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Green Freight Program Updates for 2024: 6 Changes to Grants for Trucking Companies

In response to valuable industry feedback, the Green Freight Program is gearing up for significant modifications set to take effect on April 1, 2024. These changes aim to enhance the application process, address industry needs, and uphold the highest standards of fiscal responsibility. Let’s delve into the key updates for applications received under Stream 1 of the Green Freight Program.

Clean Freight Consultants provide third party fleet energy assessments to help you qualify for the Green Freight Program, the assessment collects data about your company and fleet, to recommend fuel saving devices. We recently drafted an assessment for a client, that recommended 4 aerodynamic devices that provided a 14% fuel reduction, also in the assessment was a recommendation to retrofit APU’s and saves 8% of fuel and reduces idling time off the engine by 85%, prolonging the engine life of the truck. Contact us to see how we can help you save costs info@cleanfreight.ca.

Pros:

1. Streamlined Green Freight Program Vehicle Eligibility Criteria:

Service Requirement Removed: Vehicles in eligible weight classes (2B to 8) will no longer face a minimum one-year service requirement for retrofit activities. This adjustment streamlines the process for businesses looking to make their fleets more environmentally friendly.

Off-road Vehicles Eligible: Off-road vehicles, designed for transporting property or equipment exclusively on undeveloped surfaces, will now be eligible for funding. This widens the scope for diverse industries, offering support for vehicles operating in challenging terrains.

2. Expanded Eligibility for Commercial Vehicles:

Cargo Vans Included: Commercial cargo vans, cutaway vans, and step vans have been added to the list of eligible vehicles, providing more options for businesses to participate in the program.

3. Retrofit Funding Adjustments:

Aerodynamic Devices: Trailer top and side kits will now be eligible for funding up to 50% of the cost, to a maximum of $1,000 per kit. This encourages the adoption of aerodynamic technologies, promoting fuel efficiency in freight transport.

4. Simplified Application Process:

Insurance Requirement Waived: The need to provide proof of vehicle insurance in the application package has been eliminated, simplifying the application process for participants.

Online Application Form: Applications will now be submitted through a new online form on the program’s website, making the process more accessible and user-friendly.

Cons:

1. Lowered Funding Ratios for Tires: While still supportive, the funding ratios for LRR and WBT have been reduced from 50% to 20%, potentially impacting the financial assistance businesses receive for tire-related initiatives. The rebate threshold has also been reduced to up to 20% up to $500 per eligible tire, and maximum limit of $10,000 per year.

2. Vehicle Exclusions: Despite the expanded eligibility, certain vehicle types such as SUVs, pickup trucks, public transit buses, and school buses, along with all other vans, remain ineligible for funding.

In conclusion, the Green Freight Program’s 2024 updates bring both benefits and considerations for businesses aiming to enhance their environmental sustainability. The modifications reflect a commitment to industry collaboration and responsiveness, fostering a greener future for freight transportation.

To view the changes made on Natural Resources Canada’s website, click here: https://natural-resources.canada.ca/energy-efficiency/transportation-alternative-fuels/greening-freight-programs/green-freight-program/green-freight-program-applicants-guide-stream-1/24808

Contact Clean Freight Consultants to Get Started on a Fleet Energy Assessment to access this rebate: https://cleanfreight.ca/get-started/

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