Diesel Emissions Reduction Act (DERA) State Grants
Active
- Assistance listing
- 66.040
- Grant awards
- 426 $361,121,085 in federal obligations
Program facts
- Also known as
- DERA State Grants
- Assistance types
-
- Formula Grant
- Project Grant
- Cooperative Agreement
- 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 allocates funding under the Diesel Emissions Reduction Act (DERA) State Grants program (CFDA 66.040) to states and territories to develop and administer grant, rebate, and loan programs that replace, retrofit, reduce idling, or otherwise upgrade older diesel vehicles and equipment to reduce harmful emissions; the most recent grant award was made on July 1, 2024.
Program activity shows sustained momentum with 426 total awards since the program's inception in 2008. Grant disbursements have accelerated in recent years, with 53 awards in 2021 and 46 in 2023, though 2024 saw only 5 awards recorded to date in the portfolio. The program has committed $361.1 million in federal dollars obligated, with recipients contributing an additional $339.2 million in non-federal match, bringing the total obligated to $700.3 million. Cooperative agreements and Project Grants fund select initiatives, but the program is overwhelmingly dominated by Formula Grants, which comprise 92 percent of the 426 awards (390 awards). The remaining assistance comes from 32 Project Grants (8 percent) and 4 Cooperative Agreements (1 percent).
The Environmental Protection Agency centrally funds 258 of the awards ($210.8 million federal dollars), with EPA's 10 regional offices collectively accounting for the remaining awards and approximately $150.3 million in federal obligations across regions 1, 3, 4, 5, 8, and 9. The top five funding entities by award count and federal dollars are EPA headquarters, EPA Region 4, EPA Region 1, EPA Region 9, and EPA Region 3.
Recent awards span school bus replacement, nonroad equipment repowers, and marine engine retrofits across diverse sectors and geographies. The Alaska Energy Authority received $2.37 million to replace up to ten prime-power diesel engines in rural communities with Marine Tier 2 and Tier 3 engines. Washington State Ecology received $4.82 million to replace diesel buses and yard trucks with hydrogen fuel cell and zero-emission equivalents. South Dakota received $7.60 million to replace an estimated 62 school buses with cleaner diesel and alternative-fuel models. New York State received $48.96 million, the largest recent award, to replace diesel street sweepers and nonroad equipment with electric alternatives. California Air Resources Board received $7.07 million for school bus electrification and zero-emission replacements.
The program is noncompetitive; eligible U.S. states and territories that meet statutory requirements receive allocations based on EPA's State Program Guidelines. Preapplication coordination is required. The source does not identify open grant opportunities or upcoming solicitation windows.
Objective and description
- Objective
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 appr
- Description
EPA allocates DERA funds to eligible U.S. states and territories for the establishment of clean diesel grant, rebate, and loan programs. These programs replace, retrofit, reduce idling, or otherwise upgrade older diesel vehicles and equipment to reduce harmful emissions.
Eligibility
- Applicant eligibility
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.
- Beneficiary eligibility
Owners of eligible diesel-powered vehicles and equipment. Both public owned fleets and privately owned fleets may benefit.
- Uses of assistance
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.
- Length and time phasing of assistance
The assistance agreements funded under this program typically have a two-year project period with the possibility for extension up to a seven-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 Regarding pre-application assistance with respect to this assistance listing, EPA will generally specify the nature of the pre-application assistance, if any, that will be available to applicants. For additional information, contact the individual(s) listed as "Information Contacts".
- Application procedure
Issuing office will provide location of application procedure details as appropriate.
- Criteria for selecting proposals
This is a noncompetitive program. Proposals must meet the eligibility requirements set forth in the DERA State Program Guidelines.
- Award procedure
EPA's Office of Air and Radiation and/or the 10 EPA Regions will review and evaluate applications in accordance with the terms, conditions, and criteria set forth in the DERA State Program Guidelines.
- Time to approval or disapproval
Approximately 180 days after the application is received.
- Renewals
Generally, EPA incrementally funds these cooperative agreements. Approval of subsequent funding increments is dependent on satisfactory project progress, continued relevance of the projects to EPA's priorities, availability of funds, and Agency policy on the cooperative agreement process.
- Appeals
Disputes relating to matters other than the competitive selection of recipients will be resolved under 2 CFR 1500 Subpart E, as applicable.
Grant awards
Latest 10 of 426 listed here. See the rest on GovTribe.
Top recipients by federal obligations
| Rank | Recipient | Federal obligations | Share |
|---|---|---|---|
| 1 | Air Resources Board | $8,646,204 | 2% |
| 2 | Department Of Environmental Conservation New York | $8,487,558 | 2% |
| 3 | The State Of Ohio Office Of Budget And Management | $8,426,366 | 2% |
| 4 | Department Of Natural Resources | $8,340,546 | 2% |
| 5 | New Jersey Department Of Environmental Protection | $8,151,058 | 2% |
| 6 | Pennsylvania Department Of Environmental Protection | $8,115,102 | 2% |
| 7 | Minnesota Pollution Control Agency | $7,980,018 | 2% |
| 8 | Department Of Environmental Quality Mississippi | $7,967,520 | 2% |
| 9 | Oregon Department Of Environmental Quality | $7,857,366 | 2% |
| 10 | Michigan Department Of Environment, Great Lakes, And Energy | $7,852,797 | 2% |
10 of 76 recipients listed here. See the rest on GovTribe.
Federal obligations by fiscal year
| Fiscal year | Federal obligations |
|---|---|
| FY2026 | -$17,683 |
| FY2025 | $25,795,179 |
| FY2024 | $28,363,597 |
| FY2023 | $5,196,353 |
| FY2022 | $19,598,174 |
| FY2021 | $24,454,560 |
| FY2020 | $22,747,625 |
| FY2019 | $21,738,893 |
| FY2018 | $18,359,634 |
| FY2017 | $14,970,361 |
| FY2016 | $11,956,860 |
| FY2015 | $7,048,631 |
| FY2014 | $4,509,285 |
| FY2013 | $4,414,862 |
| FY2012 | $7,233,222 |
| FY2011 | $14,727,148 |
| FY2010 | $29,402,386 |
| FY2009 | $88,525,277 |
| FY2008 | $13,289,310 |
Show all 19
Quick answers
What is Assistance Listing 66.040?
Assistance Listing 66.040 is Diesel Emissions Reduction Act (DERA) State Grants, a federal grant program run by Environmental Protection Agency.
What is the CFDA number for Diesel Emissions Reduction Act (DERA) State Grants?
Its CFDA number is 66.040: Assistance Listing numbers were called CFDA numbers before 2018.
How much funding has Assistance Listing 66.040 awarded?
426 grant awards under 66.040 have obligated $361,121,085 in federal funds to 76 recipients.
Who receives the most funding from 66.040?
The recipients obligated the most under Diesel Emissions Reduction Act (DERA) State Grants are Air Resources Board ($8,646,204), Department Of Environmental Conservation New York ($8,487,558) and The State Of Ohio Office Of Budget And Management ($8,426,366).
How much did 66.040 obligate in fiscal year 2025?
Grants under 66.040 obligated $25,795,179 in federal funds in fiscal year 2025.
On GovTribe
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