2026 Diesel Emissions Reduction Act (DERA) National Program
Contract Overview
Solicitation details, issuing organization, response deadlines, documents, and interested companies for this government contract opportunity.
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The 2026 Diesel Emissions Reduction Act (DERA) National Program, solicitation number EPA-OAR-OTAQ-26-01, is a competitive grant program administered by the EPA Office of Air and Radiation. With an estimated total funding of 180 million dollars across fiscal years 2024 through 2026, the program aims to accelerate the retirement or upgrade of legacy diesel engine fleets. Eligible applicants include state, local, regional, and Tribal agencies, as well as port authorities, school districts, and municipalities with jurisdiction over air quality or transportation. Funded activities focus on the retrofit or replacement of diesel engines, vehicles, and equipment using EPA and CARB certified technologies to reduce fine particulate matter, nitrogen oxides, carbon monoxide, and volatile organic compounds. Applications must be submitted via Grants.gov by January 22, 2027, and require an active SAM.gov registration and Unique Entity Identifier. The EPA utilizes a point system of 130 possible points to rank proposals, anticipating the funding of 4 to 12 projects per region based on quality and availability. Awards typically have a project period of 2 to 4 years. Key requirements include adherence to Build America, Buy America sourcing standards and the use of Best Achievable Technology. The application package must include specific federal forms, a project narrative limited to 14 pages, and a supplemental fleet description template in xlsx format. Final selections may also consider geographic and technology diversity.
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Full Description
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 School Bus Program. The DERA Program also provides non-competitive funding to U.S. States and territories through the DERA State Program.
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