Apply now: Clean Diesel Grants

Region

Minnesota

Timeline

Now - July 20, 2022

Approximately $1 million in grant funding is available to reduce emissions from older, diesel-powered off-road equipment by helping fleet owners to replace or improve eligible diesel equipment in Minnesota. The maximum grant award is $400,000 per vehicle. 

Environmental Initiative will work with fleet owners now – July 20, 2022 to prepare application materials to submit to the Minnesota Pollution Control Agency for possible funding. These grant funds come from the U.S. EPA National Clean Diesel Campaign and Minnesota’s portion of the national Volkswagen settlement.

Eligibility, cost share requirements, and other grant details can be found below or downloaded here. Contact Alli Mueller at 612-334-3388 ext. 8125 with questions or to learn more.

diesel front loader scooping dirt

Equipment eligibility

  • Marine Engines: Includes diesel powered Category 1, 2, and 3 marine engines and vessels.
  • Locomotives: Includes diesel powered line-haul, passenger, and switch engines, and locomotives.
  • Off-road engines, equipment, or vehicles: Includes diesel powered engines, equipment, and vehicles used in construction, handling of cargo (including at ports and airports), agriculture, mining, or energy production (including stationary generators and pumps). This also includes vehicles that have on-road engines but are used in primarily off-road capacities such as drayage trucks (terminal tractors).
  • The existing vehicle, engine, or equipment must have at least three years of remaining life at the time of upgrade. Remaining life is the fleet owner’s estimate of the number of years until the unit would have been retired from service if the unit were not being upgraded or scrapped because of the grant funding. 
  • Engines must have operated 500+hr/year for the past two years (1,000+ hr/year for the past two years for locomotives and marine.)
  • Current off-road equipment must be Tier 0/Unregulated – Tier 3 (replacement equipment must be Tier 4).
  • Current equipment must be fully operational, be in current and regular service, and have remaining operational life of at least three years.
  • New equipment must perform the same or similar function as equipment being replaced.
  • New equipment horsepower must not exceed 40% of current equipment.
  • New equipment must operate in Minnesota for at least five years post-project completion.
  • New equipment must be paid for in cash or through financing; it cannot be leased.
  • Old equipment must be scrapped or rendered permanently disabled within 90 days of being replaced.
freight train locomotive

Priority projects

Eligible replacement or retrofit projects being prioritized in the grant opportunity include cost effectiveness, lifetime emission reductions in Minnesota and equipment operating in: 

  • Areas of Environmental Justice concern for air quality.
  • Areas of higher vulnerability to negative health outcomes related to air pollution and/or areas of higher modeled air pollution.
  • Goods movement facilities such as: ports, airports, rail yards, terminals, distribution centers. 
  • Anoka, Carlton, Carver, Dakota, Hennepin, Ramsey, St. Louis, Scott and Washington counties.

Equipment owned by small businesses certified by the Office of Equity in Procurement (OEP) as veteran, woman, or minority owned and/or small businesses located in an economically disadvantaged area are also being prioritized.

old and new diesel marine engine on deck of tugboat

Funding percentages and cost share requirements

Vehicle or Equipment Replacement with EPA Certified Engine

  • 25% – Grant funding limit
  • 75% – Fleet owner contribution

Vehicle or Equipment Replacement with Zero-tailpipe Emission Power Source

  • 45% – Grant funding limit
  • 55% – Fleet owner contribution

Engine Replacement with EPA Certified Engine

  • 40% – Grant funding limit
  • 60% – Fleet owner contribution

Engine Replacement with Zero-tailpipe Emission Power Source

  • 60% – Grant funding limit
  • 40% – Fleet owner contribution

EPA Verified Locomotive Idle Reduction Technologies

  • 40% – Grant funding limit
  • 60% – Fleet owner contribution

EPA Verified Exhaust After-treatment Retrofits

  • 100% – Grant funding limit
  • No fleet owner contribution, grant covers total project cost.

Drayage Truck Replacement

  • 50% – Grant funding limit
  • 50% – Fleet owner contribution

Work with us to apply

Environmental Initiative will work with fleet owners to prepare application materials. Fleets are required to provide: 

  • A detailed cost estimate for the proposed vehicle replacement or engine upgrade project.
  • Photo of the current vehicle/equipment to be replaced/repowered.
  • Photo the current vehicle/equipment’s engine plate showing the serial number.
  • Information on the old vehicle to be replaced or upgraded and the new vehicle or upgrade. A spreadsheet will be sent including fields for: vehicle type, make, model and year; VIN number, engine serial number, fuel type, horsepower, annual miles driven (including idling), and annual usage hours. 

All application materials must be provided to Environmental Initiative on or before July 20, 2022.

Contact us

Environmental Initiative will work with interested and eligible fleet owners to prepare application materials to submit to the Minnesota Pollution Control Agency. Contact Alli Mueller today to get started.