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Grants to Minnesota Nonprofits, For-Profits,
and Agencies to Reduce Diesel Emissions

Off-Road Diesel Emissions Reduction Act (DERA) Grant Program

Agency Type:


Funding Source:

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Minnesota Pollution Control Agency (MPCA)

Deadline Date:

12/01/21 4:00 PM CST


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Grants to Minnesota nonprofit, for-profit, and public entities that operate or own diesel fleets and equipment for projects that reduce diesel emissions. Required registrations may take up to two business days to finalize. Funding is intended to improve both air quality and public health by reducing emissions from older, diesel-powered off-road equipment.

The Minnesota Pollution Control Agency (MPCA) seeks diesel fleet owners from private, public, and nonprofit sectors to apply to this DERA grant opportunity to fund off-road clean diesel projects in the State of Minnesota. The DERA program reduces diesel emissions from diesel engines to improve air quality and public health. 

Eligible expenses are costs directly incurred through the purchase of eligible technologies, equipment, vehicles, installation activities (vehicle set up, signage, paint), and administrative costs (grant contractors only). 

Eligible equipment may include marine engines, locomotives, trailer refrigeration units, terminal tractors, drayage trucks, and off-road engines, and equipment or vehicles used in construction, handling of cargo, agriculture, mining, or energy production.

For Eligible Projects, see page 4 of the RFP document which can be viewed through the online SWIFT portal at


  • The MPCA is committed to making sure that pollution does not have a disproportionate impact on any group of people, the principle of environmental justice. This means that all people regardless of their race, color, national origin or income benefit from equal levels of environmental protection and have opportunities to participate in decisions that may affect their environment or health. It is MPCA’s strategic plan to address environmental concerns in all programs. To learn more, visit:
  • This grant will prioritize projects that serve and improve communities with higher concentrations of low-income residents and people of color, including tribal communities. 
  • Applicants classified as a small business that is veteran-owned, economically disadvantaged, or targeted group businesses in Minnesota based on the business's ownership by a woman, a minority, a person with a substantial physical disability, or by its location in an economically disadvantaged area. 

GrantWatch ID#:

GrantWatch ID#: 178084

Estimated Total Program Funding:


Estimated Size of Grant:

The maximum grant funding per project is $400,000.

Term of Contract:

The funding for these grants expires September 30, 2023, but awarded projects are encouraged to complete projects as quickly as possible after grant agreements are executed.

Additional Eligibility Criteria:

Diesel equipment owners from the private, public, and nonprofit sectors are encouraged to apply for this Diesel Emission Reduction Act (DERA) grant opportunity.

Eligible applicants:
- For profit, nonprofit, and public entities - including state, local, and tribal governments that own or operate diesel fleets and equipment in Minnesota are eligible applicants.
- While multi-organizational collaboration is allowed, no single entity may submit individually and also be a part of multiple applications. Only one organization may apply as a contractor on behalf of collaborators.
- Grant contractors are eligible under this program. Eligible contractors may request administrative fees up to 10% of the equipment cost per piece of equipment with a maximum of up to $10,000. This amount will be included in the total cost to determine cost effectiveness. Administrative costs will be included on a per vehicle/equipment awarded basis.

To qualify as a contractor:
- All projects must be on the same application (one application per contractor)
- Contractor must represent at least three different entities
- Contractor is responsible for all grant contract oversight responsibilities as stated in grant agreement, federal Diesel Emissions Reduction Act documents, and Code of Federal Regulations

Ineligible applicants:
- Entities or individuals that are currently suspended or debarred by the State of Minnesota and/or the federal government
- The MPCA may also deem an applicant ineligible because of, but not limited to: enforcement issues (including vehicle tampering or air permit violations), labor standards, tax status, or other such issues
- MPCA employees

For Ineligible Projects, see page 4 of the RFP document which can be viewed through the online SWIFT portal at For Funding Restrictions, see page 11 of the RFP.

Ineligible costs:
Ineligible costs include costs that are not directly related to the project. In addition, the following costs, even if they are directly related to the project, are ineligible.
- Administrative costs over 10% or $10,000 per piece of equipment (grant contractors only).
- Any expenses incurred before the grant agreement is fully executed including applicant’s expense for preparing the eligibility and cost applications.
- Any expenses incurred during workplan application and final workplan development.
- Costs incurred from equipment disabling.
- Bad debts, late payment fees, finance charges or contingency funds, interest, and investment management fees.
- Attorney fees.
- Engineering/consultant fees.
- Lobbying, lobbyists, and political contributions.
- Mark-up on purchases and/or subcontracts.
- Taxes, except sales tax on eligible equipment and expenses.
- Activities addressing permit fees.
- Activities addressing enforcement actions that involve a financial penalty.
- Memberships (including subscriptions and dues).
- Food.
- Alcoholic refreshments.
- Entertainment, gifts, prizes and decorations.
- Merit awards and bonuses.
- Donations and fundraising.
- Computer(s), tablets, and software, unless unique to the project and specifically approved by the MPCA as a direct expense.
- Purchase or rental of mobile communication devices such as cell phones, unless unique to the project and specifically approved by the MPCA as a direct expense.

Pre-Application Information:

The deadline for application is December 1, 2021 (4:30 p.m.).

The RFP and application materials can only be viewed through the online SWIFT portal. Registration is not required to view the RFP and application materials.
1. Go to the online SWIFT portal.
2. Click on "Bidding opportunities"
3. Find and click on the event name: MPCA-Grant-Off-Road DERA (ID 2000012224).
4. Click "View Bid Package" to see the RFP and forms.

Applicants who have any questions regarding this RFP must email questions no later than 4:30 p.m. Central Time on November 26, 2021. Staff will gather questions and post answers in the SWIFT portal for bidding event "MPCA-Grant-Off-Road DERA" (ID 2000012224)

Grantees will be required to provide a cash match. Required cash match percentages vary based on project category, and are listed in Section 11 “Cost-Share Requirements” on Table 5 on page 14 of the RFP document. 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. Applicant may consider applying for a zero-interest Small Business Environmental Improvement Loan, which can count towards the applicant match.

You must register in the SWIFT portal to submit an application. Grant applications are only accepted through the SWIFT portal. In order to apply, applicants must click on "Register for an Account" and then "Register as a Bidder." It may take up to two business days to get confirmation of your registration. If you are already registered in SWIFT, use your current username and password.

MPCA hosted a brief informational meeting on the grant round and RFP (Sept. 22) - File Webex: Recorded informational meeting on Minnesota Off-road Clean Diesel DERA grant:

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

SWIFT Portal:

For questions about SWIFT, please contact the Office of State Procurement at 651-201-8100, option 1.

Applicants who have any questions regarding this RFP must email questions to

Contact Information:

Applicants classified as a small business that is veteran-owned, economically disadvantaged, or targeted group
businesses in Minnesota based on the business's ownership by a woman, a minority, a person with a substantial
physical disability, or by its location in an economically disadvantaged area must be currently certified by the Office of Equity in Procurement (OEP) prior to the application due date and time. For information regarding certification, contact OEP at 651-201-2402 or

Grant Coverage Areas:

Click here to see if the project is located in an area of concern for environmental justice:

Funding or Pin Number:

MPCA-Grant-Off-Road DERA (ID 2000012224)

URL for Full Text (RFP):

Geographic Focus:

USA: Minnesota

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