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Environmental Protection Agency

2026 Diesel Emissions Reduction Act (DERA) National Program

Open

Key facts

Deadline
Due Jan 22, 2027 · 106 days left
Award size
Up to $12M
Total available
$180M · about 120 awards
Match ?
Required · Work out your budget and match
Who can apply
Set by the official notice: see Who can apply below
Where
Anywhere in the U.S., including Tennessee

How this fits you

  • Available in Rhea County (nationwide program)
  • Needs a match (see how much in the notice)

Tell us who you are to see whether you're eligible.

View on Grants.gov Add deadline to my calendar

More from Environmental Protection Agency

About this grant

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.

Who can apply, from the official notice

See Section 2 for eligibility information.

Ask a partner for a letter

Your schedule, working back from the deadline

  1. Oct8
    Check that your SAM.gov registration is active (or start it now)
    Grants.gov: allow up to 10 business days for SAM registration, weeks or months if information isn't verified. It must be renewed every year. Grants.gov
  2. Jan1
    Ask partners for letters of support or commitment
    Suggested: partners need about three weeks to write and sign letters.
  3. Jan15
    Finish a complete draft for a final review
    Suggested: leave about a week for someone else to read the draft.
  4. Jan20
    Submit
    Grants.gov: submit at least 24–48 hours before the deadline: uploads fail, systems slow down, errors need fixing. Grants.gov blog
  5. Jan22
    Deadline
    From the funder.

Save this grant to put these dates in My grants and your private calendar.

Writing the need statement? Rhea County facts with citations.

What the official notice requires

Pulled from the official notice EPA-OAR-OTAQ-26-01.pdf (54 pages) so you can see the requirements at a glance. Each item shows the notice's own words. Open the page to read it in context.

Award size and project length

  • Award amounts here are for the whole project · p. 41
    “TOTAL PROJECT COSTS: $867,052 $990,000 $85,000 $1,942,052 Note on Management Fees:” Open page 41

Registrations you need first (3)

  • Unique Entity ID (UEI) · p. 27
    “Applicant Information: o Applicant organization o Address o Primary contact name, phone number, and email address o Unique Entity Identifier (UEI) number” Open page 27
  • Grants.gov · p. 41
    “Applicant Fleet Description Applicants must use the “Other Attachments” form in Grants.gov to upload their Applicant Fleet Description.” Open page 41
  • SAM.gov · p. 43
    “Unique Entity Identifier (UEI) and System for Award Management (SAM.gov) SAM.gov You must have an active account with SAM.gov.” Open page 43

Registration is free but can take weeks, so start now, not when the deadline is close. Get-ready checklist

What to submit

  • Form SF-424 · p. 8
    “Mandatory Costs & SF-424/A:” Open page 8
  • Form SF-424A · p. 8
    “Applications that include projects with mandatory cost share requirements must demonstrate on the Standard Form 424 (SF-424) Application for Federal Assistance, on the SF-424A Budget Information for Non-Construction Programs, and in the project narrative how…” Open page 8
  • Timeline or schedule of completion · p. 24
    “The applicant must identify outputs and outcomes specific to each project as deliverables in the negotiated workplan if the application is selected for award.” Open page 24
  • Project abstract or summary · p. 30
    “The applicant should provide a project summary.” Open page 30
  • Budget narrative / justification · p. 35
    “This section of the project narrative is a detailed description of the budget the applicant provides in the SF-424A and must include a discussion of the applicant’s approach to ensuring proper management of grant/cooperative agreement funds, a detailed…” Open page 35
  • Indirect cost rate agreement · p. 35
    “Applicants should note that recipients charging a negotiated indirect cost rate must submit a copy of their current indirect cost rate agreement that has been negotiated with a federal cognizant agency prior to drawing down indirect costs (IDCs).” Open page 35
  • Resumes or bios of key staff · p. 42
    “Provide resumes as described in Section 4.B.(2).” Open page 42

Length limits

  • Workplan: 14 pages max · p. 27
    “The Cover Page and Workplan combined are limited to 14 pages.” Open page 27
  • Page limit (see quote): 14 pages max · p. 36
    “The application should include the budget detail and the budget table in the project narrative which counts towards the 14-page limit.” Open page 36
  • Optional Template: 14 pages max · p. 39
    “Example Budget Table (Optional Template, part of the 14-page limit):” Open page 39
  • Required Attachments: 14 pages max · p. 41
    “(3) Required Attachments (not included in 14-page limit) – use “Other Attachments” form to submit 1.” Open page 41

How applications are scored (Scores listed: 105 of 130 points)

Build your narrative outline from these criteria

Check the official notice for the rest of the points.

