Minnesota Pollution Control Agency (MPCA) seeks public, private, and nonprofit owners of heavy-duty diesel on-road trucks and transit buses in Minnesota to apply to this competitive grant opportunity to partially fund new, cleaner versions of these vehicles.
The grant aims to reduce diesel emissions and improve air quality and public health by removing older diesel vehicles and equipment from operation and replacing them with new, less-polluting models. New on-road vehicles funded by this grant can be diesel, diesel-electric hybrid, electric, natural gas, or propane. Projects funded will reduce diesel emissions in Minnesota, fund new vehicles and pieces of equipment around the state, and fund a mixture of clean, alternative fuel technologies.
Proposals are due no later than 4:30 p.m. Central Time on October 16, 2024.
Eligibility
For-profit, nonprofit, individuals, and public entities, including state, local, and tribal governments that own and operate vehicles within the eligibility section of this RFP, are eligible applicants. Applicants must be based in Minnesota or have a branch office in Minnesota. The vehicles must operate in Minnesota.
Available funds
The MPCA anticipates awarding approximately $4.4 million in grants to replace old diesel vehicles and transit buses with new diesel, diesel-electric hybrid, natural gas, propane, and electric models. Grants under this RFP are funded by the Volkswagen Mitigation Trust Agreement for clean diesel activities in the state of Minnesota. The grants are administered under Minn. Stat. §116.03, subd. 2.
Grantees will be required to provide all remaining funds for the purchase of the new vehicle. Funds are stackable so long as the total reimbursement amount is not over 100%. Grantees may also be eligible for IRS-disbursed tax credits, such as the Commercial Clean Vehicle Credit (45W) or the Alternative Fuel Vehicle Refueling Property Credit. The old vehicles that are replaced as part of this grant must be destroyed. Grant funds cannot be used to expand fleets.
The maximum award per vehicle replacement varies by replacement powertrain type.
- All-electric vehicles are eligible for up to 75% of eligible project costs.
- Diesel, diesel-electric hybrid, natural gas, or propane vehicles are eligible for up to 25% of eligible project costs.
Eligible vehicles:
- Class 4-8 shuttle buses and transit buses
- Class 4-8 trucks (14,001 pounds or greater)
