Green Freight Program Applicant’s Guide: Stream 1

We listened to you! As a direct result of industry feedback, the Green Freight Program has made several modifications to Stream 1 that came into effect April 1, 2024. The goal is to streamline the application process, as well as respond to industry needs, while maintaining the highest fiscal responsibility.

Introduction

Stream 1 of the Program provides grant funding up to a maximum of $250,000 per Applicant towards Third-Party Fleet Energy Assessments and Truck/Trailer Equipment Retrofits. Natural Resources Canada (NRCan) has established a list of approved retrofit devices, of which a percentage of the cost are eligible for a grant.

This stream aims to increase the knowledge and capacity of the on-road freight transportation sector to adopt energy efficiency measures tailored to operational needs by providing financial support. Stream 1 of the Program is accepting applications through a continuous intake process. Only applications that meet the Program’s requirements as outlined in this Guide will receive a grant on a first come, first served basis.

Eligibility criteria

Eligible Applicants

To be eligible for a grant, Applicants must meet the following two (2) requirements:

1. Only entities operating in Canada are eligible to apply. Eligible Applicants 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.
2. Entity must have one or more heavy-duty vehicles for business use in their fleet that is licensed and insured to operate in Canada.

NOT ELIGIBLE: Softwood lumber companies and those that are vertically integrated with softwood lumber companies.

Vehicle eligibility criteria

Vehicles and/or trailers must:

• Be in service and be within the eligible vehicles weight classes.

Eligible vehicles

Weight Class	Gross vehicle weight rating (GVWR)
Class 2B	Between 3,856 kg and 4,536 kg
Class 3	Between 4,536 kg and 6,350 kg
Class 4	Between 6,350 kg and 7,257 kg
Class 5	Between 7,257 kg and 8,845 kg
Class 6	Between 8,845 kg and 11,793 kg
Class 7	11,793 kg and 14,969 kg
Class 8	More than 14,969 kg

Non-eligible vehicles

Types of vehicles not eligible for funding include:

• SUVs;
• Pickup trucks;
• Public transit buses;
• School buses;
• Off-road vehicles used for recreational purposes; and
• Newly purchased vehicles that are already equipped with the proposed retrofit device(s) at the time of delivery.
• All other vans

Funding activities

Stream 1 of the Program provides grant funding up to a maximum of $250,000 per Applicant per fiscal year towards two types of activities:

1. Third-Party Fleet Energy Assessments; and/or
2. Truck/Trailer Equipment Retrofits.

Under Stream 1, only eligible activities meeting all program requirements completed and paid in full on or after December 12, 2022 will be considered for a grant. Funding under Stream 1 is allocated per fiscal year, starting from April 1st of a given year and ending on March 31st of the following year. Upon notice of three months posted on this website, Natural Resources Canada may reallocate the maximum amount available for Stream 1 per fiscal year.

a) Third-Party Fleet Energy Assessment Grant

Applicants can hire a third-party energy assessment company of their choosing to complete the Fleet Energy Assessment; however, the assessment must meet the minimum requirements in NRCan’s Fleet Energy Assessment Checklist. Third-party fleet energy assessments will also require a written explanation to support Sections 3 and 4 of the assessment. This written explanation should clearly outline why the technology is being recommended and how the analysis was conducted.

The following table lists the types of assessments that will be eligible to receive a grant.

Assessment Type	Criteria	Grant Amount
Basic Third-Party Assessment	The Third-Party Assessment must meet criteria for a Basic Fleet Assessment outlined in NRCan’s Fleet Energy Assessment Checklist. This assessment explores fleet retrofits and small-scale logistical best practice projects.	50% of the cost up to a maximum $20,000
Enhanced Third-Party Assessment	The Third-Party Assessment must meet criteria for the Enhanced Fleet Assessment outlined in NRCan’s Fleet Energy Assessment Checklist. Enhanced Third-Party Assessments explore complex and large-scale engine repower, alternative fuel truck purchase and logistical best-practice projects.	50% of the cost up to $40,000

b) Truck/Trailer Equipment Retrofit Grant

Stream 1 provides funding for the purchase and installation of new fuel-saving equipment retrofits for trucks and trailers completed on or after December 12, 2022.

IMPORTANT: To be eligible for the Truck/Trailer Equipment Retrofit Grant, the Applicant’s fleet must undergo a Fleet Energy Assessment before they purchase any new fuel-saving device(s) and the assessment must analyze and recommend the device(s) that the Applicant plans to purchase.

