Diesel Emission Reduction Act (DERA) National Grants

 

The Diesel Emissions Reduction Act, 42 U.S.C. 16132 et seq., as amended, authorizes EPA to award grants, rebates and loans to eligible entities to fund diesel emissions reductions. Emission reductions are achieved through the implementation of a certified engine configuration, verified retrofit technology, or emerging technology for buses (including school buses), medium heavy-duty or heavy heavy-duty diesel trucks, marine engines, locomotives, or nonroad engines used in construction, handling of cargo (including at port or airport), agriculture, mining, or energy production. In addition, eligible entities may also use funds to reduce long-duration idling using verified idle-reduction technology with certain vehicles or equipment described above. The objective of this program is to achieve significant reductions in diesel emissions and exposure, particularly from fleets operating in areas designated by the Administrator as poor air quality areas. Priority is given to projects which promote environmental justice (EJ) by demonstrating benefits to disadvantaged communities. EJ is the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation and enforcement of environmental laws, regulations and policies. Funding Priorities - Fiscal Year 2023: The National DERA program works to reduce the pollution emitted from diesel engines across the country through the implementation of various control strategies and involvement of national, state, local and private partners. Priority will be given to projects which achieve significant reductions in diesel emissions and exposure, particularly from fleets operating in poor air quality areas and/or service goods movement facilities. Further, priority for funding may be given to projects which benefit and engage disadvantaged communities, and those which can demonstrate project sustainability, climate change adaptation and workforce development. FY23 funding will be competed under the 2022-2023 DERA National Grants NOFO, and the 2023 DERA Tribal and territories Grants NOFO. Emerging Technologies Program grants and SmartWay Finance Program grants were not funded in FY2023.

Active 66.039 Environmental Protection Agency B - Project Grants Fiscal Year 2016 For a list of awarded grants, visit www.epa.gov/cleandiesel/clean-diesel-national-grants and www.epa.gov/cleandiesel/clean-diesel-tribal-grants. For a list of awarded grants, visit www.epa.gov/cleandiesel/clean-diesel-national-grants and www.epa.gov/cleandiesel/clean-diesel-tribal-grants.
Fiscal Year 2017 For a list of awarded grants, visit www.epa.gov/cleandiesel/clean-diesel-national-grants and www.epa.gov/cleandiesel/clean-diesel-tribal-grants
Fiscal Year 2018 For a list of awarded grants, visit www.epa.gov/cleandiesel/clean-diesel-national-grants and www.epa.gov/cleandiesel/clean-diesel-tribal-grants.
Fiscal Year 2019 For a list of awarded grants, visit www.epa.gov/cleandiesel/clean-diesel-national-grants and www.epa.gov/cleandiesel/clean-diesel-tribal-grants.
Fiscal Year 2023 For a list of awarded grants, visit www.epa.gov/cleandiesel/clean-diesel-national-grants. In 2023, FY 2022 and 2023 funding was combined, and these grants will be awarded later in 2024. Diesel Emissions Reduction Act of 2010, Public Law 111-364, 42 U.S.C. 16132 Eligible applicants are: A regional, state, local or tribal agency or port authority with jurisdiction over transportation or air quality; and a nonprofit organization or institution that represents or provides pollution reduction or educational services to persons or organizations that own or operate diesel fleets; or has, as its principal purpose, the promotion of transportation or air quality are eligible for assistance under this program. City, county, or municipal agencies, school districts, and metropolitan planning organizations (MPOs) that have jurisdiction over transportation or air quality are all eligible entities under this program to the extent that they fall within the definition above. For certain competitive funding opportunities under this assistance listing, the Agency may limit eligibility to compete to a number or subset of eligible applicants consistent with the Agency's Assistance Agreement Competition Policy. Owners of eligible diesel powered vehicles and equipment. Both public owned fleets and privately owned fleets may benefit. Applicants may be requested to demonstrate they have appropriate background, academic training, experience in the field, and necessary equipment to carry out projects. Preapplication coordination is required. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs" when proposed Federal financial assistance involves installation of devices that provide electric power to truckers to reduce idling. EPA financial assistance programs and activities subject to intergovernmental review that are subject to review under State single point of contact procedures are identified at https://www.epa.gov/grants/epa-financial-assistance-programs-subject-executive-order-12372-and-section-204. Applicants for programs or activities subject to Intergovernmental Review that are not subject to State single point of contact review must provide directly affected State, areawide, regional, and local entities at least 60 days to review their application following notification by EPA that the application has been selected for funding as provided by 40 CFR 29.8(a) and (c). Regarding pre-application assistance with respect to competitive funding opportunities under this program description, EPA will generally specify the nature of the pre-application assistance, if any, that will be available to applicants in the competitive announcement. For additional information, contact the individual(s) listed as "Agency Contact" in the competitive announcement. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Applicants, except in limited circumstances approved by the Agency, must submit all initial applications for funding through Grants.gov. For competitive awards, EPA will review and evaluate applications in accordance with the terms, conditions, and criteria stated in the competitive announcement. Competitions will be conducted in accordance with EPA policies/regulations for competing assistance agreements. For competitive awards, deadlines will be specified in the Notice of Funding Opportunity (NOFO). From 120 to 180 days. Approximately 180 days after the deadline listed in the Notice of Funding Opportunity (NOFO). Assistance agreement competition-related disputes will be resolved in accordance with the dispute resolution procedures published in 70 FR (Federal Register) 3629, 3630 (January 26, 2005). Copies of these procedures may be found at: https://www.epa.gov/grants/grant-competition-dispute-resolution-procedures. Disputes relating to matters other than the competitive selection of recipients will be resolved under 2 CFR 1500 Subpart E, as applicable. Not applicable. The evaluation and selection criteria for competitive awards under this assistance listing will be described in the competitive announcement. Assistance agreements are available to support recipient's allowable costs incident to supporting projects to reduce emissions from diesel engines, plus allowable indirect costs, in accordance with established EPA policies and regulations. Funds must be used for projects involving EPA-verified and/or California Air Resources Board (CARB) verified diesel emissions reduction technologies and/or EPA or CARB certified engines. No funds provided under this section shall be used to fund the costs of emissions reductions that are mandated under Federal law. Voluntary or elective emission reduction measures shall not be considered "mandated", regardless of whether the reductions are included in the state implementation plan of a state. Additional project eligibility and use restrictions are defined in program guidance. Performance Reports: Grantees are required to perform performance monitoring in accordance with Agency policy and requirements stated in the Uniform Grants Guidance 2 CFR 200.329. Grants and cooperative agreements are subject to inspections and audits by the Comptroller General of the United States, the EPA Office of Inspector General, other EPA staff, or any authorized representative of the Federal government. Reviews by the EPA Project Officer and the Grants Specialist may occur each year. Recipients must keep financial records, including all documents supporting entries on accounting records and to substantiate changes in grants available to personnel authorized to examine EPA recipients grants and cooperative agreements records. Recipients must maintain all records until 3 years from the date of submission of final expenditure reports as required by 2 CFR 200.334. If questions, such as those raised because of audits remain following the 3-year period, recipients must retain records until the matter is completely resolved. Statutory Formula: Public Law 111-364 70% of the annual DERA appropriation is for the national competitive grant and rebate funding opportunities.

