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Zero Emission Transit Fund

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Zero Emission Transit Fund
Applicant Guide
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Housing, Infrastructure and Communities Canada is now accepting applications for both the planning and capital funding streams of the Zero Emission Transit Fund.

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Overview

Innovation continues to foster new and creative solutions in public transportation that support a cleaner environment, while increasing the mobility of Canadians. Helping communities invest in zero emission transit and school transportation options will provide communities with environmental and health benefits by decreasing greenhouse gas emissions and air pollution.

Visit our interactive map to see projects that are benefiting communities across the country.

The transportation sector accounts for 25% of Canada's greenhouse gas emissions. Canada generates approximately 82% of its electricity from zero emission power sources. Shifting vehicles away from fossil fuel engines, towards zero emission alternatives, presents an opportunity for significant greenhouse gas emission reductions.

While many transit and school bus operators are pursuing fleet electrification, the transition can be challenging due to the complexities of converting entire transit systems to a new technology, which involves significant upfront costs associated to Zero Emission Buses and related ancillary infrastructure.

To bridge this gap, the Zero Emission Transit Fund offers support to public transit and school bus operators across Canada who are electrifying their fleets. The Zero Emission Transit Fund also delivers on the federal government's commitment to help purchase 5,000 zero emission buses. This Fund is closely coordinated with the Canada Infrastructure Bank's (CIB) Zero Emission Bus Initiative through which the CIB has committed more than $1.5 billion to supporting the deployment of zero emission buses.

Fund details

Through the Zero Emission Transit Fund, the Government of Canada is supporting public transit and school bus operators plan for electrification, support the purchase of 5,000 zero emission buses and build associated infrastructure, including charging infrastructure and facility upgrades.

What types of projects will be funded under the Zero Emission Transit Fund?

There are two Zero Emission Transit Fund components under which projects are eligible for funding:

  1. Planning Projects: Eligible projects include studies, modelling and feasibility analysis that will support the development of future larger scale capital projects.
  2. Capital Projects: Eligible capital projects include buses, charging and refueling infrastructure, and other supporting infrastructure needs.

Who can apply?

Eligible recipients under the Zero Emission Transit Fund include:

  • provinces and territories;
  • municipal or regional governments;
  • transit agencies;
  • public bodies (e.g., school boards); 
  • private-sector school bus operators;
  • and private accessible transit transportation providers (e.g., paratransit services).

How will Housing, Infrastructure and Communities Canada select projects for funding?

Housing, Infrastructure and Communities Canada will review submitted applications, and applicants will be selected based on their eligibility as well as the assessment against the merit criteria established for the Zero Emission Transit Fund. Further details are provided within the Applicant Guide.

How will this funding work with existing transit-focused funding under the Investing in Canada plan?

The Zero Emission Transit Fund is a separate fund that builds on existing programming such as the Public Transit Infrastructure Stream of the Investing in Canada Infrastructure Program. Housing, Infrastructure and Communities Canada will continue to work directly with provinces and territories to review and approve funding for prioritized projects under Investing in Canada Infrastructure Program.

How will Housing, Infrastructure and Communities Canada and the Canada Infrastructure Bank work together?

Housing, Infrastructure and Communities Canada and the CIB will work in collaboration in order to support the transition to zero emission buses. Through the Zero Emission Transit Fund, Housing, Infrastructure and Communities Canada provides funding contributions to support planning and capital projects that will reduce the barriers to procuring zero emission transit and school buses in Canada. Through its Zero-emission Bus initiative, the CIB has committed more than $1.5 billion to support the deployment of zero emission buses. The CIB provides flexible financing solutions by leveraging forecasted lifecycle operational cost savings to help offset the higher upfront costs of zero emission buses. Project applications submitted as part of the application process will be assessed by both Housing, Infrastructure and Communities Canada and the CIB.

How will the Zero Emission Transit Fund assist with moving to zero emission transit?

The Zero Emission Transit Fund will help remove key barriers impeding the deployment of zero emission buses through providing funding for planning, the procurement of buses and ancillary infrastructure required to support zero emission buses.

How to apply

For detailed information on the Zero Emission Transit Fund, including applicant and project eligibility requirements and instructions about how to apply for funding, please read the Applicant Guide.

Interested applicants are invited to apply to the Zero Emission Transit Fund by creating an account on the Applicant Portal.

Stage I

If you are an eligible applicant, you are invited to download and complete the Expression of Interest form available on the Applicant Portal, and send it along with other supporting documents by e-mail to zetf-ftcze@infc.gc.ca. A step-by-step guide to aid in completing the Expression of Interest Form can be found here (419.39 KB) . After reviewing the Expression of Interest, Housing, Infrastructure and Communities Canada will assess the project's eligibility under the Zero Emission Transit Fund and direct the applicant toward the appropriate project stream to Stage II. Concurrently, the Canada Infrastructure Bank will also review the Expression of Interest to identify potential opportunities for financing.

Stage II

Applicants from Stage I will be contacted by email from Housing, Infrastructure and Communities Canada and invited to submit a full application to the appropriate project stream(s): Planning Projects or Capital Projects. There are step-by-step guides to help in completing the applications:

Planning step-by-step Guide

Capital step-by-step Guide

Applications will be individually assessed against the criteria established by Housing, Infrastructure and Communities Canada as outlined in Annex A and B of the Applicant Guide. Successful applicants will be contacted by the department.

Applications will be accepted on a rolling, ongoing basis until funding available has been fully allocated. Decisions on the final selection of projects to receive funding under the Zero Emission Transit Fund remain at the sole discretion of the Minister of Housing, Infrastructure and Communities.

Applicant guide

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Zero Emission Transit Fund Applicant Guide (PDF Version)

Zero Emission Transit Fund Applicant Guide (HTML Version)

Greenhouse Gas+ PLUS guidance modules

Fleet electrification presents a number of benefits such as greenhouse gas emissions reductions and environmental and health benefits from the decrease in toxic diesel emissions. When applying to the Zero Emission Transit Fund, applicants will be required to complete an assessment of the environmental benefits of their project. This will allow them to quantify the benefits of fleet electrification and demonstrate how zero emission bus deployments can support Canada in achieving its emission reduction targets.

The Greenhouse Gas+ PLUS Guidance Modules provide information to help quantify greenhouse gas emission and air pollutant reductions from the implementation of new zero emission buses. It also provides guidance on assessing the adaptation and resilience of the zero emission bus project to a changing climate. The Greenhouse Gas+ PLUS Guidance Modules will support applicants in filling out their project application forms and is to be submitted as part of the application process under the Zero Emission Transit Fund.

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The GHG+ PLUS Guidance Modules (PDF Version)

The GHG+ PLUS Guidance Modules (HTML Version)

Contact us

Zero Emission Transit Fund General Inbox: zetf-ftcze@infc.gc.ca.

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