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Up-Front Multi-Year Funding

Table of content



Strategic outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Program activity: Clean Energy

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

Description:

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.

The GMF is equally co-funded by NRCan and Environment Canada (EC), is an arms' length fund representing a strong partnership between the FCM and the Government of Canada. The FCM Board of Directors, formally designated as the decision-making body for the funds, is advised by a 15‑member council with five federal appointees. The Council plays a key role, supported by the FCM secretariat and the GMF Peer Review Committee.

Created in Budget 2000 with an endowment of $125M, the Green Municipal Funds were doubled in Budget 2002 with an additional $125M, consisting of the GMEF and the GMIF.

With Budget 2005, the GMEF and GMIF were merged into one fund known as the Green Municipal Fund (GMF), combining the $250M from the old GMF with the new $300M into a revolving fund. This fund supports grants, loans and loan guarantees and is consistent with the purpose and intent of the original agreements. $150 million dollars of this fund is to be used exclusively to provide loans for the clean‑up and redevelopment of brownfields.

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 $350,000 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 $4 million in loans combined with $400,000 in grants. Brownfield projects are eligible for below-market loans only, with no funding limit.

Program Activity:
($ millions)
Total Funding Prior Years' Funding Planned Funding
2010-11
Planned Funding
2011-12
Planned Spending
2012-13
550.0* 550.0 - - -

* NRCan's contribution via the GMF Funding agreement is $275 million. Environment Canada contributes the other $275 million.

Summary of annual plans of recipient: The FCM will issue the 2010-2011 Annual Statement of Plans and Objectives by January 30, 2010.

The FCM is expected to issue the 2009-2010 Annual Report by March 31, 2010. It will be posted on the FCM web site noted below.

URL to recipient site: http://www.fcm.ca.



Strategic outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Program activity: Clean Energy

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

Start date: July 30, 2007

End date: Agreement ends September 30, 2027; last disbursement of funds to SDTC by March 31, 2015

Description: SDTC is managing the NextGen Biofuels Fund™, 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.

The funding is divided equally between NRCan ($250M) and Environment Canada ($250M) for provision to SDTC. The $200M statutory funds were approved in Bill C‑52, an Act to implement certain provisions of the Budget tabled in Parliament on March 19, 2007. This funding will be requested as required. The remaining funds ($300M) are to be appropriated by Parliament over the period of 2008/09 to 2014/15.

Program Activity:
($ millions)
Total Funding Prior Years' Funding Planned Funding
2010-11
Planned Funding
2011-12
Planned Spending
2012-13

* 250.0

Statutory
100.0

Appropriation
150.0

 

Statutory
20.7

Appropriation
12.5

 

Statutory
20.0

Appropriation
37.5

 

Statutory
20.0

Appropriation:
25.0

 

Statutory
19.3

Appropriation
25.0

* SDTC NextGen Biofuels agreement is $250 million. Environment Canada contributes an equal amount of $250 million.

Summary of annual plans of recipient: SDTC Corporate Plan for 2010 released October 2009. Executive summary posted on website below.

URL to recipient site: www.sdtc.ca.



Strategic outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Program activity: Clean Energy

Name of recipient: Sustainable Development Technology Canada (SDTC) (Statutory payment) – SD Tech Fund™

Start date: March 26, 2001

End date: June 30, 2015

Description: To stimulate the development and demonstration of innovative Canadian technological solutions that address climate change, clean air, clean water and clean soil.

Program Activity:
($ millions)
Total Funding For SD Tech Fund Prior Years' Funding Planned Funding
2010-11
Planned Funding
2011-12
Planned Spending
2012-13
*550.0 550.0 0.0 0.0 0.0

* Natural Resources contribution toward the SDTC Tech Fund is $275 million. Environment Canada contributed an equal amount of $275 million.

Summary of annual plans of recipient: SDTC publishes a corporate plan in November of each year that describes plans for the current year and provides a forecast for the following year. It includes a disbursement plan, planned administration expenditures, objectives and proposed actions, an investment update, operating strategy, and performance expectations. The SDTC Annual Report and a summary of the corporate plan are tabled in the House of Commons by the Minister of Natural Resources Canada (NRCan), usually in July-August.

SDTC holds two rounds of funding each year (January and August), initially requesting Statements of Interest (SOI) from applicants. Contract announcements are made about nine months after the acceptance of SOIs.

Funding allocations in 2009 and 2010 are expected to total around $200M. Since SDTC allocates funding based on the merit of applications it does not have strict allocation targets. The anticipated 2009 disbursements are $50M (compared to $42M in 2008) for a total disbursement to date of $144M. Annual project disbursement payments are projected to be approximately $70M and $100M in 2010 and 2011 respectively.

SD Tech Fund ($550 M)

Funding Agreement Three, between the Government of Canada and the Foundation, dated March 31, 2005 for $550 million (SD Tech Fund™), provides the terms and conditions for the Foundation on providing funding for development and demonstration of technologies focusing on climate change, clean air, water and soil. According to SDTC, the 171 projects it has funded since 2002 have an estimated potential to reduce annual greenhouse gas emissions by more than 5 to 12 Mt of CO2e by 2012 and 9 to 22 Mt of CO2e by 2015.

URL of recipient site: www.sdtc.ca.