Through the U.S. Diesel Emissions Reduction Act (DERA), Congress appropriates funds for projects to reduce diesel emissions from diesel fleets. Congress passed the Diesel Emissions Reduction Act (DERA) in 2005 as an amendment to the U.S. Energy Policy Act. EPA is responsible for overseeing and distributing funds authorized by this legislation. EPA has additional information about the federal DERA program on its website. Click on the link in bold to learn more.

EPA splits the funds for reducing diesel emissions into different pools. Ninety percent of the funding goes toward state-allocated programs and the National Clean Diesel Funding Assistance Program. EPA uses the remaining ten percent to fund clean diesel programs at the national level, such as a ports initiative and the National School Bus Rebate and Retrofit Program. Click on these links to find out more about these programs.

State-Allocated Funding

EPA divides its state-allocated funding evenly among the 50 states, Washington, D.C., and several U.S. territories. The Missouri Department of Natural Resources' Air Pollution Control Program oversees distribution of Missouri's funding.

The air program must use this federal funding for eligible clean diesel projects. Projects in Missouri have funded endeavors to cut emissions from trucks, school buses, locomotives, construction equipment, and tug boats. Examples follow.

  • Emission control retrofits (exhaust controls) are installed near tailpipes. The technology uses precious metals to oxidize certain pollutants and/or filters to trap pollutants. Recent technology relies on precious metals to oxidize pollutants and injections of ammonia into the exhaust stream to control NOx fumes.
  • Idle reduction retrofits allow drivers to operate air conditioning, heaters, and/or small generators without running the engine. This technology cuts diesel emissions because truck drivers stay comfortable without having to turn on their engines. Other efforts to reduce idling include electrified parking lots that enable truck drivers to operate climate control systems as well as technology that regulates locomotive engines so that they can stay warm without idling. Locomotive engines typically take a long time to warm up.
  • SmartWay® technology includes idle reduction retrofits, as explained above, as well as more fuel efficient tires and aerodynamic retrofits, which help truck trailers reduce air resistance, improve fuel economy and reduce emissions. Manufacturers that offer this technology apply to the EPA's SmartWay® program to become certified. Click here for more information.
  • Some grants cover the cost difference between regular diesel and alternative fuels, such as biodiesel, natural gas, propane, and hydrogen fuel.
  • Alternative fuel conversion kits enable diesel engines to run on alternative fuels, such as natural gas, propane, or hydrogen.
  • Engine replacements require the removal of an existing engine to make room for a new or rebuilt engine verified by EPA to meet more stringent emission standards. The U.S. Diesel Emissions Reduction Act requires the old engine to be scrapped or returned to the original engine manufacturer to be retooled to a more stringent emission standard.
  • Early vehicle replacement programs help fleets buy new vehicles and take older vehicles out of service ahead of schedule. The U.S. Diesel Emissions Reduction Act requires old vehicles to be disabled to ensure reductions.
Current State-Allocated Clean Diesel Program
    2017 Missouri Clean Diesel Program — is helping to replace school buses ahead of schedule

Past State-Allocated Clean Diesel Grants
* 2016 Missouri Clean Diesel Program — funded early replacements of school buses
* 2015 Missouri Clean Diesel Program — funded early replacements of school buses
* 2014 Missouri Clean Diesel Program — replaced an engine in a tug boat in St. Louis
* 2013 Missouri Clean Diesel Program — funded early replacements of school buses
* 2012 Missouri Clean Diesel Program — funded multiple projects in St. Louis and southwest Missouri
* 2011 Missouri Clean Diesel Program — helped cut emissions from fleets in four regions of the state

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

The National Clean Diesel Funding Assistance Program is a competitive grant program that EPA administers. Approximately 60 percent of the funding from the U.S. Diesel Emissions Reduction Act goes toward this program. For information on grants distributed from 2008 to 2011, click here. To learn about grants administered from 2012 to 2015, click here.

Click to access the latest information on grants through this program. Entities eligible to apply to EPA for funding under this program:

1. Regional, state, and local agencies with jurisdiction over transportation or air quality
2. Tribal agencies (or intertribal consortia) with jurisdiction over transportation or air quality
3. Port authorities
4. Nonprofit organizations or institutions that do one of the following:

  • represent or provide pollution reduction or educational services to people or organizations owning and/or operating diesel fleets
  • promote transportation or air quality.

Ineligible entities may 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 have typically been considered eligible uses of funding through this program:

Upcoming National Competitive DERA Grants

Past National Competitive DERA Grants