Green Municipal Fund (GMF) (Statutory)

General information

Name of recipient Green Municipal Fund (GMF)

Federation of Canadian Municipalities’ (FCM) Green Municipal Fund (GMF) formerly known as the Green Municipal Enabling Fund (GMEF) and the Green Municipal Investment Fund (GMIF)
Start date March 31, 2000
End date Ongoing
Strategic Outcome 2 – Natural Resource Sectors and Consumers are Environmentally Responsible
Link to department’s Program Alignment Architecture 2.1 – Energy–Efficient Practices and Low-Carbon Energy Sources > 2.1.4 – Energy Efficiency
Description The GMF is a revolving fund administered by the FCM. The GMF supports grants, loans and loan guarantees to encourage investment in environmental municipal projects. The Government of Canada (GC) endowed the FCM with a total of $550 million for this initiative through a series of budget decisions from 2000 to 2005. A renewal of the Funding Agreement (FA) will reflect Budget 2016 top-up of $125M.

The GMF was established to enhance Canadians’ quality of life by improving air, water and soil quality and protecting the climate. Eligible projects may fall into one or more of the following categories: brownfields, energy, transportation, waste and water, in the form of sustainable neighbourhood action plans, community brownfield action plans, greenhouse gas reduction plans, feasibility studies, pilot projects and capital projects. At least 30% ($150 milllion) of the value of the Fund Assets is dedicated exclusively to supporting brownfield remediation and redevelopment.

The amount of GMF financing available for municipal projects is directly related to the environmental benefits or innovativeness of the project, while taking into account economic and social considerations. Grants of up to 50% of eligible costs are available for plans, studies and field tests, to a maximum of $175,000. Low-interest loans of up to 80% of eligible costs are available for capital projects, to a maximum of $5 million or $10 million for high-ranking projects, typically combined with a grant amount for 15% of the loan amount, to a maximum of $750,000 or $1.5 million for high-ranking projects. Brownfield projects are eligible for below-market loans only, with no specified funding limit.

As stipulated in the GMF Funding Agreement between the FCM and the GC, the FCM has created two advisory bodies: the GMF Council and the Peer Review Committee. The GMF Council’s role is to assist the FCM Board of Directors, the decision-making body for the GMF, in approving projects proposed by municipalities. The 15-member GMF Council includes five federal members: two from ECCC, two from NRCan and one from Infrastructure Canada. All federal members are appointed by the FCM Board of Directors based on recommendations from the Minister of the Environment and Climate Change or the Minister of Natural Resources.
Comments on variances GMF funding transfer completed in 2005. Budget 2016 also announced an additional $125 million endowment to the FCM GMF, to be transferred in 2017-2018.
Significant audit findings by the recipient during the reporting year, and future plan The Commissioner of the Environment and Sustainable Development (CESD) carried out an audit of Federal Support for Sustainable Municipal Infrastructure, which was tabled in spring 2016. The audit found that the long-term sustainability of the GMF was at risk, due largely to current economic conditions (low interest rates) and the terms of the Funding Agreement (FA). It was thus recommended that ECCC, NRCan and the FCM review the terms and conditions in the FA and revise them as needed. This recommendation is being addressed as part of the negotiation process to renew the FA following the Budget 2016 $125M top up.

Findings from the audit can be found on the OAG website.
Significant evaluation findings by the recipient during the reporting year, and future plan An evaluation of the GMF was not conducted in 2016-17. An evaluation of Energy Efficiency is planned to commence in 2017-18.
Summary of results achieved by the recipient The 2016-17 GMF Annual Report will be available on the FCM website.

Performance Information (dollars)

2014–17
Actual spending
2015–16
Actual spending
2016–17 Planned spending 2016–17
Total authorities available for use*
2016–17
Actual spending (authorities used)
Variance
(2016–17 actual minus 2016–17 planned)
0 0 0 0 0 0

* NRCan’s contribution via the GMF Funding agreement is $275 million. ECCC contributes the other $275 million