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Capital project: Reduce fossil fuel use in fleets | Federation of Canadian Municipalities (FCM):


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.


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.

Eligible Applicants

All Canadian municipal governments; Municipal partners applying in partnership with a municipal government.

Eligible Expenses

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).

Examples of what you might implement:

  • Purchasing properly sized municipal vehicles for various uses (e.g., fleet optimization)
  • Alternative fueling infrastructure for vehicles providing municipal services (e.g., fast charging stations)
  • Sustainable autonomous vehicle use for private or municipally owned vehicles
  • Zero Emission Vehicle (ZEV) and alternative fuel fleet conversion (e.g., electric/hydrogen, biogas), especially medium and heavy-duty vehicles
  • Intelligent transportation systems that reduce fuel consumption and promote transit use (e.g., transit signal priority, real-time travel information)

Deadline Date

  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.


Contact Name: Federation of Canadian Municipalities (FCM)

Phone Number: 1-877-417-0550

E-mail Address:


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