Grants / Environmental Protection Agency / Environmental Protection Agency

2026 Diesel Emissions Reduction Act (DERA) National Program

Open Closes January 22, 2027 (83 days left) Opportunity EPA-OAR-OTAQ-26-01

• Award ceiling$12.0 million
• Award floornot stated
• Expected awards120
• Total funding$180 million
• Cost sharingRequired
• Funding typeGrant

Key dates

Add the deadline to your calendar

Who can apply

This opportunity is open to the applicants described in the notice.

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

See Section 2 for eligibility information.

Is this a realistic fit?

• The notice requires cost sharing or matching funds, so you must contribute part of the project cost.

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.

Category: Environment.

How to apply

1. Read the full notice and attachments on Grants.gov. The notice is the official source for deadlines and requirements.
2. Make sure your organization has an active SAM.gov registration and Unique Entity ID; registration can take several weeks.
3. Register on Grants.gov and submit through Workspace before the deadline and time given in the notice. Our application guide walks through each step.

Questions go to Elizabeth January, Program Analyst, dera@epa.gov, 202-564-1584.

Open the official notice