-profit organizations and private companies, either alone or in partnership with a province, territory or a government.


BACKGROUNDER

MAYO B HYDRO FACILITY AND CARMACKS-STEWART TRANSMISSION LINE

The Governments of Canada and Yukon are working together to support a green infrastructure project in the Yukon which includes upgrades to the Mayo B hydro generation facility and completion of the Carmacks-Stewart transmission line. This project has been selected for funding under the new federal Green Infrastructure Fund.

The upgrades to the Mayo hydro facility will involve building a new powerhouse (housing two or three turbines) near the existing plant and a canal and penstock to move water from the existing intake to the new powerhouse. The Mayo B component will increase clean energy generation capacity at the site an additional 5 to 6 MW. The increase in capacity at Mayo is made possible by building the new powerhouse in a location that doubles the elevation drop from Wareham Lake. This doubles the energy that can be obtained from the water flowing through its turbines, without any new dams, reservoirs or new flooding.

The Phase 2 work on the Carmacks-Stewart transmission line will connect Yukon's two grid systems, the Whitehorse-Ajax-Farrow and Mayo-Dawson grids, and enable Yukon Energy Corporation to use surplus energy throughout a broader geographical area. The total cost for this project is estimated at $160 million, as identified by the Territory. This project is estimated to be ready for construction in 2009 and to be completed by 2013.

Forecasts indicate that without the project, $20 million of diesel will be needed annually by 2012 to meet projected demand, releasing 50,000 tonnes of greenhouse gases. It is expected that the project will reduce forecast diesel generation in 2012 by over 40%. In turn, this will reduce greenhouse gases from energy production by 50% from current levels.

The Government of Canada will provide up to $71 million for this project.

Federal financial support for these infrastructure improvements is conditional on the signing of a contribution agreement with the Yukon government under the Green Infrastructure Fund.

For more information please see the Green Infrastructure Fund backgrounder.

Contact Information

  • Office of Brian Jean, MP Fort McMurray -
    Athabasca Parliamentary Secretary to the
    Minister of Transport, Infrastructure &
    Communities
    Kimberley Michelutti, Special Assistant / PSA
    613-992-1154
    or
    Office of Canada's Transport and Infrastructure Minister
    Chris Day
    Press Secretary
    613-991-0700
    or
    Government of Yukon
    Emily Younker
    Cabinet Communications
    867-633-7961
    emily.younker@gov.yk.ca
    or
    Infrastructure Canada
    613-948-1148