2026 Diesel Emissions Reduction Act (DERA) National Program
The EPA offers competitive 2026 grants to eligible entities to retrofit, replace, or retire older diesel engines, vehicles, and equipment.
Funder: Environmental Protection Agency
Due Dates: January 22, 2027 (applications)
Funding Amounts: Approximately $180 million available; regional request caps of $3 million–$12 million; 2–4-year projects
Summary: Competitive funding to upgrade or retire existing diesel vehicles, engines, and equipment and reduce their emissions.
Key Information: Applications must request funds from one EPA region, chosen by where the affected fleet operates.
Description
The EPA Office of Air and Radiation runs this competitive Diesel Emissions Reduction Act (DERA) program to accelerate the upgrade or retirement of the nation’s legacy diesel fleet. Projects can replace vehicles, engines, or equipment; install certified or verified retrofits and idle-reduction technologies; or use other eligible emissions-reduction solutions. Eligible fleets include school and transit buses, medium- and heavy-duty trucks, marine vessels, locomotives, and nonroad equipment.
The program aims to reduce harmful diesel emissions and exposure, particularly in poor-air-quality areas. Applicants may implement a project directly if they own the target vehicles. Those partnering with fleet owners may use subawards or participant support costs, such as rebates, as described in the notice of funding opportunity (NOFO).
