Green Freight Program Applicant’s Guide: Stream 2
Stream 2 of the Green Freight Program provides cost-shared, non-repayable contributions for eligible projects through Contribution Agreements towards the following three project and funding activity types:
1. Repowering existing vehicles;
2. Purchase of low-carbon alternative fuel vehicles; and
3. Implementation of logistical best practices. (NEW!)
The objective of Stream 2 of the Green Freight Program is to encourage Canadian freight companies to make data-driven investment decisions through the implementation of energy-efficient improvements for their fleets.
Offered by Natural Resources Canada (NRCan)
Amount
Up to 50% of total project costs (up to 50% of the incremental cost for Purchase projects), up to 75% for not-for-profit, government and Indigenous projects; maximum $5,000,000 per project for Repower and Purchase projects and $1,000,000 for Logistical best practice projects; each application can request up to $5 million of NRCan funding
Quick eligibility check
Who can apply
- Projects to repower existing vehicles (“Repower”):
Unique requirements:
- The new technology/equipment installed to repower a vehicle, must be a permanent modification.
- For this funding activity, we will only accept applications from organizations that either own or have a long-term lease agreement for a fleet of one or more eligible freight transportation vehicles. Please refer to “What vehicles are considered eligible?” for further information.
- Any applicant that leases their fleet must have a long-term vehicle lease agreements in place (3 years or more post-project end date) and have the written authority from the lessor to make the modifications to the vehicles impacted by the proposed project. A copy of the long-term lease agreement must be provided at the time of application.
- Projects to purchase low-carbon, alternative fuel vehicles (“Purchase”):
Unique requirements:
- Applicants must provide an official quote from the manufacturer or vendor for the purchase price of a conventional diesel equivalent in truck class and body type to determine the incremental cost.
- For this funding activity, we will only accept applications from organizations where the applicant will fully own and operate the eligible freight transportation vehicles purchased as part of this project. We will not fund the procurement of leased low-carbon alternative fuel vehicles. Please refer to “What Vehicles are considered eligible?” for further information.
- Vehicle registration and ownership must be provided as part of the final report upon project completion, and necessary to demonstrate project completion.
- To be considered for funding to purchase a low-carbon alternative fuel vehicles, the applicant must commit to using a minimum average blend of 1% renewable or non-fossil fuels. This commitment must be in effect from the first time the vehicle is refueled to March 31, 2029.
- Projects to implement logistical best practices (“Logistical best practice”):
Note: For this funding activity, we will only accept applications from organizations that either own or have a long-term lease agreement for a fleet of one or more eligible freight transportation vehicles. Please refer to “What vehicles are considered eligible?” for further information.
- Any applicant that leases their fleet must have a long-term vehicle lease agreements in place (3 years or more post-project end date) and have the written authority from the lessor to make the modifications to the vehicles impacted by the proposed project. A copy of the long-term lease agreement must be provided at the time of application.
Enhanced fleet energy assessment
Enhanced fleet assessments cover large, complex fuel-reducing implementation projects for fleet(s) that require a higher level of details, commitments, and a strategic plan for implementation.
All proposals must include an enhanced fleet energy assessment with their application that references and recommends the activities proposed in your project. Please note the following specifications:
- The Applicant can independently conduct and submit a self-assessment or submit an assessment that was conducted by a third-party energy assessor on or after January 1, 2019, as long as the assessment meets the “Enhanced” requirements specified in the NRCan’s Fleet Energy Assessment Checklist.
- Applicants who wish to receive a grant for a fleet energy assessment completed by a third-party, please apply to Green Freight Program Stream 1.
- NRCan does not endorse the services of any contractor or any specific product and accepts no liability in the selection of materials products contractors or performance of workmanship.
- All proposals, regardless of project type, must include a completed Enhanced Fleet Assessment with their application that references and recommends the activities proposed.
- It is important to note that all proposals must provide specific details on what they are proposing to purchase, install or implement and reference which page of the Enhanced Fleet Assessment these details can be found on. Regardless of project-type, we need to understand what vehicles will be impacted by the project.
About the funding
Stream 2 of the Green Freight Program provides cost-shared, non-repayable contributions for eligible projects through Contribution Agreements towards the following three project and funding activity types:
- Repowering existing vehicles;
- Purchase of low-carbon alternative fuel vehicles; and
- Implementation of logistical best practices. (NEW!)
Show all funding details
However, each application can only request up to $5 million dollars of NRCan funding.
Alternatively, one organization could submit multiple applications, each containing a unique set of activities, each requesting up to $5million dollars of NRCan funding.
