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The U.S. Environmental Protection Agency (EPA) is announcing a Notice of Funding Opportunity (NOFO) for approximately $180 million 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.
The EPA anticipates that up to 4–12 awards per EPA Region will be made. Awards funded under this opportunity are expected to have a 2- to 4-year project period.
The following entities are eligible to apply:
- A regional, State (including the District of Columbia), local, or Tribal agency, or a port authority that 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:
- Represents or provides pollution reduction or educational services to people or organizations that own or operate diesel fleets; or
- Has, as its principal purpose, the promotion of transportation or air quality.
Eligible activities include the retrofit or replacement of existing diesel engines, vehicles, and equipment with 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 cargo (including at ports and airports), agriculture, mining, or energy production (including stationary generators and pumps)
Applications must include projects that meet program eligibility requirements. Program goals are achieved through the implementation of the above eligible activities. In addition, eligible entities may also use funds to reduce long-duration idling using verified idle-reduction technology with certain vehicles or equipment described above.
All application packages must be submitted electronically to EPA through Grants.gov no later than Friday, January 22, 2027, at 11:59 p.m. (ET) to be considered.
For more information on DERA funding, please visit www.epa.gov/dera.
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