Freight Switcher Locomotive Grant

The Minnesota Pollution Control Agency is offering the Freight Switcher Locomotive Repower or Replacement Grant to support locomotive owners from private, public, and nonprofit sectors in Minnesota. This program aims to reduce diesel emissions from older freight switchers by replacing them with cleaner diesel engines or zero-emission motors, thereby improving air quality and public health. Funded under the Volkswagen Mitigation Trust agreement for clean diesel activities in the state, the grants are administered pursuant to Minnesota Statutes section 116.03, subdivision 2. The funding will partially cover the costs of repowering or replacing freight switcher locomotives with newer, cleaner models. Award amounts vary depending on the type of replacement powertrain, with different cost-share percentages for diesel, alternate-fueled, or all-electric options. Grantees must provide the remaining funds for the purchase, but may use other grant funds to meet their share, provided total reimbursement does not exceed 100 percent of eligible costs. The program requires that any replaced locomotive or engine be destroyed, and prohibits the use of grant funds to expand fleets. Eligibility is open to for-profit organizations, nonprofit organizations, individuals, and public entities such as state, local, and Tribal governments that own and operate freight switchers within Minnesota. Applicants must be based in Minnesota, have a branch office in the state, or be located on Indian country within Minnesota. Collaborative applications are permitted, but no single entity may participate in more than one application. Applications must be submitted through the online SWIFT portal, where the Request for Proposal and associated materials are available for review without logging in. Prospective applicants must register in the Supplier Portal as bidders to apply. The grant application period is currently open, with a final submission deadline of 4:00 p.m. on October 22, 2025. A Q&A submission deadline is set for 4:00 p.m. on October 8, 2025. The MPCA will host an informational webinar on August 5, and a recording of an earlier session is also available. The funding availability totals approximately $1.4 million statewide, with the following maximum reimbursement rates: up to 40 percent for repowers with new diesel or alternate-fuel engines; up to 25 percent for new diesel or alternate-fuel switchers; up to 75 percent for repowers with new all-electric engines including installation and charging infrastructure; and up to 75 percent for new all-electric freight switchers including associated charging infrastructure. Contact for grant-related questions is via email to grants.pca@state.mn.us with the subject line “Freight Switcher Locomotive Repower/Replacement Grant.” Direct contact with MPCA personnel outside of these channels is prohibited and may result in disqualification. For questions about applying through the SWIFT system, applicants should contact the Vendor Assistance Help Desk at 651-201-8100, option 1.