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Freight switcher locomotive grant

The Minnesota Pollution Control Agency (MPCA) seeks locomotive owners from private, public, and nonprofit sectors to apply to this grant opportunity to partially fund freight switcher locomotive repower or replacement in Minnesota with cleaner diesel engines or zero-emission motors. The grant reduces diesel emissions from older diesel engines to improve air quality and public health by removing older diesel freight switchers and replacing them with new, cleaner freight switchers.

Grantees will be required to provide all remaining funds for the purchase of the new vehicle. Grantees may use other grant funds for their portion of the cost of a project so long as the total reimbursement amount is not over 100%. The old locomotives/locomotive engines that are replaced as part of this grant must be destroyed. Grant funds cannot be used to expand fleets.

Application deadline: 4 p.m. on July 3, 2025.

Questions and answers

Submit questions about this grant to grants.pca@state.mn.us with the subject line “Freight Switcher Locomotive Repower/Replacement Grant” no later than 4 p.m. on June 11, 2025.

MPCA employees cannot answer questions about this grant opportunity, and direct contact regarding this RFP with any MPCA personnel may result in disqualification.

19651: Information session on Freight switcher locomotive grant
Calendar and clock

Informational meeting

The MPCA will hold an informational webinar on Wednesday, April 16, at 2 p.m. The session will be recorded and the recording posted here following the event.

Eligibility

For-profit, nonprofit, individuals, and public entities, including state, local, and Tribal governments that own and operate freight switchers in Minnesota are eligible applicants. Applicants must be based in Minnesota, have a branch office in Minnesota, or be located on Indian country within Minnesota.

While multi-organizational collaboration is allowed, no single entity may be a part of multiple applications.

Available funds

The MPCA anticipates awarding approximately $1.4 million for locomotive repower/replacement grants. 

Grantees will be required to provide all remaining funds for the purchase of the new vehicle. Grantees may use other grant funds for their portion of the cost of a project so long as the total reimbursement amount is not over 100%. The old locomotives/locomotive engines 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. 

  • Up to 40% of the cost of a repower with a new diesel or alternate fueled (e.g., CNG, propane, hybrid) engine(s) or generator sets, including the costs of installation of such engine(s).
  • Up to 25% of the cost of a new diesel or alternate fueled (e.g., CNG, propane, hybrid) freight switcher.
  • Up to 75% of the cost of a repower with a new all-electric engine(s), including the costs of installation of such engine(s), and charging infrastructure associated with the new all-electric engine(s).
  • Up to 75% of the cost of a new all-electric freight switcher, including charging infrastructure associated with the new all-electric freight switcher.

How to apply

The request for proposal (RFP) and application materials can only be viewed through the online SWIFT portal. The RFP is termed an “Event” within the SWIFT system.

  1. Go to the online SWIFT portal.
  2. Click on "Bidding opportunities".
  3. Find the event by name (MPCA-Freight Switcher Locomotive Repower/Replace) or ID (2000016738).
  4. Click "View Bid Package" to see the RFP and forms. (There’s no need to log in to see the documents.)

Grant applications are only accepted through the SWIFT portal.

  1. Register as a bidder in the SWIFT Supplier Portal, (Bidding = "applying")
  2. Choose "Register for an Account" and then "Register as a Bidder".

If you are already registered in the SWIFT system as a supplier (previously known as a vendor), use your supplier ID. Visit the SWIFT Supplier Portal under “Informational Tips” and “Supplier Portal Help” for more information. For questions about applying through SWIFT, please contact the Vendor Assistance Help Desk at 651-201-8100, option 1.

More information

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.