The green vehicle routing and scheduling problem (GVRSP) aims to minimize green-house gas emissions in logistics systems through better planning of deliveries/pickups made by a fleet of vehicles. We define a new mixed integer liner programming (MIP) model which considers heterogeneous vehicles, time-varying traffic congestion, customer/vehicle time window constraints, the impact of vehicle loads on emissions, and vehicle capacity/range constraints in the GVRSP. The proposed model allows vehicles to stop on arcs, which is shown to reduce emissions up to additional 8% on simulated data. A hybrid algorithm of MIP and iterated neighborhood search is proposed to solve the problem.