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Tacoma Rail recently received a $2.5 million grant from the U.S. Environmental Protection Agency and Puget Sound Clean Air Agency to transform three locomotives into environmentally friendly units.

The $4.3 million project — for which Tacoma Rail will provide $1.8 million — calls for upgrading the locomotives through repowering or replacement to reduce air emissions by about 75 percent and increase fuel efficiency. In addition, eight locomotives will be equipped with onboard wheel lubrication technology.

Tacoma Rail must upgrade the three locomotives by November to use the grant funds.

Meanwhile, Sound Refining Co. recently dedicated a new Tacoma Rail-served spur at its Tacoma, Wash., rail terminal that will be used to transport alternative fuels. Tacoma Rail provides switching and rail services for the fuel distributor.

The $1 million project was funded by $600,000 from Sound Refining and a $400,000 grant from the Washington State Department of Transportation.

The third track increases capacity at the facility, enabling Sound Refining to increase business, Tacoma Rail officials said in a prepared statement. In addition, more rail cars offloaded at the facility “equals more business for Tacoma Rail,” they said.