  • Project Summary: 10 points · p. 45
    “Project Summary (10 points) The extent and quality to which the project meets the goals and objectives of the program (Section 3.B. of the NOFO) and demonstrates that all activities meet the program eligibility criteria (Section 2). b.” Open page 45
  • Project Approach: 10 points · p. 45
    “Project Approach (10 points) The extent and quality of the applicant’s overall approach and implementation plan, including activities, tasks, roles and responsibilities, and partnerships. 2.” Open page 45
  • Nonattainment Areas: 5 points · p. 46
    “Nonattainment Areas (5 points) The extent to which the projects are located in and serve counties that contain ozone or PM2.5 nonattainment or maintenance areas, as described in Section 4.B. b.” Open page 46
  • Areas with Air Toxics Concerns: 5 points · p. 46
    “Areas with Air Toxics Concerns (5 points) The extent to which projects are located in and serve counties that contain areas with air toxics concerns, as described in Section 4.B. 4.” Open page 46
  • Continuing Efforts: 5 points · p. 46
    “Continuing Efforts (5 points) The application demonstrates that the applicant and project partner(s) have policies in place to promote and continue efforts to reduce diesel emissions.” Open page 46
  • Baseline Monitoring: 5 points · p. 46
    “Baseline Monitoring (5 points) The application demonstrates that the applicant and project partner(s) has a publicly available baseline mobile source emission inventory for PM2.5 or NOx that was completed after 2021.” Open page 46
  • Emissions Plan: 5 points · p. 46
    “Emissions Plan (5 points) The application demonstrates that the applicant and project partner(s) has a publicly available plan, finalized after 2021, to reduce mobile source emissions that include specific PM2.5 or NOx emission targets.” Open page 46
  • Community Engagement: 5 points · p. 46
    “Community Engagement (5 points) The extent and quality to which the application demonstrates that the applicant and project partner(s) have an existing clear point of contact in a public platform (e.g., newsletter, website) for community issues and…” Open page 46
  • Expected Project Outputs and Outcomes: 10 points · p. 47
    “Expected Project Outputs and Outcomes (10 points) The extent and quality to which the applicant identifies and quantifies expected project outputs and outcomes, including those identified in Section 3.A. b.” Open page 47
  • Performance Measures and Plan: 10 points · p. 47
    “Performance Measures and Plan (10 points) The quality of the proposed performance measures and effectiveness of the applicant’s plan for tracking and measuring their progress toward achieving the expected project outputs and outcomes, including those…” Open page 47
  • Timeline and Milestones: 10 points · p. 47
    “Timeline and Milestones (10 points) The reasonableness of the proposed timeline including key milestones for specific tasks and the likelihood of completion of the project’s goals and objectives by project end. 6.” Open page 47
  • Past Performance: 5 points · p. 47
    “Past Performance (5 points) Past performance in successfully completing and managing the grants identified in the project narrative as described in Section 4.B. of the NOFO. b.” Open page 47
  • Reporting Requirements: 5 points · p. 47
    “Reporting Requirements (5 points) History of meeting the reporting requirements under the grants identified in the project narrative, including whether the applicant submitted acceptable final technical reports under those agreements and the extent to which…” Open page 47
  • Staff Expertise: 5 points · p. 47
    “Staff Expertise (5 points) Organizational experience and plan for timely and successfully achieving the objectives of the proposed project, and staff expertise/qualifications, staff knowledge, and resources or the ability to obtain them, to successfully…” Open page 47
  • Budget Detail: 5 points · p. 47
    “Budget Detail (5 points) The proposed budget provides a detailed breakout by funding type in the proper budget category for each activity the applicant is requesting funding.” Open page 47
  • Reasonableness of Costs: 5 points · p. 48
    “Reasonableness of Costs (5 points) The proposed costs are reasonable to accomplish the proposed goals, objectives, and measurable environmental outcomes, including consideration of indirect/administrative costs. 8.” Open page 48

