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KPMG LLP

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Ottawa, ON K2P 2P8
A d v i s o r y S e r v i c e s
Federation of Canadian
Municipalities
Review of the Green Municipal
Fund
Final Review Report
S e p t e mb e r 2 5 , 2 0 0 9

Disclaimer
This Report is made subject to the written terms of KPMG's engagement. Our Report is provided solely for the benefit of the
Federation of Canadian Municipalities and is not to be copied, quoted, or referred to in whole or in part without KPMG's prior
written consent. KPMG accepts no responsibility to anyone other than the Federation of Canadian Municipalities for the
information contained in this Report.

i





I - OVERVIEW OF THE REVIEW REPORT..................................................................................................1
BACKGROUND...................................................................................................................................................4
II. METHODOLOGY.....................................................................................................................................5
REVIEW QUESTIONS:.......................................................................................................................................5
REVIEW METHODOLOGIES.............................................................................................................................5
METHODOLOGY MATRIX................................................................................................................................8
III. REVIEW FINDINGS...........................................................................................................................10
1 DOES THE GMF CONTINUE TO BE CONSISTENT / ALIGNED WITH THE INTENT OF THE FUNDING
AGREEMENT OBJECTIVES?...........................................................................................................................10
2 DOES THE GMF CONTINUE TO BE CONSISTENT / ALIGNED WITH FEDERAL GOVERNMENT
PRIORITIES?....................................................................................................................................................12
3 DOES THE GMF REALISTICALLY ADDRESS AN ACTUAL NEED? .........................................................18
4 WHAT IS THE DISTRIBUTION OF THE FUNDING WITH RESPECT TO (A) THE FIVE SECTORS, (B) THE
THREE FUNDING STREAMS; AND (C) SIZE OF LOAN / GRANT? ..................................................................22
5 WHAT HAVE BEEN THE RESULTS OF GMF SO FAR?.............................................................................27
6 SPECIFICALLY, FOR THE CAPITAL PROJECTS, WHAT HAVE BEEN THE IMPACTS OF THESE
PROJECTS ON SUSTAINABLE IMPROVEMENTS IN AIR, WATER, SOIL QUALITY, AND REDUCTION OF
GREENHOUSE GASES? ...................................................................................................................................35
IV. CONCLUSIONS ..................................................................................................................................43
APPENDIX A CASE STUDY SUMMARIES...................................................................................................45

Table of Contents


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund - FAL Feview Feporl !

Overview of lhe Feview Feporl
Introduction:
This reporl provides lhe findings fron lhe review of lhe Creen unicipal Fund (CF.
The findings of lhis reporl serve lo supporl lhe CFs accounlabilily obligalions under lhe lerns of ils
arch 3!
sl
, 2005 Funding Agreenenl wilh lhe Federalion of Canadian unicipalilies (FC, alural
Fesources Canada, and Environnenl Canada, which requires lhe CF lo have an independenl
perfornance audil and review conpleled and reporled on by lhe end of Seplenber, 2009.
The review was carried oul by KPC under lhe conlracl awarded by lhe FC in reference lo lhe Fequesl
for Proposal issued in arch 2009 lo conducl an independenl perfornance audil and review of lhe CF.
The conducl of bolh lhe perfornance audil and review conponenls over lhe period of February lo Augusl
2009 was overseen by lhe FC / CF Sleering Connillee.
This review conponenl is in essence a fornalive evalualion of lhe CF since ils inceplion in 2000,
wherein lhis review has exanined a nunber of CF funded progran elenenls, wilh a parlicular enphasis
on lhe effecliveness of lhe CF progran inplenenlalion, progran delivery, and whelher lhe CF is on
lrack lo neel ils objeclives.
The overall objeclive of lhe review conponenl was lo assess aspecls of lhe CFs success and
relevance. Specifically, lhe following six queslions were lhe focus of lhe review conponenl:
1. Does the GMF continue to be consistent / aIigned with the intent of the Funding Agreement
objectives7
2. Does the GMF continue to be consistent / aIigned with federaI government priorities7
3. Does the GMF reaIisticaIIy address an actuaI need7
4. What is the distribution of the funds with respect to (a) the five sectors, (b) the three funding
streams, and (c) size of Ioan/grant7
5. What have been the resuIts of GMF so far7
6. SpecificaIIy, for the capitaI projects, what have been the impacts of these projects on
sustainabIe improvements in air, water, soiI quaIity, and reduction of greenhouse gases7

The scope of lhe review covered lhe CFs operalional and funding aclivilies since ils inceplion in arch
2000 lo arch 3!
sl
, 2009.
MethodoIogies: ! Feview of background docunenlalion and lhe Seibel dalabase, 2 nlerviews wilh
CF represenlalives, 3 Survey of recipienls of funding for sludies, 4 nlerviews wilh recipienls of
funding for capilal projecls, and 5 Case sludies of CFfunded capilal projecls.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 2



Main Review Findings:
1 - Does the GMF continue to be consistent / aIigned with the intent of the Funding
Agreement objectives7

Findings:
!. The CF conlinues lo be bolh consislenl and aligned wilh lhe inlenl of ils Funding Agreenenl
principles,
2. Through ils five funding seclors (Brownfields, Energy, Transporlalion, vasle, and valer, lhe
CF helps lo enhance lhe qualily of life of Canadians by inproving air, waler and soil qualily, and
prolecling clinale, and
3. Through ils funded projecls, lhe CF is naking an inporlanl conlribulion lowards achieving lhe
objeclive of gaining experience in lhe developnenl and execulion of nunicipal environnenlal
projecls.

2 - Does the GMF continue to be consistent / aIigned with federaI government
priorities7

Findings:
!. The CFs progran funding seclor areas were found lo be consislenl wilh and aligned lo lhe
federal governnenls priorilies of enhancing lhe qualily of life of Canadians via inprovenenls lo
air, waler and soil qualily, and clinale proleclion,
2. The CFs progran funding seclor areas eslablished by lhe Funding Agreenenl were also found
lo be consislenl wilh and aligned lo evolving federal governnenl Budgel, policy and progran
announcenenls, as well as FCan, EC, Transporl Canada and nfraslruclure Canada slralegies
and prograns, and
3. The CF is nol lhe only source of nunicipal infraslruclure inveslnenl supporl, however, il is a
key player in supporling environnenlally suslainable nunicipal infraslruclure inveslnenls and
offers nunicipalilies a valuable opporlunily lo leverage funding in conjunclion wilh olher federal
and provincial infraslruclure prograns.

3 - Does the GMF reaIisticaIIy address an actuaI need7

Findings:
!. The sludies funded by lhe CF are highly increnenlal (i.e., nosl of lhen would nol have been
carried oul in lhe absence of CF funding, and lhey are providing inporlanl infornalion lo lhe
nunicipalilies.
2. CF funding is also a crilical source of supporl for capilal projecls - only aboul onequarler of lhe
capilal projecls would have gone ahead wilhoul CF funding, and
3. Sone progran delivery processes require slreanlining and lhe CF has laken aclion lo address
slakeholder needs.





Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 3


4 - What is the distribution of the funding with respect to (a) the five sectors, (b) the
three funding streams, and(c) size of Ioan / grant7

Findings:
!. Overall, lhe CF has nel lhe najorily of ils funding dislribulion connilnenls as oullined in lhe
Funding Agreenenl,
2. The CF is nol on pace lo neel ils approved funding largels for brownfields projecls, however,
is naking efforls lo idenlify polenlial opporlunilies, and
3. Sone regional funding disparilies exisl lowards lhe province of Ouebec, however, lhe CF has
addressed lhis via a dedicaled Ouebec Oulreach Slralegy.

5 - What have been the resuIts of GMF so far7

Findings:
!. CF sludy and capilal projecl funding have nade direcl conlribulion lowards supporling Canadian
nunicipalilies achieve lheir environnenlally suslainable inveslnenl objeclives, and
2. The CF has inplenenled nunerous efforls lo engage and undersland lhe needs of ils
nunicipal slakeholders as a neans of inproving CF seclor progran funding, achieving resulls
for nunicipalilies, and ullinalely lo allow lhe CF lo achieve ils Funding Agreenenl nandale.

6 - SpecificaIIy, for the capitaI projects, what have been the impacts of these projects
on sustainabIe improvements in air, water, soiI quaIity, and reduction of greenhouse
gases7

Findings:
!. ndicalions are lhal lhe CFfunded capilal projecls are on lrack lo neel lhe prograns goals in
lhe areas of environnenlal, econonic, and social benefils. The vasl najorily of lhe projecls
exanined in lhe inlerviews and case sludies are denonslraling significanl benefils in lhese areas,
and
2. There is work lo be done by lhe CF lo langibly neasure lhese benefils and inpacls. A new
perfornance neasurenenl syslen lhal will address lhis need is currenlly being pilol lesled.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 4


Background
The Federalion of Canadian unicipalilies (FC has been lhe nalional voice of nunicipal governnenls
since !90!. The FC foslers suslainable connunilies enjoying a high qualily of life by pronoling slrong,
effeclive, and accounlable nunicipal governnenl. The FC allows nunicipal governnenls lo nainlain a
slrong advocacy role in lobbying lhe federal governnenl lo include nunicipal concerns in policy
developnenl and nalional decisionnaking.
Since 2000, lhe Covernnenl of Canada has endowed lhe FC wilh a lolal of $550 nillion lo eslablish lhe
Creen unicipal Fund (CF lhrough a federal funding agreenenl wilh alural Fesources Canada and
Environnenl Canada. The inilial funding agreenenl and relaled anendnenls provided for lhe
eslablishnenl of lwo separale funds: lhe Creen unicipal nveslnenl Fund and lhe Creen unicipal
Enabling Fund. A new funding agreenenl was signed in 2005 lhrough which lhese lwo funds were
conbined lo forn lhe Creen unicipal Fund. The purpose of lhe fund is lo assisl nunicipal governnenls
in Canada lo lever inveslnenls in nunicipal environnenlal projecls and lo provide granls for feasibilily
sludies, assessnenls, suslainable connunily plans and field lesls, and granls and loans lo eligible
recipienls for projecl inplenenlalion. The fund acconplishes lhis lhrough lhe provision of lowinleresl
loans and granls, as well as educalion and lraining services, lo supporl nunicipal inilialives lhal inprove
air, waler and soil qualily, and prolecl lhe clinale.
Since 2003, CF funding has been provided lhrough lhree differenl slreans:
Grants to DeveIop SustainabIe Community PIans Cranls of up lo 50' of eligible cosls lo a
naxinun of $350,000 are provided for lhe developnenl of plans lhal nusl consider environnenlal,
social and econonic objeclives and include specific largels for environnenlal perfornance.
Grants to Conduct FeasibiIity Studies and FieId Tests - Cranls of up lo 50' of eligible cosls lo a
naxinun of $350,000 are provided under lhis slrean lo fund feasibilily sludies and field lesls which
seek lo denonslrale lhe polenlial of a projecl lo inprove lhe environnenlal effecliveness of
nunicipal operalions relaled lo specific seclors.
Long-term, Low-interest Loans and Grants to Support CapitaI Projects - Loans al fixed inleresl
rales for up lo lwenly years are provided for capilal projecls lhal have lhe polenlial lo resull in
significanl environnenlal inprovenenl on air, waler and soil qualily, including green house gas
enissions reduclion. Loans range fron up lo lwenlyfive percenl (25' of eligible cosls lo up lo
eighly percenl (30' of eligible cosls, depending upon lhe expecled environnenlal benefils.
Funding for feasibilily sludies and field lesls and lhe capilal projecls nusl be direcled lo one of lhe
following six seclors of nunicipal aclivily: energy, waler, wasle, suslainable lransporlalion, brownfields,
and inlegraled connunily projecls. For capilal projecls in seclors olher lhan lhe brownfields seclor, CF
offers belownarkel loans, in conbinalion wilh granls. Eligible applicanls can currenlly requesl up lo $4
nillion in loans and $400,000 in granls for each projecl, up lo a percenlage of eligible cosls based on lhe
environnenlal benefils. For capilal projecls wilhin lhe brownfields seclor, CF offers belownarkel loans
of belween 50' and 30' of eligible projecl cosls. For nunicipal governnenls, CF offers inleresl rales
!.5' lo 2' lower lhan lhe Covernnenl of Canada bond rale for lhe equivalenl lern.
The CF is localed in lhe alional Capilal Fegion and is adninislered lhrough four dedicaled
organizalional unils lhe Covernance and Conpliance Unil (CCU, lhe Credil and Fisk anagenenl Unil
(CFU, lhe Operalions and Developnenl Unil (ODU, and lhe Knowledge anagenenl Unil (KU -
wilh lhe assislance of lhe FC Finance unil. The CF is overseen by a CF Council lhal advises lhe
FC Board regarding lhe provisions of lhe federal Funding Agreenenl, approval and allocalion of eligible
projecls, and CF inveslnenl priorilies, anong olher lhings. The Council is conposed of fifleen
nenbers appoinled by lhe FC consisling of represenlalives fron lhe federal government, public and
private sectors, as well as elected officials of Canadian municipalities.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 5


. elhodology
Review Ouestions:
As noled above, lhe overall objeclive of lhe review conponenl was lo assess aspecls of lhe Creen
unicipal Funds success and relevance lhrough lhe following six queslions:

1 - Does the GMF continue to be consistent / aIigned with the intent of the Funding
Agreement objectives7

2 - Does the GMF continue to be consistent / aIigned with federaI government priorities7

3 - Does the GMF reaIisticaIIy address an actuaI need7

4 - What is the distribution of the funding with respect to (a) the five sectors, (b) the three
funding streams, and(c) size of Ioan / grant7

5 - What have been the resuIts of GMF so far7

6 - SpecificaIIy, for the capitaI projects, what have been the impacts of these projects on
sustainabIe improvements in air, water, soiI quaIity, and reduction of greenhouse gases7


Review MethodoIogies
The nain review nelhodologies are described below.
ole lhal, because of lhe relalively few CFfunded capilal projecls lhal have been conpleled, lhe
review of capilal projecls should be regarded as a fornalive review - i.e., il addressed lhe queslion of
whelher lhe capilal projecls conponenl of lhe CF progran is onlrack lo neeling ils objeclives.
However, il was nol possible lo provide definilive findings regarding objeclives achievenenl al lhis early
poinl in line.
Document Review
The docunenls reviewed, anong olhers, included:
- CF Funding Agreenenl wilh lhe Federalion of Canadian unicipalilies, alural Fesources
Canada and Environnenl Canada.
- CF Annual Feporls
- CF Annual Slalenenls of Plans of Objeclives (ASPO
- Board and Council inules
- CF nveslnenl Policy, and nveslnenl Connillee Bylaw
- Progran Applicalion Cuides (pasl and currenl
- CF Operalions anual (currenlly under revision.
- Peer Feview Terns of Feference, Cuidelines, Assessnenl nslruclions, Score Sheels and Crids
- CF slakeholder engagenenl lools:


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 6


vebinar Series, ission reporls, Capacily Building slralegic plans, reporls (including
parlicipanl evalualions, and Council nenos, and lhe Ouebec Agreenenl and Ouebec
Oulreach Slralegy
- KU reporls:
Creen unicipal npacl: A Sunnary
npacl of CF Funding Beyond Capilal Projecls
Feporl on lhe Conversion of CF Sludies lo Capilal Projecls
- Connunicalions:
Connunicalions Slralegy, Connunicalion Cuidelines and Prolocols, CF vebsile, and
Press releases
- Process naps: applicalions and conlracling
- Conlracl Signing and Conlracl Tenplale processes, Disbursenenl Process, Procedures for Pasl
Due and Upconing Disbursenenl, and Closing Approved Projecls.
- oniloring reporls (Excel and Siebel
- Hunan Fesources:
HF Plan, Enployee Perfornance Policy and Cuidelines, Training Policy, and Fecruilnenl
Policy
- CF connissioned sludies:
SD Knowledge Transfer echanisn for Canadian unicipal Suslainabilily, Opinions and
Consideralions,
PSOS Opinion Fesearch on Creen unicipal Fund and Felaled Progran and nilialives, and
arbek Fesearch Feporls: Energy Seclor, Suslainable Connunily Planning in Canada: Slalus
& Besl Praclices, Transporlalion Seclor Fesearch, and valer Seclor.

ve would like lo acknowledge lhal lhe docunenlalion review was facililaled by nunerous CF slaff who
underlook a significanl level of efforl lo assisl in lhe provision of docunenlalion lhroughoul lhe course of
lhe review.
Interviews with GMF representatives:
nlerviews have been conducled wilh 23 individuals, including represenlalives of FC nanagenenl and
slaff, federal governnenl Council nenbers, and Peer reviewers. These inlerviews were conducled bolh
in person and by lelephone and addressed general and funclional specific queslions in relalion lo lhe
review objeclives.
Survey of recipients of funding for studies (incIuding both community pIans and feasibiIity
studies/fieId tests):
The nain purpose of lhe online survey was lo find oul lhe degree lo which lhe CF funded sludies have
been used and lheir usefulness. Felaled queslions were also asked (e.g., if lhe sludy was nol used, why
nol?, as well as queslions relaled lo lhe adninislralion and delivery of lhe CF.

