30. Top five spending items in the Main Estimates - Annexes

Below are the appropriations that have been tabled for Transport Canada (TC) in the 2023-24 Main Estimates:

TC's top five (5) largest spending authorities for 2023-24 are a mix of Operating, Capital and Grants and Contributions and account for 64% of the Total Budgetary request:

The following annexes present further details on each of the top 5 spending authorities:

• National Trade Corridor Fund - Annex A
• Incentives for Zero-Emission Vehicles Program Annex B
• High Frequency Rail - Annex C
• Airport Critical Infrastructure Program - Annex D
• Oceans Protection Plan - Annex E

Annex A - National Trade Corridors Fund – $1,019,354,853

Purpose:

The National Trade Corridors Fund (NTCF) is an 11-year (2017-2028) $4.7B infrastructure program that invests in projects that strengthen the efficiency, resilience and integration of road, rail, air, and marine networks, which are the building blocks of reliable supply chains and a strong economy.

Background Information:

The NTCF is a $4.7B merit-based transfer payment program, initially announced in Budget 2017, and recapitalized through Budget 2019, Budget 2021, and Budget 2022.

Project Information:

Since the program's launch, six calls for project proposals were held. Through these calls:

• Over $3.7 billion has been committed to 182 projects across Canada.
• Over $8.3 billion in total investments is being leveraged when including private and provincial infrastructure investments.

A seventh call for project proposals was launched in February 2023, for projects aimed at advancing supply chain digitalization.

Province / Region	2023-24		2022-23
	# Projects	$ Committed	# Projects	$ Committed
British Columbia	26	254,449,530	24	58,483,390
Prairies	12	130,770,959	16	42,106,318
Ontario	6	15,062,270	6	12,205,439
Québec	17	97,178,152	16	61,277,217
Atlantic	15	156,371,031	12	25,864,221
North	20	246,448,147	20	91,059,301
National	3	18,134,930	3	8,345,401

* These figures exclude projects that were approved under the most recent Supply Chain Call for proposals.

Examples of projects starting in 2023-24:

Gander International Airport Authority: The construction of an advanced live seafood storage facility with an estimated capacity of 75 tonnes at the Gander International Airport, NL.

• Total Project Cost: $9,659,554 with a Total Federal Contribution of $4,581,265

The St. Lawrence Seaway Management Corporation, The Welland Canal: The reconstruction and rehabilitation of three wharves built in the early 1900s, located at the southwestern extremity of the Welland canal in Port Colbourne, Ontario.

• Total Project Cost: $45,300,000 with a Total Federal Contribution: $22,600,000

Annex B - Incentives for Zero-Emission Vehicles Program – $659,124,061

Purpose

The overall objective of the Incentives for Zero-Emission Vehicles (iZEV) Program is to contribute to a clean transportation system by increasing the adoption of zero-emission vehicles (ZEV) in Canada and reduce air pollution and greenhouse gas (GHG) emissions from transportation.

Background Information:

Budget 2019 and off cycle decisions provided a total of $659M in funding from May 1, 2019 to March 31, 2022 for the ongoing operations of the Incentives for Zero-Emission Vehicles (iZEV) Program.  

Budget 2022 renewed and expanded the Incentives for Zero-Emission Vehicles (iZEV) Program:

• $1.7B: Renewal of the light-duty vehicles component over 3 years
• $547.5M: Expansion to the medium- and heavy-duty zero-emission vehicles (MHZEV) component over 4 years

Budget 2022 also included funding for the Zero Emission Trucking Program (ZETP) to contribute to accelerating the safe deployment of medium- and heavy-duty zero-emission vehicles on Canadian roads.

Project Information (as of January 31, 2023):

Since the inception of the program on May 1, 2019, and up to January 31, 2023:

• Over 189,700 incentive claims have been submitted
• More than $823M in Incentives for Zero-Emission Vehicles (iZEV) across Canada have been reimbursed.

