MPCA-Freight Switcher Locomotive Repower/Replace

The Minnesota Pollution Control Agency (MPCA) is seeking locomotive owners from private, public, and nonprofit sectors to apply for a grant opportunity focused on freight switcher locomotive repower and replacement in Minnesota. The procurement aims to reduce diesel emissions by replacing older diesel freight switchers with new, cleaner diesel engines or zero-emission motors to improve air quality and public health. Eligible applicants can apply to partially fund the replacement or repower of up to 9 locomotives, with requirements that equipment must operate a minimum of 1,000 hours annually within Minnesota and have at least 3 years of remaining useful life. The evaluation methodology uses a 100-point scoring system, with key criteria including emissions reductions cost-effectiveness (47 points), environmental justice benefits (20-30 points), vulnerable population benefits (5 points), health benefits (10 points), and air pollution benefits (5 points). The RFP was posted on February 18, 2025, with proposals due by May 20, 2025, at 4:00 PM Central Time, and projects must be completed within two years of the grant agreement start date.

The procurement provides opportunities for various business types, with special considerations for small businesses, veteran-owned enterprises, economically disadvantaged businesses, and targeted group businesses in Minnesota. Funding comes from the Volkswagen Mitigation Trust agreement, with MPCA committing to invest at least 20% of funds in areas disproportionately affected by air pollution. Reimbursement rates vary by powertrain type: up to 40% for diesel or alternate fuel repowers, up to 25% for new diesel or alternate fuel switchers, and up to 75% for all-electric repowers or new electric switchers (including charging infrastructure). The agency anticipates awarding approximately $1.4 million in grants, with funding prioritized for communities with higher concentrations of low-income residents and people of color, including tribal communities. Successful grantees must demonstrate financial capacity through a comprehensive pre-award risk assessment, including submission of financial documents, tax returns, and various certifications as outlined in the addendum to the original RFP.