Improve the Energy Efficiency of Medium and Heavy-Duty Vehicles  

The Green Freight Program: Stream 2 (Repower and Replace) offers 50% cost-share funding up to $5,000,000 towards supporting fuel-switching projects, engine repowers, and purchases of low-carbon alternative fuels for medium and heavy-duty vehicles (Class 2b –  Class 8). There are two project categories:

1. Repowers

• • Permanent modifications that reduce diesel consumption and GHG emissions by facilitating the use of low-carbon alternative fuels (e.g., engine/drive-train replacements, implementing dual-fuel technologies, adding kits to trucks, etc.). Vehicles must be in service for at least 1 year prior to applying.

2. Purchase of alternative fuel vehicles

• • Funding supports the incremental cost of new vehicles that use lower-carbon fuels vs standard diesel trucks. Applicants are required to commit to using 40% renewable or non-fossil fuels until March 2027 (or later).

Eligible costs include project-related professional services and capital expenses. Applications must include a fleet energy assessment that recommends the proposed activities. Companies operating in the softwood lumber industry and related vertically-integrated businesses are ineligible for support. The deadline to apply is November 16, 2023.

**Note that the program does not offer funding towards the purchase of zero-emission vehicles, as these fall under the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles Program (iMHZEV). **