Diesel Emission Reduction Act (DERA) National Grants
Active
- Assistance listing
- 66.039
- Grant awards
- 830 $856,152,159 in federal obligations
Program facts
- Also known as
- DERA National Grants
- Assistance types
-
- Project Grant
- Cooperative Agreement
- Formula Grant
- Treasury account
-
- 68-0103-0-1-304
- More information
Program details come from SAM.gov Assistance Listings. Updated . Grant award figures come from USAspending.gov.
About this program
The Environmental Protection Agency is funding diesel engine and equipment replacement, retrofit, and idle-reduction projects across the United States under Assistance Listing 66.039, with the most recent grant award dated June 1, 2026, and an open competitive opportunity due January 22, 2027.
DERA funds replacement of legacy diesel vehicles, engines, and equipment with EPA or California Air Resources Board certified cleaner alternatives. Recent awards reflect a portfolio skewed toward zero-emission and lower-emission technology deployments: Chicago Department of Transportation received $8.5 million to replace 10 diesel bucket trucks with battery-electric equivalents and charging infrastructure; South Coast Air Quality Management District received $11.1 million to replace up to 22 heavy-duty drayage trucks with zero-emission vehicles; San Joaquin Valley Unified Air Pollution Control District received $17.2 million for agricultural off-road tractor replacement with Tier 4 compliant equipment; and Port Everglades received $18.7 million for shore power infrastructure at eight cruise terminals to reduce vessel idling emissions. Awards also fund marine engine repowering, nonroad equipment upgrades, school bus replacement, and construction equipment modernization, frequently paired with workforce development and community engagement activities.
The program awarded $856.2 million in combined federal dollars across 830 grants since 2008, obligating $1.66 billion when accounting for recipient cost-share. Award activity remains uneven: 2024 saw 83 awards, but 2023 dropped to 2 and 2026 has yielded 9 awards through June. The Environmental Protection Agency administers 521 of these awards ($501.1 million federal dollars), with EPA regional offices in Regions 9, 6, 10, 5, and 2 funding the remainder. The assistance-type distribution is predominantly Project Grants (97%), with 3% Cooperative Agreements and less than 1% Formula Grants.
Award magnitudes range widely, from under $140 thousand for single-vehicle school bus replacements to over $18.7 million for major port or metropolitan fleet conversions. Recent awards to tribal nations and territories typically range $275 thousand to $800 thousand for smaller equipment or vehicle counts. The portfolio reflects priority toward environmental justice communities, ports, and goods-movement corridors, with outcomes commonly tracking particulate matter, nitrogen oxide, and greenhouse gas reductions over equipment lifetimes.
The 2026 DERA National Program (EPA-OAR-OTAQ-26-01), due January 22, 2027, accepts applications from state, local, regional, and tribal agencies; port authorities; and nonprofit organizations representing diesel fleets or promoting air quality. The EPA revamped 2026 requirements to align with Administration priorities, improve project quality, expand technology options, and simplify program structure. Eligible activities remain retrofit or replacement of diesel engines, vehicles, and equipment with verified technologies. Recipients may directly implement projects if they own target vehicles or fund project partners through subawards and rebates. A parallel Tribal and Territory Program and non-competitive State Program operate under separate solicitations; competitive school bus replacement funding channels through EPA's Clean School Bus Program.
Objective and description
- Objective
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
- Description
The DERA National Grant Program provides funding to state, local and private partners to reduce the pollution emitted from diesel engines across the country through the implementation of cleaner engines, vehicles, equipment and retrofit technologies.
Eligibility
- Applicant eligibility
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.
- Beneficiary eligibility
Owners of eligible diesel-powered vehicles and equipment. Both public owned fleets and privately owned fleets may benefit.
- Uses of assistance
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.
- Length and time phasing of assistance
The assistance agreements funded under the DERA National Grant Program typically have a two-year project period with the possibility for extension up to a five-year project period.
How to apply
- Preapplication coordination
Preapplication coordination is required. Environmental impact information is not required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs" when proposed Federal financial assistance involves installation of devices that provide electric power to truckers to reduce idling. EPA financial assistance programs and activities subject to intergovernmental review that are subject to review under State single point of contact procedures are identified at https://www.epa.gov/grants/epa-financial-assistance-programs-subject-executive-order-12372-and-section-204. Applicants for programs or activities subject to Intergovernmental Review that are not subject to State single point of contact review must provide directly affected State, areawide, regional, and local entities at least 60 days to review their application following notification by the EPA that the application has been selected for funding as provided by 40 CFR 29.8(a) and (c).
