2026 Diesel Emissions Reduction Act (DERA) National Program

This Notice of Funding Opportunity (NOFO) announces the availability of funds under the Diesel Emissions Reduction Act (DERA) Program and solicits applications from eligible entities to incentivize and accelerate the upgrade or retirement of the nation’s legacy diesel engine fleet. Eligible activities include the retrofit or replacement of existing diesel engines, vehicles, and equipment with the U.S. Environmental Protection Agency (EPA) and California Air Resources Board (CARB) certified or verified technologies. There are several ways DERA recipients may implement projects and fund project partners, depending on the roles and responsibilities of each. If the applicant is the owner of the target vehicles, the applicant may directly implement the project. If the applicant is partnering with diesel fleet owners, the applicant may award subawards or participant support costs (e.g., rebates). Please refer to Section 9.B. for detailed guidance on funding partnerships. After an extensive review of the program, the EPA revamped DERA requirements to ensure alignment with the Administration’s priorities, improve the quality of projects funded, expand the availability of technology choices, and respond to stakeholder requests for a simplified program structure. Consistent with agency grants direction, updates to 2 CFR §200.204 and DERA statutory requirements, this NOFO reflects these changes and inputs when compared to previous funding notice opportunities. This NOFO is a competitive grant program. The DERA Program has another competitive funding opportunity, DERA Tribal and Territory Program, which funds similar activities but is only open to eligible Tribal and territory applicants. Competitive funding for school bus replacement is also available through the EPA’s Clean School Bus Program. The DERA Program also provides non-competitive funding to U.S. States and territories through the DERA State Program.

See Section 2 for eligibility information.

The evaluation and selection criteria for competitive awards under this assistance listing will be described in the Notice of Funding Opportunity.

Statutory Formula: Title 5, Part 200, Subpart 674,Public Law 111-364.70% of the annual DERA appropriation is for the national competitive grant and rebate funding opportunities.There is no statutory requirement for a matching contribution from applicants. However, programmatic policy requires a mandatory match for certain types of projects, as defined below. Applicants may use their own funds or other sources for cost-share if the standards of 2 CFR Part 200, as applicable, are met. If the proposed cost-share is to be provided by a named project partner, a letter of commitment is required. Other federal grants may not be used as cost-share under this program unless the statute authorizing the other federal funding provides that the federal funds may be used to meet a cost-share requirement on a federal grant. For the project types listed below, DERA funds are limited to the...

Fiscal Year2016: Projects include a variety of diesel emissions reductions solutions such as: add-on emission control retrofit technologies; idle reduction technologies; cleaner fuel use; engine repowers; engine upgrades; and/or vehicle or equipment replacement. Eligible vehicles, engines and equipment may include: buses (including school buses); Class 5 Class 8 heavy-duty diesel trucks; marine engines; locomotives; and nonroad engines or vehicles used in: i) construction; ii) handling or cargo (including at a port or airport); iii) agriculture; iv) mining; or v) energy production (including stationary engines such as generators or pumps). Projects include a variety of diesel emissions reductions solutions such as: add-on emission control retrofit technologies; idle reduction technologies; cleaner fuel use; engine replacement; engine upgrades; and vehicle or equipment replacement. Eligible vehicles, engines and equipment may include: buses (including school buses); Class 5 Class 8 heavy-duty diesel trucks; marine engines; locomotives; and non-road engines or vehicles used in: i) construction; ii) handling or cargo (including at a port or airport); iii) agriculture; iv) mining;...