2026 Diesel Emissions Reduction Act (DERA) National Program

The summary for the 2026 Diesel Emissions Reduction Act (DERA) National Program grant is detailed below. This summary states who is eligible for the grant, how much grant money will be awarded, current and past deadlines, Catalog of Federal Domestic Assistance (CFDA) numbers, and a sampling of similar government grants. Verify the accuracy of the data FederalGrants.com provides by visiting the webpage noted in the Link to Full Announcement section or by contacting the appropriate person listed as the Grant Announcement Contact. If any section is incomplete, please visit the website for the Environmental Protection Agency, which is the U.S. government agency offering this grant.

2026 Diesel Emissions Reduction Act (DERA) National Program: 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. There are several ways DERA recipients may implement projects and fund project partners, depending on the roles and responsibilities of each. If the applicant is the owner of the target vehicles, the applicant may directly implement the project. If the applicant is partnering with diesel fleet owners, the applicant may award subawards or participant support costs (e.g., rebates). Please refer to Section 9.B. for detailed guidance on funding partnerships. After an extensive review of the program, the EPA revamped DERA requirements to ensure alignment with the Administration’s priorities, improve the quality of projects funded, expand the availability of technology choices, and respond to stakeholder requests for a simplified program structure. Consistent with agency grants direction, updates to 2 CFR §200.204 and DERA statutory requirements, this NOFO reflects these changes and inputs when compared to previous funding notice opportunities. This NOFO is a competitive grant program. The DERA Program has another competitive funding opportunity, DERA Tribal and Territory Program, which funds similar activities but is only open to eligible Tribal and territory applicants. Competitive funding for school bus replacement is also available through the EPA’s Clean School Bus Program. The DERA Program also provides non-competitive funding to U.S. States and territories through the DERA State Program.