Tory move to revoke cap-and-trade ends hopes for $2M in funding for electric buses

A pilot project that would bring electric buses to Hamilton streets is stalled after the possibility of $2 million in funding was clawed back by Ontario's new Tory government as part of a campaign promise to scrap cap-and-trade.

• Doug Ford is officially ending Ontario's cap-and-trade plan, but what's next?

City officials were all set to send in their application forfunding through the second round of the Municipal Greenhouse Gas Challenge this week when they learned the program had been revoked.

The news slammed the brakes on the electric bus pilot called Hamilton Takes Charge, which was banking on the government covering half of the $4 million needed for the project.

We're not all that optimistic that they have any focus on or concernabout the climate crisis."- LyndaLukasik,Environment Hamilton, speaking about Ontario's new government

Tom Chessman, Hamilton's manager of energy initiatives, said itscreateda"a big setback" for the city.

"We don'thave a backup planright now," he explained."Theultimateimpact could mean were going to have to purchase higher-emissions buses sothat's a bigconcern for us."

The cancellation comes as a result of newly elected Premier Doug Ford's campaign promise to scrap the province's cap-and-trade system.

A notice posted to a bright yellow box on the province's webpage about cap-and-tradereads:

"Effective July 3, 2018, we have revoked the cap and trade regulation, prohibiting all trading of emission allowances. We are committed to an orderly wind down of the program."

Cities front line for fight against climate change

Environment Hamilton executive director, Lynda Lukasik, said revoking the program will hurt urban municipalities which are on the front lines of the fight against climate change.

"Ourconcern moving forward is that at this point none of us have any details about how this new provincial governmentis going to fund this kind of program," she said.

"We're not all that optimistic that they have any focus on or concernabout the climate crisis."

• Windsor city projects may be affected by cancelled cap-and-trade program

One of the main sources of greenhouse gases istransportation, she added, meaning electric buseswould be "hugely beneficial" for the city.

"Our argument is that if there's ever a timethat we need higher levels of government to becommitted to providing higher levels of support, it's now."

Lukasik said her organization will be looking to the federal government to help with environmental issues in Ontario, if the province's own government will not.

The disappointment of the program being cancelled has forced the city to switch its focus to incentives from utility providers, said Chessman.

He said those incentives are now"absolutely critical" for lowering the costs of buying and operating moreefficientequipment.

Schools losing cash too

The threat the city's electric bus plans comes after school boards across the province learnedon July 3 that the Greenhouse Gas Reduction Fund would be eliminated and only work contracted on or before that date would be covered.

For Hamilton's public board that meant $2.15 million in cash it was counting on for updates.

• Ford government cuts Ontario school repair fund, will cost Hamilton schools $2.15M

Despite the losing a potential funding source,Chessman said the city is stillcommitted to reaching its goals of reducing greenhouse gas emissions, energy efficiency and fuel economy by 2050.

"We were looking forward to advancing toward those targets through this program. Now we're just going to have to find another way to get there."