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Green Freight Program — Repower and Replace
Supports freight fleet modernization projects
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Funding available
$ 5,000,000
Location
Canada
Who can apply
Corporations, either for-profit or not-for-profit, that are validly incorporated or registered in Canada
See full eligibility
Overview
GFP Stream 2: Fleet modernization provides cost-shared, non-repayable contributions through Contribution Agreements to incorporated or registered Canadian organizations, governments, Indigenous organizations, and public sector bodies for freight fleet modernization. Eligible projects include repowering existing vehicles, purchasing low-carbon alternative fuel vehicles, and implementing logistical best practices.
Receipt of requests is now closed
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At a glance
Funding available
Financing goals
- Reduce environmental footprint
Eligible Funding
- Maximum amount : 5,000,000 $
- Up to 75% of project cost
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- Non-profit
- Public or Parapublic institution
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Non-profit candidates
Sector of operation
- All industries
Target groups
- All the groups
Revenue structures
- All structures
Scope
- All dimensions
Next Steps
1
Determine your project
Availability timeline
2026
Periods: 1
Activities funded
- Repower projects for repowering or refuelling existing vehicles
- Purchase projects for low-carbon alternative fuel vehicles
- Logistical best practices projects
Documents Needed
- Completed application form
- Quotes for the proposed repower technology or equipment, new low-carbon alternative truck, or logistical best practice technology, including implementation, installation, and associated work costs; Purchase projects must also include a quote for a standard comparable diesel truck
- Proof of funding showing that at least half of the non-NRCan funding is available and secured
- Proof of incorporation and, for Repower or Logistical best practice projects, proof of ownership or a long-term lease agreement extending at least 3 years beyond the proposed project end date
- An enhanced fleet energy assessment that references the exact fleet modifications and/or purchases proposed in the project
Sources and recorded changes
- Source change captured
- Change recorded
- Record updated
A captured source change or record update does not confirm eligibility. Check the funder’s current rules before applying.
Green Freight Stream 2 guidance added
The Green Freight Program now shows detailed Stream 2 eligibility, application, evaluation, and eligible-expenditure guidance, including a closed call for proposals.
The Green Freight Program’s Stream 2 supporting pages now provide detailed guidance instead of an outage notice, including who can apply, who cannot apply, eligible vehicles, eligible expenditures, and step-by-step application and evaluation instructions. The pages also show that this competitive Call for Proposals is closed, the program funding authority ends March 31, 2027, projects must be completed by March 31, 2029, and some projects must meet the stated fuel-blend and cost-share requirements, including 50% and 25% rules and a 1% renewable or non-fossil fuel blend for purchase projects. A contact email is now visible on the eligibility, application, and evaluation pages, and the application guide adds section-by-section instructions, required supporting documents, and merit-point guidance.
Eligibility
Who is eligible?
- Corporations, either for-profit or not-for-profit, that are validly incorporated or registered in Canada
- Provincial, territorial, regional, or municipal governments, and their departments or agencies
- Indigenous organizations, including for-profit or non-profit organizations owned or controlled by an Indigenous entity, band councils, and Indigenous government authorities established by a Self-Government Agreement or a Comprehensive Land Claim Agreement
- Public sector bodies established by statute or regulation, or wholly owned by a province, municipal, or regional government
Who is not eligible
- Federal entities, including Crown Corporations and their subsidiaries
- Softwood lumber companies and entities vertically integrated with them
- Freight transportation entities whose vehicles are ineligible
- Third-party consultants or entities applying on behalf of an eligible applicant
Eligible expenses
- Professional services, including scientific, technical, consulting, management, contracting, engineering, construction, installation, testing, commissioning, training, marketing, data collection, logistics, maintenance, printing, distribution, audit, evaluation, and legal fees directly related to the project
- Salaries and a reasonable prorated share of benefits for employees with direct involvement in the project
- Reasonable travel, food, and lodging costs necessary for project activities, overhead expenses directly related to the project, and licence and permit fees
- Honoraria and ceremonial costs for Indigenous peoples, particularly elders and knowledge keepers, to participate in project activities
- GST, PST, and HST net of any tax rebate, plus eligible capital expenses such as vehicle retrofits or upgrades, vehicle purchases, and eligible on-site charging and refuelling infrastructure costs
Ineligible Costs and Activities
- Costs incurred outside the eligible expenditure period, including costs for preparing the application
- In-kind costs
- Legal costs for legal issues that arise during the project
- Overhead expenses not directly linked to the project, and hospitality or catering services
- Capital costs for producing alternative fuels, electrical grid upgrades, stand-alone infrastructure projects, or retrofitting and upgrading existing capital assets not directly linked to the on-site refuelling needs of the core project activity type
Eligible geographic areas
- Canada
Selection criteria
- Merit points are awarded for workforce diversity, including employing Indigenous people and women in non-administrative roles.
