What the Green Freight Program — Assess and Retrofit Can Fund
The Green Freight Program — Stream 1: Assess and Retrofit (GFP) provides cost-shared funding to help Canadian freight fleets complete fleet energy assessments and implement fuel‑saving truck and trailer retrofits. This guide explains exactly what expenses the program can fund, how much support is available per device or activity, and the documentation you will need to claim reimbursement. All information reflects program guidance as of 2025-12-03.
Program Funding Overview
Purpose: Support energy-efficient retrofits and evidence-based planning through fleet energy assessments, reducing fuel consumption and greenhouse gas emissions across Canadian freight operations.
Funding model: Non-repayable grant (reimbursement). Most retrofit devices are funded at 50% of eligible costs up to a per-device cap; certain tires are funded at 20% or 30%.
Annual maximum: Up to $250,000 per applicant per fiscal year (April 1 to March 31).
Eligible activity window: Eligible activities must be completed and fully paid on or after December 12, 2022.
Intake timeline: Continuous intake on a first-come, first-served basis until March 31, 2027, subject to available budget and any future program adjustments.
Assessment prerequisite: For retrofit claims, a Fleet Energy Assessment must be completed before purchase, and it must analyze and recommend each device being claimed. Self-assessments may be used to satisfy the prerequisite but are not reimbursable.
Funding Amounts & Rates
Under Stream 1, funding covers two activity types:
Third‑Party Fleet Energy Assessments
Basic assessment: 50% of costs up to $20,000.
Enhanced assessment: 50% of costs up to $40,000.
Notes: Must meet NRCan’s Fleet Energy Assessment Checklist. A written explanation must support key sections of the assessment.
Truck/Trailer Equipment Retrofits
Most devices: 50% of eligible purchase and installation costs up to a per-device maximum.
Tires: New low rolling resistance tires and wide‑base tires have distinct rates and caps, including an annual cap for low rolling resistance tires.
Annual applicant cap: Combined retrofit and assessment support cannot exceed $250,000 per applicant per fiscal year.
Eligible Expenses
Eligible costs must be directly tied to approved activities and must be completed and fully paid within the program’s eligible period. The sections below detail what can be claimed, organized by category.
A. Third‑Party Fleet Energy Assessments
What is funded:
Professional fees charged by an independent assessor to complete a Basic or Enhanced Fleet Energy Assessment that meets NRCan’s minimum criteria.
The analysis must justify the recommended measures and outline the methodology.
Funding rate and caps:
Basic assessment: 50% up to $20,000.
Enhanced assessment: 50% up to $40,000.
Not funded:
Self‑assessments conducted internally by the applicant (even if used to satisfy the prerequisite for retrofit claims).
B. Aerodynamic Retrofits (Truck/Trailer)
Most aerodynamic devices are eligible at 50% of the cost up to a per-device cap. Examples include:
Boat tail / trailer rear device: 50% up to $2,500 per device.
Trailer top and side kits: 50% up to $1,000 per device.
Trailer fairings / side skirts: 50% up to $2,500 per device.
Trailer underbody fairing: 50% up to $2,000 per device.
Tractor‑trailer gap reducer: 50% up to $1,000 per device.
Aerodynamic splash guard: 50% up to $80 per device.
Vented mud flaps: 50% up to $80 per device.
Wheel covers: 50% up to $250 per device.
Eligible expenses typically include the device purchase and installation labour tied to the device. The Fleet Energy Assessment must have analyzed and recommended the device.
C. Anti‑Idling Devices
Cab heater: 50% up to $2,000 per device.
Cab cooler: 50% up to $3,000 per device.
Coolant heater: 50% up to $1,500 per device.
These devices reduce main‑engine idling for HVAC and pre‑heating needs. Purchase and installation costs specific to the device are eligible when recommended in the assessment.
D. Auxiliary Power Units (APUs)
Diesel/conventional APU: 50% up to $10,000 per device.
Electric APU: 50% up to $10,000 per device.
Electric APU paired with solar: 50% up to $10,000 per device.
APUs provide electrical power and, in some cases, HVAC without relying on the main engine. Costs for purchase and installation of eligible APU systems can be claimed, subject to the cap.
