Ottawa is handing another $37.5 million to the Yukon over the next five years from the federal gas taxes.

The federal government announced yesterday its plans for giving $5 billion of the gas taxes it collects to municipalities. The $5-billion plan is for the next five years.

While the fund is mostly being doled out based on population, the three territories and Prince Edward Island are receiving a lump sum because they're small jurisdictions.

According to a federal government press release, the Yukon will be given $37.5 million to be distributed among communities.

The release said the money will be for 'environmentally sustainable municipal infrastructure' like public transit, water systems, waste disposal, energy, and repairs to bridges and roads.

The federal government believes this spending will help Canada's cities and communities to improve the environment by cutting the amount of greenhouse gases expunged into the atmosphere, and improving the quality of both air and water.

However, the federal and territorial governments still must finalize a deal before the money will make its way to the Yukon.

It has not been determined how much money will come to the territory each year of the deal, which is supposed to start this year.

According to the release, the only year the government has set a figure for is the fifth and final year. In that year, the government plans to give the Yukon $15 million of the $37.5 million.

The percentages for the other four years will be ironed out in the negotiation of the deal.

As part of the $5-billion package, Infrastructure and Communities Minister John Godfrey announced there will be an additional $62.5 million over the five years for first nation communities. Of that total, $25 million will be handed over in the final year.

The release states the money for the first nations will be determined following consultation with the minister of Indian and Northern Affairs and first nations.

As well, part of the Yukon government's deal will include the share for first nations in the territory.