Diesel Emission Reduction Act (DERA) National Grants

DERA National Grants
CFDA 66.039 Active Grant
No open Grants.gov opportunities under this program right now. Browse all ENVIRONMENTAL PROTECTION AGENCY programs →

Program Funding

Annual program obligations reported to SAM.gov.

Latest annual funding (estimated)
$60M FY2026
$138.1M
FY24
$599K
FY25
$60M
FY26*
* estimated

Funded Projects

Examples of what this program has supported.

FY2025 For a list of awarded grants, visit https://www.epa.gov/dera/national-dera-awarded-grants.

Program Objective

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.

Eligibility

Eligible Applicants

  • U.S. Territory Government
  • Interstate Organization
  • Local Government Consortium
  • State
  • Local
  • U.S. State Government
  • Federally Recognized Tribal Government
  • Nonprofit Organization
  • Other

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.

Beneficiaries

  • U.S. State Government
  • U.S. Territory Government
  • Interstate Organization
  • Federally Recognized Tribal Government
  • Municipality/Township Government
  • Local Government Consortium
  • Local
  • State
  • Territorial

Owners of eligible diesel-powered vehicles and equipment. Both public owned fleets and privately owned fleets may benefit.

How to Apply

Award Procedure

For competitive awards, the EPA will review and evaluate applications in accordance with the terms, conditions, and criteria stated in the Notice of Funding Opportunity. Competitions will be conducted in accordance with the EPA’s policies/regulations for competing assistance agreements.

Decision Timeline

  • Approval: From 120 to 180 days

Approximately 180 days after the deadline listed in the Notice of Funding Opportunity (NOFO).

Program details & compliance

Description

The DERA National Grant Program provides funding to state, local and private partners to reduce the pollution emitted from diesel engines across the country through the implementation of cleaner engines, vehicles, equipment and retrofit technologies.

Mission Categories

Primary: Alternative Energy Sources

Other categories:
Air Pollution ControlUrban Mass TransitRail TransportationAir Transportation

Use of Funds

Allowed Uses

Assistance agreements are available to support recipient's allowable costs incident to supporting projects to reduce emissions from diesel engines, plus allowable indirect costs, in accordance with established EPA policies and regulations. Funds must be used for projects involving EPA-verified and/or California Air Resources Board (CARB) verified diesel emissions reduction technologies and/or EPA or CARB certified engines. No funds provided under this section shall be used to fund the costs of emissions reductions that are mandated under Federal law. Voluntary or elective emission reduction measures shall not be considered "mandated", regardless of whether the reductions are included in the state implementation plan of a state. Additional project eligibility and use restrictions are defined in program guidance. Please refer to applicable program guidance for funding use restrictions. This program makes Federal awards on a discretionary basis. A discretionary award means an award in which the Federal awarding agency, in keeping with specific statutory authority that enables the agency to exercise judgement (“discretion”), selects the recipient and/or the amount of Federal funding awarded through a competitive process or based on merit of proposals. A discretionary award may be selected on a non-competitive basis, as appropriate. For further information, please contact the Headquarters or regional office.

Required Documentation

Applicants may be requested to demonstrate they have appropriate background, academic training, experience in the field, and necessary equipment to carry out projects. 2 CFR 200, Subpart E - Cost Principles applies to this program.

Matching Requirements

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 percentage of the equipment costs shown. Applicants are responsible for cost sharing the remainder of the equipment costs. Drayage Truck Replacement 50%; Vehicle or Equipment Replacement with EPA Certified Engine 25%; Vehicle or Equipment Replacement with CARB Certified Low NOx Engine 35%; Vehicle or Equipment Replacement with Zero-tailpipe Emission Power Source 45%; Engine Replacement with EPA Certified Engine 40%; Engine Replacement with CARB Certified Low NOx Engine 50%; Engine Replacement with Zero-tailpipe Emission Power Source 60%; Certified Remanufacture Systems 100%; Highway Idle Reduction Technologies when combined with new or previously installed exhaust after-treatment retrofit 100%; Highway Idle Reduction Technologies without new exhaust after-treatment retrofit 25%; Locomotive Idle Reduction Technologies 40%; Marine Shore Connection Systems 25%; Electrified Parking Space Technologies 30%; Exhaust After-treatment Retrofits 100%; Engine Upgrade Retrofits 100%; Hybrid Retrofit Systems 100%; Fuel and Additive Retrofits when combined with new retrofit, upgrade, or replacement - Cost differential between conventional diesel fuel Cost of conventional diesel fuel; Aerodynamics and Low Rolling Resistance Tires when combined with new exhaust after-treatment retrofit 100%; Alternative Fuel Conversion 40%. The Tribal and Insular Areas grant competition has no mandatory cost share. Any changes to cost share requirements will be communicated in notices of funding opportunity.

Reporting & Compliance

Audit Required
Yes — Determined at Time of Award
Records Retention
3 years

Applicable 2 CFR 200 Subparts

  • Subpart B — General Provisions
  • Subpart C — Pre-Federal Award Requirements
  • Subpart D — Post-Federal Award Requirements
  • Subpart E — Cost Principles
  • Subpart F — Audit Requirements

Formula

70% of the annual DERA appropriation is for the national competitive grant and rebate funding opportunities.

Contacts

Stephanie Watson
202-567-1409
Environmental Protection Agency, 1200 Pennsylvania Avenue, N.W., (Mail Code: 6406A), Washington, DC 20460
Data from SAM.gov Federal Assistance Listings. Source published: 2026-06-18. Spec v2.0. Last synced: 2026-07-08 03:03:27.