ACCEPTING APPLICATIONS · GRANT
2026 Diesel Emissions Reduction Act (DERA) National Program
- Deadline
- Jan 22, 2027 (90 days left)
- Who can apply
- Others
- Award range
- Up to $12 million
- Expected awards
- 120
- Total program funding
- $180 million
- Your own money required
- Yes, cost sharing or matching is required
- Opportunity number
- EPA-OAR-OTAQ-26-01
- Posted
- Sep 25, 2026
- Assistance listing
- 66.039
More on who can apply
See Section 2 for eligibility information.
What it funds
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 Schoo…
Open the official notice on Grants.gov ↗What to do next
- Open the official notice on Grants.gov and download the full announcement (the NOFO) and any attachments.
- Check you can apply: the eligible applicants above, and any detail in the notice's eligibility section.
- Register your organization in SAM.gov (choose "all awards") and create a Grants.gov account; allow several weeks the first time.
- Apply through Grants.gov exactly as the notice says, before Jan 22, 2027. Late applications are usually not accepted.
New to this? Applying for a federal grant, step by step · Register to apply · How to read the notice · Write the narrative · Build the budget · Agency contact: dera@epa.gov
From Grants.gov's official daily extract of Oct 25, 2026. The notice on Grants.gov and its attachments are what count. UX Contract is independent and not a government website.
