How much funding can be received?

The Green Freight Program's Stream 2 offers non-repayable contributions to support Canadian companies in switching fuels, repowering engines, and purchasing low-carbon alternative fuel vehicles for medium and heavy-duty vehicles. This program shares up to 50% of the incremental or total project costs, with a maximum contribution of $5 million per project. Eligible activities include permanent modifications to reduce diesel consumption, replacing engines or drive trains, and ensuring at least a 40% blend of renewable or non-fossil fuels for new vehicle purchases.

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Eligible applicants must be legal entities validly incorporated or registered within Canada. This encompasses businesses and organizations across various Canadian provinces and territories, as well as government departments where applicable.

Any province or territory in Canada where companies are incorporated or registered.
Provincial, territorial, regional, or municipal governments and departments within Canada.
Indigenous organizations based across Canada.

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Eligibility for this grant is determined by specific requirements related to the applicant's profile and proposed activities.

The applicant must be a legal entity validly incorporated or registered in Canada.
Eligible entities include companies, industry associations, research associations, standards organizations, Indigenous and community groups, Canadian academic institutions, and provincial, territorial, regional, or municipal governments or their departments or agencies where applicable.
Softwood lumber companies and those vertically integrated with them are not eligible.
The applicant must have a completed fleet energy assessment recommending the actions proposed in their application.
A complete proposal including all required reference documents must be submitted within the specified 90-day request for proposal period.

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The eligibility criteria for the Green Freight Program's Stream 2 focus on legal entities in Canada that are not involved in softwood lumber production or trade, alongside specific classes of medium and heavy-duty vehicles.

Eligible entities include legally incorporated or registered companies, industry associations, research associations, standards organizations, Indigenous and community groups, academic institutions, and various levels of government or their departments.
Eligible vehicles must fall within weight classes 2B to 8, excluding vans, SUVs, pickup trucks, transit buses, and off-road vehicles.
Applicants must provide a completed green freight assessment recommending proposed actions and secure a minimum of 50% funding for the project costs from non-NRCan sources.

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This grant excludes certain companies related to softwood lumber due to ongoing trade disputes. The restrictions ensure that funds are directed toward sectors beneficial to the program's environmental goals.

Softwood lumber companies.
Companies vertically integrated with softwood lumber production.

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This grant supports projects that aim to transition medium and heavy-duty vehicles to lower-carbon alternatives. The eligible activities focus on modifying existing vehicles to enhance fuel efficiency and replacing them with more sustainable options.

Repowering medium and heavy-duty vehicles to permanently modify them for reduced diesel consumption and lower GHG emissions through fuel switching.
Replacing conventional diesel trucks with new vehicles powered by lower-carbon fuels, ensuring a commitment to at least a 40% blend of renewable or non-fossil fuels over a specified period.

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Eligible expenses for this grant must be directly related to the project and are necessary for its implementation.

Professional services.
Capital expenses.
GST, PST, and HST.

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The evaluation and selection of projects for this grant are based on specific merit criteria to ensure the proposed projects align with the program's objectives and available resources.

Company experience: Includes level of experience and workforce diversity, with merit points for employing Indigenous and women employees in non-administrative roles.
Business operations: Merit points for fleets that travel 50% or more of their kilometres within Canada.
Project description: Expected reduction in diesel consumption and improvements to the fleet.
Participation in sustainability initiatives: Evaluation of existing fuel and GHG reduction initiatives.
Project outcomes and benefits: Estimation of fuel savings and GHG reductions, and demonstration of additional economic, social, and environmental impacts.
Project timelines: Reasonable timeline with key milestones and expected expenses.
Feasibility plan: Includes a fuelling network assessment and servicing plan for alternative fuel trucks.
Reporting requirements: Demonstrated ability to track fuel consumption metrics accurately.

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Here are the steps to apply for this grant:

Step 1: Complete Application Package
- Fill out the application form provided by NRCan.
- Ensure that all required supporting documents are compiled, including a completed green freight assessment, quotes for proposed activities, proof of funding, and any additional supporting documentation for assertions.
- Include a signed and dated attestation from a duly authorized officer of your organization.
Step 2: Prepare Supporting Documentation
- Ensure all supporting documents are saved in PDF format.
- Ensure the total file size of attachments doesn’t exceed the web form's limit; otherwise, prepare to send the excess by email.
Step 3: Submit Application via NRCan Web Form
- Visit NRCan’s application web form to submit your completed application package.
- Attach all required documents through the web form.
- Submit the application by 23:59 Eastern Standard Time, November 16, 2023.
Step 4: Send Additional Documentation by Email (if needed)
- If your electronic submission exceeds the maximum file size, forward additional attachments by email.
- Ensure the subject line contains the project name and applicant's name when sending these additional documents.
- Send to the email address: freightassessment-evaluationdeflotte@nrcan-rncan.gc.ca.
Step 5: Obtain Confirmation of Submission
- Wait for a notification from the program acknowledging receipt of your application.
- Consider your application successfully received only once you have this acknowledgment from NRCan.