E. Tires and Tire Systems
Important: Stream 1 tire grants fund new tires only and only if on the SmartWay Verified Tire Technologies list. Retreaded or recapped tires are not eligible.
Low rolling resistance (LRR) tires, dual configuration:
20% up to $500 per tire.
Maximum LRR tire grant per applicant: $10,000 per year.
Wide‑base tires (size 445 or greater):
30% up to $2,000 per tire.
The cap can include the cost of the wheel and rim associated with the wide‑base tire.
Automatic tire inflation system (ATIS):
50% up to $1,000 per device.
Tire pressure monitoring system (TPMS):
50% up to $1,000 per device.
F. Refrigeration Units (TRUs)
Diesel‑electric refrigeration units (hybrid): 50% up to $15,000 per unit.
Electric refrigeration units: 50% up to $12,000 per unit.
Funding targets the purchase and installation of eligible new refrigeration technologies that reduce or eliminate demand on the main diesel engine.
G. Telematics Hardware
Telematics device hardware: 50% up to $700 per device.
Important scope note: Funding applies to the physical telematics device hardware. Service subscriptions, software licences, electronic logging devices (ELDs) used for compliance, and basic tracking services are typically not eligible. Confirm device functionality and documentation before purchase.
H. Installation Labour
Installation labour directly tied to eligible devices can be included in the claim when it is part of the retrofit project and supported by invoices from the installer.
A signed letter from the installer confirming completion and payment is required for retrofit claims.
I. Fleet Energy Assessment Prerequisite (for retrofits)
The assessment (self‑assessment or third‑party) must be completed before purchasing new retrofit devices.
The assessment must analyze and recommend each device included in the claim.
Only third‑party assessments are reimbursable.
Ineligible Expenses
While Stream 1 covers a broad set of fuel‑saving technologies, several costs and situations are not eligible:
Vehicles and configurations
Newly purchased vehicles already equipped with the proposed retrofit device(s) at delivery.
SUVs, pickup trucks, public transit buses, and school buses.
Vans that are not cargo, cutaway, or step vans for commercial use.
Off‑road vehicles used for recreational purposes.
Assessment costs
Self‑assessments are not reimbursable (though permissible to satisfy the prerequisite).
Tires
Retreads and recaps are not eligible.
Tires not listed on the SmartWay Verified Tire Technologies list are not eligible for the tire grants described.
Telematics and software
Electronic logging devices (ELDs) for compliance, basic tracking devices, software subscriptions, and ongoing service fees are not eligible under telematics hardware funding.
Financing and payment
Any purchase financed through a bank or private lender is not considered paid in full until the loan balance is fully repaid. Claims require proof of full payment.
General financing charges and interest are not eligible.
General exclusions
Costs incurred before December 12, 2022.
Items or services not analyzed and recommended in the Fleet Energy Assessment when claiming retrofits.
Costs beyond the per‑device caps or beyond the annual applicant maximum of $250,000 per fiscal year.
Note: Treatment of taxes, delivery, or miscellaneous fees may vary; applicants should budget conservatively and verify eligibility in advance.
Expense Documentation Requirements
To claim eligible costs, applicants must assemble a complete and consistent documentation package. For retrofit claims, prepare:
Fleet Energy Assessment
Completed before device purchase.
Must analyze and recommend each claimed device.
Invoices and proof of payment
Invoices for devices and installation.
Proof that each item has been fully paid (credit card or line of credit statements can be acceptable when the balance is paid; loans are not acceptable until repaid).
Installer confirmation
Signed letter from the company responsible for installation confirming completion and payment.
Device Purchase and Installation Table
Completed with device details, quantities, serials (if available), costs, and dates.
Vehicle documentation
Proof of vehicle registration for each unit receiving a retrofit.
Funding disclosure
Evidence of other public or private funding, if applicable, for stacking validation.
Attestation
Dated and signed by a duly authorized officer of the applicant entity.
Documentation must be clear, legible, and consistent across invoices, payment records, and the application form. Missing or inconsistent documentation will result in automatic rejection.
Examples of Funded Projects
Illustrative scenarios show how Stream 1 funding can be combined across devices and activities. The examples below are indicative; actual outcomes depend on invoices, proof of payment, and per-device caps.
