OpenFederal grantOpen to for-profit businessesEPA-OAR-OTAQ-26-01

2026 Diesel Emissions Reduction Act (DERA) National Program

Environmental Protection AgencyCloses Jan 22, 2027(101 days left)Up to $12,000,000

Does this fit your business?

This EPA program funds retrofitting or replacing old diesel engines, vehicles, and equipment with certified cleaner technologies, and it requires cost sharing. It is for organizations that own or partner with owners of legacy diesel fleets. If you do not operate or work with diesel vehicles or equipment, there is nothing here for you.

Best for
Fleet owners with older diesel vehicles or equipment, Nonprofits partnering with diesel fleet owners, State, local, or tribal governments running diesel reduction projects, Businesses replacing or retrofitting legacy diesel engines
Not for
Businesses with no diesel vehicles or equipment, Service or retail companies with nothing to retrofit or replace, Applicants unable to cover required cost sharing
Estimated fit by industry, best first
IndustryEstimated fit
Energy & Clean TechMatches your industry (clean)
75
Strong Match
Environment & ConservationMatches your industry (environment)
75
Strong Match
Technology & SoftwareMatches your industry (technology, tech)
71
Good Match
Transportation & LogisticsCurrently accepting applications
65
Good Match
Agriculture & FarmingLimit: Nothing in this notice points to agriculture & farming
54
Possible Match
Arts & CultureLimit: Not clearly about your industry or what you need funding for; check the…
54
Possible Match
Show all 15 industries
Estimated fit by industry, best first
IndustryEstimated fit
Construction & InfrastructureLimit: Nothing in this notice points to construction & infrastructure
54
Possible Match
Education & TrainingLimit: Nothing in this notice points to education & training
54
Possible Match
Finance & BankingLimit: Nothing in this notice points to finance & banking
54
Possible Match
Food & BeverageLimit: Nothing in this notice points to food & beverage
54
Possible Match
Healthcare & BiotechLimit: Nothing in this notice points to healthcare & biotech
54
Possible Match
Housing & Real EstateLimit: Nothing in this notice points to housing & real estate
54
Possible Match
ManufacturingLimit: Nothing in this notice points to manufacturing
54
Possible Match
Retail & E-CommerceLimit: Nothing in this notice points to retail & e-commerce
54
Possible Match
Social Services & NonprofitLimit: Not clearly about your industry or what you need funding for; check the…
54
Possible Match

These are our matcher’s estimates for a typical business in each industry. A real match depends on your size, your state and what you need the money for — check your own fit.

What this funds

Money can be used for
Equipment, Capital projects
Who can apply
Small businesses, For-profit companies, Nonprofits, State and local governments, Tribal governments and organizations
Award range
Up to $12,000,000

Questions about this grant

When is the application deadline?
January 22, 2027.
How much funding can an applicant receive?
The largest single award is $12,000,000, and the total program funding is $1,800,000 across about 120 expected awards. Cost sharing is required, so applicants must bring their own funds to the project.
Who can apply for this grant?
Eligible entities include small businesses, for-profit companies, nonprofits, government entities, and tribal organizations. Fleet owners can implement projects directly; other applicants can partner with fleet owners through subawards or rebates. The notice points to Section 2 for detailed eligibility rules.
Can a sole proprietor or single-member LLC apply?
The facts do not specifically address sole proprietors or single-member LLCs. Small businesses and for-profit companies are listed as eligible applicant types, but the notice refers applicants to Section 2 for the full eligibility details.
Can a nonprofit apply?
Yes, nonprofits are listed among the applicant types that may apply. Nonprofits that do not own diesel fleets can still participate by partnering with fleet owners and funding them through subawards or rebates.

Summary

EPA DERA National Program: competitive grants to eligible entities to retrofit or replace legacy diesel engines, vehicles, and equipment with EPA/CARB certified or verified technologies. Fleet owners may implement directly; others may partner with fleet owners via subawards or rebates. Cost sharing required.

About this grant

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 .

Who can apply

See Section 2 for eligibility information.

Topics and uses of funds

Topics

  • Environment
  • Transportation
  • Air quality

Program contact

Elizabeth January Program Analystdera@epa.gov202-564-1584

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