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Zero Emission Transit Fund Applicant Guide

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Zero Emission Transit Fund
Applicant Guide
(PDF Version) (810.39 KB)

  1. The Zero Emission Transit Fund
  2. Projects eligible for funding
  3. Eligible Recipients
  4. Application Process
  5. Contribution Information
  6. Additional Information
  7. ANNEX A – Evaluation Matrix Planning Component
  8. ANNEX B – Evaluation Matrix Zero Emission Bus Capital Component

Zero Emission Transit Fund at a glance

Innovation continues to foster new and creative solutions in transportation that supports a cleaner environment, while increasing the mobility of Canadians. Helping communities invest in zero emission transit and school transportation options ensures cleaner air for our children, creates jobs, and supports Canadian manufacturing.

1. The Zero Emission Transit Fund

What is the objective of the Zero Emission Transit Fund?

The objective of the $2.75 billion Zero Emission Transit Fund (ZETF) is to advance the Government of Canada's commitment to help procure zero emission public transit and school buses, in close partnership with the Canada Infrastructure Bank (CIB). This funding will help communities to electrify their school and transit bus fleets, while reducing emissions and operational costs over the long-term.

The ZETF targets investments across Canada that support clean transportation by investing in the vehicles, infrastructure and organizational readiness that make fleet electrification possible. The transportation sector accounts for 25% of Canada's greenhouse gas emissions (GHG), and with Canada generating approximately 82% of its electricity from zero emission power sources, shifting vehicles away from fossil fuel powertrains towards zero emission powertrains presents an opportunity for GHG emissions reductions.

These investments are closely coordinated with the CIB's commitment to invest in Zero Emission Buses (ZEB) as part of its three-year Growth Plan.

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

Through the ZETF, Housing, Infrastructure and Communities Canada provides contributions to support planning and capital projects that will reduce the barriers to procuring zero emission transit and school buses in Canada. Through its ZEB initiative, the CIB provides innovative and flexible financing solutions by leveraging forecasted lifecycle operational cost savings to help offset the higher upfront costs of ZEB deployment.

Project applications submitted as part of the application process will be submitted to both Housing, Infrastructure and Communities Canada and the CIB. Both organizations will review applications based on their respective mandate, objectives and criteria, and will make funding and financing decisions independently in the context of their own authorities. Separate contribution and financing agreements will be signed by Housing, Infrastructure and Communities Canada and the CIB with the recipient.

The CIB will review applications to identify potential opportunities for financing based on a project’s anticipated operational cost savings, and will work directly with selected applicants to ensure the viability of projects and successful deployment of ZEBs. Housing, Infrastructure and Communities Canada will review applications as described in the Application Process section below. The selection of ZETF projects will be based on the projects ability to satisfy the merit criteria established by Housing, Infrastructure and Communities Canada.

A process map is available in Section 4 – Application Process below.

2. Projects eligible for funding

There are two project components eligible for funding under the ZETF: Planning Projects and Capital Projects.

Planning Projects

Eligible projects include studies, modelling and feasibility analysis that will support the future deployment of ZEBs. Planning projects assist transit and school bus operators in establishing comprehensive electrification plans in order to undertake capital projects in the future. The maximum contribution towards planning projects is up to 80% of the total eligible costs.

Planning projects may be administered differently depending on whether the applicant is a transit or school bus operator in order to best support their needs. More details are available in Section 4 – Application Process below.

Capital Projects – Zero Emission Buses

Eligible capital projects support ZEB deployment and include the procurement of buses, charging and refueling infrastructure, and other ancillary infrastructure needs. ZEBs are vehicles that have the potential to produce no tailpipe emissions such as battery-electric and hydrogen fuel cell powered vehicles. They may still have a conventional internal combustion engine, but must be able to operate without using it. Retrofits of conventional fuel buses to ZEBs are also eligible. The maximum contribution towards capital projects is up to 50% of the total eligible costs. Housing, Infrastructure and Communities Canada will ensure that the total combined Housing, Infrastructure and Communities Canada funding and CIB financing will not exceed 100% of eligible costs.

3. Eligible Recipients

Who can apply to the ZETF?

