Up-front Multi-year funding – Green Municipal Fund

The GMF is a revolving fund administered by the Federation of Canadian Municipalities (FCM). The GMF supports grants, loans and loan guarantees to encourage investment in environmental municipal projects.  Budget 2016 announced $125 million in funding to the FCM to enhance the GMF, including for projects that reduce greenhouse gas emissions. Previously, the Government of Canada endowed the FCM with a total of $550 million for this initiative through a series of budget decisions from 2000 to 2005.

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 million) 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 Government of Canada, the FCM has created two advisory bodies: the GMF Advisory 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 Environment and Climate Change Canada (ECCC), two from NRCan and one from Infrastructure Canada (INFC). 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.