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Additional miscellaneous information about the Green Freight Program includes details on privacy regulations, data sharing policies, and language requirements. Moreover, there are specific instructions for applicants in Quebec, as well as conflict of interest guidelines for current or former public servants.

Privacy notice under the Access to Information Act ensures protection of confidential information supplied to NRCan.
Applicant’s data may be used for eligibility assessment, shared with other government branches, or publicized as part of successful project lists.
Program communications may occur in both official languages, and applicants are encouraged to use the language of their choice.
Special provisions under Quebec's M-30 Law might require additional steps for compliance for Quebec-based applicants.
Conflicts of interest regulations apply to current or former public servants engaged in applying for the grant.

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freightassessment-evaluationdeflotte@nrcan-rncan.gc.ca

Apply to this program

Funding for Green Freight Initiatives in Canada

The Green Freight Program's Stream 2 offers financial contributions to Canadian organizations aiming to integrate low-carbon vehicle solutions in medium and heavy-duty fleets. The program incentivizes switching to alternative fuels and repowering vehicles to foster environmental sustainability in the transportation sector.

Exploring the Green Freight Program: Stream 2 Details and Benefits

The Green Freight Program administered by Natural Resources Canada (NRCan) is a competitive funding initiative focused on reducing the carbon footprint of medium and heavy-duty vehicles across the country. This program specifically under Stream 2, dubbed "Repower and Replace," is structured to financially support projects that involve switching to lower-carbon fuels and repowering engines and drive trains in qualifying vehicles. With a cap of $5 million per project, NRCan covers up to 50% of the project's incremental or total costs, thus significantly reducing financial barriers for businesses pursuing eco-friendly transportation solutions.

Applicants eligible for Stream 2 include a wide array of Canadian entities, such as companies, industry associations, Indigenous and community groups, academic institutions, and certain government bodies, excluding softwood lumber companies. The vehicles eligible for this program range from Class 2B to Class 8, excluding certain vans, SUVs, and buses. One of the core eligibility requirements is a fleet energy assessment conducted either independently or by a third party, ensuring that proposed changes are data-driven and strategically sound. These assessments are vital as they substantiate the need for proposed environmental modifications, aligning with NRCan’s objective to foster data-informed investments.

Applicants may propose either "Repower" activities, which involve permanent technological overhauls to reduce reliance on diesel, or "Replace" activities, which focus on acquiring new vehicles capable of running on higher renewable or non-fossil fuel blends. These activities emphasize long-term operational shifts towards sustainability, which not only aim at immediate environmental benefits but also contribute to enduring economic gains through fuel efficiencies and reduced emissions.

Successful proposals under this stream must also illustrate a commitment to using renewable fuel blends of at least 40%, contributing further to Canada's overarching goals of emission reduction. The competitive nature of the funding emphasizes merit-based selection, prioritizing proposals that demonstrate clear environmental benefits, operational feasibility, and long-term sustainability impacts. Furthermore, the program allows for flexible financial stacking, where up to 75% of total project costs can be covered by various governmental sources for non-profit and certain government-related organizations.

Given the expansive evaluation criteria, encompassing everything from detailed cost-benefit analyses to clear sustainability outcomes, applicants need to present comprehensive proposals showcasing their organizational capacity to implement and manage the projects effectively. The assessment process also includes thorough audits and due diligence checks, ensuring the financial and operational credibility of applicants. The resulting contribution agreements stipulate detailed reporting requirements, reinforcing the program's mandate of accountability and transparency.

Overall, the Green Freight Program’s Stream 2 is a pivotal initiative driving forward Canada’s green transition in freight transportation. By backing such transformative projects, NRCan not only catalyzes immediate reductions in greenhouse gas emissions but also nurtures a foundation for ongoing advances in green transportation technology and practices. This initiative represents a strategic investment in the future of Canada’s transport ecosystem, aligning economic development with environmental responsibility.