A recipient must be a legal entity capable of entering into legally binding agreements. To be considered an eligible recipient, an applicant must confirm they fit within one of the following categories:

  • Municipalities, local and regional governments established under provincial or territorial statute, including service districts
  • Provinces or Territories
  • Public sector bodies that are established by or under provincial or territorial statute or by regulation or are wholly-owned by a province, territory, municipal or regional government (including transit agencies and school boards).
  • Indigenous governing bodies including but not limited to:
    • 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 between Her Majesty the Queen in right of Canada and Indigenous people of Canada, that has been approved, given effect and declared valid by federal legislation;
    • A First Nation, Inuit or Métis government that are established by or under legislation whether federal or provincial that incorporates a governance structure.
  • Federally or Provincially incorporated not-for-profit organization whose mandate is to improve Indigenous outcomes, organizations serving Indigenous communities living 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;
    • Written confirmation must be submitted including the details of the relationship.
  • Private sector accessible transit bus operators, in partnership with a transit agency, or municipal, regional or provincial/territorial government;
    • Written confirmation must be submitted including the details of the relationship.
  • Federally or Provincially incorporated not-for-profit organizations, such as professional and industry associations, non-governmental organizations (NGOs), and academic institutions in partnership with an eligible recipient described above.
    • Written confirmation must be submitted including the details of the relationship.

Group application(s)

An eligible recipient can apply on behalf of multiple other eligible recipients, and would be considered the lead applicant. During the application process, it is the lead applicant's responsibility to provide all of the necessary project information required for each of the eligible recipients they are representing.

4. Application Process

How do I apply?

Applicants can access the ZETF application forms through Housing, Infrastructure and Communities Canada’s accessible online application portal. Applicants who are unable to access the portal are asked to reach out to the ZETF team at ZETF-FTCZE@infc.gc.ca.

Applications are received through a rolling intake process. Applicants may submit multiple applications over the course of the program; however, Housing, Infrastructure and Communities Canada reserves the right to review and assess only one application at a time.

Eligible expenses must be claimed by Fall of 2025, unless otherwise specified in a contribution agreement between the recipient and Housing, Infrastructure and Communities Canada. Applications will be accepted until the funding available is fully allocated. The selection of projects to be funded under the ZETF will be based on the projects satisfying the program’s merit criteria. For more details on merit criteria, please see the detailed sections below.

4.1 Stage I: Expression of Interest

The Expression of Interest (EOI) is the mandatory first stage in the application process. It allows Housing, Infrastructure and Communities Canada and the CIB to determine the applicant's eligibility, assess the current level of project planning, identify support for project planning to increase the readiness of the project(s), and determine if funding can meet the applicants near-term and long-term needs.

ZETF Process Map with CIB Process

ZETF Process Map with CIB Process

Start Here

Stage I Expression of Interest

Goal is to assess the applicant’s eligibility and project’s eligibility, and determine the appropriate Stage II stream. All applications are shared with the CIB

  1. Stage II Planning Stream
    1. Public Transit
      Applicants are either 1) directed towards CUTRIC or 2) provided with the planning application form for completion and submission to HICC
    2. School Transportation
      Applicant is provided with the planning application form for completion and submission to HICC
      1. Negotiation and signing of contribution agreement
      2. Once planning is completed, applicant can submit a new Expression of Interest form for a Capital project
  2. Stage II Capital Stream
    1. ZETF Capital application form to be completed and submitted
      1. Project funding and financing approvals required from HICC and CIB
    2. CIB Process
      For projects the CIB has signaled interest
      1. Memorandum of Understanding (MOU) Negotiation and signing of MOU with the CIB on project financing. To be completed before submitting ZETF capital application with HICC CIB works with applicants on project proposal
      2. Finish, Negotiation and signing of a contribution agreement with HICC

During the review of the EOI, Housing, Infrastructure and Communities Canada and the CIB may follow up with the applicant to verify and request additional information. Applicants with no project planning completed will be directed towards options available under the ZETF for planning support. Applicants that have completed some project planning will be asked to self-assess the need for supplementary planning.

