Canada does not have a revolving fund for infrastructure loans. Federally, the Green Municipal Fund (GMF) administered by the Federation of Canadian Municipalities (FCM) provides grants for up to 50% of the costs projects or up to 80% of costs in the form of below-market, low interest loans. FCM is an advocacy organization; however the Government of Canada endowed the Federation of Canadian Municipalities (FCM) with $550 million to establish the GMF program.
The GMF has funded conservation projects in the past that included feasibility studies of water conservation programs, water distribution system leak detection and control projects, plumbing retrofit programs, wastewater recycling and sustainable community plans involving water conservation. At this time, the funding focus for the water sector is on wastewater.
The Building Canada plan encompasses a number of infrastructure funds including provincial and municipal base funding, gas tax funds and the Building Canada fund. Over half of the funding under the Building Canada plan is provided as base funding to municipalities, and the funds are generally administered by the provinces. The Building Canada fund promotes long term funding of water infrastructure projects, including projects designed to improve conservation of water. Funding focuses on improved treatment standards that emphasize the protection of human health. The projects are required to be supported by measures that improve the management of sources of drinking water, reduce demand and improve the management of drinking water infrastructure.
All projects are cost shared, generally in equal thirds between federal/provincial/municipal basis. The Building Canada fund operates through two components: the Major Infrastructure Component (MIC), targeting larger, strategic projects of national and regional significance, and the Communities Component that focuses on projects in communities with populations of less than 100,000.
To date, funded projects have focused on centralized infrastructure as opposed to conservation efforts, with the exception of metering. Capital cost funding projects must result in a tangible capital asset. Planning costs are also eligible, which could potentially support the development of water conservation plans.