Grants & Funding
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DERA Grant Programs
The Diesel Emissions Reduction Program (known as "DERA") was created under the Energy Policy Act of 2005 (EPAct), Title VII, Subtitle G (Sections 791 to 797) (PDF) (551 pp, 1.3MB) 
. This gave EPA new grant and loan authority for promoting diesel emission reductions and authorized appropriations to the Agency of up to $200 million per year for FY2007 through FY2011. Congress appropriated funds for the first time under this program in FY2008 in the amount of $49.2 million. In addition, $300 million was appropriated under the American Reinvestment and Recovery Act of 2009, $120 million was appropriated for FY2009-2010, and $49.9 million for FY11.
As stipulated in the Act, 70 percent of DERA funds are to be used for national competitive grants, with the remaining 30 percent allocated to the states. Using these guidelines, EPA has developed four programs:
- National Funding Assistance Program
- Emerging Technologies Program
- SmartWay Clean Diesel Finance Program
- State Grant Allocation Program
Since 2008, EPA has awarded over 500 grants for diesel emissions reduction projects nationwide through the National Clean Diesel Campaign. These programs deploy proven and emerging technologies much earlier than would otherwise occur to meet critical local air quality needs. The Environmental Protection Agency estimates that 11 million diesel engines are in operation with uncontrolled emissions. You may wish to visit the archive of previous DERA RFPs and related documents.
2012 Reauthorization of Diesel Grants
On January 4, 2011, President Obama signed legislation (H.R. 5809) reauthorizing grants to state, local, and tribal governments for programs to reduce emissions from existing diesel engines. The bill, passed by the Senate Dec. 16 and the House Dec. 21, authorizes up to $100 million each year for the DERA program for fiscal years 2012 through 2016 and provides new opportunities which are being evaluated. The program works to reduce diesel emissions from mobile sources. Authorized funding is still subject to annual appropriations by Congress. This web site will be updated as more information becomes available.