2026 Diesel Emissions Reduction Act (DERA) National Program
Open Posted
- Opportunity number
- EPA-OAR-OTAQ-26-01
- Applications due
- Award size
- Up to $12,000,000
Opportunity facts
- Assistance listings
- Funding instrument
- Grant
- Category
-
- Environment
- Eligible applicants
-
- Other
- Points of contact
Opportunity details come from Grants.gov. Updated .
About this opportunity
The U.S. Environmental Protection Agency is soliciting competitive grant applications for the 2026 Diesel Emissions Reduction Act (DERA) National Program, with applications due January 22, 2027. Approximately $180 million is available, combining FY 2024 ($65 million), FY 2025 ($62 million), and FY 2026 ($53 million) appropriations into a single competition.
Eligible applicants include regional, state, and local agencies; tribal agencies; port authorities with jurisdiction over transportation or air quality; nonprofit organizations representing or serving diesel fleet owners or promoting transportation and air quality; and intertribal consortia. Mandatory cost share requirements range from 20% to 75% depending on technology type, with certain project types requiring no cost share.
The EPA expects to make 4 to 12 awards per EPA region. Maximum federal funding requests vary by region, ranging from $3 million in Region 1 to $12 million in Region 9. Projects must have a 2- to 4-year performance period.
Projects must upgrade existing diesel vehicles, engines, and equipment through replacement or retrofit with EPA and California Air Resources Board (CARB) certified or verified technologies, targeting medium and heavy-duty trucks, school buses, transit buses, marine vessels, locomotives, and nonroad equipment. Eligible technologies include certified vehicle and engine replacements, verified retrofit systems, idle reduction technologies, alternative fuel conversions, and remanufacture systems.
Applications receive priority consideration if projects target nonattainment areas for ozone or PM2.5, areas with air toxics concerns, or serve goods movement facilities such as ports, airports, rail yards, and distribution centers. The EPA evaluates applications using a 130-point scoring system across eight criteria: project approach, goods movement facility location, project location in poor air quality areas, project sustainability, environmental results with outputs and outcomes, programmatic capability and past performance, budget detail and reasonableness, and completeness of applicant fleet description. Anticipated award notifications occur in May 2027 and July 2027. The program is listed under CFDA 66.039.
Synopsis
2 versions
Update #2 · Latest ·
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.
Update #1 ·
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.
Eligibility
See Section 2 for eligibility information.
Files
| File | Type | Posted |
|---|---|---|
| EPA-OAR-OTAQ-26-01.pdf | ||
| PKG00294229.pdf |
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