Diesel Emissions Reduction Act (DERA) State Grants (66.040)
Diesel Emissions Reduction Act (DERA) State Grants (Assistance Listing 66.040) is run by the Environmental Protection Agency. It awarded $103 million in 108 grants from fiscal 2021 to 2025, about $957,480 per award on average. No funding opportunity is open on Grants.gov right now.
The typical award was $1.0 million. Half of the 108 awards fell between $729,411 and $1.2 million, and they ranged from $129,114 to $2.5 million.
- Awarded, FY 2021 to 2025$103 million
- Grant awards108
- Typical award$1.0 million
- Awarded in FY 2025$25.8 million
- Size rank803 of 1824
- Type of assistanceFormula grants
Key findings
- Annual funding rose from $24.5 million in fiscal 2021 to $25.8 million in fiscal 2025.
- It is the 803rd largest of 1,824 federal grant programs by five-year awards.
- The 20 largest recipients received 49% of the money.
- Awards went to recipients in 54 states and territories.
What the program funds
The Diesel Emissions Reduction Act, 42 U.S.C. 16131 et seq., as amended, authorizes EPA to award assistance agreements to states and territories to develop and implement such grant, rebates, and loan programs in the states and territories as are appropriate to meet state and territory needs and goals relating to the reduction of diesel emissions. In providing grants, rebates, and loans under this program, states must give priority to projects which: maximize public health benefits; are the most cost-effective; serve areas with the highest population density, that are poor air quality areas (including nonattainment or maintenance of national ambient air quality standards for a criteria pollutant; Federal Class I areas; or areas with air pollutant concerns); serve areas that receive a disproportionate quantity of air pollution from diesel fleets, including truck stops, ports, rail yards, terminals, construction sites, schools, and distribution centers or that use a community-based multi-stakeholder collaborative process to reduce emissions; will only include a certified engine configuration or verified technology that has a long expected useful life; maximize the useful life of any certified engine configuration or verified technology used or funded by the eligible entity; and conserve diesel fuel.
Open opportunities
No opportunity under this program is open or forecast on Grants.gov right now. Programs often post once a year, so the funding history below shows what to expect.
Rules from the program listing
Who can apply
Assistance under this program is available to the 50 states and the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, and the Northern Mariana Islands.
What the money can and cannot pay for
Grants and cooperative agreements are available to support the development and implementation of such grant, rebate, and low-cost revolving loan programs in a state as are appropriate to meet state needs and goals relating to the reduction of diesel emissions. A grant, rebate, or loan funded by the state using funds from the DERA State Program must be used for projects involving EPA-verified and/or California Air Resources Board (CARB) verified diesel emissions reduction technologies and/or EPA certified engines. Funds received under the DERA National Grants Program (see assistance listing 66.039) may not be used to pay a matching share under this program. States must use the same statutory priorities as the national competitive program when selecting projects. States receiving funding under this program must comply with public notification requirements. Additional project eligibility and use restrictions may be defined in program guidance. Please refer to applicable program guidance for funding use restrictions.;
Matching requirements
Statutory Formula: Title 42, Part Section 16133(c), Subpart NA,Public Law NA.This program has a statutory allocation formula (42 U.S.C. 16133(c)). 30% of total DERA funding is for the State DERA Program. Of the 30%, 2/3 is split between states and territories as their base funding amount. The other 1/3 of the 30% is set aside for a matching incentive. The bonus is 50% of the match. The final amounts are based on the number of states and territories participating in the DERA program in a given year.There is no statutory match requirement for this program. However, there is a statutory incentive match provision (42 U.S.C. 16133(c)(3)). Program guidance may restrict the eligibility and amount of grant funds that may be used for certain types of projects. While there is no statutory requirement for a matching contribution from applicants, programmatic policy guidance requires a mandatory match for certain type of projects (engine upgrades, idle reduction technologies, engine replacements, vehicle/equipment replacements, and alternative fuel conversions). Any voluntary matching funds provide by the state to qualify for the matching incentive are included in the “EPA funds and state voluntary matching funds” described below. Mandatory cost-share funds provided by the state and/or eligible third parties cannot count towards the state’s voluntary matching funds to qualify for the matching incentive.
