Green Freight Program (GFP): Up to $250K in Grants for Fleet Retrofits

Did you know that a single long-haul truck emits 17 times more emissions than a standard car? With transportation as the second largest source of greenhouse gas (GHG) emissions in Canada, it is critical to convert Canadian commercial vehicles to zero-emissions.

While the recent investments in electric vehicles (EVs) have been encouraging, the focus remains heavily on upgrading passenger cars and not on the large trucks, trailers, and buses that desperately require clean energy retrofits to help meet Canada’s zero-emissions goals.

As such, the Government of Canada has allocated $200 million over five years in the Federal Budget 2022 towards helping fleets reduce fuel consumption and GHG emissions through fleet energy assessments, retrofits, engine repowers, and purchasing low carbon vehicles.

The Green Freight Program (GFP) – Stream 1 – Assess and Retrofit is a government funding program that provides grants up to a maximum of $250,000 per eligible applicant towards third-party fleet energy assessments and truck/trailer equipment retrofits.

Eligibility for the Green Freight Program (GFP) – Stream 1

This Green Freight Program (GFP) – Stream 1 aims to increase the clean technology capacity of the long-haul transportation sector with a focus on adopting energy efficient equipment by providing funding support to improve trucks and trailers around the country.

Stream 2 – Repower and Replace of the GFP is set to launch shortly, offering 50% cost-share funding towards fuel-switching, engine repowers, and large scale improved logistical best-practice projects in grants. With both streams, the GFP will allocate upwards of $5 million to eligible applicants.

Funding Amount

• Up to 50% to a maximum of $250,000 per applicant; and
• Grant amounts are subject to maximums based on the activities completed, as follows.

Third-Party Fleet Energy Assessment Grant

• Basic Third-party Assessment – 50% to a max. of $20,000; and
• Enhanced Third-party Assessment – 50% to a max. of $40,000.

Truck/Trailer Equipment Retrofit Grant

• Aerodynamics Retrofits
  • Side Skirt – 50% to a max of $2,500 per device;
  • Boat Tail – 50% to a max of $2,500 per device;
  • Under Fairing – 50% to a max of $2,000 per device;
  • Tractor-Trailer Gap Reducer – 50% to a max of $1,000 per device; and
  • Aerodynamic Splash Guard – 50% to a max of $80 per device.
• Anti-idling Retrofits
  • Cab Heater – 50% to a max of $2,000 per device;
  • Cab Cooler – 50% to a max of $3,000 per device; and
  • Coolant Heater – 50% to a max of $1,500 per device.
• Auxiliary Power Units Retrofits
  • Diesel/conventional APU – 50% to a max of $10,000 per device;
  • Electric APU – 50% to a max of $10,000 per device; and
  • Electric APU paired with solar panel – 50% to a max of $10,000 per device.
• Tires Retrofit
  • Low rolling resistant tires – 50% to a max of $1,500 per device;
  • Automatic tire inflation system – 50% to a max of $1,000 per device; and
  • Tire pressure monitoring system – 50% to a max of $1,000 per device.
• Other Devices
  • Diesel-electric refrigeration units – 50% to a max of $15,000 per device;
  • Electric refrigeration units – 50% to a max of $12,000 per device; and
  • Telematics device – 50% to a max of $700 per device.

Eligible Applicants

• Must have one or more heavy-duty vehicles for business use in their fleet that is licensed and insured to operate in Canada;
• 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.

Vehicle Eligibility Criteria:

• Must have been in service for a minimum of 1 year;
• Be within eligible weight classes (Class 2B, 3, 4, 5, 6, 7, 8); and
• Ineligible vehicles include vans, SUVs, pickup trucks, public transit buses, school buses, off-road vehicles.

Eligible Activities

• Third-party Fleet Energy Assessments – Basic or enhanced assessments completed by a third party that explore fleet retrofits and small to large-scale logistical best practices;
• Truck/Trailer Equipment Retrofits – Purchase and implementation of truck/trailer fuel-saving equipment retrofits completed on or after December 12, 2022, including:
  • Aerodynamic retrofits – side skirt, boat tail, under fairing, tractor-trailer gap reducer, aerodynamic splash guard;
  • Anti-idling retrofits – cab heater, cab cooler, coolant heater;
  • Auxiliary power unit retrofits – diesel/conventional APU, electric APU, electric APU paired with solar panel;
  • Tire retrofit – low rolling resistant tires, automatic tire inflation system, tire pressure monitoring system; and
  • Other devices – diesel-electric refrigeration units, electric refrigeration units, telematic device.
• To apply for the retrofit stream, applicants must have a valid Fleet Energy Assessment report that meets the minimum requirement of NRCan’s Fleet Energy Assessment Checklist and purchase and install the fuel-saving device(s) that were recommended in the assessment.

Program Deadline

The Green Freight Program (GFP) – Stream 1 – Assess and Retrofit applications will be accepted on a continuous basis until March 31, 2027.

Government Funding for Canada’s Automotive Industry

The Canadian government has an ambitious goal to replace diesel-fueled medium- and heavy-duty vehicles (MHDVs) with zero-emissions ones by 2030, stating that by then over a third of new sales of MHDVs will be zero-emission.

While upgrading to zero-emissions is a massive manufacturing overhaul for fleets across the country, it is acheivable when considering government funding support for automotive cleantech innovation such as the Green Freight Program (GFP).

Download our free Electric and Autonomous Vehicle Trends resource to learn more about Canada’s growing electric and autonomous vehicle industry and how your automotive business could leverage these trends for long-term growth and profitability with funding support.