For 2022-23, up to January 31, 2023:

• Over 48,000 Incentives for Zero-Emission Vehicles (iZEV) claims have been submitted
• More than $227M in Incentives for Zero-Emission Vehicles (iZEV) incentives across Canada have been provided.

Province / Region	2023-24		2022-23 (as at Jan 31)
	# Incentives	$ Committed	# Incentives	$ Spent
British Columbia	-	-	10,743	$52,413,854
Prairies	-	-	1,843	$8,167,187
Ontario	-	-	8,600	$39,313,750
Québec	-	-	25,657	$120,863,229
Atlantic	-	-	1,494	$6,758,906
North	-	-	64	$298,750

Note: Amounts for number of incentives and funding committed are not yet included for 2023-24 as these amounts are based on actual claims submitted and it is too early for 2023-24.

Annex C – High Frequency Rail – $269,625,309

Purpose

The High Frequency Rail (HFR) project is the largest transportation infrastructure project Canada has seen in over a decade. It will transform intercity travel in Canada through the implementation of a modern and sustainable rail service between the strategic population centres of Quebec City, Trois-Rivières, Montreal, Ottawa, Peterborough, and Toronto

Background Information:

Over the last few years, Transport Canada (TC) has been working, through a prudent and phased approach, with VIA Rail, the Canada Infrastructure Bank, and other federal departments and agencies to move the HFR project forward. Funding has been sought at key junctures to support the project in its continued advancement.

• Budget 2016 and Budget 2018 provided $11.3M to conduct a first round of due diligence on the HFR proposal, including capital and operating cost estimates, revenue and ridership forecasts, and estimated impacts on greenhouse gas emissions.
• In 2019, the Government committed $71.1M to undertake a range of activities that fell into five main work streams: 1) work to develop a routing alignment; 2) environmental analysis; 3) public engagement and Indigenous consultations; 4) financial/commercial analysis; and 5) additional targeted analyses.
• Budget 2021 allocated $495.6M to VIA Rail and TC to implement targeted infrastructure investments on VIA's current service network, and to further de-risk the HFR project.
• Budget 2022 has allocated $396.8M over two years to Transport Canada and Infrastructure Canada to advance HFR through the next phase of the project. This amount notably covers all the expenses related to the procurement process, including the bid fees, aiming to select a Private Partner for the Co-Development Phase of the Project.

Project Information:

Planned activities in 2023-24:

• Continue the advancement of the Procurement Phase through Summer 2024, which will include the launch of the Request for Proposals.
• Continuation of HFR-enabling activities, such as Indigenous and stakeholder engagement, preparation for land acquisition and field studies, rail access negotiations and impact assessment activities.
• Operationalizing of the VIA subsidiary – VIA HFR.

Annex D - Airport Critical Infrastructure Program – $191,079,143

Purpose

The Airport Critical Infrastructure Program (ACIP) aims to help Canada's larger airports make critical investments in safety, security, or connectivity to mass transit.  Eligible projects include:

• Safety-related projects (e.g., runway and lighting rehabilitation)
• Infrastructure projects for the purposes of operational efficiency and/or to enhance security at airports
• Improvements to mass transit connections at airports

Background Information:

• $500M over 6 years to support critical investments at large airports were announced in the Fall Economic Statement 2020
• In Budget 2021, the federal government announced $82.5M to support major Canadian airports in making investments in COVID-19 testing infrastructure to support safe travel.