Applicants that self-assess as having completed a sufficient level of planning for the implementation and deployment of ZEBs (capital project) will be required to provide additional information as part of their EOI, including: an overview of the project, preliminary cost estimates, timelines, and potential operating cost savings.

4.2 Stage II: Project Application

Once Stage I of the process is completed, applicants will be contacted by Housing, Infrastructure and Communities Canada regarding Stage II Planning or Capital Project application streams, as appropriate. The CIB may also notify applicants separately to explore financing opportunities for their project.

Planning Projects

To account for the importance of robust planning, Stage II Planning is comprised of two sub-components (Transit Bus Deployment Planning and School Bus Deployment Planning), and will provide support for planning studies necessary to ensure the successful future deployment of ZEBs. Route modeling and bus simulations with careful consideration of the expected operating conditions are required to quantify the benefits of fleet electrification and how ZEBs can support Canada in achieving its climate targets. Adequate planning also plays an important role in optimizing investments made in ZEB technology, and in quantifying the lifecycle operating costs of ZEB fleets and the potential costs savings which could be realized.

Transit Bus Deployment Planning

Transit bus operators have two options under the transit bus deployment planning sub-component to advance planning activities:

Option 1: ZEB Planning Services provided by the Canadian Urban Transit Research & Innovation Consortium (CUTRIC)

Applicants may choose to seek the support of CUTRIC to advance ZEB planning activities. Housing, Infrastructure and Communities Canada entered into a contribution agreement with CUTRIC to support interested transit bus operators with planning activities including technology selection and system-wide design, project implementation, assessment of capacity, costs, performance management and long term maintenance and operation of ZEBs based on the needs of the operator. This approach to planning activities allows for consistent, comparable, thorough, and technically sound analysis required to enable successful fleet electrification for transit operators.

Under this option, Housing, Infrastructure and Communities Canada will cover up to 80% of eligible project costs with CUTRIC and transit bus operators are expected to cover the remaining 20%. No contribution agreement between Housing, Infrastructure and Communities Canada and the applicant will be required.

Option 2: Stage II Planning application

Applicants may choose to seek ZEB planning support through another provider. If this option is chosen, the applicant will be asked to complete and submit a Stage II Planning application with Housing, Infrastructure and Communities Canada.

Applications will be assessed against the merit criteria as outlined in Annex A and described below. Housing, Infrastructure and Communities Canada may request additional confirmation or further explanation by the applicant on the information provided. Decisions for funding projects under the ZETF remain at the sole discretion of the Minister of Intergovernmental Affairs, Infrastructure and Communities. If the project is approved, recipients will be required to enter into a contribution agreement with Housing, Infrastructure and Communities Canada. Housing, Infrastructure and Communities Canada will cover up to 80% of eligible project costs.

For transit operators that have some level of ZEB planning completed, early engagement with the CIB may help identify and address any information gaps that will allow them to proceed to a capital project application without the need for further planning studies.

School Bus Deployment Planning

School bus operators will be asked to complete and submit a Stage II Planning application with Housing, Infrastructure and Communities Canada.

Applications will be assessed against the merit criteria as outlined in Annex A and described below. Housing, Infrastructure and Communities Canada may request additional confirmation or further explanation by the applicant on the information provided. Decisions for funding projects under the ZETF remain at the sole discretion of the Minister of Intergovernmental Affairs, Infrastructure and Communities. If the project is approved, recipients will be required to enter into a contribution agreement with Housing, Infrastructure and Communities Canada. Housing, Infrastructure and Communities Canada will cover up to 80% of eligible project costs.

System-level Planning

The application should provide details on how the proposed study will support long-term, system-wide solutions and strengthen the information base for technology selection and system design. This includes a system-wide analysis of the proposed ZEB technology which looks at the feasibility and performance of ZEBs with respect to specific operating conditions, and identifies charging/refueling infrastructure needs, facility and electrical/utility requirements and upgrades, as well as potential barriers or challenges to system-wide electrification which may be unique to the project.

