Up-Front Multi-Year Funding

Name of Recipient: Green Municipal Fund (GMF) (Statutory)
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: In perpetuity

Total Funding: $275M

Description:
The Government of Canada endowed the Federation of Canadian Municipalities (FCM), a non-profit organization, with $550 million to establish the Green Municipal Fund (GMF) to provide a long-term, sustainable financing for municipal governments and their partners. NRCan's contribution via the GMF Funding agreement is $275 million. Environment Canada contributes the other $275 million. The GMF invests in plans, studies and projects that provide the best examples of municipal leadership in sustainable development and that can be replicated in other Canadian communities.

The intent of the GMF is to encourage investment in environmental municipal infrastructure.  Specifically, the priorities of the fund are to have a positive impact on the health and the quality of life of Canadians by reducing greenhouse gas (GHG) emissions, improving local air, water and soil quality and promoting renewable energy by supporting environmental studies and projects within the municipal sector.  Additional considerations include the potential for economic and/or social benefit.

The amount of GMF financing available to municipalities is directly related to the environmental, economic and social benefits of the projects undertaken. Grants of up to 50% to a maximum of $175,000 are available for plans, studies and field tests.  GMF can provide below-market financing for capital projects up to 80% of costs to a maximum of $10 million in loans combined with $1 million in grants (up to a maximum of 20% of the loan amount) per project.  Brownfield projects are eligible for below-market loans only, with no funding limit.

Under the GMF agreement, the Government of Canada (represented by NRCan and Environment Canada) participates in governance of this revolving fund, along with representatives from the public and private sectors, including municipal officials and technical experts, through a Peer Review Committee and an advisory Council. The FCM Board of Directors approves projects based on the Council’s recommendations.

Strategic Outcome(s): Environmental Responsibility - Canada is a world leader on environmental responsibility in the development and use of natural resources.

Summary of Results Achieved by the Recipient:

The FCM Board of Directors approves projects based on the Council’s recommendations. As of March 31, 2012, the GMF had approved more than $613 million for over 934 sustainable community plans, feasibility studies, field tests and capital projects with the potential to leverage over $3.7 billion of economic activity in over 460 Canadian communities.  Actual environmental benefits include the reduction of an estimated 339,000 tonnes of CO2 annually from 70 completed capital projects.

Comments on Variances: N/A

Significant evaluation findings by the recipient during the reporting year and future plan: The next independent review of the GMF will be done in 2014.

Significant audit findings by the recipient during the reporting year and future plan: The next independent review of the GMF will be done in 2014.

Link to recipient's website: http://www.fcm.ca/home/programs/green-municipal-fund.htm

Name of Recipient: Sustainable Development Technology Canada (SDTC) for the NextGen Biofuels Fund™

Start Date: July 30,2007

End Date: Agreement ends Sept. 30, 2027; last disbursement of funds to SDTC by March 31, 2015

Total Funding: $250M

Description:
SDTC is overseeing the NextGen Biofuels Fund™ (NGBF), which will support up to 40% of eligible project costs to a maximum of $200M per project for the establishment of first-of-kind, large-scale demonstration next-generation renewable fuel production facilities to encourage the future sustainability and success of renewable fuels.  Next-generation renewable fuels are derived from non-traditional renewable feedstocks, such as forest biomass, fast-growing grasses, and agricultural residues, and are produced with non-conventional conversion technologies. 

Since next-generation technologies are capital equipment intensive, they constitute a greater debt financing risk.  The support provided by the NextGen Biofuels Fund™ will encourage the retention and growth of technology expertise and innovation capacity for next-generation renewable fuels production in Canada. 

Natural Resources Canada's contribution via the SDTC NextGen Biofuels agreement is $250 million. Environment Canada contributes an equal amount of $250 million.

Of the $500M in total funding from the Government of Canada, $200M is statutory funding.  The remaining $300M in funding is to be appropriated by Parliament over the period of 2008-09 to 2014-15.

Strategic Outcome(s): Environmental Responsibility - Canada is a world leader on environmental responsibility in the development and use of natural resources.

Summary of Results Achieved by the Recipient:
A front-end development study of one project was approved by the SDTC Board in November 2011.  Results of the study are expected in 2012-13.

Comments on Variances:
Funds from 2011-12 were re-profiled to 2013-14.

Significant evaluation findings by the recipient during the reporting year and future plan:
Three interim evaluations will be performed by an independent 3rd party (Nov 30, 2012, Nov 30, 2017 and Nov 30, 2022); a final evaluation by Sept 30, 2027.  Canada may choose to evaluate the Foundation at any time over the life of the agreement to determine whether it is fulfilling its objectives.

Significant audit findings by the recipient during the reporting year and future plan:
The agreement with SDTC requires the Foundation to hire an auditor to audit the accounts and financial statements and appoint an Audit Committee to oversee the financial management of the Foundation.  It also stipulates that Canada or the Auditor General may undertake a compliance audit at any time over the life of the Fund.

Link to recipient's website: www.sdtc.ca

Name of Recipient: Sustainable Development Technology Canada (SDTC) for the SD Tech Fund™ (statutory)

Start Date: March 26, 2001

End Date: June 30, 2015

Total Funding: $ 550 million*

Description:
SDTC, a not-for-profit foundation created by the Government of Canada, is managing the SD Tech Fund™ to stimulate the development and demonstration of Canadian technologies that address climate change, clean air, clean water and clean soil. Funding of SDTC is equally divided between NRCan and Environment Canada.

* A new funding agreement has subsequently been signed in 2012 providing the SD Tech Fund with an additional $40 million and extending the end date to December 2017.

Strategic Outcome(s): :Environmental Responsibility - Canada is a world leader on environmental responsibility in the development and use of natural resources.

Summary of Results Achieved by the Recipient:

SDTC has allocated $560 million to leverage $1.4 billion in funding from other partners for a total of $2 billion in portfolio value across its 228 projects.  In 2011, SDTC allocated $65 million in funding to 25 new projects.

Disbursements to date equal $313 million, of which $82 million were disbursed in 2011. up from $58 million disbursed in 2010.  A total of 63 projects have been completed since the SD Tech Fund’s inception

SDTC reported that 90% of projects continue to be led by small and medium-sized companies.

SDTC-funded projects are expected to generate positive impacts related climate change, clean air, clean water or clean soil, with 89% of projects generating multiple environmental benefits.

In terms of greenhouse gas (GHG) emissions, SDTC projections estimate a total annual reduction in 2015 of between 7 and 17 megatonnes of carbon dioxide equivalent, based on the 228 projects funded thus far.

Comments on Variances: N/A

Significant evaluation findings by the recipient during the reporting year and future plan:
There were no evaluations in 2011-12.  (Two interim evaluations were performed by an independent 3rd party in 2006 and 2009 as required in the funding agreement.)  

Significant audit findings by the recipient during the reporting year and future plan:
A standard financial audit was completed as required by the funding agreement and results provided in the 2011 SDTC Annual Report.  The funding agreement also stipulates that Canada or the Auditor General may undertake a compliance audit at any time over the life of the SD Tech Fund.  A value-for-money (performance) audit of the SD Tech Fund was completed on behalf of the government in 2010-11 and the final report issued in July 2011.  The report was generally positive but identified two issues which were subsequently resolved in the new funding agreement

Link to recipient's website:
http://www.sdtc.ca