Who Can Apply to the Green Freight Program — Stream 1 (Assess and Retrofit)
The Green Freight Program — Stream 1: Assess and Retrofit (GFP, administered by Natural Resources Canada, NRCan) provides grants to help Canadian fleets reduce fuel consumption and greenhouse gas emissions through fleet energy assessments and fuel‑saving truck and trailer retrofits. This article explains, in detail, who can apply, which vehicles qualify, and what conditions must be met to be considered eligible.
Eligibility is the first gate to access NRCan Green Freight funding. Stream 1 operates with a continuous intake and first‑come, first‑served review. Understanding entity, fleet, vehicle, and activity requirements will help you self‑assess quickly and prepare a compliant application.
Program Overview
Stream 1 (Assess and Retrofit) supports two activity types:
Third‑Party Fleet Energy Assessments; and
Fuel‑saving Truck/Trailer Equipment Retrofits.
Key funding parameters include:
Up to $250,000 per applicant per fiscal year (April 1 to March 31).
Typical cost‑share: up to 50% of eligible costs, with device‑level caps for retrofits and set caps for assessments (e.g., up to $20,000 for a basic third‑party assessment and up to $40,000 for an enhanced third‑party assessment).
Activities must be completed and paid on or after December 12, 2022.
Continuous intake through March 31, 2027, subject to budget availability and first‑come, first‑served processing.
A Fleet Energy Assessment is mandatory before claiming retrofit devices. The assessment must analyze and recommend the device(s) you plan to purchase. Self‑assessments may be submitted to meet the analysis requirement but are not reimbursable. Third‑party assessments are reimbursable within program caps if they meet NRCan’s checklist criteria.
Applicant Type Requirements
To qualify for Stream 1, applicants must meet two core requirements.
1) Operate in Canada as an eligible organization
Eligible applicant types include:
Companies (all sizes, including SMEs);
Industry associations;
Research associations;
Standards organizations;
Indigenous organizations and community groups;
Canadian academic institutions; and
Provincial, territorial, regional, or municipal governments and their departments or agencies, where applicable.
Practical implications:
Your organization must be legally constituted and active in Canada.
You must provide documentation of legal status during application.
The authorized representative named in the application must be from the applicant entity. Third parties are not permitted to submit on your behalf.
2) Operate one or more heavy‑duty vehicles for business use in Canada
You must own or lease (long‑term) at least one eligible heavy‑duty vehicle used for business operations.
Vehicles must be licensed and insured to operate in Canada.
Short‑term rentals are not eligible; the applicant would need to be the primary owner if the unit is a “rental vehicle.”
Explicit exclusion
Softwood lumber companies, and companies vertically integrated with softwood lumber companies, are not eligible to apply.
Size & Scale Criteria
Stream 1 does not impose a minimum fleet size beyond requiring at least one eligible heavy‑duty vehicle in service. Consider the following practical points:
Carriers with a single Class 8 tractor can qualify, provided all other requirements are met.
Large national fleets can also apply; the annual per‑applicant cap is $250,000 per fiscal year.
Projects should be scoped to available budget caps and device‑level maximums. Applicants can submit multiple applications over time; each must be complete and compliant.
There are no explicit revenue, asset, or headcount thresholds. However, your ability to cover the cost‑share (typically 50%) and to pay invoices before reimbursement is essential.
Geographic Eligibility
The program is federal and Canada‑wide. Applicants can be based in:
Any province or territory, including Quebec, Ontario, British Columbia, Alberta, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Yukon, Northwest Territories, and Nunavut.
Municipal and regional entities may apply where applicable.
Key geographic rules:
Operations must be in Canada, and vehicles must be licensed and insured in Canada.
Multi‑province fleets and cross‑border carriers are eligible for Canadian‑operated vehicles and activities; only Canadian‑eligible costs are claimable.
Remote and northern operations are eligible, subject to the same requirements.
Project & Activity Requirements
Stream 1 covers two activity types, each with specific eligibility conditions.
1) Third‑Party Fleet Energy Assessments
Assessments must meet NRCan’s Fleet Energy Assessment minimum criteria.
Two reimbursement tiers:
Basic third‑party assessment: up to 50% to a maximum of $20,000.
Enhanced third‑party assessment: up to 50% to a maximum of $40,000.
The third‑party assessment must include a written rationale explaining why recommended technologies suit your operations and how the analysis was conducted.
Self‑assessments can be submitted to satisfy the retrofit sequence rule but are not eligible for reimbursement.
2) Truck/Trailer Equipment Retrofits
Purchases and installations must be completed on or after December 12, 2022.
A Fleet Energy Assessment is required before purchasing devices, and the assessment must analyze and recommend the specific devices to be installed.
Devices must come from NRCan’s eligible retrofit list and align with device‑level caps.
Tires must be new and appear on the SmartWay Verified Tire Technologies list (retreads and recaps are ineligible).
Vehicles and trailers receiving devices must be in service, within eligible weight classes, and used for business operations.
Documentation and timing
You must provide invoices and proof of payment showing the device is fully paid. Payment by line of credit or credit card is acceptable; loans are only acceptable once the loan is fully repaid.
Applications are accepted continuously until March 31, 2027; funding is limited and processed on a first‑come, first‑served basis.