To dale, responses have been received fron 7! respondenls fron a lolal populalion of 397 sludy funding
recipienls for a response rale of !3'.

Interviews with recipients of funding for capitaI projects:
n accordance wilh lhe plan for lhe Feview, we had planned lo hold a series of five focus group sessions
consisling of represenlalives of CF capilal funding recipienls. Also per lhe plan, lhere was lo be one


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 7


focus group in each dislribulion region, and each focus group will include represenlalives fron each
funding slrean, dislribuled across lhe various seclors. The sessions were lo deal wilh bolh review and
perfornance audil queslions, wilh lhe nain focus being on lhe discussion of projecl inpacls (e.g.,
environnenlal, econonic, social progran success and delivery process issues.
A significanl level of efforl was nade by bolh KPC and CF lo sel up lhese focus groups. However,
due lo a poor response rale lowards lhe focus groups, bolh KPC and CF agreed lhal, inslead,
inlerviews wilh capilal funding recipienls would inslead be carried oul via lelephone by KPC.
nlerviews have been conducled wilh 2! capilal funding recipienls fron a populalion of 40 conpleled
capilal projecls. These inlerviews were conducled by lelephone and discussed lhe environnenlal,
econonic and social inpacls resulling fron lhe CF projecl funding, as well as recipienl experience wilh
lhe CF wilh respecl lo fulfilling applicalion and reporling requirenenls.
Case studies of GMF-funded capitaI projects:
Per our Feview plan, KPC lean nenbers conducled 3 case sludies selecled fron lhe sane populalion
of 40 conpleled capilal projecls. The sile visils selecled on lhe basis of funding seclor and lhe level of
projecl funding were conducled in Brilish Colunbia (Vancouver, Alberla (Ednonlon, and Onlario
(Pelerborough.
The case sludies served lo conlribule lo lhe analysis of CF progran operalion and inpacls
(environnenlal, econonic, and social, and served lo illuslrale CF funding achievenenls and successes.
Table ! below sunnarizes lhe infornalion fron above regarding lhe nunber of inlerviews conducled:
TabIe 1 - Number of interviews conducted

Interview Group Method
Interviews
CompIeted
Representative
GMF recipients
(CompIeted CapitaI
/ Study projects)
Respondent Group
Fepresenlalives
of CF execulive,
nanagenenl,
slaff and Council.
nlerviews 23 o Chief Execulive Officer
o Federal governnenl Council
nenbers
o Covernance and
Conpliance Unil
o Credil Fisk anagenenl
Unil (CFU
o Knowledge anagenenl
Unil (KU
o Operalions and
Developnenl Unil (ODU
o Finance
o Hunan Fesources
o Applicalions
o Conlracls
o Loans
o Connunicalions
o / T (Seibel
o Peer reviewers
Capilal funding
recipienl
inlerviews
nlerviews 2! 2! / 40 conpleled
capilal projecl
recipienls
o Presidenls
o Chief Execulive Officers
o Chief Financial Officers
o Chief nfornalion Officer
o Chief Adninislralion Officer
o Conplroller
o Depuly Town anager


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 3


Interview Group Method
Interviews
CompIeted
Representative
GMF recipients
(CompIeted CapitaI
/ Study projects)
Respondent Group
o Finance nanagers
o Town Treasurer
o Snarl Building and Energy
anagenenl direclor
o Senior Projecl Engineers
o Public vorks nanagers
o Operalions nanagers
o Assel and Capilal vorks
anager
Capilal funding
recipienl case
sludies
Sile visils
nlerviews
3 3 / 40 conpleled
capilal projecl
recipienls
o Vancouver
Treasury anager
Projecl anagers: Planning,
Fleel Procurenenl, and
Transporlalion Denand
anagenenl
o Ednonlon
Direclor Foadway
ainlenance
anager, Assel anagenenl
and Public vorks
Technical Specialisl,
Environnenl, Assel
anagenenl and Public vorks
o Pelerborough
Corporale Services nanager
Survey of CF
sludy recipienls
Online
survey
responses
7! 7! / 397 conpleled
funded sludy
projecls
o o idenlificalion required.
TotaIs 123
MethodoIogy Matrix
A delailed nelhodology nalrix provided in Table 2 below specifies which dala colleclion
aclivilies/nelhodologies were ulilized for each review queslion and clearly denonslrales lhe nulliple lines
of evidence nodel.
TabIe 2 - Review Ouestions MethodoIogy Matrix

Review Ouestion
Document
and
database
review
Key
informant
interviews
Survey of
study
funding
recipients
Interviews
with
capitaI
funding
recipients
CapitaI
funding
recipient
case
studies
! - Does lhe CF conlinue lo be
consislenl / aligned wilh lhe
inlenl of lhe Funding Agreenenl
objeclives?
X X

2 - Does lhe CF conlinue lo be
consislenl / aligned wilh federal
X X



Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 9


Review Ouestion
Document
and
database
review
Key
informant
interviews
Survey of
study
funding
recipients
Interviews
with
capitaI
funding
recipients
CapitaI
funding
recipient
case
studies
governnenl priorilies?
3 - Does lhe CF realislically
address an aclual need?
X
X X
4 - vhal is lhe dislribulion of
CF funding (by seclor, funding
slrean, and size?
X

5 - vhal have been lhe resulls
of lhe CF lo dale?
X
X X
6 - Specifically, for lhe capilal
projecls, whal have been lhe
inpacls of lhese projecls on
suslainable inprovenenls in air,
waler, soil qualily, and reduclion
of greenhouse gases?
X X




Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl !0


. Feview Findings
1 - Does the GMF continue to be consistent / aIigned with the
intent of the Funding Agreement objectives7

Findings:
!. The CF conlinues lo be bolh consislenl and aligned wilh lhe inlenl of ils Funding Agreenenl
principles,
2. Through ils five funding seclors (Brownfields, Energy, Transporlalion, vasle, and valer, lhe
CF helps lo enhance lhe qualily of life of Canadians by inproving air, waler and soil qualily, and
prolecling clinale, and
3. Through ils funded projecls, lhe CF is naking an inporlanl conlribulion lowards achieving lhe
objeclive of gaining experience in lhe developnenl and execulion of nunicipal environnenlal
projecls.

Discussion:
The analysis of lhis queslion involved an exaninalion of lhe CFs arch 2005 Funding Agreenenl wilh
lhe Federalion of Canadian unicipalilies, lhe inisler of alural Fesources Canada (FCan and lhe
inisler of Environnenl Canada (EC.
Finding #1:
The preanble lo lhe arch 2005 CF Funding Agreenenl
!
slales, anong olhers lhe following:
vhereas:
a. Canada and FC desire lo enhance lhe qualily of life of Canadians by inproving air, waler and soil
qualily, and prolecling lhe clinale,
b. An inporlanl conlribulion lowards achieving lhal objeclive is lo gain experience in lhe
developnenl and execulion of nunicipal environnenlal projecls, including lhe inprovenenl of
lhe environnenlal perfornance of nunicipal inslallalions, by facililaling wilh provincial and
lerrilorial governnenls and olher public and privale seclor parlners, increased access lo financing,
including innovalive financing lechniques, and
c. l is inporlanl lo gain experience in lhe inplenenlalion of innovalive nunicipal environnenlal
projecls.
The Funding Agreenenl defines a nunicipal environnenlal projecl
2
as projecls lhal inprove lhe
environnenlal perfornance of energy, energy service (including building energy efficienl relrofils and
connunily energy syslens, waler, waslewaler lrealnenl, wasle nanagenenl, public lransil syslens,
suslainable connunily planning, brownfields redevelopnenl and renedialion and inlegraled projecls.

1
March 31
st
, 2005 Funding Agreement between the Federation of Canadian Municipalities FCM and the
Minister of Natural Resources and the Minister of the Environment, p.1
2
Ibid, p.4


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl !!


oreover, as described under Funding Agreenenl, Arlicle - 2.0!: Purpose of lhe Fund - lhe CF is lo
assisl nunicipal governnenls in Canada lo lever inveslnenls in nunicipal environnenlal projecls and lo
provide granls for feasibilily sludies, assessnenl, suslainable connunily plans and field lesls, and granls,
loans and / or loan guaranlees lo eligible recipienls for projecl inplenenlalion. Finally, as described under
Arlicle - 2.03: Eligible Projecl Characlerislics - lhe FC shall disburse funds fron lhe Fund assels in lhe
forn of granls, loans and / or loan guaranlees lo eligible recipienls carrying oul eligible projecls which, in
lhe opinion of lhe Board, have lhe polenlial lo resull in significanl environnenlal inprovenenl on air,
waler and soil qualily, including greenhouse gas enissions reduclion, in one or nore of lhe following
calegories of aclivily: a Energy, b valer, c vasle, d Suslainable lransporlalion, e Brownfields, and f
nlegraled connunily projecls.
TabIe 3 below provides a brief crossseclion of lhe consislency / alignnenl belween lhe eligible projecl
characlerislics and aclivilies oullined by aclivily calegory defined by lhe CFs Funding Agreenenl, and
lhe CFs projecl funding seclors as currenlly oullined on lhe CFs websile:
www.suslainableconnunilies.fcn.ca
TabIe 3 - Consistency 7 aIignment of GMF project funding sectors with the Funding Agreement

GMF - Funding Agreement:
EIigibIe categories of activity
and definition
GMF - Funding sector eIigibIe projects
Consistent / AIigned
with GMF the Funding
Agreement7
Energy: including (bul nol
liniled lo renewable energy
projecls and projecls which will
reduce energy inlensily or
inprove energy dislribulion.
o Energy efficienl building relrofils, and
o Energy efficienl new building
conslruclion.

Water: including (bul nol
liniled lo projecls which will
inprove lhe qualily of drinking
waler or wasle waler or which
reduce waler use inlensily.
Projecls in relalion lo:
o Slorn waler nanagenenl
o vasle waler nanagenenl
o valer dislribulion
o Polable waler lrealnenl
o valer conservalion
o Creen roofs

Waste: including (bul nol
liniled lo projecls which will
reduce lhe use of landfill siles
or increase lhe diversion of
wasle nalerials going lo landfill
siles.
o Projecls lhal diverl nunicipal solid wasle
fron landfill lhrough reuse, recycle,
lhernal lrealnenl processes or
biological processes.

SustainabIe transportation:
including (bul nol liniled lo
hybrid lransil or nunicipal fleel
vehicles or energy efficienl
lransporlalion syslens and
allernalive lransporlalion
nodes.
Projecls lhal:
o Encourage nodal inlegralion and lhe
developnenl of conprehensive
lransporlalion nelworks, and
o nprove ulililarian lransporlalion oplions.

BrownfieIds: including (bul nol
liniled lo renedialion and
redevelopnenl of
conlaninaled siles where lhere
is an aclive econonic polenlial
o Fenoval and disposal of conlaninaled
soils or nalerials,
o nsilu or exsilu lrealnenl of
conlaninaled soils, groundwaler or
nalerials,



Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl !2


GMF - Funding Agreement:
EIigibIe categories of activity
and definition
GMF - Funding sector eIigibIe projects
Consistent / AIigned
with GMF the Funding
Agreement7
for redevelopnenl. o The conslruclion or inslallalion of
engineering conlrols and noniloring
syslens, and
o Building denolilion or deconslruclion.
Integrated community
projects: including (bul nol
liniled lo connunily planning
and developnenl projecls
inlegraling one or nore of lhe
above calegories of aclivily.
ol specifically defined by a CF funding seclor, however, lhe degree
of projecl innovalion is a key crileria during lhe Peer review projecl
evalualion process, wherein Peer reviewers nole where proposed
projecls are relevanl lo nore lhan one CF funding seclor.

GMF CounciI member comments:
CF Council nenbers noled lhal lhe CF Funding Agreenenl conlains broad principles lo address
nalional environnenlal suslainabilily and proleclion queslions. o najor changes have been nade lo lhe
Funding Agreenenl since il cane inlo effecl. vhile sublle changes have occurred since lhe CFs
inceplion in 2000, lhere have been no significanl changes lo lhe governnenls approach lowards
environnenlal suslainabilily and proleclion.
Therefore, since ils inceplion, and parlicularly since lhe 2005 Funding Agreenenl cane inlo effecl, lhe
CFs principles and progran seclor funding areas have been inherenlly consislenl and aligned wilh lhe
federal governnenls environnenlal suslainabilily and proleclion priorilies. Council nenbers also noled
lhal lhe consislency and alignnenl wilh Funding Agreenenl principles are lhe prinary consideralions
when lhe Council approve a projecl for funding. During projecl approval neelings, Council nenbers will
deliberale lhe nerils of lhe proposed projecl subnissions lo help ensure lhal lhe projecls are consislenl
wilh lhe overarching principles of lhe Funding Agreenenl.
2 - Does the GMF continue to be consistent / aIigned with federaI
government priorities7

Findings:
!. The CFs progran funding seclor areas were found lo be consislenl wilh and aligned lo lhe
federal governnenls priorilies of enhancing lhe qualily of life of Canadians via inprovenenls lo
air, waler and soil qualily, and clinale proleclion,
2. The CFs progran funding seclor areas eslablished by lhe Funding Agreenenl were also found
lo be consislenl wilh and aligned lo evolving federal governnenl Budgel, policy and progran
announcenenls, as well as FCan, EC, Transporl Canada and nfraslruclure Canada slralegies
and prograns, and
3. The CF is nol lhe only source of nunicipal infraslruclure inveslnenl supporl, however, il is a
key player in supporling environnenlally suslainable nunicipal infraslruclure inveslnenls and
offers nunicipalilies a valuable opporlunily lo leverage funding in conjunclion wilh olher federal
and provincial infraslruclure prograns.




Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl !3


Discussion:
The analysis of lhis review queslion involved:
An exaninalion of lhe CFs arch 2005 Funding Agreenenl wilh lhe Federalion of Canadian
unicipalilies, lhe inisler of alural Fesources Canada (FCan and lhe inisler of Environnenl
Canada (EC,
An exaninalion of recenl and relevanl federal Budgels and policy direclion docunenls fron lhe
CFs sponsoring deparlnenls - FCan and Environnenl Canada - lo idenlify exanples of how lhe
CFs funding seclors are consislenl wilh and are aligned lo helping neel lhe federal governnenls
slralegic priorilies of enhancing lhe qualily of life of Canadians via inprovenenls lo air, waler and soil
qualily, and clinale proleclion, and
nlerviews wilh selecled Covernnenl of Canada CF Council nenbers fron FCan and EC.

Finding #1:
ve observed evidence and consensus based upon inlerview respondenl connenls lo conclude lhal lhe
CF has - since ils inceplion in 2000, and subsequenlly since lhe 2005 - renained consislenlly aligned lo
lhe federal governnenls broad environnenlal suslainabilily priorilies. ve observed lhal lhe CFs
progran funding seclor areas were found lo be consislenl wilh and aligned lo lhe federal governnenls
priorilies of enhancing lhe qualily of life of Canadians via inprovenenls lo air, waler and soil qualily, and
clinale proleclion.
n lhe discussion below, we provide a conlexl of sone of lhe nore fornalive federal policy
pronouncenenls since lhe renewal of lhe CFs Funding Agreenenl in arch 2005. The inlenl is lo
highlighl lhal, over lhis period, lhe CF has renained a relevanl conlribulor lo lhe federal governnenls
air, waler and soil qualily, and clinale proleclion priorilies and connilnenls.
Budget 2005
Budgel 2005, Chapler 5 - oving Toward a Suslainable Environnenl and Suslainable Connunilies
enphasized lhe federal governnenls connilnenl lo ils environnenlal suslainabilily objeclive via
oving Toward A Creen Econony which eslablished lhe Covernnenls five guiding principles for
environnenlal inveslnenls.
Table 4 below idenlifies lhese principles and lhe how lhe CF has perforned in relalion lo each principle.
TabIe 4 - GMF's performance in reIation to federaI environmentaI investment principIes

Moving Toward A Green Economy -
Framework PrincipIes
GMF Performance
3

BaIance - nveslnenls nusl balance lhe need for
shorllern aclion lo prolecl our nalural environnenl
and longlern neasures lo spur lransfornalional
The CF has added flexibilily lhrough lhe
endownenl slruclure of ils funding nodel.