Operational Planning and Deployment Strategy

The application should provide details on how the proposed study will support innovative and effective ZEB deployments and future operations, and specifically inform ZEB route selection and service design, the fleet roll-out implementation plan, procurement needs and the development of a strategy to measure the impacts and performance of the project.

Financial Planning

The application should provide details on how the proposed study will measure the benefits of the project including the estimated lifecycle cost savings relative to the baseline scenario. The planning project would also include the preparation of a preliminary cost estimate for a future capital ZEB deployment project.

Capacity to Implement the Technology

The application should provide details on how the proposed study will identify organizational capacity needs, short and long term business planning requirements, potential risks, operational changes involved in the transition, and the resources, skills and training required for the deployment and operation of a new ZEB fleet.

Environmental Benefits

The application should provide details on how the proposed study will quantify the environmental benefits of the project, in particular the reductions of GHG emissions and air pollutants, considering carbon impacts of the technology choice, as well as manufacturing and operating practices.

Capital Projects – Zero Emission Buses (transit and school buses)

Capital projects will be assessed against the merit criteria as outlined in Annex B and described below. The applicant must include supporting documentation (studies, analysis etc.) for all assertions and any information deemed necessary by Housing, Infrastructure and Communities Canada to assess the eligibility and merit of projects. Projects that do not meet all of the merit criteria will not be given further consideration.

Additional criteria (environmental benefits, project risk, accessibility and community considerations) will be considered in the assessment to further inform project selection.

Housing, Infrastructure and Communities Canada may request further clarification to determine whether an applicant has undertaken sufficient planning, preparation and due diligence to successfully deploy ZEBs. Decisions for funding projects under the ZETF remain at the sole discretion of the Minister of Intergovernmental Affairs, Infrastructure and Communities. If the project is approved, recipients will be required to enter into a contribution agreement with Housing, Infrastructure and Communities Canada. Housing, Infrastructure and Communities Canada will cover up to 50% of eligible project costs.

CIB Eligible Projects

For projects eligible under the CIB ZEB Initiative, applicants will be invited by the CIB to submit all available supporting documentation (planning studies, analysis, etc.), as appropriate. The CIB will work with applicants through an iterative process to satisfy their internal due diligence. This process is expected to inform the level of financing the CIB could make available to the applicant under its program. While applicants may begin completing the ZETF capital application during discussions with the CIB, the ZETF application form may only be submitted once discussions with the CIB have been completed, as appropriate.

System-level Planning

ZEB deployments require strategic system-level planning and a sound understanding of the technology and implications of bus fleet electrification. Applicants will be required to describe the system-level planning undertaken for the project and how it will contribute to the successful deployment of ZEBs. This involves providing a detailed description of the project objectives and technology choices which define the project, a description of the planned refueling/charging infrastructure, facility needs and utility upgrades required to ensure that critical operations will be supported. Applicants must provide all information (studies, assessments) which support the decisions and service design, and provide assurance that a sufficient level of system-planning was undertaken in the design of the project.

Operational Planning

Due to the significant operational differences and requirements between ZEBs and traditional internal combustion engine (ICE) buses, operational considerations specific to a service profile must be identified and planned for in order to be considered for funding under the ZETF. Applicants will be required to provide information (analysis, route modeling, etc.) which support decisions and design choices such as the route selection for ZEB deployment, charging and vehicle storage strategies, provisions to ensure service reliability and changes to operational and maintenance practices required to accommodate the ZEB technology.

Deployment Strategy

The introduction of a new ZEB fleet and the adoption of new technology and related implications, must be well understood in order to optimize investments and efficiently transition to ZEBs without service interruptions. A deployment strategy is critical whether the project involves the introduction of ZEBs, the expansion of an existing ZEB fleet or the replacement of an existing fleet. Detailed information supporting the proposed implementation, planned phasing/scheduling and anticipated procurement approach must be provided.

Financial Planning

Applicants will be asked to provide detailed costs estimates for the project as well as the anticipated lifecycle cost savings associated with the project relative to the baseline scenario. Careful analysis in estimating these costs savings are central to the value proposition of ZEBs.

