The Réseau Électrique Métropolitain: Theory And Practice

On September 27, 2017 the National Assembly adopted the Act respecting the Réseau électrique métropolitain, SQ 2017, c. 17 (the "REM Act").

The purpose of the Act is to facilitate the carrying out of a shared transportation infrastructure project with a view to establishing and operating a shared transportation system publicly announced as the Réseau électrique métropolitain (the "REM")1.

On February 8, 2018 the REM project was officially launched, with the announcement of the selection of Groupe NouvLR and Groupe des Partenaires pour la Mobilité des Montréalais (PMM) as the consortiums that will carry out the construction work scheduled to begin in April 2018.

This project comes as part of the mission of the Autorité régionale de transport métropolitain (the "Authority")2 to ensure the mobility of persons in its area of jurisdiction through modes of shared transportation, and to ensure the integration of shared transportation services that serve this area3.

To that end, the REM Act provides for the financing of the REM through joint contributions by the Caisse de dépôt et placement du Québec (the "CDPQ") and the Authority4.

I -Transportation dues

The REM Act provides that the CDPQ and the Authority may enter into an agreement determining the amount of the Authority's contribution towards the construction of the REM5, including through transportation dues6. To that end, the REM Act amends the Act respecting the Autorité régionale de transport métropolitain, CQLR c A-33.3 (the "ARTM Act") by adding Chapter V.1 entitled "Transportation Dues"7 which, in accordance with a bylaw yet to be adopted8, will determine the amount of the dues and how they are to be applied.

The aforementioned agreement will only be binding if approved by the Minister9, with or without any modifications. If no such agreement between the CDPQ and the Authority is concluded within the timeframe specified by the Minister, the Minister may determine the terms and conditions of such an agreement, which will then be deemed to have been entered into by CDPQ and the Authority.10

The Authority's contribution may be as high as $1,112,000,000, consisting of $512,000,000 in lieu of land value capture and a maximum of $600,000,000 to be financed by transportation dues.11

Under Chapter V.1 of the ARTM Act, the Authority must identify the zones in its area of jurisdiction that lend themselves to the coordination of urbanization and the shared transportation services it finances, even in part, through the imposition of transportation dues.12 These dues may be imposed on a shared transportation service other than the REM, subject to certain conditions. This subject will be further discussed below.

The zones thus identified must be located within a radius of one kilometre from each REM station13. It is interesting to point out that the taxation radius of TOD areas provided for in the Metropolitan Land Use and Development Plan is...