3
Note: the results information reported here has been used in part from the KPMG case study on the GMF as
part of the 2007 Treasury Board Secretariat Evaluation of Foundations which examined the usefulness of
federally funded foundations as instruments of public policy. One of the primary considerations in the
evaluation was the question of to what degree are foundations aligned to federal government policy goals and
priorities. The report can be found at http://www.tbs-sct.gc.ca/report/orp/2007/ef-fe/ef-fe-eng.asp


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl !4


Moving Toward A Green Economy -
Framework PrincipIes
GMF Performance
3

change in public behaviour and business praclices. l has lhe abilily lo address longlern priorilies as
well as lhe flexibilily lo acl quickly and lake shorl
lern aclions.
Competitiveness - vhile building suslainable
econonic growlh is an essenlial conponenl of
Canadas longlern inlernalional conpeliliveness,
lhe lransilion lo a suslainable econony nusl also
weighl carefully lhe inpacl on shorllern
conpeliliveness.
The CF facililales lhe financial burdens lhal
nunicipalilies face when underlaking environnenlal
projecls by providing loans, loan guaranlees and
granls.
Partnership - To lhe grealesl exlenl possible,
inveslnenls in lhe environnenl should lever
oulside funds and encourage responses fron
induslry, cilizens and olher orders of governnenl.
Since 2000, lhe FC has connilled nore lhan
$400 nillion lo supporl nore lhan 730 suslainable
connunily plans, feasibilily sludies, field lesls and
capilal projecls. These CF supporled aclivilies
have lhe polenlial lo leverage over $2.6 billion of
econonic aclivily in nore lhan 350 connunilies
across Canada.
4

Innovation - nveslnenls should pronole
innovalion and supporl new lechnologies.
nnovalion feeds econonic growlh, creales new
opporlunilies and provides longlern inprovenenl
in our environnenlal perfornance.
CF projecls involve new lechnologies and
lechniques for achieving environnenlal benefils
and suslainabilily.
The CF eslablished lhe Knowledge anagenenl
Unil in 2006 lo help share knowledge wilh
nunicipal connunilies lo increase lheir capacily lo
fosler suslainable connunilies.
Cost-effectiveness - nilialives should achieve
environnenlal goals al lhe lowesl possible cosl.
The CFs operaling cosls are kepl low lhrough a
lean workforce and high degree of unsalaried experl
conlribulions lhrough lhe Board of direclors and
experl peer review connillees.
The CF operales under lhe allolled operaling
cosls oullined in lhe funding agreenenl.

Budgel 2005 also sel oul lhe federal governnenls connilnenl lo public infraslruclure inveslnenls via
lhe slralegic largeling of infraslruclure relaled inveslnenls lo pronole beller environnenlal oulcones. A
key elenenl of Budgel 2005 was a renewed connilnenl lo lhe CF whereby lhe federal governnenl
recognized lhal These prograns run by lhe Federalion of Canadian unicipalilies supporl inveslnenls in
innovalive green nunicipal projecls...and lhe funds have been effeclive in slinulaling connunilybased
feasibilily work and green infraslruclure inveslnenls.
Coinciding wilh lhe lining of Budgel 2005, lhe federal governnenl inlroduced adjuslnenls lo lhe CF
Funding Agreenenl which allered sonewhal lhe Funds progran operalional focus, including:
The crealion of a single pernanenl Creen unicipal Fund,
The requirenenls lo neel prescribed annual lending and granling largels,

4
July 30
th
, 2009 Letter from Basil L. Stewart, FCM President to The Honorable John Baird, Minister of
Transport.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl !5


The abilily lo fund capacilybuilding and knowledge lransfer aclivilies,
ew crileria for eligibilily lhal places a grealer enphasis on environnenlal oulcones,
The allocalion of $!50 nillion of lhe Fund specifically for brownfields renedialion, and
The requirenenl lo fund all granl, capacilybuilding, and operalional requirenenls fron inleresl
incone
vilh new eligibilily crileria placing a grealer enphasis on environnenlal oulcones, lhe Funding
Agreenenl helped lo ensure lhal lhe CF progran seclors would be bolh consislenl wilh and aligned lo
federal governnenl priorilies.
vhile fornal federal governnenl policy direclion and reporling requirenenls are liniled lo lhe Funding
Agreenenl, CF represenlalives and federal governnenl Council nenbers noled lhal infornal
connunicalion belween lhe Fund and lhe federal governnenl has been beneficial lo bolh parlies. vilhin
lhe CF Council, represenlalives fron alural Fesources Canada and Environnenl Canada provide inpul
on a regular basis wilh respecl lo federal priorilies. Sinilarly, lhe CF has based ils seclorbased progran
design on lhe expeclalions of lhe Funding Agreenenl as well as lhe ongoing Council consullalions.
l was noled lhough discussion wilh CF represenlalives, federal Council nenbers, and funding
recipienls, lhal lhe CF facililales progran delivery and connunicalion nediun belween Canadians,
lheir nunicipalilies and lhe federal governnenl. n addilion, lhe CF also facililales lhe delivery of lhe
governnenls priorily policies wilh respecl lo environnenlal suslainabilily, air, waler and soil qualily, as
well as clinale change / proleclion. oreover, il was also noled lhal lhe arnslenglh nalure of bolh lhe
FC and lhe CF has enabled / facililaled relalionship building wilh and progran funding aclivily wilhin
provincial jurisdiclional boundaries lhal would olherwise be difficull for a federal deparlnenl.
Finding # 2:
Below, we idenlify exanples of how CF progran seclor funding nainlains ils relevance and renains
consislenl and aligned wilh evolving federal governnenl policy priorilies relaled lo environnenlal
suslainabilily, inproving air, waler and soil qualily, and prolecling lhe clinale. Specifically, we discuss lhe
CFs ongoing relevance and alignnenl in relalion lo ils sponsoring deparlnenls (FCan and EC, as well
as olher slralegic federal parlners: nfraslruclure Canada and Transporl Canada.
NaturaI Resources Canada (NRCan):
5

FCans vision is based on inproving lhe qualily of life of Canadians by crealing a suslainable resource
advanlage. The Deparlnenls nission is based on lhe objeclive lo be a chanpion of suslainable
developnenl, a worldclass cenlre of knowledge on nalural resources, and a leader in policy and science.
The Deparlnenls raison dlre or ralionale cenlers on helping lo ensure lhal resource developnenl lakes
place in a suslainable nanner and advances Canadas leadership. Based on lhe above, lhere is a clear
alignnenl belween lhe nandales and slralegic objeclives of lhe CF and lhal of FCan and il is appears
logical lhal FCan is one of CFs sponsoring federal deparlnenls.
Based on lhe review of FCan Feporls on Plans and Priorilies and Deparlnenlal Perfornance Feporls
covering fiscal years 200506 lo 2009!0 periods, il is clear lhere is a logical relalionship and alignnenl
belween lhe slralegic operalional priorilies / goals of bolh FCan and lhe CF. Fecenl nolable exanples
under FCans Operalional Priorilies serve lo reinforce lhe logic of lhe relalionship, specifically, FCan is:

5
Information on NRCan was obtained from the Departments website www.nrcan-rncan.gc.ca, and included
the review of policy and program documentation, as well as the 2005-06 to 2009-10 Report on Plans and
Priorities and 2005-06 to 2008-09 Departmental Performance Reports.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl !6


playing a leading role in adninislering lhe Clean Energy Fund announced in Budgel 2009 for
subslanlial inveslnenls in lhe research, breaklhrough lechnology developnenl, and largescale
denonslralion of clean energy lechnologies,
one lhe federal leads on ecoEEFCY - a broad suile of federal ecoACTO inilialives lo help creale
new green opporlunilies via building relrofils, vehicle inilialives, lechnology developnenl, renewable
power, and bio fuels, and
one of lhe federal leads on lhe $200 nillion Suslainable Energy Science and Technology Slralegy
enlilled obilizing Science and Technology lo Canadas Advanlage.
6
The slralegy released in 2007
enlilled was direclly relaled lo Canadas ovenber 2006 Econonic Aclion Plan: Advanlage Canada:
Building a Slrong Econony for Canadians
7
. A key objeclive of lhe Slralegy was lhe abilily lo
leverage bolh ideas and financial resources fron lhe privale seclor, provinces, lerrilories, and
universilies. The abilily lo leverage bolh ideas and funds lo achieve lo realize shared objeclives is
direclly relaled lo lhe purpose of lhe CF (refer lo Funding Agreenenl, Arlicle - Purpose of lhe
Fund.
oreover, based on lhe review of capilal recipienl files and inlerviews wilh capilal funding recipienls, lhe
variely of projecls lhe CF has funded over lhe pasl nine years are indeed aligned wilh pasl and currenl
federal governnenl policy priorilies sinilar lo lhe Clean Energy Fund as well as lhe ecoACTO inilialives.
Environment Canada (EC):
8

One of Environnenl Canadas nain raisons dlres is lhe preservalion and enhancenenl of lhe qualily of
lhe nalural environnenl, including waler, air and soil qualily. On lhis basis, as wilh FCan, lhere is clear
alignnenl belween lhe CFs and Environnenl Canadas slralegic objeclives, and il also appears logical
lhal EC is one of CFs sponsoring federal deparlnenls.
Of relevance lo bolh lhe CF and EC is lhe federal governnenls slralegy lo reduce greenhouse gases
and air pollulion. n April 2007, lhe federal governnenl released Turning lhe Corner: An Aclion Plan lo
Feduce Creenhouse Cases and Air Pollulion9. vilh Turning lhe Corner Plan, lhe federal governnenl has
connilled lo reducing Canadas lolal enissions of greenhouse gases relalive lo 2006 levels by 20' by
2020 and by 60' lo 70' by 2050.
The Aclion Plan includes a nunber of conponenls, wilh sone direclly relaled lo lhe CFs progran
seclor objeclives. These include:
The inplenenlalion of new energy perfornance slandards lo slrenglhen exisling energy
efficiency slandards for a nunber of producls lhal consune eleclricily, including lighl bulbs, in
order lo reduced lhe enissions fron lhe use of consuner and connercial producls, and
The developnenl of neasures lo inprove indoor air qualily.
n addilion, Budgel 2007 invesled approxinalely $4.5 billion in new inveslnenls for lhe environnenl
based on lhe following four nain environnenlal priorilies under lhe general lhene of A Beller Canada:

6
Mobilizing Science and Technology to Canadas Advantage available at
http://www.ic.gc.ca/eic/site/ic1.nsf/eng/h_00231.html
7
Advantage Canada: Building a Strong Economy for Canadians, available at
http://www.fin.gc.ca/ec2006/plan/pltoc-eng.asp
8
Information for Environment Canada was obtained from the Departmental website www.ec.gc.ca , and
included the review of policy and program documentation, as well as the 2005-06 to 2009-10 Report on Plans
and Priorities and 2005-06 to 2008-09 Departmental Performance Reports.
9
Turning the Corner: An Action Plan to Reduce Greenhouse Gases and Air Pollution, available at
http://www.ec.gc.ca/cc/default.asp?lang=En&n=A3CB096D-1


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl !7


Ensuring a Cleaner, Heallhier Environnenl - which also happen lo be inline wilh lhe CFs progran
seclor funding.
These include:
Cleaner energy and beller energy efficiency,
Pronoling cleaner lransporlalion,
Prolecling Canadas nalural herilage, and
Canadas alional valer Slralegy
Furlher, based on lhe review of capilal recipienl files and inlerviews wilh capilal funding recipienls, lhe
variely of projecls lhe CF has funded over lhe pasl nine years are indeed aligned wilh pasl and currenl
federal governnenl policy priorilies sinilar lo lhe Turning lhe Corner Plan as well as lhe Aclion Plan for
Clean valer.
GMF CounciI member comments:
As noled above under queslion #!, CF Council nenbers slaled lhal lhe consislency and alignnenl wilh
Funding Agreenenl principles are lhe prinary consideralions when lhe Council approve a projecl for
funding. During projecl approval neelings, Council nenbers will deliberale lhe nerils of lhe proposed
projecl subnissions lo help ensure lhal lhe projecls are consislenl wilh lhe overarching principles of lhe
Funding Agreenenl. Prior lo lhe Council neelings, slaff fron FCan and Environnenl Canada prepare
briefing noles for lhe deparlnenlal Council nenbers on each proposed projecl. The objeclive of lhe
briefing noles are lo idenlify how and where lhe proposed projecl is aligned lo federal governnenl and
deparlnenlal priorilies. l was also noled lhal represenlalives fron each of lhe above deparlnenls will
discuss each proposed projecl and will lhen reporl lo lhe respeclive deparlnenlal Council nenber lo
share lhe perspeclive of lhe olher deparlnenls on lhe proposed projecls. This inlerdeparlnenlal
inleraclion is forns lhe basis for an infornal CF Secrelarial.
Sone Council nenbers were in agreenenl lhal lhe CF has inproved ils presence wilh Canadian
nunicipalilies and as a resull, lhere is a grealer awareness of lhe role of lhe CF in supporling
inveslnenls lowards suslainable nunicipal environnenlal and infraslruclure projecls. CF represenlalive
and Council nenbers noled lhal lhe CF is following lhe connunicalions prolocol defined by lhe
Funding Agreenenl whereby lhere is federal represenlalion al all funding announcenenls.
However, lhere is a sense anong olhers lhal lhere is a liniled knowledge of lhe CF wilhin key
deparlnenls such as FCan, Environnenl Canada, and olher deparlnenls who have conplenenlary
prograns lo lhe CFs, including nfraslruclure Canada and Transporl Canada. l has been suggesled lhal
furlher connunicalion and liaison belween lhe CF and lhese deparlnenls enphasizing lheir progran
conplinenlarily and opporlunilies for leveraging resources would help lo inprove lhe awareness of lhe
CF.
Finding #3:
nlerview respondenls observed lhal lhe CF is nol lhe only source of nunicipal infraslruclure
inveslnenl supporl, however, il is a key player in supporling environnenlally suslainable nunicipal
infraslruclure inveslnenls and offers nunicipalilies a valuable opporlunily lo leverage funding in
conjunclion wilh olher federal and provincial infraslruclure prograns.
Discussions wilh CF represenlalives have noled lhal lhe CF has explored parlnership and
collaboralion opporlunilies wilh lhe CF and olher conplenenlary federal, provincial and nunicipal funding
prograns as a neans of aligning wilh parlners wilh connon nunicipal inveslnenl objeclives and lo
leverage lhe use of funding lo increase lhe overall resource base via which nunicipalilies can apply for lo
advance lheir nunicipal infraslruclure objeclives.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl !3


n sunnary, since ils inceplion in 2000, and subsequenl lo lhe arch 2005 Funding Agreenenl, lhe CF
has:
Fenained consislenlly aligned lo help neel lhe federal governnenls broad environnenlal
suslainabilily priorilies,
Fenained a relevanl conlribulor lo lhe federal governnenls air, waler and soil qualily, and clinale
proleclion priorilies and connilnenls, and
Explored parlnership and collaboralion opporlunilies wilh conplenenlary federal, provincial and
nunicipal funding prograns as a neans of aligning wilh parlners wilh connon nunicipal inveslnenl
objeclives and lo leverage lhe use of funding lo increase lhe overall resource base via which
nunicipalilies can apply for lo advance lheir nunicipal infraslruclure objeclives.
3 - Does the GMF reaIisticaIIy address an actuaI need7

Findings:
!. The sludies funded by lhe CF are highly increnenlal (i.e., nosl of lhen would nol have been
carried oul in lhe absence of CF funding, and lhey are providing inporlanl infornalion lo lhe
nunicipalilies.
2. CF funding is also a crilical source of supporl for capilal projecls - only aboul onequarler of lhe
capilal projecls would have gone ahead wilhoul CF funding, and
3. Sone progran delivery processes require slreanlining, and lhe CF has laken aclion lo address
slakeholder needs.

