Zero Emission Transit Fund
Canada
The Zero Emission Transit Fund supports the electrification of public transit and school bus fleets in Canada, providing funding for planning, vehicle procurement, and infrastructure upgrades.
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Transportation and warehousing
grant_single|grantors
- Housing, Infrastructure and Communities Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
The Zero Emission Transit Fund, facilitated by Housing, Infrastructure and Communities Canada, aims to support public transit and school bus operators in Canada with the shift to zero emission alternatives. The program provides funding for planning projects like feasibility studies and modelling, as well as capital projects including the procurement of zero emission buses, and the necessary charging and refueling infrastructure. Eligible applicants include provinces, territories, municipalities, transit agencies, school boards, and private school bus operators.
grant_single_labels|projects
There are project and activities eligible for this grant.
- Studies, modelling and feasibility analysis supporting future deployment of Zero Emission Buses (ZEBs)
- Procurement of Zero Emission Buses
- Charging and refueling infrastructure for ZEBs
- Retrofitting conventional fuel buses to ZEBs
- Construction or improvement of new facilities
grant_single|admissibleProjectsExample
$6,000,000
Vancouver
Procurement of 10 Zero Emission Buses for downtown transit service
$3,500,000
Montreal
Installation of charging stations for electric buses at transit centers
$450,000
Ottawa
Modeling project to forecast the impact of zero emission buses on city traffic
$7,500,000
Halifax
Construction of a new facility for maintenance of Zero Emission Buses
$3,400,000
Calgary
Retrofitting existing diesel buses to Zero Emission Buses
$250,000
Toronto
Feasibility study for retrofitting school buses to Zero Emission Buses
grant_single_labels|admissibility
The eligibility criteria for this grant require recipients to be legal entities capable of entering into binding agreements and belonging to specific categories. Here are the detailed eligibility criteria:
- Municipalities, local and regional governments established under provincial or territorial statute, including service districts
- Provinces or Territories
- Public sector bodies established by or under provincial or territorial statute or by regulation or wholly-owned by a province, territory, municipal, or regional government (including transit agencies and school boards)
- Indigenous governing bodies, including:
- A band council within the meaning of section 2 of the Indian Act
- A First Nation, Inuit, or Métis government or authority established pursuant to a Self-Government Agreement or a Comprehensive Land Claim Agreement
- A First Nation, Inuit, or Métis government established by or under federal or provincial legislation
- Federally or Provincially incorporated not-for-profit organizations whose mandate is to improve Indigenous outcomes
- Indigenous development corporations
- Private sector school bus operators, in partnership with a public school board, or municipal, regional, or provincial/territorial government with written confirmation
- Private sector accessible transit bus operators, in partnership with a transit agency, or municipal, regional, or provincial/territorial government with written confirmation
- Federally or Provincially incorporated not-for-profit organizations in partnership with an eligible recipient with written confirmation
- Group applications where an eligible recipient applies on behalf of multiple other eligible recipients, acting as the lead applicant
grant_eligibility_criteria|who_can_apply
The Zero Emission Transit Fund (ZETF) is open to various types of eligible recipients. This includes certain public sector bodies, Indigenous governing bodies, and private sector operators in partnership with public entities.
- Municipalities, local and regional governments established under provincial or territorial statute, including service districts
- Provinces or Territories
- Public sector bodies established by or under provincial or territorial statute or by regulation, or wholly-owned by a province, territory, municipal or regional government (including transit agencies and school boards)
- Indigenous governing bodies including but not limited to:
- Band councils within the meaning of section 2 of the Indian Act
- First Nation, Inuit, or Métis governments or authorities established pursuant to a Self-Government Agreement or a Comprehensive Land Claim Agreement that has been approved by federal legislation
- First Nation, Inuit, or Métis governments established by or under legislation incorporating a governance structure
- Federally or Provincially incorporated not-for-profit organizations whose mandate is to improve Indigenous outcomes, including those serving Indigenous communities in urban centers and First Nations living off-reserve
- Indigenous development corporations
- Private sector school bus operators, in partnership with a public school board, or municipal, regional, or provincial/territorial government (with written confirmation of the relationship)
- Private sector accessible transit bus operators, in partnership with a transit agency, or municipal, regional, or provincial/territorial government (with written confirmation of the relationship)
- Federally or Provincially incorporated not-for-profit organizations, such as professional and industry associations, NGOs, and academic institutions in partnership with an eligible recipient (with written confirmation of the relationship)
grant_eligibility_criteria|eligible_expenses
Eligible expenditures for the grant are those considered direct and necessary for the successful implementation of the project, including certain capital and non-capital costs. Eligible expenditures can only be reimbursed by Housing, Infrastructure and Communities Canada subject to approval and the signing of a contribution agreement.
