Diesel Emissions Reduction Act (DERA) State Grants

 

The Diesel Emissions Reduction Act, 42 U.S.C. 16131 et seq., as amended, authorizes EPA to award assistance agreements to states and territories to develop and implement such grant, rebates, and loan programs in the states and territories as are appropriate to meet state and territory needs and goals relating to the reduction of diesel emissions. Funding Priorities - Fiscal Year 2023: In providing grants, rebates, and loans under this program, states must give priority to projects which: maximize public health benefits; are the most cost-effective; serve areas with the highest population density, that are poor air quality areas (including nonattainment or maintenance of national ambient air quality standards for a criteria pollutant; Federal Class I areas; or areas with toxic air pollutant concerns); serve areas that receive a disproportionate quantity of air pollution from diesel fleets, including truck stops, ports, rail yards, terminals, construction sites, schools, and distribution centers or that use a community-based multi-stakeholder collaborative process to reduce toxic emissions; will only include a certified engine configuration or verified technology that has a long expected useful life; maximize the useful life of any certified engine configuration or verified technology used or funded by the eligible entity; and conserve diesel fuel.

Active 66.040 Environmental Protection Agency A - Formula Grants Fiscal Year 2016 In FY 2016, 47 States and territories participated in the program. Each State will be awarded a cooperative agreement for clean diesel activities.. In FY 2016, 47 States and territories participated in the program. Each State was awarded a cooperative agreement for clean diesel activities. For a list of awarded grants, visit https://www.epa.gov/cleandiesel/clean-diesel-state-allocations.
Fiscal Year 2017 In FY 2017, 49 States and territories participated in the program. Each State will be awarded a cooperative agreement for clean diesel activities. For a list of awarded grants, visit www.epa.gov/cleandiesel/2008-2017-state-allocations-agencies
Fiscal Year 2018 In FY 2018, 54 States and Territories participated in the program. Each State will be awarded a cooperative agreement for clean diesel activities. For a list of awarded grants, visit www.epa.gov/cleandiesel/2008-2017-state-allocations-agencies.
Fiscal Year 2023 FY 2023 funding is underway. For a list of awarded grants, visit https://www.epa.gov/dera/state-allocations. The website is updated annually every fall. Diesel Emissions Reduction Act of 2010, 42 U.S.C. 16133 Assistance under this program is available to the 50 states and the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, and the Northern Mariana Islands. Owners of eligible diesel powered vehicles and equipment. Both public owned fleets and privately owned fleets may benefit. EPA presumes that the state agency with jurisdiction over air quality will be the lead agency to receive these funds. If a state's circumstances dictate that another state agency administer the funds, then a letter from the state governor or designee to the Administrator of EPA is required in order to certify one state agency as the recipient of funds who has the legal and administrative authority to enter into a grant or cooperative agreement with EPA. 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. 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. EPA's Office of Air and Radiation and/or the 10 EPA Regions will review and evaluate applications in accordance with the terms, conditions, and criteria set forth in the DERA State Program Guidelines. Contact the headquarters or regional location, as appropriate for application deadlines Approximately 180 days after the application is received. Disputes will be resolved under 2 CFR 1500 Subpart E, as applicable. Generally, EPA incrementally funds these cooperative agreements. Approval of subsequent funding increments is dependent on satisfactory project progress, continued relevance of the projects to EPA's priorities, availability of funds, and Agency policy on the cooperative agreement process. This is a noncompetitive program. Proposals must meet the eligibility requirements set forth in the DERA State Program Guidelines. Grants and cooperative agreements are available to support the development and implementation of such grant, rebate, and low-cost revolving loan programs in a state as are appropriate to meet state needs and goals relating to the reduction of diesel emissions. A grant, rebate, or loan funded by the state using funds from the DERA State Program must be used for projects involving EPA-verified and/or California Air Resources Board (CARB) verified diesel emissions reduction technologies and/or EPA certified engines. Funds received under the DERA National Grants Program (see assistance listing 66.039) may not be used to pay a matching share under this program. States must use the same statutory priorities as the national competitive program when selecting projects. States receiving funding under this program must comply with public notification requirements. Additional project eligibility and use restrictions may be defined in program guidance. Performance Reports: Grantees are required to conduct 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 30% of total DERA funding is for the State DERA Program. Of the 30%, 2/3 is split between states and territories as their base funding amount. The other 1/3 of the 30% is set aside for a matching incentive. The bonus is 50% of the match. The final amounts are based on the number of states and territories participating in the DERA program in a given year.

