Zero Emission Transit Fund (Stream 2 Capital Projects)

Program Category: Sustainable Transportation, Climate Mitigation

Program Sub-Category: Zero Emission Vehicles and Charging Stations

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Status: Open

Funder

Housing, Infrastructure and Communities Canada

Deadline Details

Applications are accepted on a continuous basis.

Funder Organization Type

Federal Government

In Partnership With

Canada Infrastructure Bank (CIB)

Through the Zero Emission Transit Fund, the Government of Canada is investing to support public transit and school bus operators plan for electrification, support the purchase of zero emission buses and build supporting infrastructure, including charging infrastructure and facility upgrades, in close partnership with the Canada Infrastructure Bank (CIB).

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.

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

Planning 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.

Applicants will have to submit an Expression of Interest (EOI) as a mandatory first Stage in the application process. Once Stage 1 of the process is completed, applicants will be contacted by Infrastructure Canada regarding Stage 2.

Capital projects will be assessed against the following merit criteria:

System-level Planning
Operational Planning
Deployment Strategy
Financial Planning
Capacity to Implement the Technology

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

The applicant must include supporting documentation (studies, analysis etc.) for all assertions and any information deemed necessary by Infrastructure 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.

Eligible Community

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
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.

Required Community Contribution

Community contribution required (please see program website)

Funding Stacking Restrictions

Yes

Infrastructure Canada will ensure that the total combined Infrastructure Canada funding and CIB financing will not exceed 100% of eligible costs. For questions on stacking, please contact program.

Specific Eligibility Requirements

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.

Other Eligible Applicants

Indigenous Economic Agencies
Businesses / For-profit
Other
Indigenous Organizations
Non-governmental Organizations / Not-for-Profits
Academic Institutions

Other eligible recipients include:

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;
Private sector accessible transit bus operators, in partnership with a transit agency, or municipal, regional or provincial/territorial government;
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.

Type of Funding

Non-repayable Contribution

Range of Funding Available per Project

Under $100 000
From $100 000 to $1 000 000
Over $1 000 000

Description of Funding

The maximum contribution towards capital projects is up to 50% of the total eligible costs. The maximum amount payable through the ZETF will be $350M for a project, unless otherwise agreed to by the Government of Canada.

Percentage of Project Funded

50%

The maximum contribution towards capital projects is up to 50% of the total eligible costs. Infrastructure Canada will ensure that the total combined Infrastructure Canada funding and CIB financing will not exceed 100% of eligible costs.

Eligible Costs

Engineering
Design
Capital Costs
Community Engagement
Equipment/Material Purchase
Project Management
Training
Reporting

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.

Ineligible Costs

Any costs incurred prior to signing a funding agreement
Building Purchase Costs
Land Acquisition

See Applicant Guide for a full list of ineligible costs.

Reporting Requirements

Progress reports and final reports

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