Federal grant programs / Environmental Protection Agency

Diesel Emission Reduction Act (DERA) National Grants (66.039)

Also known as DERA National Grants

• Awarded, FY 2021 to 2025$209 million
• Grant awards163
• Typical award$885,158
• Awarded in FY 2025-$1.3 million
• Size rank598 of 1824
• Type of assistanceProject grants

Key findings

• It is the 598th largest of 1,824 federal grant programs by five-year awards.
• The 20 largest recipients received 64% of the money.
• Awards went to recipients in 38 states and territories.

What the program funds

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.

From the federal Assistance Listing. Read the full listing on SAM.gov.

Open opportunities

• 2026 Diesel Emissions Reduction Act (DERA) National Program
  Open · Closes January 22, 2027 (83 days left) · up to $12.0 million

Rules from the program listing

Who can apply

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.

What the money can and cannot pay for

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.

Continue reading on SAM.gov

Matching requirements

Statutory Formula: Title 5, Part 200, Subpart 674,Public Law 111-364.70% of the annual DERA appropriation is for the national competitive grant and rebate funding opportunities.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.

Continue reading on SAM.gov

Deadlines

For competitive awards, deadlines will be specified in the Notice of Funding Opportunity (NOFO).

Award range and average, in the agency's words

Smaller grants typically range from $100,000 - $300,000 with an average award of $125,000. Larger grants typically range from $500,000 - $2 million with an average award of $650,000.

Examples of funded projects

Fiscal Year2016: Projects include a variety of diesel emissions reductions solutions such as: add-on emission control retrofit technologies; idle reduction technologies; cleaner fuel use; engine repowers; engine upgrades; and/or vehicle or equipment replacement. Eligible vehicles, engines and equipment may include: buses (including school buses); Class 5 Class 8 heavy-duty diesel trucks; marine engines; locomotives; and nonroad engines or vehicles used in: i) construction; ii) handling or cargo (including at a port or airport); iii) agriculture; iv) mining; or v) energy production (including stationary engines such as generators or pumps). Projects include a variety of diesel emissions reductions solutions such as: add-on emission control retrofit technologies; idle reduction technologies; cleaner fuel use; engine replacement; engine upgrades; and vehicle or equipment replacement.

Continue reading on SAM.gov

Quoted from the program's federal Assistance Listing. The notice of funding opportunity is the official source for each competition's rules.

Who usually wins

State and local governments received 47% of the money, nonprofits 39% and tribes 7.2%.

By state

29 states have a page for this program: those that received at least $1 million or 10 awards.

Award amounts are federal obligations reported to USAspending.gov for fiscal 2021 to 2025; see how our data works.