Air Pollution Control Program

Diesel Emission Reduction Act Funding

In 2005, the U.S. Congress passed the Diesel Emission Reduction Act, also known as 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. The U.S. Environmental Protection Agency, or 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.

In 2009, DERA was included as a program under the American Recovery and Reinvestment Act. Under this act, DERA received $300 million nationwideDERA Funding Chart

There are four different pools of funding within DERA. Each of the four different  pools is 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 are:

Interested Fleets

If you would like to be added to the department's Interested Fleet Owners distribution list to receive emails when future DERA grant opportunities arise, email the Air Pollution Control Program and include your contact information including name, telephone number and email address.

State Allocated DERA Funding

The State Allocation Program divides non-competitive funding evenly among all 50 states. The Missouri Department of Natural Resources’ Air Pollution Control Program is responsible for implementing and overseeing Missouri's allocated funding.

The funding must be used to develop grant or low-cost revolving loan programs to fund clean diesel projects. Examples of projects include emission control retrofits (exhaust controls), idle reduction retrofits, SmartWay® technology retrofits, the incremental cost difference for alternative fuel, alternative fuel conversion kits, engine replacements and early vehicle replacements. This funding has 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.

Additional information about particular past, current or upcoming State Allocated Clean Diesel Grants in Missouri, is available below.

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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 is allocated to this pool of funding each year. The following entities are eligible to apply for funding under this program: regional, state, local or tribal agencies or port authorities with jurisdiction over transportation or air quality and nonprofit organizations or institutions that represent or provide pollution reduction or educational services to persons or organizations that own or operate diesel fleets, or have as their principle purpose, the promotion of transportation or air quality. Non-eligible entities are allowed to partner with an eligible entity to apply for a project; however the eligible entity must submit the application to EPA and assume responsibility for the project.

The following types of projects are eligible uses of funding through this program: EPA verified emission control retrofits, California Air Resources Board verified emission control retrofits, EPA verified idle reduction retrofits, the incremental cost difference for alternative fuel, EPA certified alternative fuel conversion kits, EPA certified engine repowers and early vehicle replacements that use an EPA certified engine configuration.

The Air Pollution Control Program has applied for funds under this program several times since DERA was appropriated funding by congress in 2008. In the past, the Air Program partnered with public and private fleet owners and submitted the application as the eligible entity. In recent years, the Air Pollution Control Program has not submitted applications under this program; however, the Air Program worked with numerous eligible entities in Missouri that submitted applications under this program.  In these years, the Air Pollution Control Program put fleets in contact with these eligible entities so that they could be considered for inclusion in an application under this program.  The Air Program will likely continue to support eligible entities in Missouri that are submitting applications under this program, and it is possible that the Air Pollution Control Program could apply directly for funding under this program again in the future.  In both cases, the Air Pollution Control Program invites diesel fleet owners and operators to submit project ideas that could potentially be included in an application under this program.  To view information about submitting a project idea that could potentially be included in an application under a future National Competitive DERA Grant, visit the National Clean Diesel Funding Assistance Program webpage.

Upcoming National Competitive DERA Grants

Current National Competitive DERA Grants

Past National Competitive DERA Grants

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Emerging Technology Program DERA Funding

The Emerging Technology Program is a competitive grant process that may be used by emerging technology manufacturers to implement their technologies that may not yet be commercialized on existing diesel fleets. The funding may be used for implementation and not for testing of the emerging technology equipment. Emerging technology manufacturers must be included on the EPA Emerging Technology List, and they must partner with an eligible entity, which would submit the application. Eligible entities include:

  • Regional, state, local or tribal agencies or port authorities with jurisdiction over transportation or air quality.
  • Nonprofit organizations or institutions that represent or provide pollution reduction or educational services to persons or organizations that own or operate diesel fleets, or have as their principle purpose the promotion of transportation or air quality.
Fleets that are willing to install the emerging technology are also a crucial factor that is needed to apply for funding under this program. Technologies can only stay on the emerging technology list for up to two years. Once a technology has been on the list for two years, it is automatically dropped from the list, and would no longer be an eligible technology for grant funding under the Emerging Technology Program.

The Air Pollution Control Program has never applied for funding under this program in the past. The Air Pollution Control Program is, however, assembling an emerging technology distribution list.  If you are a manufacturer with a product listed on the EPA Emerging Technology List, and would like to receive updates and information about potential grant projects, email the Air Program your contact information. Include your company’s name, the name of the technology that your company manufactures that is listed on the EPA Emerging Technology List, along with your personal contact information including name, phone number and email address.  If you are a fleet owner interested in applying for a grant to install an emerging technology on your fleet, email the Air Program with your information. Include your company’s name, the name or type of the technology you are interested in installing that is listed on the EPA Emerging Technology List, along with your personal contact information including name, phone number and email address.

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Smartway® Innovative Finance Program

The SmartWay® Innovative Finance Program is a competitive grant program used to establish innovative finance funds for clean diesel projects, such as a revolving loan fund.  Examples of projects include those where the loan recipient receives a specific financial incentive, for example: better than regular market rates or conditions, for the purchase or lease of retrofitted vehicles or equipment.  Eligible entities include regional, state, local or tribal agencies or port authorities with jurisdiction over transportation or air quality and nonprofit organizations or institutions that represent or provide pollution reduction or educational services to persons or organizations that own or operate diesel fleets, or have as their principle purpose, the promotion of transportation or air quality.

The Air Pollution Control Program has never applied for funding under this program in the past.  The Air Pollution Control Program is, however, assembling a SmartWay® Innovative Finance Program distribution list. If you represent an eligible entity and are interested in applying directly to EPA for a SmartWay® Innovative Finance Program Grant that would be focused in Missouri, email the Air Program with your information. Include your company’s name, a summary of your plan for an innovative finance program, along with your personal contact information including name, phone number and email address.

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