Capital Project- Reduce Fossil Fuel Use in FleetsFederation of Canadian Municipalities
We offer combined loan and grant funding for capital projects that reduce or avoid fossil fuel use in any vehicle that delivers municipal services. This funding helps Canadian cities and communities of all sizes undertake environmental sustainability projects that reduce energy consumption/greenhouse gas emissions (GHGs) and improve their air quality.
Your capital project should reduce or avoid the use of fossil fuel in your municipal fleet.
All classes of vehicle are eligible for this funding. It applies to your fleet (i.e, all municipally owned vehicles such as police cruisers and fire trucks) and private vehicles that deliver municipal services (e.g., waste management or leased vehicles).
1. All Canadian municipal governments
2. Their project partners, which includes:
- Private sector entities
- Indigenous communities
- Municipally-owned corporations
- A regional, provincial or territorial organization delivering municipal services
- Non-governmental organizations
- Not-for-profit organizations
- Research institutes (e.g., universities)
- Regular loans and grants: Receive a low-interest loan of up to $5 million and a grant worth up to 15% of the loan; cover up to 80% of your eligible costs.
- High-ranking project loans and grants: These qualify for a low-interest loan of up to $10 million and a grant worth up to 15% of the loan; cover up to 80% of your eligible costs.
How to Apply
Review the prerequisites and required supporting documents.
Review eligible and ineligible costs.
Ensure you have a detailed project budget in place.
- Confirm that you’re securing other funding sources for your project:
- Sample Letter Confirming Consultation with Provincial/Territorial Government (a prerequisite for all applicants, except municipal governments in Quebec)
- Sample Letter from Confirmed Funding Sources (required for each contributing organization, including the lead municipality)
Complete the initial review form.
This funding has a two-stage application process with the following deadlines:
- Initial Review Form: Complete and submit year-round.
- Potential applicants may submit initial review forms at any time. Application forms will be provided to eligible recipients.