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Data / Federal grants / EPA-OAR-OTAQ-26-01

2026 Diesel Emissions Reduction Act (DERA) National Program

Environmental Protection Agency is accepting applications until January 22, 2027. It lists awards of up to $12 million, 120 awards expected, $180 million in total. Cost sharing is required.

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Key facts

Opportunity number
EPA-OAR-OTAQ-26-01
Status
Posted, open
Posted
September 25, 2026
Closes
January 22, 2027
Award ceiling
$12,000,000
Expected awards
120
Total funding
$180,000,000
Cost sharing
Required
Funding instrument
Grant
Category
Environment
Assistance listing
66.039 Diesel Emission Reduction Act (DERA) National Grants
Contact
Elizabeth January Program Analyst · [email protected] · 202-564-1584

Who can apply

  • Others (see text field entitled "Additional Information on Eligibility" for clarification)

See Section 2 for eligibility information.

What the agency says

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 .

The notice on Grants.gov

Other open grants from the Environmental Protection Agency

· Everything closing in January 2027

Read from the Grants.gov API, last updated 2026-10-23. The agency's notice on Grants.gov is the official record; check it before you apply.