Municipal Fleet Electrification

The Green Municipal Fund (GMF) supports the electrification of municipal and transit fleets to help municipalities achieve net-zero transportation emissions, reducing operational and embodied GHG emissions wherever possible.

GMF fund feasibility studies and capital projects to support the electrification of municipal and/or transit fleets—the transition to zero-emission vehicles (ZEVs) that have the potential to produce no tailpipe emissions, including battery-electric, plug-in hybrid electric and hydrogen fuel cell vehicles.

The program funds capital projects that include:

• The replacement of internal combustion engine vehicles with ZEVs.

• The required EV supply equipment (EVSE).

• Any required facility upgrades to existing buildings.

The program also funds studies that assess the feasibility of the transition to ZEVs that also:

• Consider the entire municipal and/or transit fleet.

• Include lifecycle total cost of ownership and GHG emission analysis.

• Provide options for reducing the number and size of vehicles within the fleet.

• Examine economic, social and other environmental impacts of the transition to ZEV.

Note: Projects focused on installing EV charging infrastructure primarily dedicated to the municipal and/or transit fleet are eligible for funding

• Canadian municipal governments (e.g., towns, cities, regions, districts, and local boards)

• municipal partners, which include:

  • Indigenous communities

**An Indigenous community (includes Metis and Modern Treaty Nations) is an eligible lead applicant if they are partnering with a Canadian municipal government on an eligible project, or if they have a shared service agreement with a Canadian municipal government related to municipal infrastructure, climate change or adaptation.

• municipal partners, which include:

  • private sector entities

  • municipally owned corporations

  • regional, provincial or territorial organizations delivering municipal services

  • non-governmental organizations

  • not-for-profit organizations

  • research institutes (e.g., universities)

• Capital projects can receive combined grant and loan for up to 80% of eligible costs, to a maximum of $10 million. Grant for 15%** of loan amount. 

• Studies can receive a grant for up to 50% of eligible costs, up to a maximum of $200,000. 

** Municipalities with exceptional projects may qualify for a higher loan and grant amount. Contact gmfinfo@fcm.ca to find out if your municipality is eligible.