Capacity to implement the technology

Applicants will need to demonstrate that they have the capacity and experience to implement the project, and the planned resources required for the operation of ZEBs. To demonstrate that capacity exists, applicants will need to provide a description of their experience with the zero emission technology and/or indicate that the appropriate resource capacity is dedicated to the electrification of their fleet.

Environmental Benefits

Environmental and climate benefits will be captured through a program specific climate assessment; a horizontal requirement applicable to Housing, Infrastructure and Communities Canada's programs that has been integrated directly into the application process. It primarily explores GHG and other tailpipe emissions as well as climate resiliency measures that explore climate change related disruptions or impacts. Relevant emissions impacts and other air pollutant calculation instructions are provided in the GHG + Plus Guidance Modules  as well as guidance for other relevant environmental benefits questions relating to ZEB deployment in the submission form. The GHG + Plus Guidance Modules is to be submitted as part of a ZETF Capital application.

Project Risks and Mitigation

Applicants will be asked to provide a comprehensive risk management plan. This would include identifying and categorizing known risks (e.g., related to project complexity, project readiness, public sensitivity) that have a reasonable likelihood of affecting the project. A description of each project risk, any mitigation strategy proposed, and the organizational capacity to manage these risks will be required.

Accessibility and Community Considerations

Applicants will be asked how the project is expected to increase or improve the accessibility of bus operations, whether the project will benefit vulnerable populations by providing accessible and safe access to clean transportation, and whether the project will employ target groups or support procurement to small, medium and social enterprises, if applicable.

All new construction projects must meet or exceed the requirement of the highest published accessibility standard in the jurisdiction, defined as the requirements in the Canadian Standards Association’s Accessible Design for the Built Environment (CAN/CSA B651-18), or the most recent standard, in addition to applicable provincial or territorial building codes, and relevant municipal by-laws.

5. Contribution Information

Eligible Expenditures

Eligible expenditures are those considered to be direct and necessary for the successful implementation of an eligible project(s) and excluding those explicitly identified as ineligible costs.

Eligible capital expenditures can include:

  • Procurement of ZEBs
  • Charging/Refueling equipment.
  • Construction or improvements to new facilities.

Non-capital eligible expenditures can include:

  • Costs associated with warranties of any of the above; and
  • External training provided by manufacturers or infrastructure suppliers necessary to support the transition to and successful operation of ZEB technology
  • Costs/expenditures incurred for consultation or engagement with Indigenous groups on the project.
  • Incremental expenditures directly related to meeting specific program requirements, such as climate change and resiliency assessments, as well as creating community employment benefit plans.
  • The incremental costs of the eligible recipients' employees, provided that the use of employees or equipment pertains solely to the implementation of the project, and:
    • There is a lack of private sector capacity to undertake the work; or
    • The work involves proprietary or specialized infrastructure or equipment that requires specific knowledge or skill of the recipient's employees; or
    • A collective agreement requires the recipient to use their own unionized employees for certain project work.
  • Costs associated with project monitors or independent certifiers

Eligible expenditures can only be reimbursed by Housing, Infrastructure and Communities Canada subject to approval of the project funding, signing a contribution agreement, and meeting the conditions outlined in the contribution agreement.

Expenditures associated with the GHG + Plus Guidance Modules (environmental benefits) and Indigenous consultation may be eligible before project funding approval but will only be reimbursed if and when project funding is approved and a contribution agreement has come into force.

Ineligible Expenditures

Ineligible expenditures include:

  • Expenditures incurred before project funding approval and any and all expenditures related to agreements signed prior to project funding approval, except those specified above.
  • Expenditures related to purchasing land and buildings, and associated real estate and other fees
  • Expenditures related to cost overruns or incurred for cancelled projects
  • Taxes for which the eligible recipient is eligible for a tax rebate and all other costs eligible for rebates
  • On-going operations, maintenance and/or electricity and fuel costs associated with the operations of capital assets
  • Legal fees, except those explicitly eligible above
  • Financing, interest, and taxes, including principal and interest payments to the CIB
  • Leasing land, buildings, equipment and other facilities except for equipment other than equipment directly related to the construction of the project, real estate fees and related costs
  • Purchase or maintenance of diesel buses
  • Employee costs, with the exception of incremental costs which pertain solely to the implementation of the project, as stated above
  • Maintenance expenditures incurred as part of regular operations
  • Compressed natural gas rolling stock and infrastructure reliant on fossil fuels
  • Renewable natural gas production, off site Hydrogen production and power generation facilities; and costs associated to the transportation of zero emission fuels
  • Light- and medium-duty vehicles not oriented toward passenger transport (e.g., service trucks)
  • Hybrid buses.

