This grant program reflects our commitment to achieve substantial emissions reductions by replacing older, more polluting diesel-powered vehicles and equipment with newer, cleaner technology that uses a variety of fuel types. Tier 4 engines are the cleanest diesel engines available today, and meet EPA's strictest emissions standards.
Combined funding with the Diesel Emissions Reduction Act (DERA) grants program to expands our emissions reductions work.
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MPCA has $200,000 available to help locomotive owners purchase technology to reduce diesel emissions. Applications accepted on a rolling, “first come, first served” basis until all dedicated funds have been dispersed or June 30, 2025, whichever occurs first.
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MPCA seeks applications from diesel fleet owners from private, public, and nonprofit sectors for this DERA grant opportunity to fund off-road clean diesel projects in Minnesota. Total funding is approximately $2 million.
2024
Approximately $1.5 million was made available for 2024 between Volkswagen and federal DERA funds. A total of 15 projects received grant funds.
| Grantee | Funded activity | Grant award | Total cost |
|---|---|---|---|
| Delta Airlines (Minneapolis) | Replace 6 pieces of diesel-powered airport belt loader equipment and 1 diesel-powered tug, with all-electric equipment | $325,000 | $736,299 |
| Commercial Container (Minneapolis) | Replace diesel skid steer and excavator with a new Tier 4 equipment | $80,338 | $321,350 |
Seven projects were funded through a contractor agreement with the nonprofit Environmental Initiative; the total grant award for these projects was $1,126,044 with a total cost of $4,280,175.
- Larson (St. Cloud): replace off-highway truck with Tier 4
- Transystems LLC (Grand Forks): replace rubber tire dozer with Tier 4
- Transystems LLC (Renville): replace 3 rubber tire dozers with Tier 4
- Alliance (Minneapolis): replace material handler with Tier 4
2023
Approximately $1 million was made available for 2023 between Volkswagen and federal DERA funds. Six projects received grants.
| Grantee | Funded activity | Grant award | Total cost |
|---|---|---|---|
| Affield Logging (Blackduck) | Replacing a diesel feller buncher with new Tier 4 equipment | $84,250 | $337,000 |
| Dirt Merchant (Mankato) | Replacing a diesel dozer with new Tier 4 | $100,000 | $460,356 |
| Caledonia Haulers (Caledonia) | Replace diesel drayage truck with electric truck | $133,953 | $304,172 |
| Leech Lake Band of Ojibwe (Cass Lake) | Replace diesel excavator with Tier 4 | $71,500 | $286,000 |
Two projects were funded through a contractor agreement with the nonprofit Environmental Initiative; the total grant award for these projects was $322,535 with a total cost of $1,292,478.
- Omar’s Sand and Gravel (Carlton): Replace rubber tire dozer/loader with Tier 4
- Northland Constructors (Duluth): Replace diesel generator with Tier 4
2022
Approximately $1.2 million was made available in 2022 between Volkswagen and federal DERA funds. A total of 8 projects received grants.
| Grantee | Funded activity | Grant award | Total cost |
|---|---|---|---|
| Taylor Truck Line (Northfield) | Replacing a diesel terminal tractor with electric | $133,628 | $302,705 |
Seven projects were funded through a contractor agreement with the nonprofit Environmental Initiative; the total grant award for these projects was $1,043,982 with a total cost of $4,152,645.
- Alliance Steel: Replacing 2 diesel material handlers with Tier 4
- Hanson Custom Crushing: Replacing diesel loader with Tier 4
- Holtmeier Construction: Replacing a diesel loader and excavator with Tier 4
- S.M. Hentges & Sons: Replacing diesel loader with Tier 4
- Bougalis Inc: Replacing crawler dozer/loader with Tier 4
2021
Approximately $1.1 million was made available in 2021 between Volkswagen and federal DERA funds. A total of 10 projects received grants.
| Grantee | Funded activity | Grant award | Total cost |
|---|---|---|---|
| Ramsey/Washington Recycling & Energy Board (Newport) | Replacing a diesel terminal tractor with an all-electric terminal tract | $136,732 | $303,850 |
| Mike’s Mini Excavating (Worthington) | Replacing a diesel excavator with a Tier 4 excavator | $50,500 | $202,000 |
| Estes Express (Arden Hills) | Replacing two diesel terminal tractors with Tier 4 terminal tractors | $49,463 | $197,850 |
| Crow Wing Recycling (Brainerd) | Replacing two cranes with Tier 4 cranes | $252,500 | $1,010,000 |
Four projects were funded through a contractor agreement with the nonprofit Environmental Initiative. The total grant award for these projects was $651,104 with a total cost of $5,084,400.
- Cleveland-Cliffs (Eveleth) - Replacing current mining truck with a Tier 4 mining truck
- S.M. Henteges (Jordan) — Replacing a diesel excavator with a Tier 4 excavator
- Landwehr Construction (St Cloud) — Replacing a crawler tractor and excavator with Tier 4 crawler tractor and excavator; replace excavator with Tier 4 excavator
2020
In 2020 the MPCA had approximately $1.5 million in funding between federal DERA funding and VW funding. A total of 11 projects received grants.
| Grantee | Funded activity | Grant award | Total cost |
|---|---|---|---|
| Ruan Transportation (Otsego) | Replacing a diesel terminal tractor with an all-electric terminal tractor | $151,933 | $337,629 |
| Ramsey/Washington Recycling & Energy Board (Newport) | Replacing a diesel terminal tractor with an all-electric terminal tractor | $136,732 | $303,850 |
| Cemstone (Isle) | Replacing a diesel stationary generator with a new Tier 4 generator | $56,250 | $234,884 |
| Koochiching County (International Falls) | Replacing a diesel crawler with a new Tier 4 machine | $87,500 | $367,545 |
These seven projects were funded through a contractor agreement with the nonprofit Environmental Initiative. The total grant award for these projects was $1,089,657 with a total cost of $5,142,160.
- Omar’s Sand and Gravel (Carlton) — Replacing a wheel loader with a Tier 4 loader
- Pentagon Materials (Prior Lake) — Replacing a loader and an excavator with Tier 4 machines
- Hoover Construction (Hibbing) — Replacing 4 large mining trucks with Tier 4 trucks
2019
MPCA directly funded two projects:
| Grantee | Funded activity | Grant award | Total cost |
|---|---|---|---|
| Broadway Resources (Minneapolis) | Replaced current loader with an all-electric material handler | $63,007 | $283,540 |
| Taylor Truck Line (Northfield) | Replaced a diesel terminal tractor with an all-electric terminal tractor | $141,377 | $359,909 |
Through a contractor agreement with the nonprofit Environmental Initiative (Minneapolis), we funded 11 additional projects. The total grant award for these projects was $897,989, with a total cost of $6,301,174.
- Cleveland-Cliffs (Eveleth) — Replaced current mining truck with a Tier 4 mining truck.
- Gavilon (St. Paul) — Replaced two loaders with Tier 4 loaders
- Otter Tail Valley Railroad Company (Fergus Falls)— Installed three locomotive APUs and shore power to reduce idling.
- Red River Valley and Western Railroad Company (Breckenridge) — Installed four locomotive APUs and Automatic Engine Start-Stop technology to reduce idling.
- City of Saint Paul — Replaced current compactor with a new Tier 4 compactor
- Twin Cities and Western Railroad (Winthrop) — Installed a locomotive APU to reduce idling, replaced current skid steer with new Tier 4 skid steer, and replaced current loader with new Tier 4 model.
- Vetter Stone (Mankato) — Replaced current loader with new Tier 4 loader.