2026 Diesel Emissions Reduction Act (DERA) National Program

The EPA’s Diesel Emissions Reduction Act (DERA) National Program provides approximately $180 million in competitive grant funding to replace or retrofit legacy diesel engines, vehicles, and equipment across the United States. Eligible applicants include state, local, tribal, and port authorities, as well as non‑profit organizations focused on air‑quality or transportation improvement. Grants may be structured as direct implementation, sub‑awards, or participant‑support costs (rebates). Funding is allocated by EPA region (total $180 M) with 4‑12 awards per region and a project period of 2‑4 years. Applications are limited to two per region (max 10 total) and must stay within regional caps ($3‑12 M per award). Cost‑sharing is required, and detailed reporting, procurement, and sub‑award compliance are mandatory. • Total funding: ~$180 M; average award $1.5 M (range $0.5 M‑$12 M) • 120 awards total; 4‑12 awards per EPA region • Eligible entities: state/local/tribal agencies, ports, MPOs, non‑profits with air‑quality/transportation missions • Project scope: diesel engine retrofits, replacements, or technology upgrades using EPA/CARB‑certified solutions • Project length: 2‑4 years; must include budgeting for personnel, equipment, sub‑awards, or rebates • Application deadline: 11:59 PM ET, Jan 22 2027; questions due by Nov 24 2026 • Required deliverables: work plan, narrative, budget, compliance with 2 CFR §200, reporting, and procurement rules.