Environmental Protection Agency · United States
Open
Environmental Protection Agency expects to make 120 awards of up to $12 million each, from a total budget of $180 million. Applications close on 22 Jan 2027. Eligible applicant types include others (see text field entitled "Additional Information on Eligibility" for clarification).
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 .
See Section 2 for eligibility information.
Applicant categories are a starting point. The official call decides eligibility.
Environment
Elizabeth January · dera@epa.gov · 202-564-1584
| Fact | Value | How we know | Taken from the source |
|---|---|---|---|
| Deadline | 22 January 2027 | official data field | 15 Nov 2026 |
| Amount per applicant | Up to $12 million | official data field | 15 Nov 2026 |
| Total budget | $180 million | official data field | 15 Nov 2026 |
| Funding rate | Cost sharing required — see the notice for your share | read from the official text | 15 Nov 2026 |
| Who can apply | Others (see text field entitled "Additional Information on Eligibility" for clarification) | official data field | 15 Nov 2026 |
| Where to apply | Unknown — not stated in the source we hold | unknown | — |
Facts on this page come from the funder’s official data, taken on 13 Nov 2026. The funder's own documents, including later amendments, always take precedence.
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