The Applicant can independently conduct and submit a self-assessment at no additional cost or submit an assessment that was conducted by a third-party energy assessor on or after January 1, 2019, as long as the assessment meet the Basic Fleet Assessment criteria outlined in NRCan’s Fleet Energy Assessment Checklist. Please note, self-fleet energy assessments are not eligible for reimbursement.

Stream 1 will provide funding towards the purchase and installation of a set list for trucks and trailers new fuel-saving devices. The tables below list the devices that are eligible for a grant up to a maximum cost per device.

Aerodynamics Retrofits

Device	Description	Grant amount
Boat Tail / Trailer Rear Device	A rear device that reduces the wake field following the trailer, which can affect air some distance beyond the back of the trailer.	50% up to max of $2,500 per device
Trailer Top and Side Kits	A device attached on the top and underside of a trailer to reduce air flow and turbulence for weather and wind-sensitive loads.	50% up to max of $1,000 per pair of devices
Trailer Fairings / Side Skirt	A device installed on the underside of a trailer to address aerodynamic drag on trailers to reduce air flow by preventing wind from ducking in underneath.	50% up to max of $2,500 per device
Trailer Underbody Fairing	A device attached underside of a trailer to support aerodynamic drag especially when ambient winds are not aligned with the tractor and trailer. This device provides greater clearance and access under the trailer than with full skirts.	50% up to a max of $2,000 per device
Tractor-Trailer Gap Reducer	Tractor-to-trailer gap closer device that can be attached either to the trailer or the tractor to minimize the gap and reduce air turbulence.	50% up to a max of $1,000 per device
Aerodynamic Splash Guard	A device that reduces drag by redirecting or blocking less air compared to conventional splash guards.	50% up to a max of $80 per device
Vented Mud Flaps	Vented mud flaps are designed with holes for allowing air to flow through the flaps while maintaining the function of lowering water spray and deflecting object	50% up to a max of $80 per pair of devices
Wheel Covers	Devices inserted into the wheel of all tires to streamline the airflow around the tires and improve overall fuel efficiency strategy.	50% up to max of $1,000 per pair of devices

Anti-idling Retrofits

Device	Description	Grant amount
Cab Heater	Device provides heating, reducing the need for idling the primary engine to power onboard systems.	50% up to a max of $2,000 per device
Cab Cooler	Device provides cooling, reducing the need for idling the primary engine to power onboard systems.	50% up to a max of $3,000 per device
Coolant Heater	Device is mounted in the engine compartment and uses the truck’s integrated heat-transfer system to draw fuel from the fuel tank to heat the vehicle’s coolant, and pumps the heated coolant through the engine, radiator, and heater box.	50% up to a max of $1,500 per device

Auxiliary Power Units Retrofits

Device	Description	Grant amount
Diesel/conventional APU	Provides electricity and heating, ventilation and air conditioning from a smaller diesel engine, instead of the main engine, which burns less fuel to provide the same services.	50% up to a max of $10,000 per device
Electric APU	Provides electricity and in some cases HVAC without burning any fuel during operation.	50% up to a max of $10,000 per device
Electric APU paired with solar panel	Provides electricity without burning any fuel during operation, paired with solar panels to supplement other power sources.	50% up to a max of $10,000 per device

Tires Retrofits

IMPORTANT: Please note that Stream 1 tire grants are for new tires only and they must also be on the SmartWay Verified Tire Technologies. Recap or retread tires are not eligible for funding.

Device	Description	Grant amount
Low rolling resistant tires (dual configuration)	New low rolling resistance tires, will save significant amounts of fuel when compared to tires that are not designed for low rolling resistance.	20% up to a max of $500 per device, with a maximum grant of $10,000 per applicant, per year.
Wide-Base Tires (wide-base configuration size 445 or greater)	Low rolling resistance wide-base tires achieve a lower rolling resistance compared to dual tires by reducing vehicle weight, rolling resistance, and therefore strain on the engine. Wide-base tires have a slight advantage over duals by being slightly less wide, further improving fuel efficiency (by an estimate of 1-2%).	30% up to a max of $2,000 per device
Automatic tire inflation system	Device monitors tire inflation pressure relative to a pre-set target and re-inflates tires whenever the detected pressure is below the target level.	50% up to a max of $1,000 per device
Tire pressure monitoring system	Low tire pressure monitoring systems improve commercial motor vehicle safety and fuel economy by automatically measuring and indicating air pressure and relaying tire air pressure information to the operator.	50% up to a max of $1,000 per device