- Criteria for selecting proposals
The evaluation and selection criteria for competitive awards under this assistance listing will be described in the Notice of Funding Opportunity.
- Award procedure
For competitive awards, the EPA will review and evaluate applications in accordance with the terms, conditions, and criteria stated in the Notice of Funding Opportunity. Competitions will be conducted in accordance with the EPA's policies/regulations for competing assistance agreements.
- Deadlines
For competitive awards, deadlines will be specified in the Notice of Funding Opportunity (NOFO).
- Time to approval or disapproval
Approximately 180 days after the deadline listed in the Notice of Funding Opportunity (NOFO).
- Renewals
Extensions are subject to EPA approval.
- Appeals
Assistance agreement competition-related disputes will be resolved in accordance with the dispute resolution procedures published in 70 FR (Federal Register) 3629, 3630 (January 26, 2005). Copies of these procedures may be found at: https://www.epa.gov/grants/grant-competition-dispute-resolution-procedures. Disputes relating to matters other than the competitive selection of recipients will be resolved under 2 CFR 1500 Subpart E, as applicable.
Grant opportunities
Show all 16
Grant awards
Latest 10 of 830 listed here. See the rest on GovTribe.
Top recipients by federal obligations
| Rank | Recipient | Federal obligations | Share |
|---|---|---|---|
| 1 | San Joaquin Valley Unified Air Pollution Control District | $51,970,989 | 6% |
| 2 | American Lung Association | $29,246,491 | 3% |
| 3 | South Coast Air Quality Management District | $26,454,375 | 3% |
| 4 | Port Authority Of New York & New Jersey | $25,260,849 | 3% |
| 5 | State Of Utah Dept Of Environmental Quality | $19,476,590 | 2% |
| 6 | Mid-Atlantic Regional Air Management Association, Inc. | $19,352,150 | 2% |
| 7 | North Central Texas Council Of Governments | $18,705,778 | 2% |
| 8 | Leonardo Academy Inc. | $18,660,534 | 2% |
| 9 | Air Resources Board | $17,838,384 | 2% |
| 10 | Connecticut Maritime Foundation, Inc. | $17,362,219 | 2% |
10 of 336 recipients listed here. See the rest on GovTribe.
Federal obligations by fiscal year
| Fiscal year | Federal obligations |
|---|---|
| FY2026 | $2,167,353 |
| FY2025 | -$1,293,356 |
| FY2024 | $140,325,127 |
| FY2023 | $100,562 |
| FY2022 | $17,757,939 |
| FY2021 | $52,346,469 |
| FY2020 | $58,432,390 |
| FY2019 | $65,263,287 |
| FY2018 | $45,307,726 |
| FY2017 | $17,659,914 |
| FY2016 | $32,580,843 |
| FY2015 | $26,187,395 |
| FY2014 | $14,626,759 |
| FY2013 | $6,130,348 |
| FY2012 | $12,329,952 |
| FY2011 | $37,173,798 |
| FY2010 | $92,089,236 |
| FY2009 | $231,863,360 |
| FY2008 | $6,018,558 |
Show all 19
Quick answers
What is Assistance Listing 66.039?
Assistance Listing 66.039 is Diesel Emission Reduction Act (DERA) National Grants, a federal grant program run by Environmental Protection Agency.
What is the CFDA number for Diesel Emission Reduction Act (DERA) National Grants?
Its CFDA number is 66.039: Assistance Listing numbers were called CFDA numbers before 2018.
How much funding has Assistance Listing 66.039 awarded?
830 grant awards under 66.039 have obligated $856,152,159 in federal funds to 336 recipients.
Who receives the most funding from 66.039?
The recipients obligated the most under Diesel Emission Reduction Act (DERA) National Grants are San Joaquin Valley Unified Air Pollution Control District ($51,970,989), American Lung Association ($29,246,491) and South Coast Air Quality Management District ($26,454,375).
How much did 66.039 obligate in fiscal year 2025?
Grants under 66.039 obligated -$1,293,356 in federal funds in fiscal year 2025.
Are there open grant opportunities under 66.039?
1 listed opportunity under 66.039 is open or forecasted. The latest, 2026 Diesel Emissions Reduction Act (DERA) National Program, was posted on September 24, 2026.
On GovTribe
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