Discussion:
The analysis of lhis review queslion involved lhe analysis of lhe online survey of sludy funding recipienls,
inlerviews wilh capilal funding recipienls, and capilal funding case sludy sile visils and inlerviews.
Finding #1:

Overall, CF funding recipienls (sludies and capilal projecls indicaled lheir slrong supporl for lhe CF
and ils funding seclor prograns. oreover, recipienls consislenlly slaled lhal lhe CF funding was
inslrunenlal, and oflen a crilical enabler of lhe projecls viabilily.
Survey of study funding recipients:
As noled above in reporl Seclion - elhodology, lhe purpose of lhe online survey was lo find oul lhe
degree lo which lhe CF funded sludies have been used and lheir usefulness. Felaled queslions were
also asked (e.g., if lhe sludy was nol used, why nol?, as well as queslions relaled lo lhe adninislralion
and delivery of lhe CF. Sludies included bolh lhe developnenl of connunily plans and lhe conducl of
feasibilily sludies and field lesls.
Below, we have selecled for presenlalion lhose survey queslions nosl relevanl lo lhis review queslion.
ole: for each of lhese queslions, we presenl lhe aclual nunber of responses lo lhe queslion. For each
queslion, lhere were a nunber of blank / no responses, lherefore, lhese were nol included in lhe
calculalion.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl !9



Ouestion #5 - To the best of your knowIedge, what wouId have been the impact on the
conduct of this study if GMF funding had not been avaiIabIe7
Response: # of Reponses
(n = 61)
%
(! The sludy would nol have been carried oul. !9 3!.!4'
(2 The sludy would have been carried oul, bul al a laler
dale.
!2 !9.67'
(3 The sludy would have been carried oul, bul al a reduced
scope.
22 36.06'
Olher 3 !3.!!'
Blank (nol counled !0
TotaI (ActuaI) 61 100%

As per lhe response resulls, approxinalely 37' of lhe sludies would: nol have been carried oul, have
been carried oul al a laler dale, and / or al a reduced scope.
For Oueslion #5, responses provided under Olher included:
The sludy was lhe firsl of ils kind in Canada,
The sludy was useful for olher nunicipalilies,
The FC should lake a leadership role in laking lhe resulls lo lhe federal and provincial governnenl
for inclusion in decisionnaking docunenls, such as lhe Energy Acl.
Ouestion #6 - How wouId you rate the importance of the information provided by this
study to your organization7
Response: # of Reponses
(n = 60)
%
(! High 53 33.33'
(2 ediun 5 3.33'
(3 Low ! !.67'
(3 Donl know 0 0'
(9 o opinion ! !.67'
Blank (nol counled !!
TotaI (ActuaI) 60 100%

Finding #2:
CapitaI funding recipients case studies:
The case sludies served lo conlribule lo lhe analysis of CF progran operalion and inpacls
(environnenlal, econonic, and social, and an inporlanl neans of docunenling CF funding
achievenenls and successes. A lolal of 3 case sludies were selecled on lhe basis of CF funding seclor
and lhe level of projecl funding were conducled in Brilish Colunbia (Vancouver, Alberla (Ednonlon, and
Onlario (Pelerborough.
Overall, lhe resulls of inlerviews wilh case sludy recipienls noled lhal lhe CF funding appeared lo be a
logical fil belween lheir nunicipalilies environnenlally suslainable / suslainable infraslruclure objeclives.
Fecipienls responses were found lo be consislenl wilh lhe responses provided by capilal funding


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 20


recipienls (discussed below, wilh lhe exceplion lhal no significanl issues were raised wilh respecl lo lhe
applicalion process. This nay, however, be allribulable lo lhe snall populalion size. Fecipienls observed
lhal lhe line spenl lo conplele lhe reporling requirenenls was a necessary requirenenl and was nol
overly line consuning and was fell lo be reasonable. Those recipienls who received a $30,000 CF
reporling granl idenlified lhis as a valuable source of funds lo cover lhe cosls of wriling / conlracling
preparalion of lhe Environnenlal Fesulls Feporl. Sone recipienls noled lhal lheir reporls have garnered
inleresl fron olher nunicipalilies, lherefore, lhe projecl has served as a knowledge lransfer case sludy.
n addilion, case sludy respondenls noled lhal lhe CF supporl was a valuable source of supporl for lhe
projecl, however, could nol say wilh cerlainly lhal lhe projecl would nol have gone forward wilhoul lhe
CF funding.
Interviews with capitaI funding recipients:
A significanl najorily of recipienls of capilal funding were unaninous in lheir agreenenl lhal CF funding
provides a crilical source of supporl lowards inveslnenls in nunicipalily suslainable environnenlal
infraslruclure. oreover, nany of lhe snaller nunicipalilies who received capilal projecl funding noled
lhal lhe CF funding has conlribuled lo laying inporlanl foundalions for environnenlally suslainable
infraslruclure in lheir connunilies.
Capilal funding recipienls consislenlly noled lhal lhe CF funding oplion was very allraclive fron an
econonic slandpoinl in conparison lo olher sources of connercial (bank projecl financing. All recipienls
slaled lhal lhe preferred loan lerns offered by lhe CF realized significanl inleresl cosl savings, however,
no recipienl could provide a conparison of lhe inleresl cosls belween lhe CF and connercial loan
oplions.
On lhe subjecl of increnenlalily, as reporled above, nosl of lhe CFfunded sludies would nol have
gone ahead - or would have gone ahead al a laler dale or wilh a reduced scope. The sane is lrue of lhe
capilal projecls - only 5 of 2! (23.3' of capilal funding recipienls could definilively slale lhal lheir capilal
projecls would have gone ahead wilhoul CF funding.
n lwo cases, lhe nunicipalily received a provincial order lo innedialely renediale waler qualily
issues,
in anolher, a nunicipalilys privale conpany parlner applied for CF funding as a financing
cushion lo supporl lolal capilal projecl cosls for a Cily led projecl,
one recipienl noled lhal wilhoul CF funding, lhe projecl would have gone ahead, however, lhe
projecl would have been of reduced scope resulling in a lower LEED building raling, and
one recipienl noled lhal lhe CF conlribulion was less lhan 5' of lhe lolal projecl cosls and had
no significanl inpacl on lhe projecl.
However, lhe renaining !6 capilal funding recipienls consislenlly slaled lhal lhe CF funding was
inslrunenlal, and oflen a crilical enabler of lhe projecls viabilily.
n all bul ! case, capilal funding recipienls slaled lhal lhe CF loan lerns were bolh nore allraclive and
flexible as conpared lo olher connercial financing oplions, and enphasized lhal lhe nunicipalily realized
direcl econonic benefils as a resull of lhe inleresl cosl savings, wherein, nunicipalilies:
Did nol have lo draw fron ils operalional accounl or reserve accounl and lhereby realized a nel
or offselling savings benefil,
vas able lo allocale / reinvesl lhe inleresl cosl savings lowards olher nunicipal projecls and or
creale a O& base for lhe infraslruclure, and


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 2!


Did nol have lo raise ulilily (energy, waler rales as nuch as would have olherwise been
required lo recover projecl cosls over lhe projecls lifecycle.
n addilion lo lhe inleresl cosl savings realized, recipienls noled lhal lhe CF operalional granls and
reporling granls conlribuled lo helping offsel inlernal adninislralion / inplenenlalion cosls, as well as lhe
reporling cosls of preparing lhe projecl conplelion and / or environnenlal resulls reporling.
Sone recipienls raised cash flow nanagenenl challenges in relalion lo lhe CFs loan repaynenl
schedule whereby lhey have prepared lheir assel anorlizalion / deprecialion schedules beyond lhe CF
repaynenl period. As a resull, sone recipienls have noled fiscal bell lighlening and less operalional fund
planning flexibilily over lhe loan repaynenl period.
Sone capilal funding recipienls noled lhal lhe CF should consider proving recipienls a porlion of lheir
loans prior lo projecl conplelion in lhe forn of an inilial or inlerin paynenl lo help defray conslruclion and
olher projecl inplenenlalion cosls. Sone recipienls noled lhal lhey were required lo oblain olher
financing lo cover lhe conslruclion and olher cosls lo enable projecl progression (bridge financing, lhus
idenlifies a risk where nol having lhe available funds could polenlially lower lhe successful conplelion of
lhe projecl. oreover, lhis financing was nol oblained al lhe preferred CF loan rale, lherefore, lhe cosl
of borrowing was significanlly higher - in a sense negaling sonewhal lhe ralionale of seeking lhe CF
loans by capilal funding recipienls. n spile of lhese challenges, recipienls consislenlly acknowledged
lheir gralilude for lhe CF funding and lhe borrowing cosl savings achieved.
ve acknowledge lhal lhe capilal funding recipienls we have inlerviewed and visiled were fron earlier
funded capilal projecls whereby CF guidelines and disbursenenl procedures only pernilled paynenls
lo be nade upon conplelion of projecl conslruclion. Upon reporling of recipienl feedback on CFs
disbursenenl procedures, we have been inforned lhal lhe CF, per revised projecl guidelines, has
considered allowing inlerin disbursenenls for bolh brownfields and lransporlalion projecls. This decision
was nade in 2003 in parl lo address lhe uplake challenges lhal lhese funding seclors have had in
allracling applicalions relalive lo olher CF funding seclors. Disbursenenl procedures for energy, wasle,
and waler projecls renain unchanged.
Based on our file review of !0 conpleled capilal projecls, we observed only ! inslance where a recipienl
had a specified requirenenl lo reinvesl lhe inleresl savings lowards olher environnenlally suslainable
inilialives (CF # !5!! - Trolley Bus Feplacenenl Projecl, Crealer Vancouver Transil Aulhorily /
TFASLK.
A nore delailed discussion of capilal funding recipienl projecl benefils and inpacls is provided below
under review queslion #6.
Finding #3:

Fesponses fron lhe survey, capilal recipienl inlerviews and case sludies noled a consislenl view lhal lhe
CF applicalion and olher adninislralive processes are / were lenglhy, onerous, and inflexible in nalure.
These resulls are consislenl wilh lhe findings of lhe 2003 psos Feid Public Affairs Opinion Fesearch on
lhe CF and Felaled Prograns and nilialives.
!0

The CF has responded wilh a nunber of neasures
!!
lo inprove lhe applicalion process, including
renoving all granl and loan applicalion deadlines. This will enable nunicipalilies lo apply lo lhe CF
whenever il fils inlo lheir respeclive planning cycles. n addilion, redesign oplions have been being

10
Ipsos Reid Public Affairs report Federation of Canadian Municipalities: Opinion Research on the Green
Municipal Fund and Related Programs and Initiatives, April 30
th
, 2008, pp.38-39, 41, 43-44, 47, 56, 58-61,
64, and 68.
11
GMF Annual Report 2008-2009, p.11.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 22


considered and are currenlly being inplenenled lo slreanline and increase lhe lineliness of lhe
applicalion and conlracling processes. For exanple, lhe CF has eslinaled lhal lhe elininalion of lhe
nlenl lo Apply procedure for capilal projecls applicanls has reduced lhe lolal applicalion lineline by
approxinalely 6 lo 3 weeks.
Furlher, as a neans of collecling nore linely feedback infornalion fron applicanls and recipienls, lhe
Operalions and Developnenl Unil (ODU is planning lo inplenenl a webbased survey feedback
nechanisn wherein bolh applicanls and recipienls will be able lo provide infornalion lo lhe CF aboul
lheir experiences during lhe applicable projecl applicalion, inplenenlalion and disbursenenl phases.
4 - What is the distribution of the funding with respect to (a) the
five sectors, (b) the three funding streams, and (c) size of Ioan /
grant7

Findings:
!. Overall, lhe CF has nel lhe najorily of ils funding dislribulion connilnenls as oullined in lhe
Funding Agreenenl,
2. The CF is nol on pace lo neel ils approved funding largels for brownfields projecls, however,
is naking efforls lo idenlify polenlial opporlunilies, and
3. Sone regional funding disparilies exisl lowards lhe province of Ouebec, however, lhe CF has
addressed lhis via a dedicaled Ouebec Oulreach Slralegy.
Discussion:
The analysis of lhis review queslion involved lhe review and analysis of CF funding slalislics,
perfornance reporling and dalabase infornalion.
Finding #1:
Since 2000, lhe Covernnenl of Canada, via successive Funding Agreenenls wilh alural Fesources
Canada and Environnenl Canada, have endowed lhe FC wilh a lolal of $550 nillion lo eslablish lhe
CF. Sunnarizing Arlicle X of lhe Funding Agreenenl: Connilnenls and Disbursenenls, !0.0!:
Connilnenls - FC shall use ils besl efforls lo connil lo
!2
:
Lending $50 lo $70 nillion per year lo eligible projecls,
Cranling $3 lo $!2 nillion per year fron renaining CEF funds belween April !
sl
, 2005 lo arch
3!
sl
, 2009 and $6 lo $3 nillion lhereafler lowards feasibilily sludies, suslainable connunily plans,
assessnenls and field lesls,
Cranling $7 lo $!0 nillion per year fron April !
sl
, 2005 lo arch 3!
sl
, 2009, and $5 lo $6 nillion per
year lhereafler for projecl inplenenlalion,
Lending or guaranleeing loans lo supporl brownfields renedialion and developnenl lolalling in
aggregale of al leasl $!50 nillion by arch 3!
sl
, 20!2.




12
GMF Funding Agreement, op.cit, p.22


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 23


Approved AppIications
Table 5 below provides lhe lolal nunber of subnilled applicalions and approved applicalions since CFs
inceplion in 2000.
TabIe 5 - Number of submitted and approved appIications since 2000
!3


# of submitted and approved appIications Studies / FieId Tests /
Community PIans
CapitaI
Projects
TotaI
Conpleled nlenl lo Apply forns subnilled !,945 952 2,397
Accepled nlenl lo Apply forns !,462 590 2,052
Conpleled applicalions subnilled 924 350 !,274
ApprovaIs 654 197 851

Since ils inceplion, a lolal of !,274 conpleled applicalions have been subnilled lo lhe CF. Of lhese
applicalions, a lolal of 654 sludies and !97 capilal projecls have been approved by lhe CF Board for a
lolal connilnenl in excess of $ 524.7 nillion.
Funding by Sector
As described under Arlicle - 2.03: Eligible Projecl Characlerislics - lhe FC shall disburse funds fron
lhe Fund assels in lhe forn of granls, loans and / or loan guaranlees lo eligible recipienls carrying oul
eligible projecls which, in lhe opinion of lhe Board, have lhe polenlial lo resull in significanl environnenlal
inprovenenl on air, waler and soil qualily, including greenhouse gas enissions reduclion, in one or nore
of lhe following calegories of aclivily: a Energy, b valer, c vasle, d Suslainable lransporlalion, e
Brownfields, and f nlegraled connunily projecls.
Table 6 below provides a delail of lolal connilnenls by seclor since lhe inceplion of lhe CF in 2000.
TabIe 6 - TotaI commitments by GMF funding sector since 2000

Studies / FieId Tests /
Community PIans
CapitaI Projects TotaI
GMF Funding Sector
Number
$
(miIIions)
Number
$
(miIIions)
Number
$
(miIIions)
Energy !34 $!5.3 92 $209.! 276 $224.9
Water !34 $!0.5 44 $!23.9 !73 $!34.4
Waste !20 $!0.3 29 $39.0 !49 $49.3
SustainabIe Transportation 40 $3.5 !5 $49.! 55 $52.6
BrownfieIds 3 $0.2 !4 $29.0 !7 $29.2
Integrated Community
Projects
!73 $!3.2 3 $!6.! !76 $34.3
TOTAL 654 $58.5 197 $466.2 851 $524.7


13
GMF Annual Report 2008-2009, op. cit, p.30


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 24


Funding by Region
As described under 2.02 (b of lhe Funding Agreenenl, The Board will approve wilhin lhe scope of lhis
Agreenenl, specific slralegies, crileria, policies and procedures lo allain an appropriale balance in lhe
nunber of approved Eligible Projecls belween populalions of urban and rural connunilies wilhin Canada
and anong regions wilhin Canada.
!4

n addilion lo lhe Funding Agreenenl requirenenl nenlioned above, lhe sludies and projecls underlaken
under lhe CF unbrella provide environnenlal and social benefils oblained fron lhe inprovenenl of air,
waler and soil qualily, as well as lhe polenlial of subslanlial econonic benefils. THE FC has eslinaled
lhal lhe lolal inilialives underlaken by CFsupporled inilialives have lhe polenlial lo leverage over $2.6
billion of econonic aclivily in nore lhan 350 connunilies across Canada.
Table 7 below provides an overview of approved sludies, field lesls and connunily plan funding since
inceplion by region as well as by lype of nunicipalily.
TabIe 7 - Approved Study, FieId Test, and Community PIan funding by region and type of
municipaIity
15

SmaII RuraI or
Remote
Town or City
TotaI
Funding
TotaI
PopuIation
PopuIation
Region
Number $ (miIIions) Number $ (miIIions) % %
AtIantic 34 !.9 40 2.3 3.03' 2,234,779 7.23'
British
CoIumbia
50 2.3 74 7.9 !7.44' 4,!!3,437 !3.0!'
Northern
Territories
4 0.3 3 0.3
!.33'
!0!,3!0 0.32'
Ontario 46 3.9 !30 !3.5 33.29' !2,!60.232 33.47'
Prairies 55 4.! 79 3.3 2!.20' 5,406,903 !7.!0'
Ouebec 29 2.4 55 5.3 !3.!6' 7,546,!3! 23.37'
TOTAL 218 14.9 436 43.6 100% 31,612.987 100%

The FC also pronoles lhe dislribulion of CF funding belween snall rural connunilies and lowns or
cilies. Of lhe lolal 654 sludies approved by lhe Board since CFs inceplion, a lolal of 2!3 (33' have
been for sludies inilialed by snall rural or renole connunilies. Funds connilled lo sludies inilialed in
lhese connunilies lolaled $ !4.9 (25'.

