Municipal Fleet Electrification (MFE)

Overview of the Municipal Fleet Electrification (MFE) program:

The Municipal Fleet Electrification Capital Project funding stream is part of the Green Municipal Fund (GMF) administered by the Federation of Canadian Municipalities (FCM). It supports municipalities and eligible partners in implementing high-impact, permanent solutions that reduce GHG emissions through the electrification of publicly owned vehicle fleets. This capital funding is designed for large, fully planned and shovel-ready projects focused on purchasing electric vehicles (EVs), installing charging infrastructure, and integrating systems and data tools that support the long-term decarbonization of municipal operations. It helps local governments adopt new mobility models and make systemic shifts in how municipal services are delivered, while aligning with Canada’s national net-zero goals. Eligible fleets may include transit buses, public works vehicles, fire and emergency services, waste management, utility vehicles, or any other fleet owned and operated by a municipality or a municipally owned organization. Projects must demonstrate significant GHG reductions, long-term impact, and replicability for other communities. FCM also expects applicants to include project risk mitigation strategies, lifecycle planning, and an emissions monitoring framework. Additional consideration is given to projects that include workforce transition planning, stakeholder engagement, and the adoption of data-driven decision-making.

Benefits of the Municipal Fleet Electrification (MFE) program:

• Access to up to $10 million in total funding
• Reduces long-term operating costs and fuel dependency
• Major contributor to municipal GHG reduction goals
• Supports large-scale decarbonization of public services
• Enables smart fleet management through integrated technology
• Builds local capacity and workforce readiness for EV maintenance and planning
• Enhances air quality and community health outcomes
• Positions municipalities as leaders in climate action and innovation
• Encourages replication and knowledge sharing with other communities

Eligibility criteria of the Municipal Fleet Electrification (MFE) program:

• Eligible Applicants:
• Canadian municipalities (any size)
• Municipal partnerships (with Indigenous governments or non-profit service providers)
• Municipally owned corporations (e.g., transit agencies, utility companies)
• Eligible Fleets:
• Transit vehicles (e.g., buses, shuttle fleets)
• Public works (e.g., snowplows, waste trucks)
• Emergency services (e.g., fire, EMS)
• Utility or other operational vehicles owned by the municipality
• Project Requirements:
• Must demonstrate readiness (permits, approvals, vendor agreements in place)
• Must be based on a feasibility study or net-zero roadmap
• Must include GHG quantification (before/after emissions estimates)
• Must have an operations and maintenance plan
• Should include public engagement or workforce training where applicable