- Projects to repower existing vehicles (“Repower”):
Eligible funding:
- The maximum amount payable per projects is $5,000,000 with the following conditions applied:
- The Program will provide funding of up to 50% of total project costs and applicants will contribute the remaining 50% as a combination of cash contributions, in-kind contributions, contributions from partners or funding from other government sources (see Stacking of assistance).
- Projects proposed by not-for-profit organizations or provincial, territorial, regional, or municipal governments or their departments or agencies, where applicable, as well as projects with Indigenous businesses or community groups, may request an increase in the maximum amount payable by this program, up to 75% of total project costs.
- Total funding from all levels of government cannot exceed 75% of the total project costs. Unless the applicant is a provincial, territorial, municipal government, or an Indigenous organization, then total funding from all levels of government cannot exceed 100% of total project costs.
- Projects to purchase low-carbon, alternative fuel vehicles (“Purchase”):
Eligible funding:
- The maximum amount payable per projects is $5,000,000 with the following conditions applied:
- The Program will provide funding of up to 50% of the incremental cost for the purchase of a new vehicle powered by lower-carbon fuels compared to purchasing a conventional diesel truck. For example, if a single diesel truck costs $100,000 and a single lower-carbon alternative fuel truck costs $200,000, then NRCan would pay 50% of the $100,000 price differential - $50,000 per truck - and the applicant (and other contributors, if applicable) would be required to pay $150,000 to cover the remainder.
- Applicants will contribute the remaining 50% of the incremental costs, and the cost of the vehicle(s) as a combination of cash contributions, in-kind contributions, contributions from partners or funding from other government sources (see Stacking of assistance).
- The program will also provide funding of up to 50% of all other project costs.
- Projects by not-for-profit organizations or provincial, territorial, regional, or municipal governments or their departments or agencies, where applicable, as well as projects with Indigenous businesses or community groups, may request an increase in the maximum amount payable by this program up to 75% of the incremental costs associated with the new truck purchases, and up to 75% of all other project costs.
- Total funding from all levels of government cannot exceed 75% of the total project costs. Unless the applicant is a provincial, territorial, municipal government, or an Indigenous organization, then total funding from all levels of government cannot exceed 100% of total project costs.
- Projects to implement logistical best practices (“Logistical best practice”):
Eligible funding:
- The maximum amount payable per projects is $1,000,000 with the following conditions applied:
- The Program will provide funding of up to 50% of total project costs up to $1,000,000 and applicants will contribute the remaining 50% as a combination of cash contributions, in-kind contributions, contributions from partners or funding from other government sources (see Stacking of assistance).
- Projects by not-for-profit organizations or provincial, territorial, regional, or municipal governments or their departments or agencies, where applicable, as well as projects with Indigenous businesses or community groups, may request an increase in the maximum amount payable by the program, up to 75% of total project costs.
- Total funding from all levels of government cannot exceed 75% of the total project costs. Unless the applicant is a provincial, territorial, municipal government, or an Indigenous organization, then total funding from all levels of government cannot exceed 100% of total project costs.
Eligible expenditures will only be eligible for reimbursement by NRCan from the time that a Contribution Agreement is signed by Canada, until the project completion date stated in the Contribution Agreement or until Program funding authority ends. Program funding currently ends March 31, 2027, therefore, all eligible expenditures for reimbursement must be incurred by that date. However, projects have until March 31, 2029, to be completed.
- Projects to repower existing vehicles (“Repower”):
Includes repowering existing vehicles (i.e. their engines and/or drive trains) to operate with a lower-carbon or zero-emission alternative source of fuel such as repowering an eligible diesel truck to operate on natural gas, hydrogen, or electricity. Dual-fuel options are also eligible.
- Projects to purchase low-carbon, alternative fuel vehicles (“Purchase”):
Includes purchasing new vehicles powered by a low-carbon alternative fuel sources such as a hydrogen internal combustion engine or natural gas vehicles.
- Projects to implement logistical best practices (“Logistical best practice”):
Includes implementing operational practices that aim to improve the fuel efficiency and reduce emissions generated during the transportation of goods.
Projects must propose strategic solutions that would optimize logistics and operations. Proposed logistical best practice measures must fall within one or more the following categories:
- Cargo management measures; such as, but not limited to, trailer double decking systems, insulated bulkhead for refrigerator trailers, trailer lift axel, long combination vehicles, drop-frame trailers, load optimization software.
- Measures to reduce unnecessary (empty) miles; such as, but not limited to, route optimization software, co-loading for logistics and shipper companies.
- Implementation of innovative computer software; such as, but not limited to, system Integration using AI intelligence, transportation management systems.
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