Maximum amount payable and reimbursement

Contribution payments will be made as detailed in the contribution agreement, via regular payments based on reimbursement of eligible expenditures; or using a risk assessment to make milestone payments; or advance payments based on a cash flow forecast.

Requirements regarding advance payments will be detailed in the contribution agreement, in accordance with the Treasury Board Policy on Transfer Payments. Contribution agreements will specify that any ineligible expenditures or any unspent funds remaining at the end of the contribution agreement will be returned to Canada.

Final payments will follow receipt of the final accounting of eligible expenditures; and the total amount of the contribution will not exceed eligible expenditures incurred pursuant to the terms of the agreement, including in respect of stacking and contribution limits. Eligible expenses must be claimed by Fall of 2025 unless otherwise specified in the contribution agreement between the recipient and Housing, Infrastructure and Communities Canada.

The maximum amount payable through the ZETF will be $350M for a project, unless otherwise agreed to by the Government of Canada.

For-Profit Recipients

Non-repayable contributions to for-profit entities will be considered when the benefits from the contribution to a for-profit recipient accrue broadly rather than to the for-profit recipient. This means that applicants will need to clearly demonstrate that the project benefits accrue more broadly, for example in terms of health and environmental benefits associated to the reductions in GHG and other toxic tailpipe emissions and in terms of accessibility to public transportation or other benefits to vulnerable populations. Housing, Infrastructure and Communities Canada will evaluate this information to verify if it meets these conditions.

6. Additional Information

Environmental Assessment

Depending on the project location, an  environmental impact assessment may be required prior to undertaking certain activities. Applicants are responsible for providing information to determine whether their project may require an environmental impact assessment under the federal Impact Assessment Act (IAA) , Modern Treaties or Northern Regimes. If applicants are unsure of their legislative responsibilities, please consult the appropriate provincial or territorial government for environmental assessment requirements and the Impact Assessment Agency of Canada's (IAAC's) website for the basics of the federal IAA requirements. Under the IAA, projects may be designated (s. 8) or may be subject to requirements if they are on federal lands (s.82). Environmental assessment requirements must be met for the project to proceed.

Duty To Consult

Housing, Infrastructure and Communities Canada has an obligation to determine whether or not the project requires consultation with Indigenous groups based on the information provided by the Applicant. Housing, Infrastructure and Communities Canada may have a legal duty to consult with, and if applicable, accommodate, Indigenous Peoples when it contemplates conduct that might adversely impact Aboriginal and/or Treaty rights. These rights include, but are not limited to, the right to hunt, fish, trap and harvest. Housing, Infrastructure and Communities Canada will assess potential impacts of projects on these constitutionally protected rights, and ensure that those affected Indigenous communities are notified, consulted and, where required, accommodated. Costs associated with engagement and consultation are eligible expenditures and applicants should plan to include these costs in their project estimates.

While the duty to consult with Indigenous Peoples is an obligation that rests with the Crown, Housing, Infrastructure and Communities Canada will expect applicants to carry out certain procedural aspects of consultation on a proposed project, where appropriate. These could include, but are not limited to providing notification letters and organizing consultation sessions with Indigenous communities that will be affected by the proposed project. More information on Housing, Infrastructure and Communities Canada's duty to consult requirements is available at Housing, Infrastructure and Communities Canada Consultation with Indigenous Peoples.

Sole-Source Contracting

Contribution Agreements established for projects receiving federal funding under the ZETF will contain a requirement that contracts be awarded in a way that is fair, transparent, competitive and consistent with value-for-money principles and if applicable, in accordance with the Canadian Free Trade Agreement and international trade agreements.

