State Grants: Diesel Emissions Reduction Act (DERA)
Background
The U.S. Environmental Protection Agency uses Diesel Emissions Reduction Act funds to help eligible States and territories start and run programs that reduce diesel pollution.
Under the formula in the Energy Policy Act of 2005 (pdf) (3.16 MB, August 2005), the DERA State Program receives 30% of the annual DERA funding. Two-thirds of that amount is given to participating States and territories as base funding. The remaining one-third is awarded as an extra incentive to States and territories that choose to match the base funding.
Note: States intending to use Volkswagen mitigation funds for the DERA Option in the VW partial settlement should review the DERA Option Factsheet (pdf) (311 KB, April 2019, EPA-420-F-19-042).
2025-2026 Funding Schedule
| Activity | 2025-2026 Dates |
|---|---|
| The EPA distributes 2025–2026 State Program materials | Thursday, September 24, 2026 |
| Program Overview Webinar | Thursday, October 1, 2026 |
| Notice of Intent to Participate due to DERA@epa.gov | Thursday, October 8, 2026 |
| The EPA emails final allocations | Thursday, October 15, 2026 |
| Work Plan and Supplemental Application Template due to the EPA Regional Office (for review) | Thursday, November 5, 2026 |
| Application package due in Grants.gov | Thursday, November 19, 2026 |
| Project period begins as early as December 17, 2026, for 2025–2026 DERA State awards | Thursday, December 17, 2026 |
| Project completion deadline | Sunday, December 16, 2029 |
Note: This schedule is subject to change. Updated guidance will be provided directly to States and territories as needed.
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2025-2026 DERA State Program Documents
See the documents below for supporting information for the 2025-2026 DERA State Program. Information about past funding opportunities can be found on the Past Program Documents page.
Application Submission Documents
- 2025-2026 DERA State Program Guide (pdf)
- 2025-2026 DERA State Notice of Intent to Participate (docx)
- 2025-2026 DERA State Program Workplan (docx)
- DERA Supplemental Application Template (xlsx)
- Standard Form SF 424 (pdf) (102 KB)– Application for Federal Assistance
- Standard Form SF 424A (pdf) (132 KB) – Budget Information for Non-Construction Programs
- EPA Form 4700-4 (pdf) (115 KB) - Pre-Award Compliance Review
- EPA Key Contacts Form (pdf) (41 KB) - Key Contacts Form
- EPA General Grant Terms and Conditions
Supporting Information for Applicants:
- 2026 DERA Priority Area List (pdf)
- Guidance on Identifying a Certified Highway Engine's Certified Nitrogen Oxides (Nox) Emissions Limit (pdf)
- 2026 DERA Transport Refrigeration Unit (TRU) Factsheet (pdf)
- 2026 DERA Best Achievable Technology Analysis Guidance (pdf)
- 2026 DERA Mandated Measures Justification (pdf)
- 2026 DERA Cost Share Calculator Tool (xlsm) (246 KB, September 2026)
Supporting Documentation for Grantees
- DERA Scrappage Statement (pdf)
- DERA Project Reporting Template (xlsx)
- DERA Eligibility Statement (pdf)
- 2026 DERA Sample Drayage Guidelines (pdf)
Eligible Recipients
Eligibility to apply for and receive funds under the DERA State Grant Program is limited to the 50 states, the District of Columbia, Puerto Rico, and the territories: U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands.
Please refer to the 2025-2026 DERA State Program Guide (pdf) for additional information.
Eligible Activities
Eligible activities include the retrofit or replacement of existing diesel engines, vehicles and equipment with the EPA and California Air Resources Board certified engine configurations and verified retrofit and idle reduction technologies.
- Diesel Vehicles, Engines and Equipment: Projects may target in-use medium and heavy-duty diesel-powered highway vehicles and diesel powered nonroad vehicles and equipment
- School buses
- Transit buses
- Medium-duty or heavy-duty Class 5 – Class 8 highway vehicles
- Locomotives Marine engines
- Nonroad engines, equipment, or vehicles including, not limited to, those used in construction, handling of cargo (including at ports or airports), agriculture, mining, or energy production (including stationary generators and pumps).
- Diesel Emission Reduction Solutions: Projects may upgrade existing diesel vehicles and equipment using the diesel emissions reduction solutions
- Certified vehicle and equipment replacements
- Certified engine replacement
- Certified remanufacture systems
- Verified idle reduction technologies
- Verified retrofit technologies
- Clean alternative fuel conversations
- Verified retrofit technologies
- Clean alternative fuel conversions
- Verified aerodynamic technologies and low rolling resistance tires
Please refer to the 2025-2026 DERA State Program Guide (pdf) for additional information.
Eligible Uses of Funding
States and territories may use their grants to fund diesel emissions reduction projects that use:
- EPA verified retrofit technologies or certified engine configurations
- California Air Resources Board verified retrofit technologies or certified engine configurations
- Idle-reduction technologies that are EPA verified
- Aerodynamic technologies and low rolling resistance tires that are EPA verified
- Early engine, vehicle, or equipment replacements with certified engine configurations
Please refer to the 2025-2026 DERA State Program Guide (pdf) for additional information.
Application Package and Submission Information
Participating States and territories must submit a complete application package electronically to the EPA through www.grants.gov after they have received their final allocation amount and have had their work plan approved by their EPA Region Project Officer. See Section VII of the 2025-2026 DERA State Program Guide for full application content and submission instructions.
Tools and Resources for Applicants
- EPA Grants Management Training for Applicants and Recipients provides an online training course that is designed to introduce EPA grant applicants and recipients to key aspects of the entire grant life cycle, from preparation of an application through grant closeout.
- Tips for a Successful Diesel Retrofit Project (pdf) (480 KB, April 2013, EPA-420-B-13-025) provides tips to help you get started and avoid common mistakes.
- Technology Tips: Diesel Emissions Reduction Program (DERA): Technologies, Fleets and Projects Information (pdf) (1.3 MB, October 2011, EPA-420-P-11-001) provides information about retrofit technologies and what to look for.
- Shore Power Calculator Tool is available online at Shore Power Technology Assessment at U.S. Ports. In 2022, the EPA updated the shore power technology assessment titled “Shore Power Port Assessment at US Ports 2022 Update Report” which describes the availability of shore power at ports throughout the U.S. and characterizes the technical and operational aspects of shore power systems at U.S. ports. The updated assessment includes information on California Air Resources Board shore power regulations, information on vessel readiness and real-world costs and practical operational lessons from different ports. The shore power calculator tool can be used to estimate how diesel emissions can be reduced through the use of shore power systems.
- To better estimate potential emission reductions for projects including plug-in TRU systems, the EPA developed a 2023 TRU Emissions spreadsheet calculator which facilitates estimating emission reductions and potential fuel savings available at Refrigerated Trailers and Transport Refrigeration Units. TRUs are integral to transporting freight that requires climate-controlled conditions. Additional information on TRU systems and eligible DERA funding is available on the 2026 DERA Transport Refrigeration Unit (TRU) Factsheet (pdf) .
- The Best Practice Guide for Procuring Services, Supplies, and Equipment Under EPA Assistance Agreements provides guidance for a recipient or subrecipient of an EPA financial assistance agreement on how to best purchase or “procure” professional services, supplies or equipment, in order to complete the work under their EPA award. Effective April 7, 2025, and until further notice, the EPA has suspended multiple provisions of 40 CFR Part 33. For details, please refer to RAIN-2025-G02. Build America, Buy America: Office of Transportation and Air Quality.