Active
Climate
Grant

Diesel Emissions Reduction Act (DERA) Grants

Deadline:
January 22, 2027
Cyclical
Total Funding
$180,000,000
Maximum Award
$12,000,000
Overview

The U.S. Environmental Protection Agency is authorized under the Diesel Emissions Reduction Act to offer funding assistance to accelerate the upgrade, retrofit, and turnover of the legacy diesel fleet. The DERA Program provides funding to incentivize and accelerate these upgrades, retrofits, and fleet turnovers.

Funder

U.S. Environmental Protection Agency's Office of Air and Radiation

Program

2026 Diesel Emissions Reduction Act (DERA) National Program

Resources

Applications Due

January 22, 2027

Funding Source

Federal

Maximum Award

$12,000,000

Award Details

For applicants in EPA Region 9:

  • Total anticipated funding is $42.6 million
  • Maximum request per application is $12 million

Eligibility

  • A regional, State (including the District of Columbia), local agency, Tribal agency, or port authority, which has jurisdiction over transportation or air quality. School districts, municipalities, metropolitan planning organizations (MPOs), cities, and counties are all generally
    eligible entities under this grant program to the extent that they fall within this definition.
  • A non-profit organization or institution that:
    • Represents or provides pollution reduction or educational services to people or organizations that own or operate diesel fleets; or
    • Has, as its principal purpose, the promotion of transportation or air quality
  • Eligible Tribal agencies, defined as federally recognized Indian Tribal governments, which are any Indian Tribe, band, nation, or other organized group or community certified by the Secretary of the Interior as eligible for the special programs and services provided through the Bureau of Indian Affairs, as well as any organization or intertribal consortium that represents federally recognized Tribes.

Eligible Activities

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.

Duration

2 to 4 years.

Notable Requirements

Recipient cost share requirements vary by the type of technology being implemented in proposed projects and can range from 0% to 75%. See Table 2 in the solicitation on pages 6-7 for details.

Eligible Technologies with No Recipient Cost Share

  • Idle Reduction:
    • EPA Verified Highway Vehicle Idle Reduction Technologies when combined with new or previously installed exhaust after-treatment retrofit
  • Verified Retrofit Technologies:
    • EPA or CARB Verified Exhaust After-treatment Retrofits
    • EPA Verified Engine Upgrade Retrofits
    • EPA Verified Aerodynamics and Low Rolling Resistance Tires when combined with new exhaust after-treatment retrofit
    • EPA Verified Fuel and Additive Retrofits when combined with new retrofit, upgrade, or replacement (the EPA funding limit is the Cost differential between conventional diesel fuel)

Preferences

Target project sectors include, but are not limited to, agriculture, construction, municipal (emergency, utility), transit (non-port). View Table 9 in Section B for the complete list of Project Sectors and Target Fleets for this solicitation.

Review Criteria: Project Summary and Approach (20 points), Good Movement Facilities (10 points), Project Location (10 points), Project Sustainability (20 points), Environmental Results (30 points), Programmatic Capability and Past Performance (15 points), Budget (15 points), and Applicant Fleet Description (10 points) for 130 total possible points.

How to Apply

Applications must be submitted through Grants.gov.

Sustainable Transportation

Technical Assistance Available

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