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Frequently Asked Questions

Find out more about the Freight Technology Demonstration Fund and the Freight Technology Incentives Program. Here are answers to some frequently asked questions.

General Information

Application Eligibility

Funding Limits and Eligibility

Selection Process and Next Steps

General Information

What is a demonstration?

Under the Freight Technology Demonstration Fund, a demonstration is a project that is implemented in real world operations in a systematic way so as to provide first-hand experience of an emissions or fuel-reducing technology or of best practices. Each project is carefully monitored and documented by the project leader in order to report on the success of the demonstration and identify lessons learned for sharing with other organizations. The objective is to increase our knowledge of how the utilization of available technologies and best operational practices can lead to measurable and cost effective reductions in air pollutants and/or greenhouse gas emissions reductions.

Examples of some potential projects include the use of:

  • software to facilitate load matching, routing, inter-modal transport, etc.
  • add-on technologies or equipment to reduce emissions.

Do proposals submitted to the Demonstration Fund or the Incentives Program have to reduce both greenhouse gas emission and air pollutants?

To be eligible under these programs, projects must involve technologies or best practices that reduce air pollutants and/or greenhouse gas emissions. In some cases, they may reduce both types of emissions. A technology that reduces one type of emission while increasing another will be considered according to its net impact (e.g. particulate matter filters can reduce emissions of particulate matter, yet increase fuel consumption and enhance GHG emissions).

What is the maximum allowable length of time to implement a project under the programs?

A project must be completed within two years of the project start date under the programs. The start date of a project is the date on which the organization begins to implement the activities for which it will receive funding. The start and end date of all activities in a proposed project must be clearly spelled out in the application.

Will Transport Canada publish the findings from the funded projects so as to allow others to learn from these experiences in reducing air pollutants and/or greenhouse gas emissions?

Absolutely. Information on the funded projects, including the reports produced in the context of the program, will appear on the ecoFREIGHT web site and will be disseminated at conferences and other venues.

The exchange of information is a key component of the program. Successful applicants will be required to submit at least two reports on their project and its results. Moreover, replicability or the extent to which it is possible for other freight stakeholders to undertake the same project themselves is a key selection criterion for proposals.

Application Eligibility

Which program should I apply for: the Freight Technology Demonstration Fund or the Freight Technology Incentives Program?

If an organization is considering a technology that is beyond the R&D and prototype stage, and has questions on how it would perform in real world conditions, the organization should apply to the Demonstration Fund in order to test this technology.

If the organization is considering a technology that is proven and readily available, its application in a Canadian context is well understood, and the organization plans to install it on all or part of the fleet, the application should be to the Incentives Program.

Can I apply more than once to the program?

There is no limit on the number of times a company can apply to either the Freight Technology Demonstration Fund or the Freight Technology Incentives Program. However, there is a limit on the total amount of money that an individual company can receive under the Programs: The limits are $1,000,000 under the Demonstration Fund, and $1,500,000 under the Incentives Program.

Can non-Canadian organizations apply for funding under the Freight Technology Demonstration Fund?

Yes. Non-Canadian organizations are eligible to receive funding for demonstrations performed in Canada. The demonstration must involve a technology or operating practice that has the potential to benefit Canadians. Typically, this will be done in Canadian climate conditions, with technology that is marketable in Canada and broadly replicable by others in the Canadian freight industry.

If a non-Canadian organization is interested in applying to the Demonstration Fund but does not have a demonstration site in Canada, it should consider partnering with a Canadian organization for the purpose of the project.

Can non-Canadian organizations apply for funding under the Freight Technology Incentives Program?

A project must benefit Canadians and accrue those benefits in Canada. Therefore, non-Canadian organizations can only apply for funding if they plan to install the technology in a fleet or operation that operates predominantly in Canada, or that operates in Canadian facilities such as yards, ports, airports and stations.

Funding Limits and Eligibility

Will Transport Canada reimburse companies for equipment purchased or expenses incurred on a proposed project before the project selection process has been completed?

Under the Freight Technology Demonstration Fund and the Freight Technology Incentives Program, Transport Canada can only reimburse companies for expenses incurred after the project has been selected for funding. Companies are encouraged not to incur project expenses until a contribution agreement has been put in place to define eligible project costs.

What is the funding limit per project?

Under the Demonstration Fund and the Incentives Program up to 50 percent of eligible project costs may be reimbursed, up to a maximum of $500,000 over a two-year period. There is no limit on the total cost of a project, however Transport Canada can only reimburse up to a maximum of $500,000 for any given project

Can I apply for reimbursement of the costs related to a specific part of a long term phased project?

Organizations may apply for funding of a specific phase or part of a larger project (e.g. a plan to gradually upgrade an entire fleet). However, costs that are related to project activities that are occurring prior to Transport Canada selecting that project are not eligible for funding.

Can I apply for reimbursement of the value of "in kind" resources that my organization applies to the project?

