The pennies from that heaven called Ottawa continue to fall on the Yukon.

John Godfrey, the federal Minister of State for Infrastructure and Communities, was in Whitehorse this morning to hand out Ottawa's $16-million share of the new Municipal Rural Infrastructure Fund.

'All Yukon communities and first nations are eligible for these funds,' Godfrey said this morning at a press conference in the lobby of the main government administration building.

The plan would see the Yukon match Ottawa's $16-million, with the communities and first nations possibly putting up the other third of the funding. That would potentially bring the total of this fund up to $48 million.

The money is to be handed out over a four-year period.

Yukon Highways and Public Works Minister Glenn Hart said the territorial government may have to come up with some of the money from the community's side.

He noted his government already provides funding to the communities.

Depending on the project, the government will look at what share it will put up, whether it's one-third or more if it's needed by the community.

Hart added that the government is already financially responsible for the territory's unincorporated communities, which are just as eligible for funding as the villages, towns and city are.

He said it's difficult for communities to fund these kind of projects on their own, which is where this money is supposed to come in.

The territorial minister said this fund would be specifically targeted at waste and water projects, as well as energy efficiency on the territory's roads.

According to the press release, the plan is that at least 40 per cent of the money will be for green projects to reduce greenhouse gas emissions, protect water supplies and improve energy efficiency.

Godfrey noted the money can also go toward culture and recreation programs.

There have been other federal infrastructure funds announced in the past couple years; however, Godfrey said all this money is new.

Doug Graham, the president of the Association of Yukon Communities (AYC), said the money is needed.

'Every community has infrastructure problems,' said Graham, a Whitehorse city councillor.

For example, he noted that Carmacks is dealing with waste water, and Watson Lake has needs concerning water and streets. As well, the Carcross-Tagish area has had some issues with water delivery.

As for Whitehorse, Graham said the capital city will back off from this fund, since it has had access to other federal infrastructure funds.

He said the city has more staff and resources to put together proposals faster than the smaller communities can.

'We'll wait until the communities have almost exhausted their applications,' he said.

Graham said the city realizes Whitehorse needs communities to be doing well, because that in turn trickles down to help the capital city.

However, Graham said, the city will definitely apply for money out of this fund. He did not have a time frame on how long the city would hold back.

Godfrey said the process has been made easier by putting the application on the Internet.

'I invite every community and first nation to apply right away,' he said.

According to Graham, the AYC had been given the application a few months ago to help make it simpler.

He believes this money will flow faster than other funds because it's clear what can be funded and the AYC staff have a good idea of what's eligible so they can assist communities.

Graham said one of the biggest holdups in getting money is the wait to find out if the proposed project is eligible. He doesn't see this as being as big of a problem as it has been in the past.