In 2005, the U.S. Congress passed the Diesel Emission Reduction Act (DERA) as an amendment to the Energy Policy Act.  DERA was designed to reduce diesel emissions from existing diesel fleets that did not meet recently adopted federal emission standards. EPA is responsible for overseeing and distributing DERA funds at the federal level. EPA has additional information about the federal DERA program on its website.

DERA was originally appropriated funding through Congress in 2008 and appropriations continued each year through 2014. In 2009, DERA received $300 million nationwide as a program under the American Recovery and Reinvestment Act.

DERA Funding Chart

From 2008 to 2011 there were four different pools of funding within DERA. Each of the four different  pools was allocated a certain percentage of total DERA funds appropriated by Congress each year, as illustrated by the graph on the right. The four different funding pools were:

From 2012 through 2014 funding for the Emerging Technology Program and the SmartWay® Innovative Finance Program was diverted to establish other federal clean diesel grant programs including a nationwide early school bus replacement program and a program to reduce diesel emissions from off-road diesel engines operating at ports.

State Allocated DERA Funding

The State Allocation Program divides non-competitive funding evenly among the 50 states, Washington, D.C., and several U.S. territories. This department's Air Pollution Control Program is responsible for implementing and overseeing Missouri's allocated funding.

The funding must be used to fund eligible clean diesel projects. The requirements for eligible projects under this grant have changed several times since 2008. Examples of projects in Missouri, that have been funded under this program since 2008, include:

  • Emission control retrofits (exhaust controls)
  • Idle reduction retrofits
  • SmartWay® technology retrofits
  • Incremental cost difference for alternative fuel
  • Alternative fuel conversion kits
  • Engine replacements
  • Early vehicle replacements.

Each year since this program began, this funding has included a match incentive, through which the states are awarded an additional 50 percent of the original award if they can match the entire amount of the original award.

Current State-Allocated Clean Diesel Grants:

Past State-Allocated Clean Diesel Grants:

National Clean Diesel Funding Assistance Program (National Competitive DERA Funding)

The National Clean Diesel Funding Assistance Program is a competitive grant program. Approximately 60 percent of the DERA funding was allocated to this pool of funding from 2008 through 2014.

Entities eligible to apply for funding under this program:

  • Regional, state, local or tribal agencies or port authorities with jurisdiction over transportation
  • Air quality and nonprofit organizations or institutions that represent or provide pollution reduction
  • Educational services to persons or organizations that own or operate diesel fleets

Non-eligible entities were allowed to partner with an eligible entity to apply for a project; however the eligible entity was required to submit the application to EPA and assume responsibility for the project.

The following types of projects have typically been considered eligible uses of funding through this program:

Upcoming National Competitive DERA Grants

Current National Competitive DERA Grants

Past National Competitive DERA Grants