Diesel Emissions Reduction Act (DERA) State Grants

Active

Assistance listing
66.040
Agency
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

Award Recipient Federal obligations Awarded
The agreement provides funding to the alaska energy authority (AEA) to issue up to five (5) subawards to replace up… 02J80301 Alaska Energy Authority $1,185,184
The grantee will conduct a competitive application process to solicit project partners. Under sub-awards, project… 02J52901 State Of Washington $1,310,806
The agreement provides funding to the american samoa power authority (ASPA) recipient, who will replace eligible two… 98T86401 American Samoa Power Authority $293,889
The agreement provides funding to new mexico environment department's (NMED) air quality bureau (AQB) specifically… 02F47701 New Mexico Environment Department $806,749
The agreement provides funding to the commonwealth of the northern marianas islands' bureau of environmental and… 98T91801 Cnmi Division Of Environmental Quality $293,846
The agreement provides funding to the utah department of environmental quality (UDEQ), division of air quality (DAQ)… 96875901 State Of Utah Dept Of Environmental Quality $1,230,918
This agreement will provide assistance to the colorado department of public health and environment (CDPHE) in its… 96875701 Colorado Department Of Public Health & Environment $1,057,160
This agreement will provide assistance to the south dakota department of agriculture and natural resources in its… 00I38900 The South Dakota Department Of Agriculture And Natural Resources $1,187,945
This agreement will provide assistance to the north dakota department of environmental quality in its efforts to reduce… 96875801 North Dakota Department Of Environmental Quality $790,671
The agreement provides funding to the california air resources board (CARB). Specifically, the recipient will reduce… 98T86601 Air Resources Board $1,884,393

Latest 10 of 426 listed here. See the rest on GovTribe.

Top recipients by federal obligations

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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