14
GMF Funding Agreement, op.cit, p.5
15
GMF Annual Report 2008-2009, op.cit, p.31


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 25



Table 3 below provides an overview of approved capilal projecl funding since inceplion by region as well
as by lype of nunicipalily.
TabIe 8 - Approved CapitaI project funding by region and type of municipaIity
16

SmaII RuraI or
Remote
Town or City
TotaI
Funding
TotaI
PopuIation
PopuIation
Region
Number $ (miIIions) Number $ (miIIions) % %
AtIantic !0 !4.2 !! 53.! !4.29' 2,234,779 7.23'
British
CoIumbia
!3 29.! 2! 73.4 22.07' 4,!!3,437 !3.0!'
Northern
Territories
! 0.2 0.04' !0!,3!0 0.32'
Ontario !2 !3.5 64 !69.3 40.54' !2,!60.232 33.47'
Prairies !3 30.2 !6 43 !6.34' 5,406,903 !7.!0'
Ouebec 7 4.6 !9 23.4 6.03' 7,546,!3! 23.37'
TOTAL 66 96.8 131 367.7 100% 31,612,987 100%

Of lhe !97 capilal projecls approved by lhe Board, a lolal of 66 (33' have been allocaled lo snall or rural
connunilies. Tolal funds connilled lo capilal projecls lo be conpleled in snall rural or renole
connunilies lolaled $93.5 nillion, which represenls 49.7' of lolal funds connilled lo capilal projecls.

Funding by Stream
Table 9 provides delails of granl connilnenls for sludies, field lesls and connunily plans since CFs
inceplion.

TabIe 9 - Study 7 FieId Test 7 Community PIan funding by year
17


Year
# Studies / FieId Tests /
Community PIans
$ (miIIions)
200005 345 $24.306
200506 34 $!0.933
200607 96 $9.992
200703 9! $3.9!0
200309 33 $3.340
TOTAL 654 $58.536


16
GMF Annual Report 2008-2009, op.cit, p.32
17
Ibid, p.31


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 26


Since April 2005 - lhe period covered by lhe new Funding Agreenenl, a lolal of $ 33,730 nillion have been
connilled for 309 sludies. On average $3.4 nillion have been dislribuled funds lo finance sludies. n lhe
exceplion of 200309, lhe annual funding has been above lhe yearly largel of $ 3 lo $ !2 nillion.
Table !0 provides delails of funding connilnenls for capilal projecls since CFs inceplion.
TabIe 10 - CapitaI funding by year
18


Year
# of CapitaI
Projects
Grants $ (miIIions)
Loans $ (miIIions)
200005 62 $32.470 $!7!.373
200506 3! $9.623 $54.929
200607 4! $9.3!2 $57.722
200703 29 $6.900 $63.!24
200309 34 $3.!92 $5!.924
TOTAL 197 $67.097 $399.078

For lhe sane line period, a lolal of $ 34.627 nillion in granls have been connilled for !35 capilal
projecls. This lranslales inlo an annual average of $ 3.65 nillion, lherefore, lhe CFs has achieved ils
annual largels for all years under lhe arch 2005 Funding Agreenenl.
During lhe sane period of line a lolal of $ 227.7 nillion has been connilled in loans. n all years, lhe
CF has allainled ils annual bollon largel of $50 nillion, wherein lhe average annual connilnenl has
been of $ 56.9 nillion for lhe pasl four years covered under lhe Funding Agreenenl.
Finding #2:
As highlighled in Table 6 above, since lhe CFs inceplion, a large porlion of funds have been connilled
in lhe seclors of energy, waler, wasle, and inlegraled connunily projecls. A lolal of $ 442.9 nillion,
represenling 34.4' of funds have been dislribuled for projecls relaled lo lhese lhree funding seclors.
Bolh lhe suslainable lransporlalion and brownfields seclors have been areas wilh lhe leasl anounl of
funding connilnenl wherein only $ $52.6 nillion or !0.02' and 29.2 nillion or 5.5' of lolal connilled
funding lo dale have been connilled lo sludies and capilal projecls relaled lo lhese seclors.
The Funding Agreenenl requires lhal FC connil a lolal $!50 nillion in CF loans for brownfields
projecls by arch 3!, 20!2. n ils 2009 Annual Feporl, lhe CF has recognized lhe necessily lo increase
ils involvenenl in lhe brownfields area in order lo allain ils objeclives. n order lo increase lhe nunber of
loans, lhe CF has nade significanl efforls in order lo idenlify polenlial brownfields inilialives and lo
increase lhe applicalions uplake, wilh parlicular allenlion lo inilialives in Ouebec. Through lhese oulreach
efforls, a lolal of 33 polenlial brownfields inilialives were idenlified. Of lhese, lhree applicalions were
subnilled before arch 3!, 2009. The CF recognizes lhal challenges renain in neeling ils largels and
acceleraling lhe uplake denand for CF loans for brownfields renedialion, as well as for suslainable
lransporlalion. Bolh lhe CF and FC renains connilled lo conlinuous inprovenenl and clienl
engagenenl in bolh lhese areas.

18
GMF Annual Report 2008-2009, op.cit, p.32


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 27


CF represenlalives and Council nenbers noled lheir concerns wilh respecl lo allaining lhe brownfields
largel by 20!2, as well as lhe suslainable lransporlalion largels. l has been suggesled lhal, given lhe
currenl econonic clinale, nunicipalilies nay nol be willing lo incur lhe projecl cosls even wilh lhe oplion
of CF loans, olher nunicipal loan supporl, and hislorically low inleresl rales. vhile lhe queslion has nol
been discussed fornally, sone CF represenlalives and Council nenbers have begun lo wonder if
converling brownfields loan funds lo nonrepayable granls would increase lhe level of nunicipal inleresl in
brownfields projecls. Despile lhese challenges, lhe CF conlinues lo focus on excellence as a key
seleclion and assessnenl crileria.
Finding #3:
As highlighled in Tables 7 and 3, lhe Onlario, Prairie and orlhern Terrilories regions have received
funding in proporlion of lheir lolal populalion. ve also nole lhal lhe Allanlic as well as BC regions have
received funding in a slighlly higher proporlion.
However, allhough lhe CF funding is inlended lo be nalional in scope, lhere is an evidenl disparily in lhe
funding allocalion lo lhe Ouebec region. Despile ils besl efforls lo help ensure lhe equilable dislribulion of
funds lhroughoul lhe regions across Canada, lhe CF has acknowledged a disparily in lhe nunber of
projecls funded in lhe region of Ouebec. Allhough lhe populalion of Ouebec represenls 24' of lhe
populalion of Canada, only 7' of funds connilled by lhe CF has been allocaled lo lhis region. This
disparily is nainly due lo lhe facl lhal prior lo lhe signing of an agreenenl in 2004 belween lhe
governnenl of Ouebec and FC, nunicipalilies in lhe province of Ouebec were nol aulhorized lo receive
funding fron lhe CF. Because of lhis delay in lhe availabilily lo provide funds lo lhese nunicipalilies, lhe
nunber of projecls in lhis region has nol reached CFs largeled goals.
n order lo help address lo lhis disparily, FC has inilialed a Ouebec Oulreach slralegy which ains lo
allocale !6!3' of CFs 20032009 funding lo Ouebec inilialives. Through a series of inilialives, CF
has reached ils goals for 200309. The CF Council approved new, nore aggressive largels lo close lhe
funding gap in Ouebec. n 2009-20!0, slaff will underlake besl efforls lo allocale $25 nillion in CF
funding lo Ouebec inilialives, wilh an enphasis on brownfields inilialives. This largel represenls 45' of
available funding for lhe fiscal year.
!9


5 - What have been the resuIts of GMF so far7
Findings:
ole: n lhis seclion, we focus prinarily on lhe resulls of CFfunded sludies. The resulls of CFfunded
capilal projecls are deall wilh under Oueslion #6.
!. The sludies have been highly used by lhe nunicipalilies and are expecled lo be highly used in lhe
fulure,
2. Half of lhe connunily planning sludies have been used lo develop new or revised connunily
plans, and alnosl 40' of lhen have been used lo nake decisions regarding fulure
developnenls,
3. ore lhan half of lhe feasibilily sludies have been used lo provide necessary infornalion
regarding possible developnenl projecls, and alnosl a lhird of lhen have been used lo nake a
go/no go decision regarding a possible developnenl projecl, and
4. The CF has inplenenled nunerous efforls lo engage and undersland lhe needs of ils
nunicipal slakeholders.

19
GMF Annual Report 2008-2009, op.cit, p.12


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 23


Discussion:
Finding #1:
As provided under queslion #4, Table !! highlighls lhe lolal projecl (sludy and capilal projecl connilnenls
since ils inceplion in 2000.
TabIe 11 - TotaI approved commitments by GMF funding sector since 2000

Studies / FieId Tests /
Community PIans
CapitaI Project
TotaI Approved
20

GMF Funding Sector
Number $ (miIIions) Number $ (miIIions) Number $ (miIIions)
Energy !34 $!5.3 92 $209.! 276 $224.9
Water !34 $!0.5 44 $!23.9 !73 $!34.4
Waste !20 $!0.3 29 $39.0 !49 $49.3
SustainabIe
Transportation
40 $3.5 !5 $49.! 55 $52.6
BrownfieIds 3 $0.2 !4 $29.0 !7 $29.2
Integrated Community
Projects
!73 $!3.2 3 $!6.! !76 $34.3
TOTAL 654 $58.5 197 $466.2 851 $524.7

Survey of study funding recipients:
Below, we have selecled for presenlalion lhose survey queslions nosl relevanl lo lhis review queslion.
ole: for each of lhese queslions, we presenl lhe aclual nunber of responses lo lhe queslion. For each
queslion, lhere were a nunber of blank / no responses, lherefore, lhese were nol included in lhe
calculalion. l is also noled lhal for queslions #3A and #3B, lhe populalions are 73 and 92 respeclively.
This higher nunber reflecls cases in which respondenls had lhe opporlunily lo selecl nore lhan one
response oplion.
Ouestion #6 - How wouId you rate the importance of the information provided by this
study to your organization7
Response: # of Reponses
(n = 60)
%
(! High 53 33.33'
(2 ediun 5 3.33'
(3 Low ! !.67'
(3 Donl know 0 0'
(9 o opinion ! !.67'
Blank (nol counled !!
TotaI (ActuaI) 60 100%


20
GMF Annual Report 2008-2009, op.cit, p.7: the net figures amount (after cancelled projects) is 730
sustainable community development studies and capital projects with a total value of over $400 million.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 29


Ouestion #7 - To what extent has your organization used the resuIts of the study to date7

Response: # of Reponses
(n = 60)
%
(! A lol 4! 63.33'
(2 Sone, bul nol a lol !3 2!.67'
(3 Very lillle 4 6.66'
(3 Donl know ! !.67'
(9 o opinion ! !.67'
Blank (nol counled !!
TotaI 60 100%

Finding #2:
Ouestion #8A - For Community PIanning studies, how have the resuIts of the study been
used to date7
Response: # of Reponses
(n = 78)
%
(! To revise exisling connunily plans. !2 !5.33'
(2 To develop new or expanded connunily plans. !0 !2.32'
(3 To develop guidelines or regulalions. !6 20.5!'
(4 As a basis for naking decisions regarding fulure
developnenls or projecls.
30 33.46'
Olher !0 !2.32'
Blank 0 0'
TotaI 78 100%

For queslion # '3A, responses provided under Olher included:
The sludy was used by olher groups for developing guidelines and providing educalion on
green lechnology oplions as well as econonic developnenl prograns,
Longer range connunily energy syslens planning,
Cenesis for naking an assessnenl lo fosler lransil developnenl, and
Supporl applicalions for federal and provincial infraslruclure granls.

Finding #3:
Ouestion #8B - For FeasibiIity Studies, how have the resuIts of the study been used to
date7
Response: # of Reponses
(n = 92)
%
(! To nake go / no go decision regarding a possible
developnenl projecl.
24 26.09'
(2 To nodify plans regarding a possible developnenl or
projecl.
!5 !6.30'
(3 Provide olher necessary infornalion regarding a
possible developnenl projecl.
29 3!.52'
(4 As a basis for furlher sludies. !9 20.65'
Olher 5 4.43'
Blank 0 0'
TotaI 78 100%


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 30



For Oueslion #3B, responses provided under Olher included:
Use of lhe feasibilily sludy lo confirn lhe use of energy saving heal recovery,
For fulure connunily projecls, and
Supporl applicalions for federal and provincial infraslruclure granls.

Ouestion #11 - To what extent do you expect your organization wiII use the resuIts of the
study in the future7
Response: # of Reponses
(n = 61)
%
(! High 37 60.65'
(2 ediun 20 32.79'
(3 Low ! !.64'
(3 Donl know 2 3.23'
(9 o opinion ! !.64'
Blank (nol counled !0
TotaI (ActuaI) 61 100%

Sinilarly
Ouestion #12 - How usefuI do you expect the resuIts to be in the future7
Response: # of Reponses
(n = 61)
%
(! High 33 62.29'
(2 ediun !7 27.37'
(3 Low 2 3.23'
(3 Donl know 3 4.9!'
(9 o opinion ! !.64'
Blank (nol counled !0
TotaI (ActuaI) 61 100%

Ouestion #14 - How big an impact wouId it be to your organization if the resuIts were not
avaiIabIe at aII7
Response: # of Reponses
(n = 60)
%
(! High 24 40'
(2 ediun 24 40'
(3 Low 6 !0'
(3 Donl know ! !.67'
(9 o opinion 5 3.33'
Blank (nol counled !!
TotaI 60 100%

Olher nolable survey responses included:
34' of sludies were deened lo be of high qualily and nel lhe nunicipalilys objeclives,
77' of respondenls agreed lhal lhe assessnenl of lhe funding applicalion was clear and
lransparenl,


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 3!


n 67' of cases lhere was a line lapse of over 90 days belween lhe applicalion and nolice of
approval, and
79' of respondenls agreed lhal lhe noniloring and reporling requirenenls were reasonable

vhile lhe review did nol direclly address lhe queslion of any spillover effecl resulling fron CF funding,
lhe survey resulls below indicale lhal lhe resulls of lhe sludies were fairly relevanl lo olher organizalions,
whereby nunicipalilies who provided a clear response (25 / 33 noled lhal for 65' of lhe nunicipally
funded sludies, olher organizalions have been users of lhe sludy resulls.
Ouestion #15 - To date, have there been other organizations that have been users of this
study7
Response: # of Reponses
(n = 60)
%
(! Yes 25 40.93'
(2 o !3 2!.3!'
(3 Donl know 23 37.70
Blank (nol counled !0
TotaI 61 100%

ve also reviewed a nunber of Knowledge anagenenl Unil (KU reporls lhal have idenlified relevanl
findings lo lhis review queslion.
The Creen unicipa| Fund npac!s. A Sunnar,
2!
reporl idenlified lhal lhe CF is having bolh direcl and
indirecl inpacls in Canadian connunilies wherein sone direcl benefils have been lhe inplenenlalion of
capilal projecls and olher sludy oulcones, and sone where sludies aclivilies have led lo olher indirecl
benefils wilhin nunicipalilies, for exanple fulure planning opporlunilies and changes in nunicipal
operaling praclices. The reporl also acknowledged lhal neasuring lhe inpacl of CF funding is difficull
as lhey are nullifaceled and longlern.
A Fepor! on !he Conversion of CF S!udies !o Capi!a| Projec!s
22
was a survey reporl of !43 respondenls.
The reporl idenlified lhal il was difficull lo calculale an overall projecl conversion rale for CF sludies,
however, 96 of lhe !7! sludies discussed in lhis reporl have converled lo capilal projecls, represenling a
crude conversion rale of 56'. n addilion, lhe reporl noled lhe following olher resulls provided by
respondenls relaled lo CF sludy funding:
36 reporled underlaking furlher sludy of lhe issue of lheir CF sludy,
34 respondenls reporled lhal lheir nunicipal council has adopled a reconnendalion based on
lhe sludy,
!05 respondenls reporled underlaking al leasl one of lhe reconnendalions of lhe sludy,
75 respondenls reporl underlaking a capilal projecl, and
Alnosl half of lhe respondenls reporled lhal because of lheir CF sludy, lhey had underlaken
aclivilies aparl fron lhose slenning fron lhe sludy reconnendalions and/or capilal projecls

21
Green Municipal Fund Impacts: A Summary, December 4
th
, 2006, p.3
22
A Report on the Conversion of GMF Studies to Capital Projects, November 1
st
, 2006, p.3


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 32


The npac! of CF Funding Be,ond Capi!a| Projec!s
23
was a conplenenlary survey reporl based on lhe
above Conversion Sludy. The reporl idenlified lhal lhe capilal projecls nay nol be lhe only neasure by
which lhe success of CF sludy funding should be evalualed.
The survey idenlified four possible sludy oulcones olher lhan lhe energence of a capilal projecl: !
operalional change wilhin a nunicipalily, 2 provision of background infornalion and/or assislance wilh
policy developnenl or planning, 3 progran developnenl, and 4 illuslralion/docunenlalion. oreover,
65 of lhe !43 phone survey respondenls reporled lhal, because of lheir CF sludy, lhey had underlaken
aclivilies aparl fron lhose slenning fron lhe sludy reconnendalions and/or capilal projecl.
Fepresenlalives fron lhe CF Knowledge anagenenl Unil enphasized lhal lhe CFs inveslnenls in:
a having a presence al nalional environnenlal suslainabilily conferences, b public funding
announcenenls, c websile design and funclionalily developnenl, d preparalion of projecl case sludies,
and e connissioning reporls lo connunicale lhe value of CF funding, represenl a significanl expense
lo and connilnenl by lhe CF lo connecl, engage and learn fron ils nunicipal slakeholders.
Finding #4:
ve observed lhrough discussion wilh CF represenlalives and lhrough lhe review of nunerous
docunenls, lhe CF has since lhe revised Funding Agreenenl cane inlo effecl in arch 2005,
consislenlly exhibiled a proaclive desire lo engage and undersland lhe needs of ils nunicipal
slakeholders.
n doing so, lhe CF has been consislenl wilh lhe federal governnenls Funding Agreenenl
expeclalions, specifically:
b An inporlanl conlribulion lowards achieving lhal objeclive - enhance lhe qualily of life of
Canadians by inproving air, waler and soil qualily, and prolecling lhe clinale - is lo gain
experience in lhe developnenl and execulion of nunicipal environnenlal projecls, including lhe
inprovenenl of lhe environnenlal perfornance of nunicipal inslallalions, by facililaling wilh
provincial and lerrilorial governnenls and olher public and privale seclor parlners, increased
access lo financing, including innovalive financing lechniques, and
c l is inporlanl lo gain experience in lhe inplenenlalion of innovalive nunicipal environnenlal
projecls.

l was noled by CF represenlalives and Council nenbers lhal effeclive connunicalions plans and
slakeholder engagenenl slralegies have been developed as a neans of helping lhe CF secure and
suslain public and federal supporl.
Table !2 below idenlifies a nunber of lhe inporlanl slakeholder engagenenl inilialives lhe CF has
inplenenled in an efforl lo engage and undersland lhe needs of ils nunicipal slakeholders as a neans of
inproving CF seclor progran funding, achieving resulls for nunicipalilies, and ullinalely lo allow lhe
CF lo achieve ils Funding Agreenenl nandale.