Deadlines
Contact the headquarters or regional location, as appropriate for application deadlines
Award range and average, in the agency's words
For FY 2024, the range is estimated from $84,056 (Territory Base Amount) to $336,226 (State Base Amount, including Puerto Rico and the District of Columbia). In addition, a bonus of 50% of the Base Amount is available to states and territories that match the Base Amount dollar for dollar. The average funding amount for FY 2023, including Base Amount and Bonus, is approximately $504,339.
Examples of funded projects
Fiscal Year2016: States may use funds under this program to develop and implement grant, rebate and loan programs that are designed to achieve significant reductions in diesel emissions and are appropriate to meet State needs and goals relating to the reduction of diesel emissions. State grant, rebate and loan programs may fund projects relating to a certified engine configuration or a verified technology for vehicles, engines and equipment, including: 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. Projects under the State's grant program may include, but are not limited to, 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; and the creation of low-cost revolving loan programs to finance diesel emissions reduction projects. States may use funds under this program to develop and implement grant, rebate and loan programs that are designed to achieve significant reductions in diesel emissions and are appropriate to meet State needs and goals relating to the reduction of diesel emissions.
Funding history and past recipients
From fiscal 2021 to 2025, Diesel Emissions Reduction Act (DERA) State Grants (66.040) awarded$103 million across 108 grant awards, an average of $957,480 per award.
Who usually wins
Almost all of the money went to state and local governments.
| Recipient type | Awards | Amount | Share |
|---|---|---|---|
| State and local governments | 108 | $103 million | 100% |
By state
48 states have a page for this program: those that received at least $1 million or 10 awards.
| State | Awards | Amount |
|---|---|---|
| New Jersey | 3 | $3.4 million |
| New York | 3 | $3.3 million |
| California | 2 | $3.2 million |
| Florida | 2 | $2.7 million |
| Alaska | 3 | $2.7 million |
| Pennsylvania | 2 | $2.5 million |
| Ohio | 1 | $2.5 million |
| Arkansas | 2 | $2.5 million |
| Georgia | 2 | $2.5 million |
| North Carolina | 2 | $2.5 million |
| Washington | 2 | $2.4 million |
| Massachusetts | 2 | $2.4 million |
| Missouri | 2 | $2.4 million |
| Minnesota | 2 | $2.3 million |
| Oregon | 2 | $2.3 million |
| Utah | 2 | $2.3 million |
| Iowa | 2 | $2.3 million |
| Nevada | 2 | $2.3 million |
| Mississippi | 2 | $2.3 million |
| South Dakota | 2 | $2.2 million |
| District of Columbia | 2 | $2.2 million |
| Wyoming | 2 | $2.2 million |
| Arizona | 2 | $2.2 million |
| Colorado | 2 | $2.1 million |
| Hawaii | 2 | $2.1 million |
| Texas | 2 | $2.1 million |
| Michigan | 2 | $2.1 million |
| Connecticut | 2 | $2.1 million |
| Oklahoma | 3 | $2.1 million |
| Rhode Island | 2 | $2.0 million |
| Maine | 2 | $2.0 million |
| Indiana | 2 | $1.9 million |
| Nebraska | 2 | $1.9 million |
| New Hampshire | 2 | $1.8 million |
| Kansas | 2 | $1.8 million |
| Alabama | 2 | $1.7 million |
| Illinois | 2 | $1.7 million |
| Tennessee | 2 | $1.6 million |
| Maryland | 2 | $1.6 million |
| Louisiana | 2 | $1.5 million |
| Kentucky | 2 | $1.5 million |
| New Mexico | 2 | $1.5 million |
| West Virginia | 2 | $1.5 million |
| North Dakota | 2 | $1.5 million |
| Vermont | 2 | $1.5 million |
| Idaho | 2 | $1.5 million |
| South Carolina | 3 | $1.2 million |
| Delaware | 2 | $1.2 million |
| American Samoa | 2 | $549,284 |
| Wisconsin | 1 | $538,926 |
| Northern Mariana Islands | 2 | $422,960 |
| Virginia | 1 | $353,794 |
| Montana | 1 | $338,399 |
| Guam | 1 | $256,234 |