Zero Emission Transit Fund (ZETF): Grant for Electric Busses & Public Transportation

Between the years 2021 and 2026, the Government of Canada is committed to investing $2.75 billion towards the purchase of over 5,000 zero emission busses and public transportation infrastructure upgrades through the Zero Emission Transit Fund (ZETF).

The ZETF program delivers on the federal government’s commitment to help purchase thousands of electric buses over the next five years and build the supporting infrastructure, including charging and facility upgrades, required for these public transit enhancements.

Funding through the ZETF program is split between planning projects and capital projects.

All eligible expenses must be claimed before the programs ends on March 31, 2026. For businesses looking to reduce their greenhouse gas emissions or adopt new environmentally friendly technologies be sure to view the cleantech funding programs available. Read on to find an overview of the Zero Emission Transit Fund program.

Funding Snapshot: Zero Emission Transit Fund (ZETF)

Amount of Funding:

ZETF offers two different funding streams depending on what stage your project is in:

1. Planning Projects: Up to 80% of the total eligible costs in non-repayable contributions.
2. Capital Projects: Up to 50% of total eligible costs in non-repayable contributions to a maximum of $350 million. Non-repayable contributions to for-profit entities will only be considered if project benefits accrue broadly (i.e., health and environmental benefits).

Eligible Applicants:

• Municipalities, local and regional governments;
• Provinces or Territories;
• Public sector bodies (including transit agencies and school boards);
• Indigenous governing bodies;
• Federally or provincially incorporated not-for-profits whose mandate is to improve Indigenous outcomes;
• Indigenous development corporations;
• Private sector school bus operators, in partnership with a public-school board or municipal/regional government;
• Private accessible transit bus operators, in partnership with a transit agency or municipal/regional government; and
• Federally or provincially incorporated not-for-profit organizations (associations, NGOs, academic institutions).

Eligible Projects: Two project components eligible for funding:

1. Planning Projects: Large-scale capital projects supported by studies, models, and feasibility analyses are eligible. Under ZETF, transit and school bus operators will develop comprehensive electrification plans and be prepared to submit capital project applications.
2. Capital Projects: These projects support zero emission bus (ZEB) deployment and include bus procurement, charging and refueling infrastructure, and other ancillary infrastructure. Retrofits of conventional fuel buses to ZEBs are also eligible.

Timeline:

Those eligible to apply for ZETF funding will go through a two-stage application process. In the first stage, your business will be assessed for funding eligibility, with those selecting to move on to the second stage submitting a full project application determining project costs, impacts, and timelines. Eligible expenses must be claimed before the program end date of March 31, 2026.

Apply for Zero Emission Transit Fund (ZETF) Funding:

This program is accepting applications on an ongoing basis until March 31, 2026, or until funding runs out. To get started with applying for this grant, contact Mentor Works’ team of government funding application writers for an estimated 95%-time savings when compared to applying in-house.

Other Government Grant Programs for Zero-Emission Vehicles

For-profit businesses can apply for the Zero-Emission Vehicle Infrastructure Program (ZEVIP) to receive between $100K – $5M towards installing Electric Vehicle (EV) charging stations at their residential building, workplace, or street-parking.

Businesses conducting campaigns to help educate the public about electric vehicles may be eligible to receive up to $300K in grant funding through the Zero-Emission Vehicle Awareness Initiative (ZEVAI) program.

Register for an upcoming Canadian government funding webinar to learn more about the top upcoming grant and loan programs your business should be aware of. These events are free for all businesses and organizations to attend.