DERA $180 M Funding Now Open

Editor’s Note: The following news item was first published in the National Propane Gas Association’s (NPGA) The Bobtail.

The U.S. Environmental Protection Agency (EPA) has opened the 2026 Diesel Emissions Reduction Act (DERA) National Grant Program, providing approximately $180 million to support projects that replace, retrofit, or upgrade older diesel-powered vehicles and equipment. Applications are due January 22, 2027, giving fleet operators and their public- and nonprofit-sector partners several months to identify eligible equipment and develop projects. NPGA will be working with its state and regional associations during this period to provide grants assistance to would-be applicants. 

DERA is designed to accelerate the turnover of older diesel engines and reduce emissions from the nation’s legacy diesel fleet. Eligible equipment encompasses a wide range of transportation and off-road applications. Projects can include vehicle or engine replacements, verified exhaust retrofits, idle-reduction technologies, certified remanufacture systems, and other EPA-approved emissions-reduction technologies.

Eligible applicants include state, local, regional and tribal agencies and port authorities with jurisdiction over transportation or air quality. Municipalities, counties, school districts, cities and metropolitan planning organizations generally fall within these categories. Certain nonprofit organizations that represent diesel fleet owners or provide pollution-reduction, transportation, or air-quality services are also eligible. Private fleet operators can participate in projects through eligible public or nonprofit applicants.

For a closer look at this DERA funding, as well as other funding opportunities on the horizon, take a look at BPN’s recent interview with NPGA on this topic.