- Procurement of Zero Emission Buses (ZEBs)
- Charging/Refueling equipment
- Construction or improvements to new facilities
- Costs associated with warranties
- External training provided by manufacturers or infrastructure suppliers
- Costs/expenditures for consultation or engagement with Indigenous groups
- Incremental costs related to meeting specific program requirements
- Incremental costs of the eligible recipients’ employees under certain conditions
- Costs associated with project monitors or independent certifiers
grant_eligibility_criteria|zone
The Zero Emission Transit Fund (ZETF) targets investments across Canada, ensuring that all regions can benefit from cleaner, zero-emission transit and school transportation options. All projects must be implemented within the Canadian territory.
- Municipalities, local and regional governments in Canada
- Provinces and Territories across Canada
- Public sector bodies established under provincial, territorial, or municipal statutes
- Indigenous governing bodies and organizations within Canada
- Private sector school bus operators in partnership with Canadian public institutions
- Private sector accessible transit bus operators in partnership with Canadian public institutions
- Federally or provincially incorporated not-for-profit organizations in partnership with eligible Canadian public institutions
grant_single_labels|criteria
Yes, the Zero Emission Transit Fund (ZETF) has evaluation and selection criteria for both planning projects and capital projects. These criteria assess aspects such as system-level planning, operational planning, deployment strategy, financial planning, capacity to implement the technology, and environmental benefits.
- System-level Planning
- Involves system-wide analysis of ZEB technologies
- Identify charging/refueling infrastructure needs
- Identify facility and electrical/utility infrastructure requirements
- Identify potential barriers and challenges to system-wide electrification
- Operational Planning and Deployment Strategy
- Support innovative and effective ZEB deployments and future operations
- Establish strategy to measure project performance
- Financial Planning
- Estimate lifecycle cost savings associated with the project
- Provide preliminary cost estimates for ZEB deployment
- Capacity to Implement the Technology
- Identify capacity needs to implement the project
- Establish operational business plans for ZEB deployment and operation
- Include comprehensive analysis of risks and risk management plan
- Environmental Benefits
- Include lifecycle assessment of environmental benefits
- Estimate reduction of GHG emissions, noise, and pollutants
- Assess climate risks and identify resiliency measures
grant_single_labels|register
- Step 1: Stage I: Expression of Interest (EOI)
- Submit an EOI to Housing, Infrastructure and Communities Canada and the CIB.
- Assess eligibility of the applicant and project, current level of project planning, and needs for project planning support.
- Based on the assessment, determine the appropriate Stage II stream (Planning or Capital).
- Possibly provide additional information if requested.
- Step 2: Stage II: Planning Stream (if applicable)
- Transit bus operators can choose to work with the Canadian Urban Transit Research & Innovation Consortium (CUTRIC) for ZEB planning services or submit a Planning application to Housing, Infrastructure and Communities Canada.
- School Bus operators submit a Planning application to Housing, Infrastructure and Communities Canada.
- Applications assessed against the merit criteria listed in Annex A.
- Possibly enter into a contribution agreement with Housing, Infrastructure and Communities Canada if the project is approved.
- Step 3: Stage II: Capital Stream (if applicable)
- Submit a ZETF Capital application to Housing, Infrastructure and Communities Canada.
- Possibly engage with the CIB for financing opportunities if signaled.
- CIB financing MOU negotiation and signing (if applicable).
- Application assessed against merit criteria listed in Annex B.
- Possibly enter into a contribution agreement with Housing, Infrastructure and Communities Canada if the project is approved.
grant_single_labels|otherInfo
Additional details about the grant include requirements regarding environmental assessments, the duty to consult with Indigenous groups, sole-source contracting, reporting and audit requirements, and asset disposal protocols.
- Environmental assessment may be required depending on project location.
- The duty to consult with Indigenous groups may necessitate engagement and consultation costs in project estimates.
- Sole-source contracting must be justified and approved to ensure fairness and transparency.
- Approved projects must provide various reports, including annual and final reports, financial statements, and potentially one audit from an independent third party.
- Repayment may be required if assets financed by the grant are sold within 10 years.
grant_single_labels|contact
ZETF-FTCZE@infc.gc.ca
Apply to this program
Summary of the Zero Emission Transit Fund
The Zero Emission Transit Fund (ZETF) is a $2.75 billion initiative by the Government of Canada to support the procurement of zero-emission public transit and school buses. The fund aims to reduce greenhouse gas emissions and operational costs by assisting communities in Canada to electrify their bus fleets.
Understanding the Zero Emission Transit Fund
The Zero Emission Transit Fund (ZETF) is a substantial financial initiative launched by the Government of Canada. With an allocation of $2.75 billion, the fund is designed to promote the procurement of zero-emission public transit and school buses across the country. The overarching objective of the ZETF is to mitigate greenhouse gas emissions and operational costs through the electrification of bus fleets in Canadian communities.
Objective of the Zero Emission Transit Fund
The primary goal of the ZETF is to advance Canada's commitment to environmental sustainability by transitioning public transit and school buses from fossil fuel powertrains to zero-emission powertrains. This transition is particularly significant as the transportation sector is responsible for 25% of Canada's greenhouse gas emissions. By leveraging Canada’s capacity to generate approximately 82% of its electricity from zero-emission power sources, the ZETF presents a strategic opportunity for substantial reductions in greenhouse gas emissions.
