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2026 Diesel Emissions Reduction Act (DERA) National Program

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.

FromEnvironmental Protection Agency
Who can applyothers (see eligibility notes)
Eligibility notesSee Section 2 for eligibility information.
How muchup to $12 million per award; about 120 awards; $180 million total
DeadlineFri, Jan 22, 2027 (91 days left)
Matching fundsYes: you must put up some of your own money or in-kind match
CategoryEnvironment
TypeGrant
Opportunity #EPA-OAR-OTAQ-26-01
Assistance listing66.039
PostedFri, Sep 25, 2026

Open the official posting

From the notice

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

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