Long‑haul Class 8 carrier
Devices: Trailer side skirts (50% up to $2,500 each), tractor‑trailer gap reducers (50% up to $1,000), diesel APU (50% up to $10,000), wheel covers (50% up to $250).
Assessment: Enhanced third‑party assessment (50% up to $40,000) that modeled highway duty cycles and idle hours.
Funding result: Multiple devices funded at 50% to their caps; APU at up to $10,000 per unit; combined with assessment support within the $250,000 annual maximum.
Refrigerated regional fleet
Devices: Electric refrigeration units (50% up to $12,000) plus automatic tire inflation systems (50% up to $1,000) on trailers.
Assessment: Basic third‑party assessment (50% up to $20,000) quantifying stop‑start duty cycles and TRU load profiles.
Funding result: Device claims capped per unit; labour eligible when tied to installations; annual applicant maximum applies.
Urban delivery fleet (mixed Classes 4–7)
Devices: Telematics hardware (50% up to $700 per device), cab heaters (50% up to $2,000), low rolling resistance tires (20% up to $500 per tire, up to $10,000 per year).
Assessment: Self‑assessment used for retrofit eligibility sequencing (no reimbursement), or a third‑party assessment partly reimbursed.
Funding result: Multiple smaller claims across a larger number of units; verify tire brand/line against SmartWay requirements.
Funding Disbursement & Claiming Process
Reimbursement basis: Funding is paid after eligible activities are completed and fully paid. Applicants submit a complete application with invoices and proof of payment.
Multiple submissions: Applicants do not need to wait for approval of one application before submitting a new one. Each package must be complete.
Proof of payment rules:
Acceptable when demonstrating the device is fully paid (including if paid by credit card or line of credit).
Bank or private loans are not acceptable as proof until the loan is fully repaid.
Processing: Applicants receive confirmation of receipt within five business days. Timelines for review vary with volume and completeness.
Stacking Rules
Standard cap: Total Canadian government funding for a project may not exceed 75% of total eligible project costs.
Up to 100% in specific cases:
Indigenous organizations.
Indigenous‑owned or partially owned projects.
Not‑for‑profit organizations.
Provincial, territorial, regional, or municipal governments (and their departments or agencies).
Disclosure: Applicants must disclose all other sources of funding (federal, provincial/territorial, municipal, and industry) for the project at application.
Real‑World Budgeting Tips
Sequence matters: Complete the Fleet Energy Assessment first and ensure it explicitly recommends each device you plan to purchase and claim.
Prioritize high‑impact devices: On long‑haul operations, APUs and aerodynamic devices often yield substantial fuel savings; on local/regional routes, tire technologies, ATIS/TPMS, and telematics hardware can deliver consistent benefits.
Combine categories strategically: Pair aerodynamic improvements with tire technologies and anti‑idling solutions to maximize efficiency across duty cycles.
Track annual caps: Monitor the $250,000 annual applicant maximum and the $10,000 annual cap for low rolling resistance tires.
Validate tire eligibility: Use only new LRR or wide‑base models that meet SmartWay Verified Tire Technologies requirements.
Plan documentation early: Ask installers to include serial numbers and installation dates on invoices and to prepare the required completion letter.
Budget for ineligible costs: Set aside funds for any taxes, shipping, software subscriptions, or fees that are not claimable.
Consider assessment depth: For complex projects (e.g., TRUs, APUs across diverse routes), an Enhanced assessment may better capture savings and support stronger device recommendations.
Conclusion
NRCan’s Green Freight Program — Stream 1: Assess and Retrofit funds two essential levers for freight decarbonization: fleet energy assessments and a defined list of fuel‑saving retrofit devices for trucks and trailers. Most devices are funded at 50% to per‑device caps, with tailored rates for tires, and applicants can receive up to $250,000 per fiscal year. Ensure you complete the Fleet Energy Assessment before purchasing devices, document all costs and proof of full payment, and disclose any stacked public funding. By aligning your retrofit plan with the program’s eligible expenses and documentation rules, your organization can confidently claim Green Freight funding and accelerate cost‑effective emissions reductions across your Canadian fleet.
