Diesel Emissions Reduction Act (DERA) National Grants

Program Overview       

The U.S. Environmental Protection Agency (EPA) has announced the availability of $115 million under the Diesel Emissions Reduction Act (DERA) program to incentivize and accelerate the upgrading or retirement of legacy diesel engine fleets. 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. EPA anticipates awarding 4-10 cooperative agreements per each of EPA’s ten regions. 

Priorities and Objectives

DERA programmatic priorities are as follows:

1. Goods Movement Facilities:

• Ports

• Airports

• Rail Yards

• Terminals

• Distribution Centers

2. Environmental Justice and Disadvantaged Communities

3. Project Resilience to Climate Impacts

4. Workforce Development

DERA priority objectives are as follows: 

Diesel Vehicles, Engines and Equipment

• School Buses

• Transit Buses

• Medium-duty or heavy-duty trucks

• Marine Engines

• Locomotives

• Nonroad engines, equipment, or vehicles

Diesel Emission Reduction Solutions

• Certified Vehicle and Equipment Replacements

• Certified Engine Replacement

• Certified Remanufacture Systems

• Verified Idle Reduction Technologies

• Verified Retrofit Technologies

• Clean Alternative Fuel Conversions

• Verified Aerodynamic Technologies and Low Rolling Resistance Tires

Eligibility    

Eligible applicants are as follows: 

• A regional, state (including the District of Columbia), or local agency, Tribal agency, or port authority, which has jurisdiction over transportation or air quality.

• School districts

• Metropolitan planning organizations (MPOs)

• Nonprofit organizations or institutions that represent or provide pollution reduction or educational services to persons or organizations that own or operate diesel fleets; or have, as their principal purpose, the promotion of transportation or air quality.

Cost Share Requirement for Eligible Technologies: 

Drayage Truck Replacement – 50%  

Vehicle or Equipment Replacement with EPA Certified Engine – 75%  

Vehicle or Equipment Replacement with CARB Certified Low NOx Engine – 65%  

Vehicle or Equipment Replacement with Zero-tailpipe Emission Power Source – 55%  

Engine Replacement with EPA Certified Engine – 60%  

Engine Replacement with CARB Certified Low NOx Engine – 50%  

Engine Replacement with Zero-tailpipe Emission Power Source – 40%  

EPA Certified Remanufacture Systems – 0%  

EPA Verified Highway Idle Reduction Technologies when combined with new or previously installed exhaust aftertreatment retrofit – 0%  

EPA Verified Highway Idle Reduction Technologies without new exhaust after-treatment retrofit – 75%  

EPA Verified Locomotive Idle Reduction Technologies – 60%  

EPA Verified Marine Shore Connection Systems – 75%  

EPA Verified Electrified Parking Space Technologies – 70%  

EPA Verified Exhaust After-treatment Retrofits – 0%  

EPA Verified Engine Upgrade Retrofits – 0% 

EPA Verified Hybrid Retrofit Systems – 40%  

EPA Verified Fuel and Additive Retrofits when combined with new retrofit, upgrade, or replacement – Cost of conventional diesel fuel 

EPA Verified Aerodynamics and Low Rolling Resistance Tires when combined with new exhaust after-treatment retrofit – 0%  

Alternative Fuel Conversion – 60% 

Award Ceiling by Region: 

Region 1 – $2,000,000 

Region 2 – $3,500,000 

Region 3 – $3,500,000 

Region 4 – $2,500,000 

Region 5 – $4,000,000 

Region 6 – $3,000,000 

Region 7 – $3,500,000 

Region 8 – $3,000,000 

Region 9 – $4,500,000 

Region 10 – $1,500,000 

Key Dates 

Final Date to Submit Questions - Friday, November 10th, 2023  

Application Deadline - Friday, December 1st, 2023 

Anticipated Notification of Selection - March 2024  

Anticipated Awards - June 2024 – August 2024 

Webinars:  

Tuesday, August 22, 2023 @ 3:00PM EST 

Wednesday, August 30, 2023 @ 2PM EST 

Thursday, September 14, 2023 @ 6PM EST 

Resources 

View the Opportunity here. 

View the program website here.