2026 Diesel Emissions Reduction Act (DERA) National Program
Competitive EPA grants and cooperative agreements fund diesel engine, vehicle, and equipment retrofits or replacements using EPA- or CARB-certified/verified technologies, including direct implementation or subawards/rebates for eligible partners.
⚑ Eligibility is referenced to Section 2 but not specified in the excerpt; confirm whether public universities are directly eligible. · Competitive program; separate EPA DERA Tribal and Territory Program and DERA State Program exist for other applicant classes. · May allow subawards or participant support costs (e.g., rebates) when partnering with fleet owners.
Unit fits — one characterization, each unit's own rules
| Physical Sciences & Engineering (demo) | 45 partial | technical depth: central; funds construction equipment (capped) |
| IPPRA | 38 weak | portfolio topic: environment (primary); social/behavioral work is none; funds construction equipment — not a research fit; eligibility unclear — verify in the NOFO |
| Tom Love Innovation Hub | 30 weak | prototyping/demonstration stage; deep-tech content |
Description
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 .
Eligibility
See Section 2 for eligibility requirements.
Apply
View on Grants.gov → CONTACT: Elizabeth January Program Analyst <mailto:dera@epa.gov>
Proposal brief SEE AN EXAMPLE →
A one-page internal memo: fit assessment, submission requirements, document scaffold, and next steps dated back from the deadline — tailored to your project idea if you add one.
Proposal shell · Federal (generic) conventions SEE A FEDERAL EXAMPLE →
Funder-faithful document skeletons — Federal (generic)'s document set with section headings, page limits, reviewer guidance, and writing prompts; add a project idea to get [DRAFT] starter bullets. Download as .md for Word or Overleaf.