Infrastructure Canada – Zero Emission Transit Fund: Planning Projects and Capital Projects

ByMaurice

Description:

The Zero Emission Transit Fund provides contributions to public transit and school bus operators across Canada who are electrifying their fleets. ZETF supports planning and capital projects that will reduce the barriers to procuring zero emission transit and school buses in Canada.

Comments on Funding:

Infrastructure Canada provides non-repayable contributions of:

  • up to 80% of the total eligible costs for Planning Projects;
  • up to 50% of the total eligible costs for Capital Projects. Infrastructure Canada will ensure that the total combined Infrastructure Canada funding and Canada Infrastructure Bank (CIB) financing will not exceed 100% of eligible costs.

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

Through its Zero Emission Buses (ZEB) initiative, the CIB provides innovative and flexible financing solutions (loans) by leveraging forecasted lifecycle operational cost savings to help offset the higher upfront costs of ZEB deployment.
Separate contribution and financing agreements will be signed by Infrastructure Canada and the CIB with the recipient.

Eligibility:

Applicants must be:

  • 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) A band council within the meaning of section 2 of the Indian Act;
    b) 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;
    c) 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;
  • 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.

For-profit entities 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 in order to qualify for non-repayable contributions. Infrastructure Canada will evaluate this information to verify if it meets these conditions.
Eligible planing projects include studies, modelling and feasibility analysis that will support the development of future larger scale capital projects.
Eligible capital projects include buses, charging and refueling infrastructure, and other ancillary infrastructure needs.

Applications Steps:

Applicants:

6

choosing another provider’s services for Transit Bus Deployment Planning and those applying for School Bus Deployment Planning will be asked to complete and submit a Stage II Planning application with Infrastructure Canada and will enter into a contribution agreement with Infrastructure Canada, if the project is approved.

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    Documentation Needed:

    Applicants must submit:

    1. a completed EOI and supporting documents,
    2. a written confirmation including the details of the relationship if:
      a) Private sector school bus operators, in partnership with a public school board, or municipal, regional or provincial/territorial government;
      b) Private sector accessible transit bus operators, in partnership with a transit agency, or municipal, regional or provincial/territorial government;
      c) 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.
    3. a full application, if invited;
    4. any other documentation (studies, analysis etc.) and information deemed necessary by Infrastructure Canada and CIB to assess the eligibility and merit of projects;
    5. the final accounting of eligible expenditures to recieve final payments.

    Other Things to Note:

    1. 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.
    2. Eligible expenses must be claimed by Fall of 2025, unless otherwise specified in a contribution agreement between the recipient and Infrastructure Canada. Applications will be accepted until the funding available is fully allocated.

    About the author

    Maurice

    Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business. Click here to learn more about Moe’s background and how he can help your business.

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