Volkswagen funding - diesel emissions reduction act DERA

Application Period is Closed

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 $908,508 of project funding for state fiscal year 2022.

Information and Assistance

Applicants may direct all questions pertaining to this application to Please include “DERA Question” in the subject line of the email. 

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. All new diesel awards will have a funding cap of $100,000 for a combination of multiple projects or a single large project. 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 cost-share percentage of the eligible cost/ expenses up to $100,000 per applicant for new diesel vehicles, engines or equipment. There is no limit per applicant if new vehicles, engines or equipment are alternative-fueled, low NOx or zero emission replacements.

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

Application Process

The application period for the DERA State Grants Program closed Jan. 31, 2023.  

The department will select program beneficiaries from the most recent application period using a lottery process from the pool of applications. The department will offer funding for eligible projects associated with each application, in the order drawn. The department will draw all applications in the lottery and keep remaining unfunded applications as alternatives in case any of the initially selected beneficiaries decide not to participate in the program.

Past Awards