Environmentally Sustainable Municipal Infrastructure

The initial Canadian New Deal For Cities had included the provision for only Environmentally Sustainable Municipal Infrastructure to be funded with federal gax tax funds.

According to Scott Vokey of the Association of Municipalities of Ontario, "Ottawa had been proposing a separate plan to be prepared by each municipality demonstrating how projects would enhance sustainability via air, water, waste, and transportation improvements. However, it appears that this will not be mandatory in Ontario given existing requirements under various existing environmental legislation."

However, contrary to Vokey's view, current indications from Jack Hayden, speaking for Minister of State for Communities and Infrastructure John Godfrey to the Federation of Canadian Municipalities, a rival organization, are that federal money will certainly be conditional on environmental performance, and that Ontario provincial jurisdiction simply does not apply to the grants, loans and other mechanisms that the federal government will be using.

This conflict between AMO and FCM is one of many in a turf war that has seen David Miller withdraw the City of Toronto from AMO while strongly supporting FCM.