# 2026 Diesel Emissions Reduction Act (DERA) National Program

Source: https://welltoldgrants.com/grants/epa-oar-otaq-26-01-2026-diesel-emissions-reduction-act-dera-national-program/  
Official notice: https://www.grants.gov/search-results-detail/363936

> Environmental Protection Agency is offering grants of up to $12.0 million to the applicants described in the notice. It expects to make about 120 awards worth $180 million in total. Applications close on January 22, 2027.

| Field | Value |
|---|---|
| Opportunity number | EPA-OAR-OTAQ-26-01 |
| Agency | Environmental Protection Agency |
| Status | Open |
| Deadline | January 22, 2027 |
| Award ceiling | $12.0 million |
| Award floor | not stated |
| Expected awards | 120 |
| Total funding | $180 million |
| Cost sharing | required |
| Assistance Listings | 66.039 |

## Who can apply

- Others (see text field entitled "Additional Information on Eligibility" for clarification)

See Section 2 for eligibility information.

## What the grant funds

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.

## Questions people ask

### Who can apply for 2026 Diesel Emissions Reduction Act (DERA) National Program?

Environmental Protection Agency accepts applications from the applicants described in the notice. The notice adds further conditions, so read its eligibility section.

### What is the deadline for 2026 Diesel Emissions Reduction Act (DERA) National Program?

Closes January 22, 2027 (83 days left). Confirm the date and time in the official notice on Grants.gov.

### How much funding is available?

Awards of up to $12.0 million each. About $180 million in total across about 120 awards.