2026 Diesel Emissions Reduction Act (DERA) National Program
🏛 Environmental Protection Agency
✓ Free, no account · Source: Grants.gov · Last verified Oct 9, 2026
Can you apply?
This grant is for entities seeking to reduce diesel emissions by retrofitting, replacing, or retiring legacy diesel engines, vehicles, and equipment. Eligible applicants include nonprofits, municipalities, businesses, fleet owners, and other entities that can partner with diesel vehicle owners. Projects must use EPA or California Air Resources Board (CARB) certified or verified emission reduction technologies. The program operates nationally and accepts direct implementation projects or partnerships with subawards and rebate mechanisms.
Applicants may own target vehicles directly or partner with fleet owners through subawards or participant support costs. The competitive program prioritizes upgrading or retiring the nation's existing diesel engine fleet to improve air quality.
⚖️ Cost sharing / matching required — applicants must contribute their own funds.
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Program description
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
Eligible applicants
How to apply
Application links
Key dates & requirements
Required documents
- SF-424 (Application for Federal Assistance)
- Project Narrative and work plan
- Budget and Budget Narrative
- Proof of cost share/matching funds
- Letters of commitment from fleet owner partners
- Technology certification documentation (EPA/CARB verification)
- Organizational capacity documentation
Program contact
- 👤 Elizabeth January Program Analyst
- 📧 dera@epa.gov
- 📞 202-564-1584
Funding track record
Recent awards under CFDA 66.039 from the last 3 years — real organizations that won funding through this same program.
Top 10 Largest Recent Awards
-
$6,215,254
-
$4,500,000
-
$4,500,000
-
$4,500,000
-
$3,986,369
-
$3,604,401
-
$3,500,000
-
$3,498,847
-
$3,327,648
-
$3,281,107
Top States by Funding
- CA 14 awards $33.0M
- TX 10 awards $22.4M
- UT 5 awards $12.7M
- NY 4 awards $9.6M
- NJ 4 awards $8.9M
Source: USAspending.gov — federal spending transparency. Data covers last 3 years.
Funding history
Annual funding for this program — Federal obligations (CFDA 66.039). How funding has trended year over year.
| 2024 | $138,114,868 | |
| 2025 | $599,048 | |
| 2026 est. | $10,270,000 |
FAQ
Who can apply for DERA funding?
Nonprofits, businesses, municipalities, fleet owners, and other entities managing diesel equipment can apply. Applicants must own target vehicles or partner with fleet owners through formal agreements.
What technologies are eligible?
Only EPA or California Air Resources Board (CARB) certified or verified technologies qualify. This includes retrofits, replacements, or retirement of diesel engines, vehicles, and equipment.
What is the deadline and funding range?
The deadline is January 22, 2027. Awards range up to approximately $12 million, with $180 million in total program funding available.
How can I structure my project?
Direct implementation works if you own the equipment. Partnerships with fleet owners can use subawards or rebate-style participant support costs to distribute funding.
Is cost sharing required?
Yes, cost sharing is required for this competitive grant. Match percentages and specific requirements are detailed in Section 2 of the full NOFO.
💡 Tips for applicants
- Review Section 9.B carefully for guidance on structuring partnerships and subaward mechanisms before finalizing your project design.
- Verify your planned technologies are EPA or CARB certified before building your application—only approved technologies are eligible.
- If partnering with fleet owners, secure letters of commitment or formal agreements early to demonstrate project viability and partnership strength.
- Align your project timeline and budget narrative with EPA's updated DERA requirements and 2 CFR §200.204 compliance standards.
- Consider whether direct implementation or partnership approach (rebates, subawards) works best for your organization's capacity and target fleet owner relationships.
⚠️ Common mistakes
Selecting or proposing unapproved technologies that lack EPA/CARB certification. Failing to secure firm commitments from fleet owners or partners before application submission. Underestimating cost-sharing requirements or failing to document matching funds clearly in budget narrative.
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