Ontario has been cleared to receive CAN$586.2M (US$496.9M) from the government under the Canada ecoTrust facility to help fund the transmission line.
The CAN$1.5bn (US$847.6M) ecoTrust facility for the 2006-07 budget period is to help support projects in the provinces that result in reductions in greenhouse gas emissions and air pollution.
The Ontario government has indicated it will expedite the East-West interconnect with the Manitoba grid, which will allow hydroelectric energy to be imported.