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    § Federal grant opportunity · EPA-OAR-OTAQ-26-01

    2026 Diesel Emissions Reduction Act (DERA) National Program

    Environmental Protection Agency is accepting applications for 2026 Diesel Emissions Reduction Act (DERA) National Program. The deadline is January 22, 2027 and the published award range is $12M.

    Key facts

    Funder
    Environmental Protection Agency
    Application deadline
    January 22, 2027
    Award range
    $12M
    Eligibility
    other
    Geography
    United States
    Focus areas
    Environment
    Opportunity number
    EPA-OAR-OTAQ-26-01

    Program overview

    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 .

    How to apply

    1. Confirm your organization meets the eligibility criteria above.
    2. Read the full funding opportunity announcement from Environmental Protection Agency.
    3. Draft your narrative against the funder's stated priorities and review criteria.
    4. Submit before January 22, 2027, allowing time for registration and validation.

    View the official funding announcement

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