Volkswagen funding - diesel emissions reduction act DERA

Application Period is Open

Through the Diesel Emissions Reduction Act (DERA), Congress appropriates funds for projects to reduce diesel emissions from diesel fleets. The Volkswagen Trust - DERA Option award category is a cost-share program allowing both private and public entities to apply for DERA funding. The department matches the DERA grant with Volkswagen Trust funds to ensure that Missouri qualifies for the matching bonus from the federal DERA grant. By doing this, the department earned a bonus resulting in a 50% increase in federal grant funding.

Information and Assistance

Applicants may direct all questions pertaining to this application to Please include “DERA Question” in the subject line of the email. You may also call 573-522-3222.

Who Can Apply

Organizations in Missouri that own vehicles, engines or equipment meeting eligibility requirements may apply for funding.

Eligible Projects and Costs

Projects must fall under either the Vehicle/ Equipment Replacement or Engine Replacement diesel emission reduction solutions. Projects may include, but are not limited to, the following heavy-duty diesel emission source types:

  • Buses (transit, shuttle, school)
  • Medium- or heavy-duty trucks
  • Marine vessels
  • Locomotives
  • Nonroad engines, equipment or vehicles used in:
    • Construction
    • Cargo handling (including at a port or airport)
    • Agriculture
    • Mining
    • Energy production (including stationary generators and pumps)

For specific eligibility requirements and restrictions regarding projects, review the department's DERA Program Requirements.

Applicants who own eligible heavy-duty diesel highway vehicles or nonroad equipment could receive a percentage of the cost of a new diesel vehicle or equipment or new diesel engine. New diesel school bus replacements are eligible for a percentage of the cost per bus project. Other emission reduction projects could be eligible to receive a percentage of the project cost. This program offers additional funding incentives for adopting alternative fueled engines, equipment or vehicle replacements. For cost-share award amounts, review the department's DERA Implementation Guidelines.

After the department approves projects for an award, the applicant must provide the total upfront cost for the project and fulfill all program requirements. Upon completion of the project, the applicant will receive reimbursement for the allowable percentage of the eligible cost or the funding requested in the application for the project, whichever is less. There is a $100,000 cap on the total amount the grant will fund for an individual vehicle/ equipment/ engine replacement project that uses new diesel engines—except new diesel school bus replacements, which are capped at $22,500 per bus. There is no limit per project if new vehicles, engines, or equipment are alternative fueled, low NOx, or zero emission replacements. There is also no limit on the total amount of individual vehicle/equipment/engine replacement projects that can be included in an application.

Note: Awarded applicants must permanently disable the old vehicle or engine.

Application Process

The application period for the DERA State Grants Program is open through July 31, 2024 at 5:00 p.m. central daylight time (CDT). Submit applications directly to during the application period, with the subject line “DERA Program Application."

The department will select program beneficiaries from the most recent application period using a lottery process from the pool of applications. The qualified applicants will be divided into two pools, one consisting of applicants for projects serving a Low Income/ Disadvantaged Community (LIDAC) and the other pool including all other projects. Projects will be drawn from the LIDAC group first, until at least 40% of the program funding dedicated to subgrants is awarded. After the initial 40% allocation, all applicants, including those in the LIDAC pool that were not selected to receive the initial 40% of funds, will be added into a drawing. This pool will be used to select the recipients for the remaining 60% of the subgrant funding. For both pools, if an applicant includes multiple vehicle/ equipment/ engine replacement projects, the lottery will only include one entry for the applicant. If that applicant is drawn, their highest priority project will be awarded funding. Then the applicant will be added back into the lottery for a chance to be selected for their second highest priority project, and so on. The department will draw until all projects on all applications have a drawing order. The department will keep the drawing order, to be used as alternatives in case any beneficiaries selected in the lottery decide not to participate in the program.

Past Awards