Evaluation Process – Step-by-step

• Is the organization eligible?
• Are the vehicles being proposed for the project eligible?
• Does the project fit within the definitions of the eligible funding activities and project types?
• Does the organization clearly list the estimated fuel savings in litres and estimated CO2 emission reductions that this project will achieve?
• Are the costs associated with the project eligible?
• Are the proposed project activities referenced in the attached enhanced fleet energy assessment?
• If applying for funding towards a “Purchase” project, does the applicant commit to fueling their new vehicles with at least a 1% blend of renewable or non-fossil fuels?
• Is all the required documentation included with the application?
• If applying for funding towards a “Repower” or “Logistical best practice” project, demonstrate secured funding for at least 50% of total project costs, as well as any ineligible costs.
• If applying for funding towards a “Purchase” project, demonstrate secured funding to cover the remaining cost of the purchased vehicle(s) (as NRCan will only cover 50% of the incremental cost) and at least 50% of total project costs.
• If the applicant is a not-for-profit organization, a government department or agency (provincial, territorial, regional, municipal), Indigenous business or community group, they must demonstrate secured funding for:
  • At least 25% of total project costs (for a “Repower” or “Logistical best practice” project).
  • The remaining cost of the purchased vehicle(s) as NRCan will only cover up to 75% of the incremental cost, and at least 25% of total project costs (for a “Purchase” project).

Step 2 Merit review and evaluation

All projects that have successfully met the mandatory criteria listed in Step 1, will then be evaluated against the following merit criteria, and awarded points accordingly. Please remember this is a competitive process. Elaborating on these merit criteria in your application will help your project stand out.

• Does the applying organization employ Indigenous people and women in non-administrative roles?

• Does the application demonstrate how the proposed project will improve the organization’s business/service offerings and reduce diesel consumption?

• Does the applicant describe a maintenance and fueling plan for the vehicles impacted by the project?

• Does the application demonstrate both significant fuel savings and GHG emission reductions?

• Does the applicant organization drive the majority (50% or more) of their fleet’s kilometers in Canada?

• Does the organization detail how they have participated in additional environmental sustainability initiatives/activities apart from the Green Freight Program?

• Does the application demonstrate the organization’s ability to track and report on expected greenhouse gas emission reductions and reduced fuel consumption that result from this project?

• Does the applicant demonstrate a relationship with a renewable or non-fossil fuel supplier for the refueling needs of the impacted fleet vehicles?

• Can the applicant commit (regardless of project type) to an average renewable or non-fossil fuel blend of 40% or more?

Please note: It is mandatory that projects to purchase low-carbon alternative vehicles commit to using a minimum average renewable or non-fossil fuel blend of 1% or more starting from the first refueling through to March 31, 2029.

• Does the applicant provide a clear timeline for the project which identifies key milestones, and timelines for the main activities and expenses?

• Does the applicant clearly explain and outline the risks and mitigation measures in place to ensure the project will be completed successfully?

Step 3 Results determination and funding decision notification

Once all the projects are scored against the merit criteria, NRCan will then issue funding decisions.

• Only the highest scoring project proposals will move beyond this stage, until all program funds are committed.
• Unsuccessful project proposals will receive a Letter of Regret and successful applications will receive a Letter of Conditional Approval.
• NRCan reserves the right to consider regional representation when making final project selections

Step 4 Due diligence assessment

Once the Letter of Conditional approval has been sent to the successful organizations, NRCan will evaluate the financial strength of the applicant as part of a detailed due diligence assessment.

• This financial assessment will be conducted by a 3rd party and is mandatory prior to entering a Contribution Agreement with NRCan. Further details will be provided to successful applicants.
• At this stage, NRCan may request that the applicant provide confirmation or clarifications to support their project proposal.
• The findings from the due diligence process will be used as a final assessment of NRCan’s willingness to enter into a Contribution Agreement with an applicant for the proposed project.
• The final selection decision remains at the sole discretion of NRCan.

Step 5 Contribution Agreement negotiation

If the project proposal is successful and the due diligence assessment results are suitable, NRCan will initiate the negotiation of a Contribution Agreement.

• The findings from the due diligence assessment could determine risk mitigation strategies that will be included in the Contribution Agreement
  • For example, the level of risk determined will determine the percentage of risk holdback that will be applied to claims for payment of NRCan’s Contribution.