Project Information:

Since the program's launch, 2 calls for project proposals were held. Through these calls, over $568.6M has been committed to 53 projects across Canada

Province / Region	2023-24		2022-23
	# Projects	$ Committed	# Projects	$ Committed
British Columbia	7	$ 13,582,332	9	$ 29,335,010
Prairies	12	$ 36,814,300	16	$ 31,306,565
Ontario	12	$ 67,728,246	12	$ 71,002,967
Québec	8	$ 65,498,741	6	$ 91,326,772
Atlantic	2	$ 4,442,563	5	$ 21,771,217
North	0	-	0	-

Example of projects starting in 2023-24:

• Greater Toronto Airports Authority, ON, Airport Segment of the Eglinton Light Rail Transit, $22,800,000 

Examples of completed projects:

• Kelowna International Airport, BC, Kelowna Biosecurity $2,650,714 - September 30, 2022
• Saskatoon Airport Authority, Prairies, Apron 3 Expansion, $1,500,000 - December 31, 2022

Annex E - Oceans Protection Plan – $173,818,719

Purpose

The Oceans Protection Plan's objective is to strengthen the safety of Canada's marine transportation system and protect Canada's coastlines and waterways. More specifically:

• Protect Canada's coasts and waterways from hazards.
• Support safer marine operations in the North and protect northern communities from marine pollution incidents.
• Increase the participation/training/awareness of Canadians in the marine sector, particularly Indigenous, coastal, and local communities.

Background Information:

Announced in Budget 2017, the Government of Canada invested $1.5B over 5 years in the Oceans Protection Plan (OPP).

Budget 2019 and two other off-cycle decisions provided funding to different programs, such as the Trans Mountain Expansion Project, where the Program to Protect Canada's Coastlines and Waterways was also included.

Budget 2022 renewed and further expanded OPP programming with a new investment of $2.0B over 9 years.

Project Information:

Examples of initiatives / projects starting in 2023-24:

• National Aerial Surveillance Program (NASP) Complex: The National Aerial Surveillance Program conducts aerial surveillance to protect the marine environment through pollution prevention-based activities. In 2023-24, a multi-year construction project will begin to build a hangar and accommodations unit in the Arctic.
• Salish Sea Strategy: The Salish Sea Strategy will tackle long-standing challenges in coordinating the multitude of federal, provincial, and municipal initiatives that collectively aim to protect the marine environment within the marine corridor of the Salish Sea.

Examples of ongoing projects:

• Active Vessel Traffic Management: Implementing tools to actively manage marine traffic to and from the Port of Vancouver, including anchorages in the Southern Gulf Islands of BC.
• Comprehensive Strategy for Vessels of Concern: This initiative will put in place long-term measures developed under the first phase of OPP to address remaining gaps in the Government of Canada's capacity to address environmental, economic, public health and safety and socio-economic threats produced by Vessels of Concern.

The Program to Protect Canada's Coastlines and Waterways (Contributions)

Project Information:

Since the program's launch, 15 calls for project proposals were held. Through these calls, over $82.8M has been committed to 432 projects across Canada.

Province / Region	2023-24		2022-23
	# Projects	$ Committed	# Projects	$ Committed
British Columbia	22	$4,294,536	95	$8,042,194
Prairies	-	-	8	$38,000
Ontario	-	-	2	$30,000
Québec	7	$6,527,857	17	$3,633,356
Atlantic	3	$2,219,735	13	$5,764,755
North	13	$43,968,383	30	$8,347,162

The Program to Protect Canada's Coastlines and Waterways is combined of several sub programs:

Marine Training Program

The Program provide funding to facilitate access to marine training and career opportunities to underrepresented groups such as women, Northerners, Inuit, and Indigenous peoples.

Abandoned Boats Program

The Abandoned Boats Program provides grant and contribution funding to assist in the removal of abandoned and/or wrecked small boats posing a hazard in Canadian waters.

Ballast Water Innovation Program

This new contribution program will provide funding to advance solutions to technical challenges related to the installation, operation, and maintenance of ballast water management systems in the Great Lakes and St. Lawrence River region.

Indigenous And Local Communities Engagement and Partnership Program (ILCEP), Community Participation Funding Program (CPFP), and Program Enhance Marine Situational Awareness Program (PEMAS)

These programs support ongoing engagement and discussions and partnership activities under the Oceans Protection Plan.