Exemptions from competitive awarding of contracts could be considered by Housing, Infrastructure and Communities Canada on a case-by-case basis and upon receipt from the applicant of a written request noting business case rationale, in advance of the contract being awarded.

Reporting and Audit Requirements

All recipients of contribution funding must provide reports to Housing, Infrastructure and Communities Canada based on the terms outlined in the contribution agreement. These may include any of the following: annual and final reports, status and progress updates, financial reports and evaluation reports. Annual and final reports will include, at minimum, information regarding the implementation progress and details of project funding and their management.

Housing, Infrastructure and Communities Canada will monitor approved projects to ensure that funds are used in accordance with the terms and conditions of the contribution agreement. Recipients may be required to conduct and submit one audit over the course of the contribution agreement, carried out by an independent third party. The Government of Canada will reserve the right to review and audit recipients as deemed necessary.

Disposal of assets

Recipients will be required to pay back full or partial contributions in the event of the sale of rolling-stock or supporting infrastructure within 10 years. Disposal of asset clauses will be outlined within the contribution agreement. The provisions of the Treasury Board Policy on Transfer Payments concerning the repayment of contributions will apply to contributions made under the ZETF. If repayments are required, they will be made in accordance with the procedures outlined in the Policy on Transfer Payments. The recipient of the federal contribution will be obliged in the contribution agreement to provide repayment of funds if necessary, with interest charged on those amounts owing to the Crown. The Contribution Agreement will set out the terms for repayment if required.

Privacy and Third Party Notice Statement

The information you provide as part of the funding process is collected under the authority of the Order in Council P.C. 2004-0325 for the purpose of administering the program. It may be used to evaluate, select and review applications under the program, monitor the progress of approved projects, and to coordinate administrative decisions with respective federal departments, provincial and or municipal counterparts/partners. Information may be shared with other federal government institutions, including the CIB, for the purpose of assisting Housing, Infrastructure and Communities Canada with project review and evaluation, determining eligibility under other federal government institutions' programs, including programs administered by the Canada Infrastructure Bank, and confirming past federal funding sought by an applicant. Housing, Infrastructure and Communities Canada may also disclose the information to external experts (e.g., scientific, technical, financial, marketing or commercialization) hired by the Government of Canada under contract with confidentiality obligations, for the purpose of assisting Housing, Infrastructure and Communities Canada with project review and evaluation and/or determining eligibility under other federal government programs. General information about approved projects including the name of the successful applicant, date of approval, the funding amount, project description and the location is proactively disclosed to the public once a funding agreement is signed. Other possible uses and sharing of personal information are described in the Grants and Contributions Initiatives personal information bank. Failure to provide this information, and to consent to the collection, use and disclosure of this information, may result in the application not being further considered, and a delay in assessing your application for funding. You have the right to the correction of, access to, and protection of your personal information under the Privacy Act and to file a complaint with the Privacy Commissioner of Canada over Housing, Infrastructure and Communities Canada's handling of your information as set out under the Privacy Act.

By submitting your application, you agree to the collection, use and disclosure of this information as outlined above.

Any Questions?

If you have any questions about the ZETF that were not answered by this guide or its annexes, please contact the ZETF team at ZETF-FTCZE@infc.gc.ca

Version Date: April 2022

ANNEX A – Evaluation Matrix Planning Component

Planning project applications will be assessed by Housing, Infrastructure and Communities Canada and will consider the extent to which the proposed planning project satisfies the following criteria:

Criteria

Evaluation Details

System-level Planning

The proposed planning project will:

  • involve a system-wide analysis of ZEB technologies and strengthen the information base to inform technology selection and support long-term system wide solutions.
  • identify charging/refueling infrastructure needs and strategies, exploring energy and cost efficiencies.
  • identify facility and electrical/utility infrastructure requirements and upgrades.
  • identify potential barriers to system-wide electrification as well as potential challenges which are unique to the project.

