Federal Gas Tax Fund (FGTF)

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Program Description   (2005 to 2014)


The Federal Gas Tax Fund grant program commenced in 2005 as the New Deal for Cities and Communities to assist municipalities in addressing their sustainable municipal capital infrastructure needs.  The program is supported through the allocation to Alberta Municipalities of a portion of the federal gasoline tax.   

Benefits of FGTF

This program provides financial assistance to municipalities in support of sustainable capital municipal infrastructure to maintain or enhance economic, social and cultural opportunity and well being, while protecting and improving the quality of our environment upon which people and economies of Alberta depend.  

Funding under this program supports the development of public transit systems, and water and wastewater systems, solid waste management, community energy systems, and community capacity building.  For communities with less than 500,000 population, the funding may also be used for rehabilitation of municipal roads and bridges that enhance sustainability outcomes.  

Included in the list of eligible projects are design and engineering services, vehicle purchase, construction and rehabilitation.  In addition, the program may include barrier-free transportation initiatives to improve accessibility for seniors and persons with disabilities. 

For specific details refer to the Administrative Procedures for this program.

Funding Policy

Funding under this program is subject to the province receiving the transfer payments from the federal government.  The province will then distribute all of the funds to eligible municipalities in annual or semi-annual increments for the duration of the program up to their maximum allocation. 

The per capita grant allocation for the first five years (2005/06-2009/10) was based on the municipality's 2007 Official Population.  In accordance with the agreement for the program extension, the individual annual allocations for each of the next four years (2010/11-2013/14) is based on the 2009 Official Population.

The program provides conditional grants for capital-related projects which meet the program eligibility criteria.  There is no requirement for a municipal funding contribution to projects accepted under this program.

The funding provided under this program is in addition to the municipality's normalized annual expenditures on capital municipal infrastructure.  The municipality will be required to maintain this normalized annual capital expenditure before utilizing the funds available under this program.

In addition to maintaining their historical normalized annual expenditures on capital infrastructure, the municipality will be required to develop and implement a sustainability plan.