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) | November 24, 2026 (Questions)
Funding Amounts: Approximately $180 million total; regional application caps of $3 million–$12 million; 2–4 year projects
Summary: Competitive grants support upgrades and replacements that reduce emissions from existing diesel vehicles, engines, and equipment.
Key Information: Projects must meet technology-specific cost-share requirements and apply through a single EPA region.
Description
The Environmental Protection Agency’s Office of Air and Radiation runs this competitive Diesel Emissions Reduction Act (DERA) program to accelerate the upgrade or retirement of legacy diesel fleets. Projects may retrofit or replace existing diesel engines, vehicles, and equipment using eligible EPA- or California Air Resources Board-certified or verified technologies. Eligible fleets include school and transit buses, medium- and heavy-duty trucks, marine vessels, locomotives, and nonroad equipment.
Applicants that own the target vehicles may carry out projects directly. Applicants working with fleet owners may use subawards or participant support costs, such as rebates. EPA prioritizes projects serving goods movement facilities and areas with poor air quality. This opportunity is distinct from the DERA Tribal and Territory, DERA State, and Clean School Bus programs.