- Merit points are awarded for showing how the project will improve business or service offerings, reduce diesel consumption, and include a clear maintenance and fueling plan.
- Merit points are awarded for stronger fuel savings and greenhouse gas emission reductions, and for the ability to track and report those results.
- Merit points are awarded when 50% or more of fleet kilometres are driven in Canada and when the applicant demonstrates a relationship with a renewable or non-fossil fuel supplier and can commit to an average renewable or non-fossil fuel blend of 40% or more.
- Merit points are awarded for a clear project timeline, well-defined risks and mitigation measures, and NRCan may consider regional representation in final project selections.
How to apply
- Complete an enhanced fleet energy assessment, through a third-party assessor or self-assessment, that meets the NRCan Fleet Energy Assessment Criteria and Guidelines sections 1 through 4.
- Complete the application form, ensure all required fields and mandatory criteria are met, and sign Section 7 and Section 8.
- Gather the required supporting documentation, including quotes, proof of funding, proof of incorporation, proof of ownership or long-term lease when required, and the enhanced fleet energy assessment.
- Submit the completed application and supporting documents by email in PDF format; ZIP files are not accepted, and multiple emails must be numbered in the subject line.
Processing and Agreement
- After submission, applicants receive an automatic email acknowledging receipt.
- Applications first undergo mandatory eligibility screening and then a merit review and evaluation.
- Only the highest scoring proposals move forward until all program funds are committed; unsuccessful applicants receive a Letter of Regret and successful applicants receive a Letter of Conditional Approval.
- Successful applicants must complete a mandatory third-party financial due diligence assessment, and NRCan may request confirmations or clarifications; the final selection decision remains at NRCan’s sole discretion.
- If due diligence results are suitable, NRCan begins Contribution Agreement negotiations, and the level of risk determined may set the percentage of risk holdback applied to payment claims.
Additional information
- Applicants may hire a third-party consultant or project manager to support a Stream 2 application, but the application contact information must belong to the applying entity and NRCan will communicate only with the applying organization.
Contacts
Other components of this program
Explore related funding streams and grants that belong to the same program.
- Green Freight Program — Assess and RetrofitSupports fleet assessments and fuel-saving retrofits
- Green Freight Program (GFP) – Stream 2: Fleet ModernizationSupports freight fleet modernization through cleaner technologies
- Green Freight Program Applicant’s Guide: Stream 1 – Application review and decision processFunding for fleet fuel-saving upgrades
Frequently Asked Questions about the Green Freight Program — Repower and Replace Program
What is the Green Freight Program — Repower and Replace?
GFP Stream 2: Fleet modernization provides cost-shared, non-repayable contributions through Contribution Agreements to incorporated or registered Canadian organizations, governments, Indigenous organizations, and public sector bodies for freight fleet modernization. Eligible projects include repowering existing vehicles, purchasing low-carbon alternative fuel vehicles, and implementing logistical best practices.
How much funding can be received?
Green Freight Program — Repower and Replace Funds up to 75% of admissible expenses, capped at $5,000,000 per project.
Who is eligible for the Green Freight Program — Repower and Replace program?
To be eligible for the Green Freight Program — Repower and Replace program, you must:
The applicant must be a legal entity incorporated or registered in Canada and complete an enhanced fleet energy assessment that meets NRCan sections 1 through 4 before applying.
The project must fit an eligible funding activity and involve eligible vehicles within Classes 2B to 8.
Purchase projects must commit to fueling new vehicles with at least a 1% blend of renewable or non-fossil fuels.
What expenses are eligible under Green Freight Program — Repower and Replace?
Repower projects for repowering or refuelling existing vehicles
Purchase projects for low-carbon alternative fuel vehicles
Logistical best practices projects
Who can I contact for more information about the Green Freight Program — Repower and Replace?
You can contact Natural Resources Canada (NRCan) by email at freightassessment-evaluationdeflotte@nrcan-rncan.gc.ca.
Where is the Green Freight Program — Repower and Replace available?
The Green Freight Program — Repower and Replace program is available across Canada.
Is the Green Freight Program — Repower and Replace a grant, loan, or tax credit?
Green Freight Program — Repower and Replace is a Grant and Funding