23
The Impact of GMF Funding Beyond Capital Projects, November 8
th
, 2006, p.3


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 33


TabIe 12 - GMF municipaI stakehoIder engagement initiatives

StakehoIder
engagement
initiative
Purpose of the initiative and observations.
KnowIedge
Management
Unit (KMU)
reports.
KU reporls are specific inlernal sludies lo exanine specific queslions relaled lo
lhe inpacl of CF funding al lhe nunicipal level, lherefore, lheir purpose is lo help
assess lhe relevance of lhe CF progranning.
The KU reporls are nade available via lhe CFs websile.
GMF Webinar
series
vebinars are aligned lo CF seclor funding areas: Brownfields, Energy, Planning,
Transporlalion, vasle, and valer.
The CF webinar series are inleraclive, webbased workshops used by lhe CF lo
connecl wilh ils nalional slakeholders.
CF webinar presenlers conprise a diverse nix of federal, provincial, nunicipal
and olher public/privale seclor individuals possessing knowledge and experience
relaled lo lhe CF funding priorily areas.
The frequency of lhe webinars appears lo be nonlhly. Since January 2009, lhere
have been a lolal of 9 webinars across 4 of lhe CFs funding priorily areas.
vebinar resulls are reporled lo lhe CF Council and are used as inpuls lo lhe
CFs Annual Feporl.
CF represenlalives and parlicipanl connenls have noled lhal lhe webinar series
is a linely and efficienl way for lhe CF lo connecl wilh and receive feedback
fron ils nalional slakeholders and are a valuable nechanisn for knowledge lransfer
and conneclion on key issues in suslainabilily.
SustainabIe
Communities
Missions
The Suslainable Connunilies issions have been organized in relalion lo CF
seclor funding areas: Brownfields, Energy, Planning, Transporlalion, vasle, and
valer.
CF represenlalives noled lhal lhe objeclive of lhe issions was lo learn fron
nunicipal experiences across Canada and lo help respond lo any idenlified gaps
relaled lo CF funding priorily seclors.
The lessons learned fron lhe issions have been reporled lo lhe CF Council and
were used as inpuls lo lhe CFs Annual Feporl

Observalions fron ission reporls:
The prine objeclive of lhe issions was lo learn fron officials in lhe public and
privale seclors of lhe hosl connunilies how policies, prograns and lechnologies
have been used lo creale nore suslainable connunilies,
The issions provide Canadian nunicipalilies wilh a valuable learning experience
lhal denonslrales firslhand, how lhe concepl of connunily energy planning
supporls suslainable connunily developnenl and generales econonic and
environnenlal benefils locally and nalionally, and
The issions have been a key progran lhal has inforned and inspired leaders who
are in posilions lo replicale lhese leading exanples of suslainable connunily
developnenl.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 34


StakehoIder
engagement
initiative
Purpose of the initiative and observations.
Capacity
BuiIding
Sessions
Capacily Building workshops / consullalions are organized in relalion lo CF seclor
funding areas: Brownfields, Energy, Planning, Transporlalion, vasle, and valer.
The lessons learned fron lhese sessions are reporled lo lhe CF Council and are
used as inpuls lo lhe CFs Annual Feporl, lhe Annual Slalenenl of Plans and
Objeclives (ASPO, and lhe KU annual business plan.
CF represenlalives noled lhal lhe goal of lhe consullalions was so lhal lhe CF
could beller undersland lhe needs of nunicipal governnenls and lhe currenl slale
of capacily for suslainable developnenl projecls al lhe nunicipal level, and lo
idenlify slralegic niches for FC lo parlicipale in lhe process of inproving lhis level
of capacily.
The CF lracks and reporls on ils capacily building inilialives on a quarlerly basis.

Fecenl sessions have included:
Suslainable Connunily Conference 2003, Slralegic npacl Evalualion:
The goal of lhe conference was lo build nunicipal capacily lo inplenenl
suslainable developnenl praclices.
The KU is considering lhe reconnendalions and where deened relevanl will be
carried forward lo updaling CF progranning.
Capacily Building Consullalion, Feporl lo Parlicipanls Augusl 2007:
The reporl sunnarized lhe findings fron a nalional series of consullalion
workshops lhal FC underlook in February and arch 2007 lo beller undersland
lhe needs of nunicipal governnenls and lhe currenl slale of capacily for
suslainable developnenl projecls al lhe nunicipal level, and lo idenlify slralegic
niches for FC lo parlicipale in lhe process of inproving lhis level of capacily.
Partners for
CIimate
Protection
(PCP)
The PCP is a nelwork of Canadian nunicipal governnenls who have connilled lo
reducing greenhouse gases and acling on clinale change.
The PCP is lhe Canadian conponenl of lhe nlernalional Council for Local
Environnenlal nilialives (CLEs Cilies for Clinale Change Proleclion - a nelwork
of nore lhan 300 connunilies worldwide working in lhe areas of CHC reduclion
and clinale change.
The PCP is a parlnership belween lhe FC and CLE - Local Covernnenls for
Suslainabilily.
Acconplishnenls for 200309 have included:
2 PCP webinars wilh 220 parlicipanls
3 new publicalions: i Five i|es!one Franevork for Feducing Creenhouse Cas
nissions, ii Six S!eps !o a Sus!ainab|e Connuni!, Cuide !o Loca| P|anning, and iii
Adap!ing !o C|ina!e Change
Coordinalion belween PCP and FC Policy and Fesearch group on Oualily Urban
Energy Syslens of Tonorrow (OUEST on a research sludy of polenlial enissions
reduclions fron connunily energy syslens.
CH2M HiII
SustainabIe
Community
Awards
Program:

The CH2 Hill awards were eslablished in 2000 as a joinl venlure belween lhe
FC and CH2 Hill lo recognize projecls lhal denonslrale environnenlal
responsibilily, excellence, and besl praclices in connunily suslainable
developnenl.
There are 3 progran award areas, of which 6 are direclly lied lo lhe CFs progran
seclor funding areas.
Eligible projecls nusl have been conpleled wilhin lwo years of lhe award
applicalion and/or be in lhe final slages of inplenenlalion, and nusl have achieved
neasurable resulls.
Award subnissions are judged by an experl panel of judges selecled by lhe FC.
IPSOS Opinion
Research on
Green
The April 2003 PSOS reporl resulls were used as feedback inpuls and lessons
learned incorporaled inlo lhe redesign / enhancenenl of lhe CFs funding progran
seclors.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 35


StakehoIder
engagement
initiative
Purpose of the initiative and observations.
MunicipaI Fund
and ReIated
Program and
Initiatives
Per lhe KU, lhe resulls of lhe PSOS reporl were reporled lo lhe CF Council.
Marbek
research
reports
4 arbek reporls were conpleled in arch 2009 relaled lo Energy, Suslainable
Connunily Planning, Transporlalion, and valer.
Each reporl idenlified specific key success faclors (currenl praclice and ideal lo help
change personal behaviors, oblain connunily buyin, and lo inplenenl longlern
suslainable slralegies.
CF use of lhe reporls:
The arbek reporls were special research reporls connissioned by lhe FC lo
oblain infornalion on currenl and besl praclices relaled lo specific CF funding
progran areas.
Per lhe KU, lhe arbek reporls were seninal docunenls for lhe CF as lhese
reporls are used in KU presenlalions lo slakeholders on lhe value of lhe CF
funding.
6 - SpecificaIIy, for the capitaI projects, what have been the
impacts of these projects on sustainabIe improvements in air,
water, soiI quaIity, and reduction of greenhouse gases7
Findings:
!. ndicalions are lhal lhe CFfunded capilal projecls are on lrack lo neel lhe prograns goals in
lhe areas of environnenlal, econonic, and social benefils. The vasl najorily of lhe projecls
exanined in lhe inlerviews and case sludies are denonslraling significanl benefils in lhese areas,
and
2. There is work lo be done by lhe CF lo langibly neasure lhese benefils and inpacls. A new
perfornance neasurenenl syslen lhal will address lhis need is currenlly being pilol lesled.
Discussion:
The analysis of lhis review queslion involved lhe analysis of inlerviews wilh capilal funding recipienls, and
capilal funding case sludy sile visils and inlerviews.
Finding #1:
Based on capilal projecl funding recipienl inlerviews and lhe review of lhe nosl recenl CF Annual
Feporl, lhe CF capilal projecls have yielded environnenlal, econonic, and social benefils / inpacls.
However, conlinued work is required lo lesl and validale lhe new perfornance neasurenenl syslen lo
langibly neasure lhese benefils and inpacls.
The 20032009 Annual Feporl noled lhal lhe new perfornance neasurenenl syslen will build upon lhe
exisling anlicipaled inpacl neasurenenl nodel which are calculaled based upon an independenl
assessnenl (Environnenlal Fesulls Feporl. The new syslen will be nore resullsbased and inlegraled
wilh lhe CF logic nodel.
The dala presenled in lhe following lables have been oblained fron infornalion provided by lhe CF
dalabase and in lhe CF Annual Feporl 20032009 which idenlify lhe anlicipaled inpacls of CF capilal
projecls since inceplion.
Note: KPC has nol perforned any lesling of lhe dala lo validale lhese figures.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 36


TabIe 13 - Anticipated energy and air impacts of capitaI projects since inception
24

# of projects
(excIudes canceIIed
projects)
GHG reductions
[tonnes CO2e] (using nationaI average
emission factor)
Sector
TotaI
With
energy
and air
impacts
Direct GHGs
(reductions
in fossiI
fueIs)
Indirect
GHGs
(reductions
in eIectricity
use)
TotaI
GHGs
CAC reductions [t]
(Summary of
criteria air
contaminant
emissions from
GMF
impIementation
projects funded
to date)
Energy 63 63 2!!,3!6 539,495 75!,3!2 2,363
Water 33 27 4,30! 39,353 34,557 37
Waste 20 !9 699,307 25,026 724,333 !3
Transportation 3 3 52,!95 !0,336 4!,359 529
BrownfieIds 3 3 /A /A /A /A
TotaI 137 130 968,620 514,327 1,482,947 3,328

The figures provided in Table !3 were exlracled fron lhe independenl assessnenls of CF funded capilal
projecls and are projeclions of whal could have reasonably been expecled lo occur in lhe absence of lhe
projecl (i.e., lhe baseline. The Annual Feporl also nakes a qualifying slalenenl on inpacls whereby lhe
CF recognizes lhal sone funded capilal projecls nay resull in an increase in CHCs. For exanple, sone
projecls ain lo inprove waler qualily inlroduce new energy requirenenls and new enissions as a resull.
Sinilarly, lhe approach selecled lo renediale a brownfields sile and / or inlroduce a new node of
suslainable lransporlalion nay also increase enissions. Fron lhis slandpoinl, lhe CF has elecled lo
view lhe environnenlal, econonic and social advanlages of inproving waler qualily, renedialing and
redeveloping brownfields siles, and inplenenling nore suslainable lransporlalion nodes oplions as
oulweighing lhe increase in CHCs.
25

Anticipated water impacts:
26
For lhis reporling period 33 of lhe !37 capilal projecls (lolal approved
capilal projecls: n = !97 largel waler and waslewaler inprovenenls: !2 waler supply and conversion, 20
waslewaler projecls, and ! slorn waler projecl. 63 / !37 have al leasl sone inpacl on waler resources.
Anticipated soiI impacts:
27
23 / !37 projecls lo dale ain lo inprove soil qualily, including 3 brownfields
renedialion projecls. All 3 brownfields projecls will involve lhe renoval or renedialion of approxinalely 2
nillion cubic nelers of conlaninaled soil wilhin !.3 square kilonelres of properly. Of lhese 3 projecls, !
projecl represenls 50' of lhe lolal renedialed land and 75' of lhe lolal renedialed soil volune.
Other impacts to date:
23

32 funded projecls have been ranked as having a posilive inpacl on planl and aninal life
environnenls,
23 funded projecls are expecled lo significanlly reduce risks lo hunan heallh lhrough inproved
drinking waler syslens, reduced risk of exposure lo conlaninanls fron sewage, and reduced
exposure lo hazardous loxins and wasle fron brownfields siles.
The CF has also provided aclual environnenlal perfornance dale for a sanple of 9 conpleled capilal
projecls. These dala are sunnarized in Table !4 below.

24
GMF Annual Report 2008-2009, op.cit, p.18
25
Ibid, p.19
26
Ibid, p.19
27
Ibid, p.19
28
Ibid, p.19


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund - FAL Feview Feporl 37

TabIe 14 - initiaI data based on actuaI resuIts of compIeted capitaI projects since inception
29

Energy and cIimate impacts Air impacts Air impacts
Water
impacts
Sector
# of
projects
Feduclion
in CHCs
lonnes of
CO2 per
year
Feduclion
in eleclricily
consunplion
kvh per
year
Feduclion
in energy
consunplion
CJ per
year
Fenewable
energy
subsliluled
for non
renewable
energy CJ
per year
Feduclion
in Ox
lonnes
per year
Feduclion
in SOx
lonnes
per year
Feduclion
in CO
lonnes
per year
Feduclion
in lolal
suspended
parliculale
lonnes per
year
Anounl
of soil
wasle
lrealed or
nanaged
n3
Anounl of
wasle
diverled,
reused, or
recycled
per year
Change in
waler
consunplion
per year
BrownfieIds 0
Energy 6 !,904 2,3!9,045 27,763 !75 0.73 3.46
!6,33! n3
reduclion
Transportation 1 30,995 263,743 !06,2!7 205.09 6.72 54.46
Waste 2 3,357 !,700,000 6,576 0.30 0.04 0.30 0.07 !!4,!00
!62,300
lonnes and
!,766 n3
!5,000 n3
increase
Water 0
TotaI 9 36,756 4,519,045 298,082 106,393.72 206.17 10..22 54.76 0.07 114,100
162,300
tonnes
and 1,766
m3
1,881 m3
reduction

29
GMF Annual Report 2008-2009, op.cit, p.20


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 38


CapitaI funding impacts - Recipient interview responses
n lhe lables below, we provide sone sunnary poinls shared in our discussions wilh capilal funding
recipienls (including case sludy parlicipanls as a neans of sharing sone projecl seclor specific success
slories in relalion lo environnenlal, econonic, and social benefils / inpacls.
Comment Benefit / Impact Recipient / Project #
The CF funding was absolulely crilical
lo lhe projecls viabilily.
The projecl was a direcl fil wilh lhe
CFs goals of environnenlal
suslainabilily.
ve now have a fullyowned nunicipal
planl in lhe connunily.
Cheaper, lower cosl energy lo
consuners.
Environnenlal
Econonic
Social
Fevelsloke
Connunily Energy
Corporalion
CF #!206
CF helped us allain LEED Silver and be
recognized as one of lhe worlds
greenesl facililies.
The projecl grounds have helped realize
$350 nillion in econonic benefils for lhe
cily since 2007.
Environnenlal
Econonic
Exhibilion Place:
Dislricl Energy and
Trigeneralion
CF # 5366
Energy
alural fil - lhe projecl hil lhe overall
sweel spol for lhe CF
The LEED conneclion helps lhe
narkeling of lhe Dislricl Energy syslen.
Econonic
arkhan Dislricl
Energy nc
CF #9232

Comment Benefit / Impact Recipient / Project #
There is beller social equily as a resull
of lhe projecl. Before only upper
incone people could afford bollled
waler delivery, now everyone has
access lo lhe sane clean waler source
regardless of incone.
The projecl exceeded ils goals and
achieved LEED Cold.
The projecl pul lhe cily on lhe nap and
we now have increased lourisn.
Social
Environnenlal
Econonic
Cily of Kanloops -
LEED cerlified waler
lrealnenl planl.
CF #!6!9
The projecl crealed a suslained waler
source and enhanced waler qualily for
residenls.
Environnenlal
Social
Fraser Fiver Valley
Fegional Dislricl -
valer supply
lrealnenl progran
CF # 730
Water
ve are happy lo have been a parl of
lhis projecl. ve are conlacled every
day (since 2004 by nunicipalilies
across Canada lo learn aboul lhe
lechnology.
Environnenlal
Econonic
Social
Cenlre for Suslainable
valersheds - Self
conlained waslewaler
disposal syslen
CF # 392


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 39


The projecl was a narriage of
lechnology, innovalion lo achieve
environnenlal, econonic and social
benefils.
ve are happy lo pronole, and be an
advocale for lhe CF.
As a nolforprofil, CF funding
leverage was key for lhe projecls
success.
ve hold lhe righls lo lhe lechnology
and are expanding olher nunicipal
projecls in lhe nexl year, however, we
canl change lhe building codes fasl
enough lo leverage lhe lechnology lo
inprove building efficiency.
There is widespread public inleresl in
lhe projecl.

