EPA announces $180 million in funding to rejuvenate aging diesel engine fleet

The U.S. Environmental Protection Agency (EPA) has presented a Notice of Funding Opportunity (NOFO) for approximately $180 million under the Diesel Emissions Reduction Act (DERA) program and is calling for applications that will incentivize and accelerate the upgrade or retirement of the legacy diesel engine fleet in the United States.

Between four and 12 awards are expected to be made per EPA region with each relating to a two-to-four-year project.

Eligible submissions include:

• A regional, State, local or Tribal agency, or port authority with jurisdiction over transportation or air quality.
• A not-for-profit institution or organization that provides or represents pollution reduction or educational services to people or organizations that own and/or operate diesel fleets, or has as its primary mission to promote transportation or air quality.

The eligible activities include the retrofitting or replacement of existing diesel engines, vehicles and equipment with certified engine configurations and verified retrofit and idle-reduction technologies. Accepted applicants may also use the funds to reduce long-duration idling using the verified idle-reduction technology with certain vehicles and equipment.

Application packages must be submitted electronically to EPA through Grants.gov no later than Friday, January 22, 2027, at 11:59 p.m. (ET) to be considered. Visit www.epa.gov/dera for more information.