Green Freight Program — Assess and Retrofit

Stream 1 of the Green Freight Program provides Canadian entities with the opportunity to receive grant funding up to $250,000 for Third-Party Fleet Energy Assessments and Truck/Trailer Equipment Retrofits, aiming to promote energy efficiency within the on-road freight transportation sector. Eligible applicants include various types of organizations operating heavy-duty vehicles within specified weight classes in Canada.

The Green Freight Program: Stream 1 is a financial initiative launched by Natural Resources Canada (NRCan) with a pivotal focus on enhancing energy efficiency within the on-road freight transportation sector. This program endeavors to assist eligible entities operating in Canada by providing substantial funding for Third-Party Fleet Energy Assessments and Truck/Trailer Equipment Retrofits. By offering financial aid, the program seeks to fortify the adoption of energy-saving practices and technologies, thereby contributing to a more sustainable and efficient freight transportation industry.

The primary objective of Stream 1 is to elevate the knowledge and capabilities of participants within the freight sector, empowering them to integrate energy-efficient solutions tailored to their operational needs. By financially supporting such initiatives, the program aims to reduce greenhouse gas emissions, lower fuel costs, and support the environmental goals of Canada. The grant is accessible through an ongoing application process, enabling eligible entities to secure funding as per NRCan's guidelines. Notably, the grant operates on a first-come, first-served basis, highlighting the importance of prompt application submissions.

To qualify for the Stream 1 grant, applicants must meet specific eligibility criteria. Firstly, entities applying must operate within Canadian borders. Eligible applicants encompass a diverse range of organizations, including: 1. Companies 2. Industry associations 3. Research associations 4. Standards organizations 5. Indigenous and community groups 6. Canadian academic institutions 7. Provincial, territorial, regional, or municipal governments and their departments/agencies Additionally, applicants must possess one or more heavy-duty vehicles in their fleet, which are licensed and insured for operation within Canada. Vehicle eligibility is defined by distinct weight classes ranging from Class 2B to Class 8. Notably, certain types of vehicles such as SUVs, pickup trucks, public transit buses, and recreational off-road vehicles are not eligible for funding under this program.

Under Stream 1, applicants can receive funding for two principal activities: Third-Party Fleet Energy Assessments and Truck/Trailer Equipment Retrofits. The financial assistance aims to cover up to a maximum of $250,000 per applicant per fiscal year. **1. Third-Party Fleet Energy Assessments:** This aspect of the program provides grants for assessments conducted by third-party companies to evaluate fleet energy efficiency. Applicants may choose between a Basic Third-Party Assessment or an Enhanced Third-Party Assessment: - Basic Assessments: Cover fleet retrofits and small-scale logistical projects, with grants covering 50% of the cost, up to $20,000. - Enhanced Assessments: Explore complex projects like alternative fuels or engine repowering, with grants covering up to 50% of costs, up to $40,000. **2. Truck/Trailer Equipment Retrofits:** Grants are offered for purchasing and installing new fuel-saving devices on trucks and trailers. However, eligibility for these grants mandates a comprehensive Fleet Energy Assessment that recommends the proposed devices. Funding for Truck/Trailer Equipment Retrofits is structured as follows: - Aerodynamics Retrofits: Devices such as boat tails, trailer fairings, and wheel covers receive grants varying from $80 to $2,500 per device, covering up to 50% of costs. - Anti-idling Retrofits: Cab heaters, coolers, and coolant heaters are eligible for grants up to $3,000 per device. - Auxiliary Power Units: Diesel or electric APU systems can attract funding of up to $10,000 per device. - Tires Retrofits: Grants for new low rolling resistance and wide-base tires vary between $500 and $2,000, depending on configuration. - Other Devices: Diesel-electric and electric refrigeration units and telematics devices are allotted grants up to $15,000, covering 50% of costs.

Certain funding limitations include ensuring that total government support does not exceed 75% of the project cost. For Indigenous organizations, not-for-profits, and governmental entities, funding can cover up to 100% of costs. Additionally, recipients must disclose all other funding sources, whether governmental or private, as part of the application process.

Prospective applicants must meticulously follow the structured application procedure to secure funding under Stream 1. The process requires an assessment of eligibility, completion of relevant energy assessments, submission of necessary documentation, and adherence to program guidelines. A crucial aspect of the process involves securing a valid assessment that aligns with NRCan's Fleet Energy Assessment Checklist. To apply, entities must email freightassessment-evaluationdeflotte@nrcan-rncan.gc.ca to obtain an application form, complete it with requisite details, and submit it along with supporting documents. If approved, applicants will receive a Grant Agreement, requiring their signature to finalize the grant. All communications and submissions must be conducted by authorized representatives of the applicant entity due to confidentiality and transparency requirements.

The Green Freight Program: Stream 1 embodies a strategic initiative to bolster Canada’s freight transportation sector by fostering the adoption of energy-efficient technologies. Through substantial financial grants, the program incentivizes entities to undertake transformative measures, reducing operational costs and contributing to ecological sustainability. As the program accepts applications on a continuous basis until March 31, 2027, eligible entities are encouraged to apply promptly and align with the nation's overarching environmental and economic goals.