Cost share or match

  • Cost share / match · p. 9
    “Voluntary cost sharing is when an applicant voluntarily proposes to legally commit to providing costs or contributions to support the project when a cost share is not required.” Open page 9
  • Cost share / match · p. 9
    “Cost Share Requirements Eligible Technologies EPA Funding Limit Recipient Cost Share Highway Vehicle Replacement with certified engine meeting: 0.20-0.11 g NOx/bhp-hr emission limit1 25% 75% 1 0.20 g NOx/bhp-hr is from the EPA’s heavy-duty engines standard at…” Open page 9
  • Cost share / match · p. 35
    “Applicants should be aware that voluntary cost sharing is not required under this NOFO and will not be evaluated.” Open page 35

Dates in the notice

  • November 24, 2026 · p. 4
    “November 24, 2026 Final Date to Submit Questions January 22, 2027 11:59 pm ET Application Submission Deadline May 2027 Anticipated Notification of Selection B.” Open page 4
  • January 22, 2027 · p. 43
    “Submission Dates and Times January 22, 2027 11:59 pm ET Application Submission Deadline Grants.gov creates a date and time record when it receives the application.” Open page 43

Mistakes that get applications rejected (8)

  • Not an eligible applicant: Applications over the cap are ineligible and will not be reviewed. · p. 7
    “Applications over the cap are ineligible and will not be reviewed.” Open page 7
  • Missing a required part: Applications that do not substantially comply with the application submission instructions and... · p. 7
    “Applications that do not substantially comply with the application submission instructions and requirements set forth in Section 4 of this funding opportunity will be rejected. 3.” Open page 7
  • Not an eligible applicant: Applications that do not demonstrate compliance with the mandatory cost share are not eligible and will... · p. 8
    “Applications that do not demonstrate compliance with the mandatory cost share are not eligible and will not be reviewed.” Open page 8
  • Could get your application rejected: Applicants will not be evaluated on the inclusion of voluntary committed cost share if they choose to propose it. · p. 9
    “Applicants will not be evaluated on the inclusion of voluntary committed cost share if they choose to propose it.” Open page 9
  • Not an eligible applicant: Any ineligible costs, tasks, or activities included in an application will render that portion ineligible... · p. 11
    “Any ineligible costs, tasks, or activities included in an application will render that portion ineligible for funding and may disqualify the entire application, depending on the extent to which the ineligible costs impact the application. 1.” Open page 11
  • Not an eligible applicant: The cost of optional components or “add-ons” that significantly increase the cost of the vehicle may not be... · p. 18
    “The cost of optional components or “add-ons” that significantly increase the cost of the vehicle may not be eligible for funding under the grant. d.” Open page 18
  • Could get your application rejected: Applicants should be aware that voluntary cost sharing is not required under this NOFO and will not be evaluated. · p. 35
    “Applicants should be aware that voluntary cost sharing is not required under this NOFO and will not be evaluated.” Open page 35
  • Could get your application rejected: Letters submitted directly by partners to the EPA will not be accepted. 3. · p. 42
    “Letters submitted directly by partners to the EPA will not be accepted. 3.” Open page 42

See how others wrote it

The agency posted this example. Read them for structure and level of detail. Don't copy their words: funders treat copied text as plagiarism, and requirements change from year to year, so follow the current notice.

  • Clean diesel grants (2008 example for a made-up city) (PDF) Example proposals (not funded)
    A model proposal for the fictional "City of Pleasantville". EPA says it is an example, not to be used verbatim. It was not a funded application · May 1, 2008 · Link checked Oct 7, 2026

All sample proposals

About the federal program

Diesel Emission Reduction Act (DERA) National Grants, also called “DERA National Grants”
Program number 66.039 (the federal Assistance Listing number) · Environmental Protection Agency · Project grant

How applications are judged

In each year's official notice: read this year's.

Match

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...

Examples of funded projects

Fiscal year 2016: 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;...

This program on SAM.gov

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Source: Federal grants from Grants.gov · the official federal record. Last checked by GrantMe Oct 8, 2026.

Reference numbers: official notice number EPA-OAR-OTAQ-26-01 · program number 66.039