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Environmental Protection Agency

Diesel Emission Reduction Act (DERA) National Grants

Federal program · program number 66.039 (the federal Assistance Listing number) · also called “DERA National Grants”

Key facts

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1 grant
Type of help
Project grant
Typical award
Smaller grants typically range from $100,000 - $300,000 with an average award of $125,000. Larger grants typically range from $500,000 - $2 million with an average award of $650,000.
Deadlines
In each year's official notice: 2026 Diesel Emissions Reduction Act (DERA) National Program

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What it pays for

The Diesel Emissions Reduction Act, 42 U.S.C. 16132 et seq., as amended, authorizes the EPA to award grants, rebates and loans to eligible entities to fund diesel emissions reductions. Emission reductions are achieved through the implementation of a certified engine configuration, verified retrofit technology, or emerging technology for buses (including school buses), medium heavy-duty or heavy heavy-duty diesel trucks, marine engines, locomotives, or nonroad engines used in construction, handling of cargo (including at port or airport), agriculture, mining, or energy production. In addition, eligible entities may also use funds to reduce long-duration idling using verified idle-reduction technology with certain vehicles or equipment described above. The objective of this program is to achieve significant reductions in diesel emissions and exposure, particularly from fleets operating in areas designated by the Administrator as poor air quality areas. Funding Priorities: The National DERA program works to reduce the pollution emitted from diesel engines across the country through the implementation of various control strategies and involvement of national, state, local and private partners. Priority will be given to projects which achieve significant reductions in diesel emissions and exposure, particularly from fleets operating in poor air quality areas and/or service goods movement facilities.

Who can apply

Eligible applicants are: A regional, state, local or Tribal agency or port authority with jurisdiction over transportation or air quality; and a nonprofit organization or institution that represents or provides pollution reduction or educational services to persons or organizations that own or operate diesel fleets; or has, as its principal purpose, the promotion of transportation or air quality are eligible for assistance under this program. City, county, or municipal agencies, school districts, and metropolitan planning organizations (MPOs) that have jurisdiction over transportation or air quality are all eligible entities under this program to the extent that they fall within the definition above. For certain competitive funding opportunities under this assistance listing, the Agency may limit eligibility to compete to a number or subset of eligible applicants consistent with the Agency's Assistance Agreement Competition Policy. For certain competitive funding opportunities under this assistance listing, the Agency may limit eligibility to compete to a number or subset of eligible applicants consistent with the Agency's Assistance Agreement Competition Policy.

How applications are judged

In each year's official notice: 2026 Diesel Emissions Reduction Act (DERA) National Program

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;...

Official program listing (SAM.gov) Program website