Other Devices

Device	Description	Grant amount
Diesel-electric refrigeration units	Hybrid refrigeration unit that reduces demand from main diesel engine to cool contents of trailer.	50% up to a max of $15,000 per device
Electric refrigeration units	Electric refrigeration unit that eliminates demand from main diesel engine to cool contents of trailer.	50% up to a max of $12,000 per device
Telematics device	Device that is used to collect real-time data using the mix of sensors, GPS technology, and onboard diagnostic codes.	50% up to a max of $700 per device

Stacking Provisions

Total Government Funding may not exceed 75% of the total cost of the project, except in the case where the recipient is:

• An Indigenous organization;
• An indigenous owned or partially owned project;
• A not-for-profit organization; or,
• A provincial, territorial, regional, or municipal government or their department or agency.

In the above cases, the total Canadian government funding authorized will not exceed 100% of total project costs.

When submitting the application form, recipients will be required to disclose all sources of funding on individual projects, including funding from other federal, provincial/territorial, and municipal governments and industry sources.

How to apply

Before completing any work or making any purchases, the Applicant must identify either or both activities under Stream 1 they wish to receive funding towards:

1. Third-Party Fleet Energy Assessments; and/or
2. Truck/Trailer new Equipment Retrofits.

Apply for a Third-Party Fleet Energy Assessment Grant

1. Applicant must review and ensure they meet the eligibility criteria;
2. Purchase and complete a third-party Fleet Energy Assessment that meets NRCan’s Assessment Criteria;
3. Email freightassessment-evaluationdeflotte@nrcan-rncan.gc.ca to receive a copy of the application form;
4. Email a signed and completed Grant Application Form with all supporting documentation to freightassessment-evaluationdeflotte@nrcan-rncan.gc.ca;
5. If the application is deemed acceptable, NRCan will send the Applicant a Grant Agreement which they must sign and email to freightassessment-evaluationdeflotte@nrcan-rncan.gc.ca; and
6. Receive grant.

Apply for a Truck/Trailer Retrofit Grant

1. Applicant must review and ensure they meet the eligibility criteria;
2. Have a valid Fleet Energy Assessment report that meets the minimum requirements in NRCan’s Fleet Energy Assessment Checklist;
3. Purchase and install new fuel-saving device(s) that was recommended in the Applicant’s Fleet Energy Assessment;
4. Email freightassessment-evaluationdeflotte@nrcan-rncan.gc.ca to receive a copy of the application form;
5. Email a signed and completed Grant Application Form with all supporting documentation to freightassessment-evaluationdeflotte@nrcan-rncan.gc.ca;
6. If the application is deemed acceptable, NRCan will send the Applicant a Grant Agreement which they must sign and email to freightassessment-evaluationdeflotte@nrcan-rncan.gc.ca; and
7. Receive grant.

How to Complete the Grant Application

As stated above, those who wish to apply for a Third-Party Fleet Assessment Grant or a Retrofit Grant, must fill out an application package which includes an application form and the Device Purchase and Installation table. Just send us an email to receive the necessary forms. The Application Form must be signed by the Applicant’s Chief Financial Officer. Please ensure the following information is provided when you submit:

• Information on the entity and fleet;
• Copy of Fleet Energy Assessment;
• Description of activities/investments that were undertaken;
• Project timelines;
• Proof of vehicle registration;
• Invoices and proof of payment;
• Proof of other government funding or private funding (if applicable);
• Signed letter of the company responsible for installation confirming completion and payment of the project; and
• the Device Purchase and Installation Table, filled out.

Please ensure all pertinent information is provided, otherwise your application will automatically be rejected. NRCan will confirm receipt of the application within five (5) business days.

Application Timelines and Deadlines

Stream 1: Applications are accepted on a continuous intake basis until March 31, 2027.

Important Notes

• Natural Resources Canada reserves the right to amend the Applicant Guide upon a three-month notice posted on this website to take into account changing market conditions, including but not limited to inflation. These changes will come into force in the fiscal year immediately following the notice, remain in effect until repealed by the Program, and only apply to applications received after the changes’ coming into force.
• To be eligible for the Truck/Trailer Equipment Retrofit Grant, the Applicant’s fleet must undergo a Fleet Energy Assessment before they purchase any new fuel saving device(s) and the assessment must analyse and recommend the device(s) that the Applicant plans to purchase.

Contact Us

To obtain additional information or for any queries, please email: freightassessment-evaluationdeflotte@nrcan-rncan.gc.ca