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Heavy duty on-road replacement grant

The 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.

Questions and answers

Applicants who have any questions regarding this RFP must email questions to grants.pca@state.mn.us, subject line: “Heavy Duty On-road Grant P3”, no later than 4:30 p.m. Central Time on October 1, 2024. Answers to questions will be posted frequently on the SWIFT Supplier Portal.

MPCA personnel are not authorized to discuss this RFP with applicants outside of the question and answer forum. Contact regarding this RFP with any MPCA personnel may result in disqualification.

17096: HD on-road truck grant info session playback
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Informational meeting

The MPCA held a virtual meeting to discuss this grant opportunity, the SWIFT process, and answer questions from participants (38 min.).

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) 

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 "Bidding opportunities".
  3. Find and view by event name (MPCA - Heavy Duty On-road Replacement Grant) or ID (2000016029).
  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.