Diesel Emissions Reduction Act (DERA) National Grants - American Cities Climate Challenge
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Diesel Emissions Reduction Act (DERA) National Grants

Federal Agency


Diesel Emissions Reduction Act (DERA)


To achieve significant reductions in diesel emissions and exposure, particularly from fleets operating in areas designated by the Administrator as poor air quality areas.

Applicant and/or Project Eligibility Requirements

Eligible applicants include 1) regional, state, local or tribal agencies/consortia or port authorities with jurisdiction over transportation or air quality, and 2) nonprofit organizations or institutions that represent or provide pollution reduction or educational services to persons or organizations that own or operate diesel fleets.

Decarbonization Considerations

Consider replacing eligible vehicles to electric engines. These include: school buses; Class 5 – Class 8 heavy-duty highway vehicles; Locomotive engines; marine engines; non-road engines, equipment or vehicles used in construction, handling of cargo (including at ports or airports), agriculture, mining or energy production (including stationary generators and pumps).

Equity Considerations

Consider prioritizing bus fleet electrification that serve disadvantaged communities who historically breathe disproportionately less healthy air and other vehicles that regularly service communities (garbage, recycling, transit, etc.).

Helpful Tips

Eligible vehicles for replacement must be fully operational; the participating fleet owner must have owned and operated the vehicle during the 2 years prior to upgrade; the existing vehicle must have at least 3 years of remaining life at the time of upgrade (remaining life is the fleet owner’s estimate of the number of years until the unit would have been retired from service if the unit were not being upgraded or scrapped because of the grant funding); highway usage must have reached 7,000 miles/year during 2 years prior to upgrade; school buses may use mileage from 2019 (due to COVID limitations/restrictions).

Other Notes


Deadline (Announced or Anticipated)

NOFO expected mid-2023

Funding Available


Max Award Amount


Expected Allocations


Average Award (Estimated)


Matching Funds

55% match required for vehicle or equipment replacement with zero-tailpipe emissions

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