Matching is mandatory. This program has a statutory allocation formula (42 U.S.C. 16133(c)). There is no statutory match requirement for this program. However, there is a statutory incentive match provision (42 U.S.C. 16133(c)(3)). Program guidance may restrict the eligibility and amount of grant funds that may be used for certain types of projects. While there is no statutory requirement for a matching contribution from applicants, FY 2019 programmatic policy guidance requires a mandatory match for certain type of projects (engine upgrades, idle reduction technologies, engine replacements, vehicle/equipment replacements, and alternative fuel conversions). Any voluntary matching funds provide by the state to qualify for the matching incentive are included in the “EPA funds and state voluntary matching funds” described below. Mandatory cost-share funds provided by the state and/or eligible third parties cannot count towards the state’s voluntary matching funds to qualify for the matching incentive. However, if a state requires a third-party cost-share contribution above and beyond the mandatory cost-share amount for the elected technology, then the “excess” cost-share may be applied towards the state voluntary match funds for the purpose of qualifying for the matching incentive. The recipient may not use EPA funds and state voluntary matching funds to provide more than the cost-share percentages outlined below, as applicable, of the final equipment costs. Recipients must satisfy any applicable cost-share requirements with allowable costs as set forth in 2 CFR §200.306. The cost-share requirements are as follows: • Engine Upgrades: EPA funds and state voluntary matching funds can cover up to 40% of the cost (labor and equipment) of an eligible engine upgrade; states and/or eligible third parties are responsible for the mandatory cost-share of at least 60% of the cost of an eligible engine upgrade. • Idle Reduction Technologies on Locomotives: EPA funds and state voluntary matching funds can cover up to 40% of the cost (labor and equipment) of an eligible idle reduction technology for a locomotive; states and/or eligible third parties are responsible for the mandatory cost-share of at least 60% of the cost of an eligible idle reduction technology for a locomotive. • Idle Reduction Technologies on Highway Diesel Vehicles: EPA funds and state voluntary matching funds can cover up to 25% of the cost (labor and equipment) of eligible, verified idle technologies on Class 8 long-haul trucks and school buses without verified engine retrofits; states and/or eligible third parties are responsible for the mandatory cost-share of at least 75% of the cost of eligible, verified idle reduction technologies on Class 8 long-haul trucks and school buses without verified engine retrofits. • Marine Shore Power Connection Systems: EPA funds and state voluntary matching funds can cover up to 25% of the cost (labor and equipment) of an eligible shore connection system; states and/or eligible third parties are responsible for the mandatory cost-share of at least 75% of the cost of an eligible shore connection system. • Electrified Parking Spaces (EPS): EPA funds and state voluntary matching funds can cover up to 30% of the cost (labor and equipment) of eligible EPS technology; states and/or eligible third parties are responsible for the mandatory cost-share of at least 70% of the cost of eligible EPS technology. • Certified Engine Replacement: • EPA funds and state voluntary matching funds can cover up to 40% of the cost (labor and equipment) of an eligible diesel or alternative fuel engine replacement. States and/or eligible third parties are responsible for the mandatory cost-share of at least 60% of the cost of an eligible engine replacement. • Highway Low-NOx: EPA funds and state voluntary matching funds can cover up to 50% of the cost (labor and equipment) of replacing a highway diesel engine with a 2016 model year or newer engine that is certified to CARB’s Optional Low-NOx Standards of 0.1 g/bhp-hr, 0.05 g/bhp-hr, or 0.02 g/bhp-hr NOx. States and/or eligible third parties are responsible for the mandatory cost-share of at least 50% of the cost of eligible Low-NOx engine replacement. • All-Electric: EPA funds and state voluntary matching funds can cover up to 60% of the cost (labor and equipment) of an eligible all-electric engine replacement. States and/or eligible third parties are responsible for the mandatory cost-share of at least 40% of the cost of an eligible all-electric engine replacement. • Certified Vehicle/Equipment Replacement: • EPA funds and state voluntary matching funds can cover up to 25% of the cost of an eligible replacement vehicle or piece of equipment powered by a 2016 model year or newer certified engine; states and/or eligible third parties are responsible for the mandatory cost-share of at least 75% of the cost of an eligible replacement vehicle or piece of equipment. • Highway Low-NOx: EPA funds and state voluntary matching funds can cover up to 35% of the cost of an eligible highway replacement vehicle powered by a 2016 model year or newer engine certified to meet CARB’s Optional Low-NOx Standards of 0.1 g/bhp-hr, 0.05 g/bhp-hr, or 0.02 g/bhp-hr NOx. Engines certified to CARB’s Optional Low NOx Standards may be found by searching CARB’s Executive Orders for Heavy-duty Engines and Vehicles, found at: www.arb.ca.gov/msprog/onroad/cert/cert.php. States and/or eligible third parties are responsible for the mandatory cost-share of at least 65% of the cost of an eligible replacement vehicle. • All-Electric: EPA funds and state voluntary matching funds can cover up to 45% of the cost of an eligible all-electric replacement vehicle or equipment. States and/or eligible third parties are responsible for the mandatory cost-share of at least 55% of the cost of an eligible all-electric replacement vehicle or piece of equipment. • Drayage Trucks: EPA funds and state voluntary matching funds can cover up to 50% of the cost of an eligible replacement drayage truck powered by a 2013 model year or newer certified engine. States and/or eligible third parties are responsible for the mandatory cost-share of at least 50% of the cost of an eligible replacement drayage vehicle. • Clean Alternative Fuel Conversion: EPA funds and state voluntary matching funds can cover up to 40% of the cost (labor and equipment) of an eligible certified or compliant clean alternative fuel conversion. States and/or eligible third parties are responsible for the mandatory cost-share of at least 60% of the cost of an eligible clean alternative fuel conversion.

