"The Government of Canada is pleased to support the use of hybrid buses, which will help the environment and keep commuters moving in the Greater Toronto Area," said Minister Cannon. "These buses demonstrate our government's commitment to funding greener modes of transportation and improving the health of our communities."

"Investing in modern public transit is about preserving our environment and reducing traffic congestion so goods can get to market on time, improving our quality of life," said Minister Flaherty. "Our goal is to create a modern, safe and green transportation system for the benefit of people here in the Greater Toronto Area and across Canada. Today's announcement takes us further down that road."

"Today we are highlighting the kinds of positive public transit results we can deliver when all three levels of government work together," said Minister Bradley. "Since 2003, Ontario has committed more than $2.3 billion to help the TTC make improvements to better serve transit riders."

"Torontonians have made it clear that they want their city to be among the world leaders when it comes to the environment," said Mayor Miller. "Providing more and greener public transit options is essential to reducing our greenhouse gas emissions and to becoming that city."

"Torontonians ride transit for its many personal benefits, but they also ride it because they know it's environmentally efficient and responsible. They will be further encouraged to take transit knowing that the buses they're riding have lower emissions and a reduced environmental footprint," said Councillor Giambrone.

These new hybrid buses will help reduce greenhouse gas emissions from the TTC's bus fleet and contribute to maintaining a safe and efficient transit system in the Greater Toronto Area (GTA). The buses are powered through a combination of diesel fuel and electricity, making them more fuel-efficient, much quieter on city streets and cheaper to maintain.

Encouraging more people to use public transit can alleviate traffic congestion on Toronto's streets and highways, and provide the quality services needed to meet the demands of Toronto-area commuters.

Given projected population and economic growth in Canadian communities, greater use of transit and other sustainable forms of transportation would reduce the impact of individuals' mobility on the environment.

Transit can also support more sustainable urban development patterns by allowing people to live, work and shop without needing to drive as much, and making more efficient use of existing infrastructure.

Increased urban density also leads to reduced infrastructure costs. Of the 324 hybrid buses to be purchased using federal funding, over 200 have already made their way onto the streets of Toronto. The purchase of these buses will cost $246 million. They are being built by Orion, a division of DaimlerChrysler, at its plant in Mississauga, Ontario.

The Government of Canada is providing up to $115.8 million and the Province of Ontario provided $110.9 million for the purchase of the hybrid buses through funding made available from 2005 to 2007.

The federal contribution comes from the Canada Strategic Infrastructure Fund, which supports large-scale strategic infrastructure projects that improve quality of life and further economic growth.

As with all federal contributions, funding is reimbursement-based, and funds are transferred once the contribution agreement has been signed, eligible costs have been incurred and all federal requirements have been satisfied.

Through the Gas Tax Fund, the federal government is providing a further $407.3 million from 2005 to 2009, which is helping the TTC purchase over 700 clean diesel and hybrid buses, 156 subway cars and 90 Wheel-Trans vehicles.

This permanent fund will provide municipalities with a reliable source of funding that will help them better plan and finance their infrastructure needs.