The Green Freight Program, offered by Natural Resources Canada (NRCan), is a fantastic opportunity for trucking companies to make their operations more eco-friendly while also benefiting from financial incentives. However, navigating the program and understanding the qualification process can be daunting. To simplify matters, we’ve compiled this FAQ blog to address some common questions regarding eligibility and how to qualify for the Green Freight Program.

Clean Freight Consultants can walk you through the application process and conduct a third-party fleet energy assessment to qualify for the federal funding. There is a double savings to be had:

• 50% contribution from the federal government on fuel reducing equipment
  • there is also the opportunity to stack provincial funding in certain provinces to reduce your costs to 25%
• The fuel savings devices can save you between >5% diesel costs
  • the payback on investment is reduced and the Return on Investment is attractive

Check out the rest of the blog, or get in touch with us to have a chat info@cleanfreight.ca

What is the Green Freight Program?

The Green Freight Program is an initiative by NRCan aimed at reducing emissions from the trucking industry. It provides financial support to trucking companies for implementing fuel-saving technologies and retrofits in their fleets, ultimately contributing to a more sustainable and energy-efficient transportation sector.

Who is eligible for the Green Freight Program?

Trucking companies operating in Canada are generally eligible for the program. To qualify, your company should have a fleet of heavy-duty trucks, and you must be willing to invest in approved fuel-saving technologies and retrofits.

What types of retrofits and technologies are eligible for funding?

Each device has it’s funding limits, and a fleet energy assessment must recommend prior to installation. Our what qualifies page has more detail on stream 1 cleanfreight.ca/what-qualifies/:

• Aero Dynamic retrofits (e.g., Side Skirts, Boat Tail, Under Fairing)
• Anti-Idling Retrofits (e.g., Cab Heater, Cab Cooler)
• Auxiliary Power Unit (APU) Retrofits (Diesel/conventional APU, Electric APU)
• Tire Retrofits (e.g., Low rolling resistant tires, tire inflation systems)
• Other devices like diesel-electric refrigeration units and telematics devices.

Stream 2, more complex, repowers, dual fuel conversion kits, specialized vehicles that use renewable fuel. contact us to have a chat about this, but don’t wait too long, applications for a multi-year project are due by November 16, 2023 & there is a ton of work to do on the assessments.

How does the funding work?

The program offers two funding streams through a rebate:

• Stream 1 (Assess & Retrofit): Up to $250,000 on a $500,000 spend (50% cost-share) with applications open until 2027. Please note that there are set funds for each fiscal year
• Stream 2 (Repower & Replace): Up to $5 million on a $10 million spend (50% cost-share) with applications closing November 16, 2023.

The government reimburses 50% of the approved costs for purchasing and installing these technologies. This means you pay only half the expenses, making it a cost-effective way to upgrade your fleet.

Do I need a Fleet Energy Assessment to qualify?

Yes, a Fleet Energy Assessment is a crucial step in the qualification process. This assessment evaluates your fleet’s energy consumption and emissions profile. Clean Freight Consultants Inc. or another third-party organization can conduct this assessment for you. The government even covers 50% of the cost for the Fleet Energy Assessment when performed by Clean Freight Consultants Inc.

How much does a Fleet Energy Assessment cost?

There isn’t a one size fits all price, each fleet is different in size, load, configuration and the intent of applying for each stream of the grant. Contact Trevor Van Egmond for a quick chat, to see what the price is, what you can qualify for and to get more information on the saving money on equipment and fuel.

When is the best time to apply for the program?

• Stream 1 (Assess & Retrofit) is currently open until 2027. Best to apply now, before the yearly funds run out
• Stream 2 (Repower & Replace) is open, but closes soon,
  • To maximize your chances, it’s recommended to apply as early as possible and consult with experts who can assist with the application process.

How much can I save through the Green Freight Program?

Savings depend on the technologies you adopt and the size of your fleet. For instance, you can get up to $10,000 per APU per truck, APU’s cost around $20,000 (approximate). If your fleet installs the APU and implement a no idling policy (off the engine) it can save you 85% to 100% non-operational idling time which can be $100’s of thousands of fuel savings.

Participating in the Green Freight Program can be a game-changer for your trucking company, both in terms of reducing your environmental footprint and lowering operational costs. By understanding the eligibility criteria and following the application process, you can take full advantage of the program’s benefits and contribute to a greener future for the transportation industry in Canada.

Contact Clean Freight Consultants for more Information