MOE requirements are not applicable to this assistance listing. The assistance agreements funded under this program typically have a two-year project period with the possibility for extension up to a seven-year project period. Assistance agreements may be incrementally (annually) or fully funded. EPA encourages potential applicants to communicate with the appropriate EPA Regional Office. Visit https://www.epa.gov/dera/state. Stephanie Watson
Environmental Protection Agency, 1200 Pennsylvania Avenue, N.W (Mail Code: 6406)
Washington, DC 20460 US
watson.stephanie@epa.gov
Phone: 202-564-1409 https://www.epa.gov/dera/state 68-0103-0-1-304 (Formula Grants) FY 22$27,600,000.00; FY 23 est $30,000,000.00; FY 24 est $45,000,000.00; FY 21$27,000,000.00; FY 20$23,499,998.00; FY 19$23,072,000.00; FY 18$20,100,000.00; FY 17$15,300,000.00; FY 16$9,000,000.00; - For FY 2023, the range is estimated from $84,056 (Territory Base Amount) to $336,226 (State Base Amount, including Puerto Rico and the District of Columbia). In addition, a bonus of 50% of the Base Amount is available to states and territories that match the Base Amount dollar for dollar. The average funding amount for FY 2022, including Base Amount and Bonus, is approximately $504,339. 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); and 2021 DERA State Grants Program Guide (https://www.epa.gov/sites/default/files/2021-05/documents/420b21027.pdf). Fiscal Year 2016 States may use funds under this program to develop and implement grant, rebate and loan programs that are designed to achieve significant reductions in diesel emissions and are appropriate to meet State needs and goals relating to the reduction of diesel emissions. State grant, rebate and loan programs may fund projects relating to a certified engine configuration or a verified technology for vehicles, engines and equipment, including: 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. Projects under the State's grant program may include, but are not limited to, 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; and the creation of low-cost revolving loan programs to finance diesel emissions reduction projects. States may use funds under this program to develop and implement grant, rebate and loan programs that are designed to achieve significant reductions in diesel emissions and are appropriate to meet State needs and goals relating to the reduction of diesel emissions. State grant, rebate and loan programs may fund projects relating to a certified engine configuration or a verified technology for vehicles, engines and equipment, including: 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. Projects under the State's grant program may include, but are not limited to, 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. For a list of awarded grants, visit https://www.epa.gov/cleandiesel/clean-diesel-state-allocations.
Fiscal Year 2017 States may use funds under this program to develop and implement grant, rebate and loan programs that are designed to achieve significant reductions in diesel emissions and are appropriate to meet State needs and goals relating to the reduction of diesel emissions. State grant, rebate and loan programs may fund projects relating to a certified engine configuration or a verified technology for vehicles, engines and equipment, including: 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. Projects under the State's grant program may include, but are not limited to, a variety of diesel emissions reductions solutions such as: add-on emission control retrofit technologies; idle reduction technologies; cleaner fuel use; engine replacements; engine upgrades; and/or vehicle or equipment replacement; and alternative fuel conversions. For a list of awarded grants, visit https://www.epa.gov/cleandiesel/2008-2017-state-allocations-agencies
Fiscal Year 2018 States may use funds under this program to develop and implement grant, rebate and loan programs that are designed to achieve significant reductions in diesel emissions and are appropriate to meet State needs and goals relating to the reduction of diesel emissions. State grant, rebate and loan programs may fund projects 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 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). For a list of awarded grants, visit https://www.epa.gov/cleandiesel/clean-diesel-state-allocations
Fiscal Year 2023 States may use funds under this program to develop and implement grant, rebate and loan programs that are designed to achieve significant reductions in diesel emissions and are appropriate to meet State needs and goals relating to the reduction of diesel emissions. State grant, rebate and loan programs may fund projects 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/state-allocations.