So basically, this project is dead before it is even proposed? Why go through all this hassle if they know it isn't going to happen?
The province said "give us a plan so we can consider funding it" rather than saying directly no. The city is kinda obligated to prepare a plan and submit it. Odds of the province funding it seem very low; Toronto also needs to ask for ~$4B for Line 2 funding to make SSE a reality (rolling-stock, ATO, yard improvements).