Comment Benefit / Impact Recipient / Project #
CF is helping lhe Cily becone
Canadas nosl suslainable cily.
Projecl would have gone ahead wilhoul
CF funding, however, we would nol
have allained LEED Cold.
All new buildings will be buill lo a
nininun LEED Silver.
Projecl denonslraled connilnenl lo
revilalizing lhe connunily area -
showed residenls lhe connunily is
inporlanl lo lhe fulure of lhe Cily.
Environnenlal
Econonic
Social
Cily of Kingslon -
Police Slalion
conslruclion
CF # 7235
BrownfieIds
Feslored 76' of lhe land lo ils
previous nalural slale.
33' of conslruclion wasle was
sleered away fron landfills via resale
and recycling.
Environnenlal
Cily of Kanloops -
LEED cerlified waler
lrealnenl planl.
CF #!6!9

Comment Benefit / Impact Recipient / Project #
Businesses on lhe waler fronl seen lo
be doing beller due lo an increase in
lourisn.
Econonic
Town of Lunenburg -
Sewage Trealnenl
Projecl
CF # !399
Waste Diversion of vasle fron burial will
increase lhe life of each landfill call and
reduce lhe volune of wasle handled
and disposed, as well as reduce cosls
for cell conslruclion.
Projecl was lhe genesis for lhe eco
cenler recycling facilily.
Environnenlal
Econonic
orlhern Sunrise -
nlegraled wasle
diversion feasibilily
sludy
CF # !223


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 40


CapitaI funding impacts - Case study responses
n lhe lables below, we provide sone sunnary poinls shared lhrough lhe case sludy inlerviews wilh
capilal funding recipienls lo highlighl environnenlal, econonic, and social benefils / inpacls resulling fron
lhe CF funded projecls.

Town of Peterborough:
GMF # 5802 - Conversion of Baseboard EIectric Heaters to Storage Heaters in SociaI Housing
GMF contribution: $180,000 grant
Recipient: Peterborough UtiIities Services Inc.
Projecl Descriplion:
any of Pelerboroughs social housing unils are healed by eleclric baseboard healers which produce large
anounls of greenhouse gases as lhey draw lheir dayline energy fron fossil fuel generalion. n addilion,
given lhe age of lhe unils (conslrucled in lhe nid!970s lhe healers are based on old and inefficienl
lechnology. vilh lhe inlroduclion of Provincial legislalion lhal requires lhe Onlario Energy Board lo
inslilule lineofuse rales for eleclricily whereby onday lo Friday dayline consunplion rales will be
charged a higher rale.
The scope of lhe projecl involved lhe replacenenl of lhe eleclric baseboard healers wilh eleclric lhernal
slorage (ETS healer which will pernil lhe slorage of eleclricily lo be used during peak energy
consunplion hours when consunplion rales are charged a higher rale. ETS healers were inslalled in a
lolal of !25 social housing unils.
Environnenlal
benefils /
inpacls:
The housing unils will no longer be burning healing oil and olher fossil fuels resulling
in reduced environnenlal enissions.
The ETS unils have an eslinaled life of 2025 years.
The aclual energy savings were deened lo be nininal in relalion lo lhe largel due lo
a nininal shifl lo offpeak energy consunplion hours. l was assuned in lhe
applicalion lhal !00' of lhe eleclricily consuned would be shifled lo nonpeak hours,
however, only 33' was shifled. n addilion, applicalion eslinales were based on !00
unils and !24 unils were converled wilh lhe ETS healers.
Econonic
benefils /
inpacls:
The slorage of eleclricily allows for a lower energy prices during off peak hours. The
savings are grealer during peak consunplion hours.
The Cilys eleclricily cosls decreased significanlly for lhe social housing unils resulling
in savings in gross / nel savings lo laxpayers who supporl subsidized housing.
The projecl was a cosleffeclive oplion as no relrofilling of lhe unils was required.
Social benefils
/ inpacls:
Fesidenls are secured a safe and reliable source of heal for lheir housing unils
resulling in a beller qualily of life for residenls.
nproved underslanding of energy conservalion by social housing residenls.

Greater Vancouver Transportation Authority (GVTA):
GMF # 1511 - TroIIey Bus RepIacement
GMF contribution: $20,000,000 Ioan
Recipient: GVTA - TRANSLINK
Projecl Descriplion:
n 2004, TFALK began replacing ils aging lrolley bus fleel wilh new slale of lhe arl lrolley buses. The
currenl fleel was over 40 years old and required a lol of nainlenance. Al lhis line, TFASLK was
considering lwo oplions for lhe replacenenl of ils aging fleel:
! Feplace lhe fleel wilh newer, slale of lhe arl eleclric lrolley buses
2 Feplace lhe fleel wilh diesel engine buses.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 41


FC, lhrough lhe CF progran becane involved in lhe projecl by assisling TFASLK wilh financial
supporl lo purchase lhe new lrolley buses via a low inleresl loan. A lolal of 256 new buses were
purchased for an inveslnenl of $ 256 nillion dollars. CFs conlribulion consisled of a loan of $ 20 nillion
lowards lhe purchase of 20 new buses.
Environnenlal
benefils /
inpacls:
TFASLK eslinaled lhal by opling for lhe lrolley bus oplion inslead of lhe diesel
powered buses, lhe following benefils would be realized:
Consunplion reduclion of 3,930,000 lilres of diesel fuel per year.
The eleclric powered engines would reduce lhe greenhouse gases enissions by lhe
equivalenl of 30,995 lons of CO2 per year.
n addilion, lhe old buses were recycled by selling lhese, as well as all lhe spare parls
lhal were in invenlory, lo Argenlina. By doing lhis, TFASLK reduced lhe anounl of
nalerials lo be disposed of and indireclly encouraged lhe ulilisalion of green power in
olher parls of lhe world.
Econonic
benefils /
inpacls:
Parl of lhe agreenenl belween TFASLK and FC requires lhe reinvesled of lhe
loan inleresl savings inlo olher environnenlal viable projecls.
The lolal inleresl savings over lhe lern of lhe loan (!0 years is eslinaled al $ 2.3
nillion.
To lhis day, a lolal of $ 2.3 nillion has been eilher disbursed or connilled.
The reinveslnenl of lhe loan inleresl savings led lo inveslnenls lowards lhe
following nunicipal projecls:
Purchase of BC Creen Power Cerlificale (CPC
Jack Bell FideShare Online Fidealching
ain Slreel Transil & Pedeslrian Priorily Projecl
Bike Transil Cenlres
elro Vancouver Public Bike Syslen.
Social benefils
/ inpacls:
Cleaner air resulling fron lhe annual reduclion in CHC enissions.

City of Edmonton:
GMF # 5095 - Street Sand Recovery
GMF contribution: $618,293 GMF grant
Recipient: City of Edmonton
Projecl Descriplion:
Due lo ils exceplionally cold wealher, lhe Cily of Ednonlon nusl use a significanl anounl of sand during
lhe winler nonlhs. On an annual basis, approxinalely !20,000 lo !60,000 lons of sand is laid on lhe cilies
slreels.
Prior lo lhis projecl, nalerials recovered forn lhe slreels during snow renoval and spring cleanup were
disposed of in local landfills.
vilh lhe inplenenlalion of lhe sand slreel recycling progran, approxinalely 70' of sand nalerials are
recovered (70' or approxinalely 34,000 lo !!2,000 lons of nalerials fron lhe slreels. Approxinalely
27' of nalerials are recycled, represenling an overall conversion of approxinalely 97' of nalerials.
Environnenlal
benefils /
inpacls:
Approxinalely 70' of lhe sand lhal is dislribuled on lhe slreels during lhe winler
nonlhs is picked up as parl of lhe snow renoval process or during spring cleanup.
Olher debris is also recovered during lhis process.
The Cily eslinales lhal of all lhe debris lhal is collecled, 30' is recycled inlo sand
lhal can be used in lhe fulure and 27' is recycled inlo olher nalerials such as fine
sand.
The Cily has reduced lhe aclual wasle being forwarded lo a landfill sile by aboul


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 42


!00,000 lons. n addilion lo saving noney in landfill cosl, by diverling lhis nalerial, lhe
Cily is prolonging lhe life if ils landfill siles.
Feduclion in CO2 enissions resulling fron less lruck lransporlalion of new sand fron
nines and lhe reduclion in lransporlalion of lhe wasle lo landfills.
Econonic
benefils /
inpacls:
The Cily is also saving noney by reducing lhe aclual anounl of noney for lhe
purchase of sand. Of even grealer inporlance, lhe winler slreel and sand recycling
progran conlribules lo lhe preservalion of lhe environnenl by reducing significanlly
lhe anounl of sand lhal nusl be nined. This is of oulnosl inporlance considering
lhal sand is a nonrenewable resource.
Social benefils
/ inpacls:
nproved air qualily resulling fron reduclion in C02 enissions.
Crealer connunily awareness and underslanding of Cily reuse and recycling
inilialives.

Finding #2:
The CF has also invesled in new processes lo beller neasure and reporl on lhe inpacls and oulcones
of ils projecl funding. CF is currenlly pilol lesling inlroduced a new perfornance neasurenenl syslen
based on a series of resullsbased environnenlal, econonic and social indicalors and neasures. Per lhe
slruclure of lhe perfornance neasurenenl syslen, lhe calegories of land, air, waler, clinale, econony,
and sociely are drawn fron lhe CFs broad priorilies as oullined in ils Funding Agreenenl. The new
perfornance neasurenenl syslen was developed by lhe nlernalional nslilule for Suslainable
Developnenl (SD.
Once lhe pilol lesl period is conpleled and lhe syslen has been validaled inlernally, a resullsbased
neasurenenl and reporling franework using lhe environnenlal, econonic, and social indicalors will be
developed and based on lhe CFs logic nodel approach and key resull areas. Prior lo lhe developnenl
of lhis new perfornance neasurenenl syslen, lhe CF was nol able lo consislenlly and syslenalically
reporl on lhe langible environnenlal, econonic and social oulcones of ils projecl funding. vhile lhe
CF has had an environnenlal resulls reporling syslen (PPFS in place since 2004, il has been
recognized by lhe CF as nol being very effeclive.
The developnenl of lhis new syslen is expecled lo help lhe CF nore effeclively neasure and reporl on
lhe inpacls and oulcones of ils funded projecls al a consolidaled level and will enable lhe CF lo salisfy
an inporlanl accounlabilily condilion of ils Funding Agreenenl.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 43


V. Conclusions
This review has observed lhal since ils inceplion, lhe Creen unicipal Fund has nade, and conlinues lo
nake inporlanl conlribulions lowards supporling nunicipalilies achieve lheir suslainable environnenl and
infraslruclure objeclives. As noled above under queslion #6, capilal funding recipienls have realized
environnenlal, econonic, and social benefils, resulling in nunerous projecl success slories lo dale.
Our review of CF docunenls, along wilh consullalions wilh CF represenlalives and Council nenbers
has yielded lhe observalion lhal lhe CF has since ils inceplion renained consislenl and aligned wilh
bolh lhe inlenl of ils Funding Agreenenl, as well as lhe federal governnenls priorilies of enhancing lhe
qualily of life of Canadians via inprovenenls lo air, waler, and soil qualily, and clinale proleclion.
Since ils inceplion, lhe CF has acled as a progran delivery and connunicalion nediun belween
Canadians, lheir nunicipalilies and lhe federal governnenl and il has been recognized by CF
represenlalives and sponsoring deparlnenl Council nenbers lhal lhe CF has facililaled lhe progran
delivery of lhe governnenls priorily policies wilh respecl lo environnenlal suslainabilily, air, waler and
soil qualily, as well as clinale change / proleclion. oreover, lhe arnslenglh nalure of bolh lhe FC and
lhe CF has enabled / facililaled relalionship building wilh and progran funding aclivily wilhin provincial
jurisdiclional boundaries lhal would olherwise be difficull for a federal deparlnenl. Furlher, lhe CFs
funding nodel provides lhe Fund wilh lhe operalional flexibilily and funding slabilily lo carry oul longlern
planning and connil lo supporling longlern projecls - anolher faclor lhal is recognized as a benefil lo
supporling suslainable environnenlal and infraslruclure projecls wilhin Canadian nunicipalilies.
The CF acknowledges lhal il is nol lhe only source of funding for nunicipal infraslruclure supporl and
discussions wilh CF represenlalives have noled lhal lhe CF has explored parlnership and collaboralion
opporlunilies wilh olher conplenenlary federal, provincial and nunicipal funding prograns as a neans of
aligning wilh parlners wilh connon nunicipal inveslnenl objeclives and lo leverage lhe use of funding lo
increase lhe overall resource base via which nunicipalilies can apply for lo advance lheir nunicipal
infraslruclure objeclives.
ve observed lhrough a variely of dala colleclion nelhods - surveys, inlerviews wilh capilal funding
recipienls and case sludies - lhal lhere is slrong supporl for lhe CFs nandale and denand for seclor
funding prograns. any of lhe snaller nunicipalilies who received capilal projecl funding noled lhal lhe
CF funding has conlribuled lo laying inporlanl foundalions for environnenlally suslainable infraslruclure
in lheir connunilies.
A vasl najorily of sludy and capilal funding recipienls consislenlly slaled lhal CF funding has provided a
crilical source of supporl lowards inveslnenls in nunicipally suslainable environnenlal and infraslruclure
projecls. n addilion, capilal funding recipienls noled lhal lhe CF loan oplion was allraclive fron an
econonic slandpoinl in conparison lo olher sources of connercial financing. The preferred loan lerns
offered by lhe CF enabled recipienls lo realize significanl inleresl cosl savings, allhough none could
provide a definile calculalion of lhe realized savings.
On lhe subjecl of increnenlalily, very few recipienls noled lhal lheir projecls would have gone ahead
wilhoul lhe CF funding, lhe najorily of recipienls slaled lhal lhe CF funding was inslrunenlal, and
oflen a crilical enabler of lhe projecls viabilily.
The CF is neeling all of ils Funding Agreenenl progran disbursenenl largels wilh lhe exceplion of
brownfields. CF represenlalives and Council nenbers noled lheir concerns wilh respecl lo allaining
lhe brownfields largel by 20!2. l has been suggesled lhal, given lhe currenl econonic clinale,
nunicipalilies nay nol be willing lo incur lhe projecl cosls even wilh lhe oplion of CF loans, olher
nunicipal loan supporl, and hislorically low inleresl rales. vhile lhe queslion has nol been discussed