Matching is mandatory. There is no statutory requirement for a matching contribution from applicants. However, FY2021 programmatic policy requires a mandatory match for certain types of projects, as defined below. Applicants may use their own funds or other sources for cost-share if the standards of 2 CFR Part 200, as applicable, are met. If the proposed cost-share is to be provided by a named project partner, a letter of commitment is required. Other federal grants may not be used as cost-share under this program unless the statute authorizing the other federal funding provides that the federal funds may be used to meet a cost-share requirement on a federal grant. For the project types listed below, DERA funds are limited to the percentage of the equipment costs shown. Applicants are responsible for cost sharing the remainder of the equipment costs. Drayage Truck Replacement 50%; Vehicle or Equipment Replacement with EPA Certified Engine 25%; Vehicle or Equipment Replacement with CARB Certified Low NOx Engine 35%; Vehicle or Equipment Replacement with Zero-tailpipe Emission Power Source 45%; Engine Replacement with EPA Certified Engine 40%; Engine Replacement with CARB Certified Low NOx Engine 50%; Engine Replacement with Zero-tailpipe Emission Power Source 60%; Certified Remanufacture Systems 100%; Highway Idle Reduction Technologies when combined with new or previously installed exhaust after-treatment retrofit 100%; Highway Idle Reduction Technologies without new exhaust after-treatment retrofit 25%; Locomotive Idle Reduction Technologies 40%; Marine Shore Connection Systems 25%; Electrified Parking Space Technologies 30%; Exhaust After-treatment Retrofits 100%; Engine Upgrade Retrofits 100%; Hybrid Retrofit Systems 100%; Fuel and Additive Retrofits when combined with new retrofit, upgrade, or replacement - Cost differential between conventional diesel fuel Cost of conventional diesel fuel; Aerodynamics and Low Rolling Resistance Tires when combined with new exhaust after-treatment retrofit 100%; Alternative Fuel Conversion 40%. The Tribal and Insular Areas grant competition has no mandatory cost share.

