Supply Chain Scanner - Week of September 23, 2024
Weekly blog by Emily Atkins
Did you know that the federal government is supporting Canadian commercial fleets in their transition to green vehicles?
Natural Resources Canada’s Green Freight Assessment Program started up in 2018, with the goal of helping companies acquire lower-emissions vehicles. At its outset, the program offered funding for medium- and heavy-duty vehicles ranging from Class 5 to Class 8. Financial incentives were provided to companies to undergo third-party fleet assessments, implement truck/trailer retrofits, and purchase new alternative fuel vehicles.
In the 2022 federal budget, the government allocated an additional $200 million to keep the program going for another five years and renamed it the Green Freight Program (GFP). The revised offering helps fleets reduce fuel consumption and greenhouse gas emissions from on-road freight through fleet energy assessments, fleet retrofits, engine repowers, best-practice implementation and the purchase of low-carbon vehicles.
The rationale behind providing this assistance comes from very simple math. Transportation contributes nearly one-quarter of total greenhouse gas (GHG) emissions in Canada. A significant proportion of these transportation-related GHG emissions is related to medium and heavy-duty vehicles (MHDV). Demand for freight is highly correlated with economic growth and will continue to grow due to increasingly globalized supply chains, “just-in-time” delivery and the export of natural resources.
While current and proposed heavy-duty vehicle GHG emission regulations aim to reduce emissions in this sector, these regulations only apply to new vehicles and engines and not to the current fleet of in-use vehicles, many of which will remain in use for many years with an average service life of more than 10 years. So, it makes sense to help companies make these existing fleets more environmentally friendly through the measures mentioned above.
To take advantage of the GFP grant money, organizations need to apply. CITT is a partner in this process and can help you figure out the best approach for your company or group. Follow the link above or contact CITT's Corporate Solutions Manager, Daniele Lippi, by email for more details. dlippi@citt.ca.
What’s Included in the Program:
Eligible organizations can get grant funding of up to $250,000 for Third-Party Fleet Energy Assessments and Truck/Trailer Equipment Retrofits. Natural Resources Canada (NRCan) maintains a list of approved retrofit devices, which can be partially eligible for a grant.
A wide range of groups are eligible as long as they operate in Canada. This includes companies, associations, academic institutions, community groups and provincial, territorial, regional, or municipal governments. To qualify they must have at least one licensed and insured heavy-duty vehicle in their fleet. Companies in the softwood lumber sector are not eligible.
The vehicles must fall between Class2B (between 3,856 kg and 4,536 kg) and Class 8 (over 14,969 kg). This includes cargo vans, cutaway vans, and step vans for commercial. Pickup trucks, buses, and recreational vehicles are not eligible.
Before a fleet can be considered for a grant it has to first undergo a Fleet Energy Assessment. Up to 50% of the cost of either a basic or enhanced assessment is eligible for funding, to a maximum of $20,000 and $40,000 respectively. The enhanced assessment investigates complex and large-scale engine repowering, alternative-fuel truck purchases and logistical best-practice projects.
Some of the modifications the grant can fund include aerodynamic devices like trailer skirts and fairings, anti-idling devices such as stand-alone cab heaters and coolers as well as auxiliary power units. Low rolling resistance and wide tires and accessories are also eligible for grants. Finally, telematics devices can also be considered.
While you will have to jump through a few hoops to get your fleet assessed and see what funding your organization can qualify for, taking steps to green your fleet will reap big benefits. Not only can you get funding to make the retrofits to your fleet, but the modifications will save you money on fuel.
Trailer side skirts, for example, can save as much as 5% on fuel bills in over-the-road applications. Trailer tails can net an average of 4% savings, while wide-base single tires can save between 2% and 4%. Add a few of these together on a truck and you’re seeing significant savings on fuel costs. If this blog has piqued your interest, do get in touch with us through our web form, or email Daniele Lippi dlippi@citt.ca.
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Emily Atkins
President
Emily Atkins Group
Emily Atkins is president of Emily Atkins Group and was editor of Inside Logistics from 2002 to 2024. She has lived and worked around the world as a journalist and writer for hire, with experience in several sectors besides supply chain, including automotive, insurance and waste management. Based in Southern Ontario, when she’s not researching or writing a story she can be found on her bike, in a kayak, singing in the band or at the wheel of her race car. LinkedIn: https://www.linkedin.com/in/emilyatkinsgroup/