Vehicle Eligibility Requirements
Eligible on‑road vehicle classes include:
Class 2B: 3,856–4,536 kg GVWR
Class 3: 4,536–6,350 kg GVWR
Class 4: 6,350–7,257 kg GVWR
Class 5: 7,257–8,845 kg GVWR
Class 6: 8,845–11,793 kg GVWR
Class 7: 11,793–14,969 kg GVWR
Class 8: more than 14,969 kg GVWR
Additional eligible vehicle types:
Cargo vans, cutaway vans, and step vans used for commercial purposes.
Off‑road vehicles designed primarily for the transport of property or equipment exclusively on undeveloped road rights of way, marshland, open country, or other unprepared surfaces, provided they are not used for recreational purposes. Program discretion applies to final eligibility.
Leased vehicles with a valid lease agreement and registration, and where the lessee has legal authority to modify the equipment.
Non‑eligible vehicle types include:
SUVs and pickup trucks;
Public transit buses and school buses;
Off‑road vehicles used for recreational purposes;
Newly purchased vehicles already equipped with the proposed retrofit device(s) at delivery; and
Vans that are not cargo, cutaway, or step vans for commercial use.
Financial & Operational Criteria
Cost‑share and stacking
Stream 1 generally reimburses up to 50% of eligible costs, subject to device and assessment caps and the per‑applicant fiscal‑year maximum of $250,000.
Total Canadian government funding for a project normally may not exceed 75% of total costs.
Exceptions (up to 100% government funding) apply where the recipient is one of the following:
An Indigenous organization;
A project that is Indigenous owned or partially owned;
A not‑for‑profit organization;
A provincial, territorial, regional, or municipal government or their department or agency.
Applicants must disclose all sources of funding (federal, provincial/territorial, municipal, and industry) at application.
Proof of payment and cash flow
Proof of payment must show that devices or services are fully paid.
Line of credit and credit card payments are acceptable if fully paid; bank or private loans are not accepted until the loan is paid off.
Applicants should plan internal cash flow accordingly to meet reimbursement timelines.
Operational compliance
The contact information on the application must belong to a representative of the applicant entity.
Third‑party submission is no longer permitted to protect confidentiality and avoid conflicts of interest.
Vehicles must be licensed, insured, and in service in Canada at the time of the retrofit claim.
Ineligible Applicants
You are not eligible to apply if any of the following apply:
You are a softwood lumber company or a company vertically integrated with a softwood lumber company.
You do not operate in Canada or cannot demonstrate Canadian operations.
You do not own or hold a long‑term lease for at least one eligible heavy‑duty vehicle in service for business use.
Your submission is filed by a third party or consultant, rather than an authorized representative of your organization.
Your vehicles fall exclusively into non‑eligible categories (e.g., SUVs, pickup trucks, school buses, public transit buses).
Your retrofit plan applies to brand‑new vehicles already equipped with the proposed devices at delivery.
Special Cases & Exceptions
Leased vehicles: Eligible if the lessee has a valid lease, valid registration, and legal authority to modify the vehicle or trailer. Short‑term rentals are not eligible.
Owner‑operators: May be eligible if they operate in Canada and have at least one eligible heavy‑duty vehicle licensed and insured for business use.
Off‑road vehicles: May be eligible when used for work on unprepared surfaces as defined by the program; recreational off‑road vehicles are not eligible.
Associations and public bodies: Industry associations, research associations, standards organizations, academic institutions, and eligible public entities can apply if they meet the program’s core requirements.
Multi‑jurisdictional fleets: Eligible for Canadian‑operated vehicles and activities; costs must be claimable under Canadian rules.
Self‑Assessment Checklist
Use this quick checklist to self‑screen before preparing your application:
Our organization operates in Canada as one of the eligible entity types.
We have at least one eligible heavy‑duty vehicle (Class 2B–8) in service, licensed and insured in Canada for business use.
We are not a softwood lumber company and are not vertically integrated with one.
Our authorized representative will submit the application; no third party will apply on our behalf.
If applying for retrofits, we have completed (or will complete) a Fleet Energy Assessment that analyzes and recommends the exact devices to be purchased.
All proposed activities will be completed and paid on or after December 12, 2022.
Our selected devices are on NRCan’s eligible list, and we understand device‑level caps (including special rules for tires).
We can cover our share of costs and have a plan to pay invoices in full before claiming reimbursement.
We will disclose all government and industry funding sources and respect stacking limits.
We can provide legal status documents, vehicle registration, invoices, proof of payment, and installation confirmations as required.
If you answer “yes” to all items, you are likely eligible to apply. If any answer is “no,” clarify requirements before proceeding.
Conclusion
Stream 1 of NRCan’s Green Freight Program is open to a broad range of Canadian organizations that operate heavy‑duty vehicles and are ready to invest in proven, fuel‑saving measures. Eligibility hinges on operating in Canada, meeting vehicle class and use requirements, and following the assessment‑first sequence for retrofits. With continuous intake through March 31, 2027, qualified applicants can plan projects over multiple fiscal years, respecting cost‑share, stacking rules, and documentation standards. Once you confirm eligibility, review the application steps and prepare your documents to stay ahead in a first‑come, first‑served process. For next steps, consult detailed guidance on how to apply and what expenses can be funded under Stream 1.