Collaboration with the Canada Infrastructure Bank
The ZETF works in close partnership with the Canada Infrastructure Bank (CIB). While Housing, Infrastructure and Communities Canada provides contributions for planning and capital projects under the ZETF, the CIB offers innovative and flexible financing solutions. These solutions are designed to offset the higher upfront costs of deploying Zero Emission Buses (ZEBs) by leveraging forecasted lifecycle operational cost savings.
Applications submitted to the ZETF are reviewed by both Housing, Infrastructure and Communities Canada and the CIB. Each organization evaluates applications based on their respective mandates, objectives, and criteria. Funding and financing decisions are made independently by each body, but they coordinate to ensure a comprehensive support structure for applicants.
Eligible Projects
Under the ZETF, two primary categories of projects are eligible for funding: Planning Projects and Capital Projects.
Planning Projects
Planning projects encompass studies, modeling, and feasibility analyses that support the future deployment of ZEBs. These projects help transit and school bus operators establish comprehensive electrification plans, which are instrumental in undertaking capital projects. The ZETF provides up to 80% of the total eligible costs for planning projects.
Capital Projects
Capital projects focus on the direct deployment of ZEBs, including the procurement of buses, charging or refueling infrastructure, and other ancillary infrastructure needs. The fund covers up to 50% of the total eligible costs for these capital projects. Notably, ZEBs are defined as vehicles that can operate without producing tailpipe emissions. This category includes battery-electric and hydrogen fuel cell powered vehicles, as well as retrofits of conventional fuel buses to ZEBs.
Eligible Recipients
To qualify for the ZETF, applicants must be legal entities capable of entering into legally binding agreements and fit within specific categories such as:
- Municipalities, local and regional governments established under provincial or territorial statute, including service districts
- Provinces or Territories
- Public sector bodies established by or under provincial or territorial statute or by regulation
- Indigenous governing bodies
- Private sector school bus operators in partnership with a public school board or governmental entity
- Private sector accessible transit bus operators in partnership with a transit agency or government
- Federally or Provincially incorporated not-for-profit organizations, such as NGOs and academic institutions in partnership with an eligible recipient
Application Process
The application process for the ZETF is divided into two stages: Expression of Interest (EOI) and Project Application.
Stage I: Expression of Interest
The EOI stage is a mandatory initial step that helps determine the applicant's and project's eligibility. This stage involves assessing the level of project planning and identifying the appropriate support for the next stage. During the EOI review, additional information may be requested.
Stage II: Project Application
Once the EOI is approved, applicants proceed to Stage II, which is divided into Planning and Capital Project application streams.
Planning Projects
For transit bus deployment planning, applicants have two options: leveraging the services of the Canadian Urban Transit Research & Innovation Consortium (CUTRIC) or seeking planning support from other providers. School bus operators must complete and submit a Stage II Planning application form to Housing, Infrastructure and Communities Canada. Planning projects are evaluated based on criteria such as system-level planning, deployment strategy, financial planning, organizational capacity, and environmental benefits.
Capital Projects
Capital project applications are assessed based on criteria including system-level planning, operational planning, deployment strategy, financial planning, capacity to implement the technology, and environmental benefits. Additionally, project risk, accessibility, and community considerations are factored into the assessment to inform project selection.
Contribution Information
Eligible expenditures under the ZETF cover a range of costs necessary for the successful implementation of projects. These include procurement of ZEBs, charging/refueling equipment, construction or improvements to facilities, external training, and costs related to Indigenous consultation.
Ineligible expenditures comprise costs incurred before project funding approval, real estate fees, ongoing operational costs, legal fees, and maintenance expenditures that are part of regular operations, among others.
Funding and Repayment
Contribution payments are made based on regular reimbursements, milestone payments, or advance payments, as detailed in the contribution agreement. The maximum amount payable through the ZETF is $350 million per project unless otherwise agreed by the Government of Canada. For-profit entities receiving non-repayable contributions must demonstrate that the benefits accrue broadly rather than solely to the recipient.
Additional Considerations
Environmental impact assessments may be required for projects depending on their location. The duty to consult with Indigenous groups is a significant consideration, and applicants may be expected to carry out certain procedural aspects of the consultation process. Contracts awarded under the ZETF must be fair, transparent, and competitive.
Recipients of funding are required to provide various reports to Housing, Infrastructure and Communities Canada, including annual and final reports, status updates, and financial reports. There may also be audit requirements to ensure that funds are used in accordance with the terms and conditions of the contribution agreement.
Disposal of assets within ten years of the project may require repayment of the contribution. The terms for repayment will be specified in the contribution agreement.
Privacy and Confidentiality
Information provided during the funding process is collected under the authority of an Order in Council for the purpose of administering the program. This information may be shared with other federal government institutions, including the CIB, as well as external experts for the purpose of project review and evaluation. Failure to provide the necessary information may result in delays in assessing the application.
For any questions about the ZETF, applicants can contact the ZETF team via the provided email address.
