Locomotive idle reduction

This opportunity provides locomotive owners funding to purchase and install U.S. Environmental Protection Agency (EPA) certified SmartWay idle reduction technology and automatic start/stop technology (when not required by rule or statute), and shore connection systems. These systems will reduce diesel emissions while locomotives idle. 

Applications will be accepted on a rolling, “first come, first served” basis until all dedicated funds have been dispersed or Monday, June 30, 2025, (4 p.m. Central Time), whichever occurs first.

Projects must be completed within one year of grant execution or by Tuesday, June 30, 2026, whichever occurs first.

Questions and answers

Applicants who have any questions regarding this RFP must email questions to grants.pca@state.mn.us using the subject line: “Locomotive idle reduction grant program.” Answers to questions will be posted frequently on this web page.

Q1. Have a question about the idle hours. Our locomotives don’t have the computer systems that monitor this being as they are from the 60’s and 70’s. How would you like me to account for these? 

Options include daily use hours * .4-.5, because switch locomotives spend approximately 40-50% at idle. Take annual usage hours *.45. These don’t account for idle time when the engine is not in use. This occurs to maintain brake pipe pressure, to maintain engine temperature during the winter (diesel will gel if the engine cools too much) etc. I don’t have any accurate way to track this. Any recommendations? 

A1. The method of calculating idling hours should be your best estimation of the time the locomotive spends at idle. In some cases, there is technology that tracks the number of hours, but in other cases, it will involve the owner’s calculation based on their best available information and average number of days of cold temperatures that would require idling outside of usage hours. That method should be documented for future review, if necessary, and include the best estimation of all idle hours, including hours that the locomotive idles when the engine is not in use to maintain engine temperature.

Q2. I was forwarded the article below noting that MPCA now has a locomotive idling grant program. Great news! I am in US EPA Region 5’s Air Enforcement & Compliance Assurance Branch and have been investigating railroad compliance with 40 CFR Part 1033. I am wondering if your grant program application also includes a compliance check to determine if the AESS system isn’t already required under Part 1033.
A2. Yes, as stated in the RFP: Automatic engine start-stop technologies are only eligible to be installed on locomotives currently certified to Tier 0 or unregulated, subject to the restriction on mandated measures. Pursuant to 42 U.S.C. 16132(d)(2), no funds awarded under this grant shall be used to fund the costs of emissions reductions that are mandated under federal or state law. This restriction does not apply to a mandate in a State Implementation Plan approved by the Administrator under the Clean Air Act. Voluntary or elective emissions reduction measures shall not be considered “mandated,” regardless of whether the reductions are included in the State Implementation Plan. Locomotive engines are not eligible for funding if the emissions reductions are required by EPA’s locomotive and marine rule, “Control of Emissions of Air Pollution from Locomotives and Marine Compression-Ignition Engines Less than 30 liters per Cylinder.” Also, projects involving stationary engines will not be considered for funding if the emissions reductions proposed for funding are required by EPA’s RICE rule, “National Emission Standards for Hazardous Air Pollutants (NESHAP) for Stationary Reciprocating Internal Combustion Engines (40 CFR pt. 63, subp. ZZZZ).

Q3. Is there a scrappage requirement?
A3. This grant program is intended to fund installing locomotive idle reduction technology on locomotives that do not currently have this technology. Thus, there is no scrappage requirement in this grant.

Q4. Is public access required?
A4. No, there is no mention of public access required.

Q5. Is leasing eligible?
A5. Leasing is not eligible under DERA rules.

Q6. Can you stack funding with other federal or local funding sources?
A6. The RFP, p. 1, states “Match: Grantees will be required to provide a cash match. The minimum required cash match percentage is 60% of the equipment and installation cost. Eligible sources of a cash match are non-DERA, non-VW settlement or non-federal funds in the form of cash, loans, other grants, or capital assets dedicated to the project.”

Q7. Are applicants funded on a reimbursement basis? Or should the purchase be made after being awarded?
A7. The RFP , p. 1, states, “Reimbursement schedule: This grant is a reimbursement grant. Paid in full invoices must be submitted for review and approval for reimbursement.” Please note, a grantee may only order or purchase any equipment after the official grant agreement is fully executed between the MPCA and grantee. 

Q8. Can you elaborate on what is eligible under BE powered vehicles? Does this mean the purchase of vehicles is allowed? What kind? and what kind of charging infrastructure? L2, DCFC? ("Installation of technology. Eligible costs for battery electric powered vehicle, equipment and engine replacement projects can include the purchase and installation of one charging unit per vehicle, including the unit and charging cable, mount and/or pedestal. Eligible costs for idle reduction technologies that are installed on the vehicle can include the associated labor costs for installation of the system. These costs are subject to the mandatory cost share requirements.")
A8. This language on p. 2 of the RFP including chargers and battery equipment was erroneously included. This RFP is for APUs, APU/AESS, and/or shore connection systems and the installation costs related to those items. The RFP will be corrected. 

Q9. Under reporting I see "annual monitoring visits during the grant period on all grants of $250,000 and higher." Isn't the maximum solicitation $200,000?
A9. The RFP, p. 5, describes Minn. Stat. § 16B.97 and the Policy on Grant Monitoring and is included in all MPCA grant RFPs. The statute and policy will be followed based on the grant awarded.