MOE requirements are not applicable to this assistance listing. The assistance agreements funded under the DERA National Grant Program typically have a two-year project period with the possibility for extension up to a five-year project period. Assistance agreements may be fully or partially funded. Cash is dispersed to recipients on an as needed basis. EPA encourages potential applicants to communicate with the appropriate EPA Regional Office listed in the competitive announcement. Stephanie Watson
Environmental Protection Agency, 1200 Pennsylvania Avenue, N.W., (Mail Code: 6406A)
Washington, DC 20460 US
watson.stephanie@epa.gov
Phone: 202-567-1409
Fax: 202-343-9147 https://www.epa.gov/dera/national 68-0103-0-1-304 (Project Grants (Discretionary)) FY 22$64,400,000.00; FY 23 est $70,000,000.00; FY 24 est $105,000,000.00; FY 21$63,000,000.00; FY 20$60,900,000.00; FY 19$50,800,000.00; FY 18$43,300,000.00; FY 17$34,000,000.00; FY 16$35,000,000.00; - Smaller grants typically range from $100,000 - $300,000 with an average award of $125,000. Larger grants typically range from $500,000 - $2 million with an average award of $650,000. 2 CFR 1500 (EPA Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; 40 CFR Part 33 (Participation by Disadvantaged Business Enterprises in United States Environmental Protection Agency Programs). Fiscal Year 2016 Projects include a variety of diesel emissions reductions solutions such as: add-on emission control retrofit technologies; idle reduction technologies; cleaner fuel use; engine repowers; engine upgrades; and/or vehicle or equipment replacement. Eligible vehicles, engines and equipment may include: buses (including school buses); Class 5 Class 8 heavy-duty diesel trucks; marine engines; locomotives; and nonroad engines or vehicles used in: i) construction; ii) handling or cargo (including at a port or airport); iii) agriculture; iv) mining; or v) energy production (including stationary engines such as generators or pumps). Projects include a variety of diesel emissions reductions solutions such as: add-on emission control retrofit technologies; idle reduction technologies; cleaner fuel use; engine replacement; engine upgrades; and vehicle or equipment replacement. Eligible vehicles, engines and equipment may include: buses (including school buses); Class 5 Class 8 heavy-duty diesel trucks; marine engines; locomotives; and non-road engines or vehicles used in: i) construction; ii) handling or cargo (including at a port or airport); iii) agriculture; iv) mining; or v) energy production (including stationary engines such as generators or pumps).
Fiscal Year 2017 Projects include a variety of diesel emissions reductions solutions such as: add-on emission control retrofit technologies; idle reduction technologies; cleaner fuel use; engine replacement; engine upgrades; vehicle or equipment replacement, and alternative fuel conversions. Eligible vehicles, engines and equipment may include: buses (including school buses); Class 5 Class 8 heavy-duty diesel trucks; marine engines; locomotives; and nonroad engines or vehicles used in: i) construction; ii) handling or cargo (including at a port or airport); iii) agriculture; iv) mining; or v) energy production (including stationary engines such as generators or pumps).
Fiscal Year 2018 Projects include a variety of diesel emissions reductions solutions such as: add-on emission control retrofit technologies; idle reduction technologies; cleaner fuels and additives; engine replacement; engine upgrades and remanufacture systems; vehicle or equipment replacement, and alternative fuel conversions. Eligible vehicles, engines and equipment may include: buses (including school buses); Class 5-Class 8 heavy-duty diesel trucks; marine engines; locomotives; and nonroad engines or vehicles used in: i) construction; ii) handling or cargo (including at a port or airport); iii) agriculture; iv) mining; or v) energy production (including stationary engines such as generators or pumps).
Fiscal Year 2023 Projects include a variety of diesel emissions reductions solutions such as: add-on emission control retrofit technologies; idle reduction technologies; cleaner fuels and additives; engine replacement; engine upgrades and remanufacture systems; vehicle or equipment replacement, and alternative fuel conversions. Eligible vehicles, engines and equipment may include: buses (including school buses); Class 5-Class 8 heavy-duty diesel trucks; marine engines; locomotives; and nonroad engines or vehicles used in: i) construction; ii) handling or cargo (including at a port or airport); iii) agriculture; iv) mining; or v) energy production (including stationary engines such as generators or pumps). For a list of awarded grants, visit www.epa.gov/dera/national-dera-awarded-grants.