National Grants: Diesel Emissions Reduction Act (DERA)
General information
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.
Eligible activities include the retrofit or replacement of existing diesel engines, vehicles and equipment with EPA and California Air Resources Board (CARB) certified engine configurations and verified retrofit and idle reduction technologies.
Eligible diesel vehicles, engines, and equipment include:
- Buses
- Class 5 – Class 8 heavy-duty highway vehicles
- Locomotives
- Marine engines
- Nonroad engines and equipment used in construction, handling of cargo (including at ports and airports), agriculture, mining, or energy production (including stationary generators and pumps)
Grant funds may be used for diesel emission reduction projects including:
- EPA verified technologies or certified engine configurations
- California Air Resources Board verified technologies or certified engines
- Idle-reduction technologies that are EPA verified
- Aerodynamic technologies and low rolling resistance tires that are EPA verified
- Early engine, vehicle, or equipment replacements with certified engine configurations
Funds awarded under this program cannot be used to fund emission reductions mandated by federal law. Equipment for testing emissions or fueling infrastructure is not eligible for funding.
Please refer to the 2026 DERA National NOFO for specific information about this competition.
Funding details
Funding application timeline
Grant eligibility
In accordance with Assistance Listing 66.039, and the EPA’s Policy for Competition of Assistance Agreements (EPA Order § 5700.5A1), the following entities are eligible to apply:
- A regional, State (including the District of Columbia), local agency, Tribal agency, or port authority, which has jurisdiction over transportation or air quality. School districts, municipalities, metropolitan planning organizations (MPOs), cities, and counties are all generally eligible entities under this grant program to the extent that they fall within this definition.
- A nonprofit organization or institution that:
- a. represents or provides pollution reduction or educational services to people or organizations that own or operate diesel fleets; or
- b. has, as its principal purpose, the promotion of transportation or air quality.
Please refer to the 2026 DERA National NOFO for specific information about this competition.
Application packages must be submitted electronically to the EPA through Grants.gov by the deadline to be considered for funding. Specifically, the Grants.gov registration process requires that your organization have a Unique Entity Identifier (UEI) (previously known as the DUNS number) and a current registration with the System for Award Management (SAM.gov); the process of obtaining both could take a month or more for new registrants.
Potential applicants without a Grants.gov account are encouraged to initiate the Grants.gov registration process well ahead of the deadline for funding since the registration process can take a month or more.