MPCA-School Bus Replacement Grant

The Minnesota Pollution Control Agency (MPCA) is soliciting proposals for a School Bus Replacement Grant program targeting diesel emissions reduction across Minnesota, with a specific focus on Anoka County and statewide jurisdictions. The procurement seeks to partially fund new school bus replacements using diesel, propane, and natural gas technologies, with the primary objective of removing older diesel buses (1998-2009 model years) from operation to improve air quality and public health. Eligible applicants include private, public, and nonprofit entities based in or operating within Minnesota, who can apply for grants to replace buses with new 2024 model year or newer vehicles meeting U.S. Environmental Protection Agency or California Air Resources Board emissions standards. The evaluation criteria include a comprehensive 100-point scoring system that assesses emissions reductions cost-effectiveness (45 points), environmental justice benefits (20-30 points), vulnerable population impacts, health benefits, and additional factors such as alternative fuel technologies and accessibility features. The proposal solicitation was posted on March 13, 2025, with a firm submission deadline of May 14, 2025 at 4:00 p.m. Central Time, and anticipates awarding approximately $630,000 in total grant funding.

The grant opportunity includes specific set-aside provisions and prioritizes funding for communities with higher concentrations of low-income residents, people of color, and Tribal communities. Bidders must be registered as either a supplier or bidder and will be encouraged to demonstrate diversity and inclusion, with preference given to small businesses, enterprises owned by racial minorities, women, persons with substantial physical disabilities, veterans, or businesses located in economically disadvantaged counties. The maximum grant award is $15,000 per school bus, with an increased maximum of $20,000 for school districts where 40% or more of students are eligible for free or reduced-cost lunch. Funding is exclusively sourced from the Volkswagen NOX Mitigation Settlement Phase 3, with 40% ($252,000) dedicated to Greater Minnesota and 60% ($378,000) allocated to the Twin Cities 7-County Metropolitan Area. The MPCA has committed to investing at least 20% of funds in areas disproportionately affected by air pollution, and successful applicants must permanently disable replaced buses and comply with all grant agreement terms and conditions.