In-kind resources may include assigned equipment, services and facilities provided by the applicant organization where they are necessary to implement the project (i.e. project resources that would otherwise be purchased if they were not re-allocated to the project by the applicant organization). These in-kind resources will be reimbursed at market value. A process will be followed to determine such market value, and eligibility will be subject to Transport Canada's approval. Eligible in kind resources will be stipulated in the contribution agreement between the recipient and Transport Canada.

Will a company automatically receive funding if it applies to the Freight Technology Incentives Program?

This is not a rebate program. An evaluation process will be followed to select projects under the Freight Technology Incentives Program. If an organization has already purchased a technology or equipment before Transport Canada has selected the project for funding, Transport Canada cannot provide reimbursement for these purchases.

Can governmental organizations apply for funding?

Governmental organizations at the federal, provincial, territorial and municipal level are not eligible to receive funding under the Demonstration Fund or the Incentive Program. However, they may participate in a project that is led by an eligible non-government organization, such as providing financial and other support to the project.

Can Transport Canada provide funding advances to a company to begin the project?

No. Funding advances will not be made available for projects under the programs. Transport Canada will reimburse companies for their expenses according to the negotiated milestones in the contribution agreements. All such reimbursement will be conditional on satisfactory documentation of the expenses incurred. Organizations must be able to finance project implementation until funds are received from Transport Canada.

Why do the Freight Technology Demonstration Fund and the Freight Technology Incentives Program require a minimum funding request of $25,000?

In setting a minimum threshold of a $25,000 federal contribution for eligible projects, Transport Canada is recognizing that projects of at least $50,000 in scope are best suited to meet program objectives and provide broader scale emissions impacts in the sector.

Experience has shown that smaller projects are not well suited for such federal contribution programs which have significant reporting and measurement obligations for funding recipients.

Can I start the project or purchase equipment after I have received notification that my project has been selected for funding?

Project expenses incurred prior to Transport Canada's project selection are not eligible for funding. A letter will be sent to applicants informing them of Transport Canada's decision. Once an applicant has been notified that their project has been chosen for funding, the applicant may choose to begin the project before signing a contribution agreement with Transport Canada. However, all such expenses would be incurred at the company's own risk, recognizing that Transport Canada's funding obligations will arise once the contribution agreement for the project is signed between Transport Canada and the applicant. This agreement is a legal document that outlines the obligations of both the organization (i.e. the funding recipient) and Transport Canada with respect to the project, including the specific project expenses that are eligible for reimbursement.

Selection Process and Next Steps

How will projects be selected and funded?

An evaluation process will be followed to select projects under the Freight Technology Demonstration Fund and the Freight Technology Incentives Program. Applications received by the submission deadline will undergo an initial screening to verify the eligibility of the proposed projects and the organization submitting the proposal. A Review Committee will evaluate the eligible proposals against published evaluation criteria and make recommendations on which projects should receive funding. The Director General of Transport Canada's Environmental Affairs group will make the final decision on the projects to be funded.

What is the next step after project approval?

After receiving a letter from Transport Canada indicating that its project has been selected for funding under one of the programs, an organization will be required to enter into a contribution agreement with Transport Canada as a condition to accessing the funding. The ecoFREIGHT secretariat will contact the organization to start the process. This agreement is a legal document that outlines the obligations of both the company and Transport Canada with respect to the project's implementation.

What are some of the most common reasons proposals do not receive funding?

Proposals that are incomplete, especially those lacking detail on how a project will be monitored, are unlikely to be selected under the program. It should be clear from the proposal how the project will measure its air pollutants and/or greenhouse gas (GHG) emissions reduction. It must be clear in the proposal that reliable data will be gathered from the proposed project.

In addition, if a proposal lacks detail or has inconsistencies that make it hard to understand and evaluate it against the criteria, it will be difficult for Transport Canada to properly assess this proposal.

It must be clear how a technology or best practice will reduce air pollutants and/or GHG emissions. If an application does not make a strong connection between what is being proposed and a potential reduction of air pollutants and/or GHG emissions, it is unlikely to be selected for funding.

Under the Freight Technology Demonstration Fund, a project is unlikely to be selected for funding if the technology in question is in the early stages of development. Projects that involve some late stage development, including prototypes may be considered under this program. However, there must be a tangible product to demonstrate. Technologies that are available in the market, or ready for commercialization, will be given priority in funding decisions. Feasibility studies are ineligible for funding.

For the purpose of the Freight Technology Incentives Program, technology/equipment must be available in the market with proven emission reduction impacts in order to be considered for funding. A project is unlikely to be selected for funding if evidence of the technology performance is not provided. Such evidence can be obtained from technology suppliers, certification by national and international organizations [e.g. International standard organization (ISO), Environmental Protection Agency (EPA), Environment Canada (EC), Natural Resources Canada (NRCan), etc], and industry attestations, etc.

Date modified:
2012-02-07