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Zero Emission Transit Fund

Infrastructure Canada announced the details of the new
Zero Emission Transit Fund.

Fund details

Through the Zero Emission Transit Fund, the Government of Canada is investing $2.75 billion over five years, starting in 2021, to support public transit and school bus operators plan for electrification, support the purchase of 5,000 zero emission buses and build supporting 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:

•Planning and Design Projects: Eligible projects include studies, modelling and feasibility analysis that will support the development of future larger scale capital projects.
•Capital Projects: Eligible capital projects include buses, charging and refueling infrastructure, and other ancillary 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).

Note on Québec

Of note, Infrastructure Canada is in ongoing discussions with the government of Québec with respect to the program's implementation in the Province given the Loi sur le ministère du Conseil exécutif (M-30).

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. Infrastructure 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 Infrastructure Canada and the Canada Infrastructure Bank programs work together?

Infrastructure Canada and the Canada Infrastructure Bank will work in collaboration in order to support the transition to zero emission buses. Through the Zero Emission Transit Fund, Infrastructure 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 $1.5 billion Zero Emission Bus initiative, the Canada Infrastructure Bank 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 Infrastructure Canada and the Canada Infrastructure Bank.
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 complete and submit the Expression of Interest form, along with other supporting documents, by e-mail at zetf-ftcze@infc.gc.ca. A step-by-step guide to aid in completing the Expression of Interest can be found here (419.39 KB) (PDF version). After reviewing the Expression of Interest, Infrastructure 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 granted access to the funding application forms and will be invited to submit a full application to the appropriate project stream(s): Planning and Design Projects or Capital Projects.
Further information and instructions on how to apply through Infrastructure Canada's online and accessible application portal will be available soon.
Contact: Zero Emission Transit Fund General Inbox: zetf-ftcze@infc.gc.ca.
Not-for-profit organizations and academic institutions: call for application for planning support
Infrastructure Canada is seeking applications from not-for-profit organizations and academic institutions who are well positioned to advance and support the planning of the transit bus fleet electrification in Canada.
Infrastructure Canada plans to enter into a funding agreement with one or more not-for-profit organization(s) or academic institution(s) that will work with transit bus operators (including municipalities and transit agencies) on planning activities required for the adoption of zero emission bus technology.
This approach to planning activities will allow for consistent, comparable, thorough and technically sound analysis required to enable successful fleet electrification. Infrastructure Canada will cover up to 80% of the costs incurred by the selected organization(s) for planning projects while transit bus operators will be expected to cover the remaining 20% of the costs. Alternative delivery approaches for planning projects may be considered on a case-by-case basis by Infrastructure Canada.
Further details of the requirements and supporting information for the application is included in the Advancing Zero Emission Bus Electrification Planning Applicant Guide.
The deadline for receipt of applications is September 10, 2021, 23:59 PDT.