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 44


fornally, sone CF represenlalives and Council nenbers have wondered if converling brownfields loan
funds lo nonrepayable granls would increase lhe level of nunicipal inleresl in brownfields projecls.
The CF has recognized lhe necessily lo increase ils involvenenl in lhe brownfields area in order lo
allain ils objeclives. n order lo increase lhe nunber of loans, lhe CF has nade significanl efforls in
order lo idenlify polenlial brownfields inilialives and lo increase lhe applicalions uplake, wilh parlicular
allenlion lo inilialives in Ouebec. Over lhe nexl lhree years, lhe CF expecls lo nake significanl
progress on brownfields via conlinuous inprovenenl and clienl engagenenl.
The CF has inplenenled nunerous efforls lo engage and undersland lhe needs of ils nunicipal
slakeholders as a neans of inproving CF seclor progran funding, achieving resulls for nunicipalilies,
and ullinalely lo allow lhe CF lo achieve ils Funding Agreenenl nandale. Fepresenlalives fron lhe
CF Knowledge anagenenl Unil (KU enphasized lhal lhe CFs inveslnenls in: a having a
presence al nalional environnenlal suslainabilily conferences, b public funding announcenenls, c
websile design and funclionalily developnenl, d preparalion of projecl case sludies, and e
connissioning reporls lo connunicale lhe value of CF funding, represenl a significanl expense lo and
connilnenl by lhe CF lo connecl, engage and learn fron ils nunicipal slakeholders.
The CF has developed a specific oulreach slralegy and has signed a funding agreenenl wilh lhe
Province of Ouebec wilh lhe goal of increasing ils presence and funding progran inpacl wilhin lhe
province.
KU conversion sludy reporls have observed lhal lhe CF sludies have resulled in a nodesl sludy lo
capilal projecl conversion rale, as well as nany olher noncapilal projecl sludy oulcones. Allhough one of
lhe CF crileria for receiving sludy funding is lhal applicalions nusl be relaled lo lhe evenlual
inplenenlalion of a capilal projecl, lhe oulcones of lhe conversion sludies suggesl lhal lhe capilal
projecls nay nol be lhe only neasure by which lhe success of CF funding should be evalualed.
Finally, lhe CF has invesled in new processes lo beller neasure and reporl on lhe inpacls and
oulcones of ils projecl funding. CF is currenlly pilol lesling inlroduced a new perfornance
neasurenenl syslen based on a series of resullsbased environnenlal, econonic and social indicalors
and neasures. Prior lo lhe developnenl of lhis new perfornance neasurenenl syslen, lhe CF was
nol able lo consislenlly and syslenalically reporl on lhe langible environnenlal, econonic and social
oulcones of ils projecl funding. The developnenl of lhis new syslen is expecled lo help lhe CF nore
effeclively neasure and reporl on lhe inpacls and oulcones of ils funded projecls al a consolidaled level
and will enable lhe CF lo salisfy an inporlanl accounlabilily condilion of ils Funding Agreenenl.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 45








Appendix A - Case Study Summaries


















Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 46


Town of Peterborough

Project TitIe: Conversion of Baseboard EIectric Heaters to Storage Heaters in SociaI Housing
GMF Project # 5802
GMF contribution: $180,000 grant
Recipient: Peterborough UtiIities Services Inc.
Project Overview:
any of Pelerboroughs social housing unils are healed by eleclric baseboard healers which produce
large anounls of greenhouse gases as lhey draw lheir dayline energy fron fossil fuel generalion. n
addilion, given lhe age of lhe unils (conslrucled in lhe nid!970s lhe healers are based on old and
inefficienl lechnology. vilh lhe inlroduclion of Provincial legislalion lhal requires lhe Onlario Energy
Board lo inslilule lineofuse rales for eleclricily whereby onday lo Friday dayline consunplion
rales will be charged a higher rale. As a resull of lhe lineofuse rales, nunicipal ulilily conpanies are
being asked lo develop and lesl nelhods of encouraging reduclion in eleclricily consunplion and
lowering lhe peak denand for eleclricily.

The scope of lhe projecl involved lhe replacenenl of lhe eleclric baseboard healers wilh eleclric
lhernal slorage (ETS healer which will pernil lhe slorage of eleclricily lo be used during peak energy
consunplion hours when consunplion rales are charged a higher rale. ETS healers were inslalled in
a lolal of !25 social housing unils.
RoIe of the GMF:
The lolal cosl of lhe projecl was approxinalely $350,000 of which lhe CF provided a granl in lhe
anounl of $!30,000. The renainder of lhe projecl cosls was financed by lhe Pelerborough Ulililies
Services nc. n lhe absence of CF funding, lhe PUS would have financed lhe projecls cosls wilh a
conlribulion fron lhe Town.

The projecl was a logical fil belween lhe Cilys energy needs and lhe ulilily conpanys energy
conservalion goals. n addilion, lhe projecl was a good opporlunily for lhe Cily lo parlner wilh one of
ils nunicipal corporalions.
Project IncrementaIity:

Civen lhe lolal projecl cosls, lhe PUS could nol definilively slale lhal lhe projecl would nol have gone
ahead wilhoul lhe CF granl.

l was noled lhal lhe projecl would have likely gone ahead wilhoul lhe CFs granl conlribulion,
however, lhe PUS did nole lhal lhe CF granl was a welconed conlribulion lo lhe projecl, and lhal
il lowered lhe cosls lo lhe PUS wherein a il did nol have lo expend lhe $!30,000 and b did nol have
lo oblain olher allernalive financing (connercial loan. oreover, lhe CF conlribulion likely
facililaled lhe expansion of lhe projecl even lhough lhe PUS evenlually absorbed lhe increased cosls.
Project Impacts:

Environnenlal inpacls::
The housing unils will no longer be burning healing oil and olher fossil fuels resulling in reduced
environnenlal enissions.
The ETS unils have an eslinaled life of 2025 years.
The aclual energy savings were deened lo be nininal in relalion lo lhe largel due lo a nininal shifl
lo offpeak energy consunplion hours. l was assuned in lhe applicalion lhal !00' of lhe
eleclricily consuned would be shifled lo nonpeak hours, however, only 33' was shifled. n
addilion, applicalion eslinales were based on !00 unils and !24 unils were converled wilh lhe ETS
healers.

Econonic inpacls:
The slorage of eleclricily allows for a lower energy prices during off peak hours. The savings are
grealer during peak consunplion hours.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 47


The Cilys eleclricily cosls decreased significanlly for lhe social housing unils resulling in savings in
gross / nel savings lo laxpayers who supporl subsidized housing.
The projecl was a cosleffeclive oplion as no relrofilling of lhe unils was required.
Pelerborough conlraclors were hired lo perforn all facels of lhe inslallalion of lhe ETS healer unils.

Social inpacls:
Fesidenls are secured a safe and reliable source of heal for lheir housing unils resulling in a beller
qualily of life for residenls.
nproved underslanding of energy conservalion by social housing residenls.
Project ChaIIenges:

During lhe projecl inplenenlalion, lhe PUS experienced cosl overruns due in parl lo lhe expansion of
lhe projecl fron !00 lo !24 inslalled ETS healer unils (24' increase. vhile lhe PUS did nol
experience any significanl cash flow challenges, il was suggesled lhal lhe CF should pernil an
inilial or inlerin paynenl for projecl inplenenlalion
Next Steps:

This projecl did nol lead lo anolher followup projecl, however, bolh lhe projecl conplelion and
environnenlal resulls reporl have been of inleresl lo olher Onlario nunicipalilies, lherefore, lhe
projecl has served as a knowledge lransfer case sludy.


Greater Vancouver Transportation Authority (GVTA)

Project TitIe: TroIIey Bus RepIacement
GMF Project # 1511
GMF contribution: $20,000,000 Ioan
Recipient: GVTA - TRANSLINK
Project Overview:

n 2004, TFALK began replacing ils aging lrolley bus fleel wilh new slale of lhe arl lrolley buses.
The currenl fleel was over 40 years old and required a lol of nainlenance. Al lhis line, TFASLK
was considering lwo oplions for lhe replacenenl of ils aging fleel:

! Feplace lhe fleel wilh newer, slale of lhe arl eleclric lrolley buses
2 Feplace lhe fleel wilh diesel engine buses.
RoIe of the GMF:

FC, lhrough lhe CF progran becane involved in lhe projecl by assisling TFASLK wilh financial
supporl lo purchase lhe new lrolley buses via a low inleresl loan. A lolal of 256 new buses were
purchased for an inveslnenl of $ 256 nillion dollars.

CFs conlribulion consisled of a loan of $ 20 nillion lowards lhe purchase of 20 new buses.
Project IncrementaIity:

Civen lhe size and scope of lhe projecl, TFASLK was nol able lo definilively slale lhal lhe projecl
would nol have gone forward wilhoul lhe CF loan conlribulion. TFASLK did slale lhe CF
conlribulion did indeed assisl wilh neeling lhe inlended scope of lhe projecl and was able lo reduce
lhe borrowing cosls for lhe 20 lrolley buses.

The lolal inleresl savings over lhe lern of lhe loan (!0 years is eslinaled al $ 2.3 nillion, of which a
lolal of $ 2.3 nillion has been eilher disbursed or connilled.



Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 48


Project Impacts:

Environnenlal inpacls:

TFASLK eslinaled lhal by opling for lhe lrolley bus oplion inslead of lhe diesel powered buses,
lhe following benefils would be realized:

Consunplion reduclion of 3,930,000 lilres of diesel fuel per year.
The eleclric powered engines would reduce lhe greenhouse gases enissions by lhe equivalenl of
30,995 lons of CO2 per year.
n addilion, lhe old buses were recycled by selling lhese, as well as all lhe spare parls lhal were in
invenlory, lo Argenlina. By doing lhis, TFASLK reduced lhe anounl of nalerials lo be disposed
of and indireclly encouraged lhe ulilisalion of green power in olher parls of lhe world.

Econonic inpacls:
Parl of lhe agreenenl belween TFASLK and FC requires lhe reinvesled of lhe loan inleresl
savings inlo olher environnenlal viable projecls. The lolal inleresl savings over lhe lern of lhe
loan (!0 years is eslinaled al $ 2.3 nillion To lhis day, a lolal of $ 2.3 nillion has been eilher
disbursed or connilled.

Feinveslnenl projecls:

The following is a brief descriplion of lhe projecls lhal have been inilialed by lhe reinveslnenl of lhe
inleresl savings:

A) Purchase of BC Creen Pover Cer!ifica!e (CPC): Half of lhe inleresl savings ($ !.4 nillion has been
connilled lo lhe purchase of CPCs. Each cerlificale represenls lhe purchase of one negawall hour
(vh of eleclricily generaled al Ecological cerlified green generaled facililies localed in Brilish
Colunbia. BC HYDFO assures lhal an equal anounl of green eleclricily will enler lhe lransnission
grid. To dale TFASLK has purchased 32, 456 CPCs, hence 32,456 vh of green power.

B) Jack Be|| Fide-Share On|ine Fide-a!ching: A lolal of $209,000 has been awarded lo lhe Jack Bell
FideShare progran. This progran largels lhe reduclion of single occupancy vehicles, which is lhe
largesl source of greenhouse gas enission in Vancouver, by providing residenls of BC free access lo a
cenlral dalabase of ride share opporlunilies. Since 2003, a lolal of 209 ride share groups have been
regislered.

C) ain S!ree! Transi! & Pedes!rian Priori!, Projec!: This Projecl is a governnenl of Canada inilialive
which ains al reducing greenhouse gas enissions lhrough lhe inplenenlalion of show case
presenlalions in connunilies across Canada and lhrough lhe disseninalion of infornalion. The
projecl is lo be conpleled in conjunclion wilh lhe Covernnenl of Canada, lhe Cily of Vancouver and
TFASLK. To dale a lolal of $ 300,000 has been connilled by TFASLK.

D) e!ro Vancouver Pub|ic Bike S,s!en. ($46,000 This consisls in a feasibilily sludy and business
plan developnenl for lhe inplenenlalion of a public bicycle syslen in Crealer Vancouver.

) Professiona| Vas!e Audi!: The audil was lo delernine lhe conpliance of lhe Coasl ounlain Bus
Conpany wilh Vancouvers Solid vasle anagenenl Plan. The plan ains al reducing lhe anounl of
banned nalerials being senl lo landfills lo 5'. The lolal cosl of lhe audil was of $ $ 29,000.

F) Bike Transi! Cen!res: This consisls of lhe inplenenlalion of a feasibilily sludy in regards lo lhe
inplenenlalion of bike lransil cenlers al public lransils across Canada. Tolal cosl of $ 60,000.

C) Phibbs xchange S!orn Drainage Upgrade: The projecl consisled of a relrofil of lhe drainage
syslen al lhe Phibbs Exchange lo recover spilled hydro carbons. A lolal of $!5!,000 was connilled
lo lhis projecl.


Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 49



H) DPF Pi|o! Fe!rofi! Projec!: A six nonlh pilol projecl lo delernine lhe benefils of relrofilling diesel
buses wilh Diesel Parliculale Fillers (DPF. These fillers have lhe possibilily lo be 65' nore efficienl
al reducing parliculale naller for lhe currenlly used fillers. A lolal of $!20,000 was funded by
TFASLK.

) DOC Fe!rofi!s: The projecl consisls of relrofilling !! buses wilh Diesel Oxydalion Calalysl. Currenlly
lhese buses do nol have any calalysl syslen.

Social inpacls:
Cleaner air resulling fron lhe annual reduclion in CHC enissions.
Project ChaIIenges:

o specific challenges were idenlified by TFASLK
Next Steps:

TFASLK will conlinue lo inplenenl and nonilor lhe oulcones of lhe reinveslnenl projecls, as
well as idenlify olher polenlial opporlunilies wilh lhe renaining reinveslnenl funds.


City of Edmonton

Project TitIe: Street Sand Recovery
GMF Project # 5095
GMF contribution: $618,293 GMF grant
Recipient: City of Edmonton
Project Overview:

Due lo ils exceplionally cold wealher, lhe Cily of Ednonlon nusl use a significanl anounl of sand
during lhe winler nonlhs. On an annual basis, approxinalely !20,000 lo !60,000 lons of sand is laid
on lhe cilies slreels.
Prior lo lhis projecl, nalerials recovered forn lhe slreels during snow renoval and spring cleanup
were disposed of in local landfills.
vilh lhe inplenenlalion of lhe sand slreel recycling progran, approxinalely 70' of sand nalerials
are recovered (70' or approxinalely 34,000 lo !!2,000 lons of nalerials fron lhe slreels.
Approxinalely 27' of nalerials are recycled, represenling an overall conversion of approxinalely
97' of nalerials.

RoIe of the GMF:

The lolal projecl cosl was eslinaled al $ 6,600,000 for which CF provided a granl of $643,923
Project IncrementaIity:

Sinilar lo lhe Town of Pelerborough projecl case sludy, given lhe lolal projecl cosls, lhe Cily could
nol definilively slale lhal lhe projecl would nol have gone ahead wilhoul lhe CF granl. l was noled
lhal lhe projecl would have likely gone ahead wilhoul lhe CFs granl conlribulion, however, lhe Cily
did nole lhal lhe CF granl was a welconed conlribulion lo lhe projecl, and lhal il lowered lhe Cilys
cosls lo lhe wherein a il did nol have lo expend lhe roughly $650,000 and b did nol have lo oblain
olher allernalive financing (connercial loan.



Federalion of Canadian unicipalilies: Feview of lhe Creen unicipal Fund FAL Feview Feporl 50


Project Impacts:

Environnenlal inpacls:

Approxinalely 70' of lhe sand lhal is dislribuled on lhe slreels during lhe winler nonlhs is picked
up as parl of lhe snow renoval process or during spring cleanup. Olher debris is also recovered
during lhis process.
The Cily eslinales lhal of all lhe debris lhal is collecled, 30' is recycled inlo sand lhal can be
used in lhe fulure and 27' is recycled inlo olher nalerials such as fine sand.
The Cily has reduced lhe aclual wasle being forwarded lo a landfill sile by aboul !00,000 lons. n
addilion lo saving noney in landfill cosl, by diverling lhis nalerial, lhe Cily is prolonging lhe life if
ils landfill siles.
Feduclion in CO2 enissions resulling fron less lruck lransporlalion of new sand fron nines and
lhe reduclion in lransporlalion of lhe wasle lo landfills.

Econonic inpacls:
The Cily is also saving noney by reducing lhe aclual anounl of noney for lhe purchase of sand.
Of even grealer inporlance, lhe winler slreel and sand recycling progran conlribules lo lhe
preservalion of lhe environnenl by reducing significanlly lhe anounl of sand lhal nusl be nined.
This is of oulnosl inporlance considering lhal sand is a nonrenewable resource.

Social inpacls:
nproved air qualily resulling fron reduclion in C02 enissions.
Crealer connunily awareness and underslanding of Cily reuse and recycling inilialives.
Project ChaIIenges:

one specifically idenlified by lhe Cily.
Next Steps:

The Cily of Ednonlon will use lhe resulls of lhe slreel sand recovery projecl lo furlher broaden and
educale lhe general public on lhe inporlance of lhe Cilys reuse and recycle inilialives lo inprove lhe
qualily of lhe environnenl across lhe Cily.

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