Operational Planning and Deployment Strategy

The proposed planning project will:

  • support innovative and effective ZEB deployments and future operations, and specifically inform optimal route selection and service design for ZEBs, the fleet roll-out implementation plan and procurement needs.
  • establish a strategy to measure the performance of the project

Financial Planning

The proposed planning project will:

  • estimate the anticipated lifecycle cost savings associated with the project (relative to the baseline scenario), including details on fuel and maintenance cost savings.
  • provide preliminary cost estimates (procurement and capital costs) for a ZEB deployment project.

Capacity to Implement the Technology

The proposed planning project will:

  • identify capacity needs to implement the project.
  • establish short and long term operational business plans identifying organizational needs (resources, skills and training) for the deployment and operation of ZEBs.
  • include a comprehensive analysis of technological, operational and system-wide risks associated with the deployment and operation of ZEBs and the development of a risk management plan.

Environmental Benefits

The proposed planning project will:

  • include a lifecycle assessment of the environmental benefits associated with the project, and estimate the reduction of GHG emissions, noise and non-GHG pollutant (improved air quality), considering carbon impacts of the chosen technology and manufacturing and operating practices.
  • assess climate risks and identify resiliency measures.

Note: Evaluation of environmental benefits must be done in accordance with The GHG + Plus Guidance Modules.

ANNEX B – Evaluation Matrix Zero Emission Bus Capital Component

Capital project applications will be assessed by Housing, Infrastructure and Communities Canada and will consider the extent to which the project proposal addresses the following criteria:

Criteria

Evaluation Details

System-level Planning

The project proposal includes a detailed description of:

  • the objective and scope of the project.
  • the options considered in the development of the project and the analysis which supports the selection of the proposed ZEB technology and the system design.
  • the planned charging/refueling infrastructure (including location and capacity) and the analysis which supports the design and selection of the infrastructure proposed in the project.
  • the existing and/or planned facilities which will be adapted or built to support and accommodate the new ZEB fleet.
  • the analysis undertaken to determine the power/energy requirements to charge the fleet to service the selected routes, and the assessment of energy supply, grid capacity, reliability, potential limitations and other relevant considerations specific to the location and network.
  • the level of involvement with utility companies and the planned work required to make the project viable (and confirmation by local utility provider of system capacity).
  • the provisions (i.e. backup power supply) included in the project to ensure service reliability or mitigate grid vulnerability.
  • considerations in the design/project that would facilitate the future expansion of the fleet (technology interoperability, scalable charging infrastructure etc.).

*Supporting analysis for the design/decisions must be included in the application.

Operational Planning

The project proposal includes a detailed description of:

  • the routes selected for operating zero emission buses and the route planning studies undertaken to optimize and support these decisions, including the parameters considered in the modeling of ZEB operations (e.g. route characteristics, topography, climate, operating range, weight limitations, speeds, batteries etc.).
  • the planned maintenance and operational practices to support the deployment and operation of the ZEB fleet and how they will be adapted during and after project implementation (e.g. maintenance policies, staff training, vehicle reliability, reporting etc.)
  • the planned charging and storage strategies for the operation of ZEBs (e.g. charging schedules, indoor vs outdoor storage, contingency plans etc.) and their potential impact on operations.

*Supporting analysis for the design/decisions must be included in the application.

Deployment Strategy

The project proposal includes a detailed description of:

  • the implementation plan for the project, including timelines, project milestones, details on the phasing and deployment of the ZEB fleet, charging/refueling infrastructure, facility and utility upgrades.
  • the planned procurement strategy for the project, outlining different project components and methods in which goods or services will be acquired.
  • the strategy developed to measure the performance of the project.

Financial Planning

The project proposal includes:

  • the forecasted lifecycle cost savings associated with the project (relative to the baseline scenario), including details on fuel and maintenance cost savings associated with the project (supporting analysis required)
  • the project cost estimate broken down by project component (e.g. ZEB procurement, charging/refueling infrastructure, facility upgrades etc.) indicating the class of estimate and contingency amount.

Capacity to Implement the Technology

The project proposal includes a detailed description of:

  • the proponent's previous experience with the zero emission technology selected and how this experience will support the successful implementation of the ZEB project.
  • successful resource planning undertaken for past projects of similar scope and/or level of complexity.
  • the planned resources (staff and skills) to support the short and long term success of the project.
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