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EPA awards $125 million for legacy diesel engine replacement

Oct. 21, 2024
EPA’s latest round of DERA grants helps 67 recipients replace diesel engines and vehicles to reduce emissions. In many of the funded projects, diesel vehicles will be replaced with zero-emission vehicles in recipients' fleets.

The U.S. EPA announced the recipients of nearly $125 million for its Diesel Emissions Reduction Act National Grants Program. Municipalities, tribes, and other organizations received anywhere from $34,000 to $9 million to replace aging diesel vehicles

The DERA Grants Program incentivizes the upgrade or retirement of older diesel engines to cleaner vehicles. For its latest round of awards, EPA announced 67 awards to 28 states, totaling $124,0199,791.

“For almost 20 years now, the competitive grants administered through the Diesel Emissions Reduction Act program have taken inefficient and old diesel engines off the road and replaced them with cleaner, American-made technology,” said Senate Environment and Public Works Chairman Tom Carper. “This $125 million award will help the nation transition to a cleaner economy while also protecting vulnerable communities. This program is a testament to the kind of public-private partnerships that drive environmental and economic progress by reducing air pollution, creating American jobs, and making communities safer and healthier.”

Upgrade-worthy vehicles included freight trucks, school buses, port equipment, and construction equipment. More than half of EPA’s selected projects will support replacing older equipment and vehicles with zero-emission technologies, such as all-electric school buses, terminal tractors, drayage trucks, and shore power to marine vessels.

The largest share of grant funding this round went to the San Joaquin Valley of Unified Air Pollution Control District in California, which received two shares of $4.5 million to replace diesel vehicles. The first share of $4.5 million will help the district replace 18 on-road trucks with zero-emission trucks. The second $4.5 million will replace 102 agricultural off-road tractors with Tier 4 tractors.

A small number of awards are still under processing. Once all legal and administrative requirements are satisfied and awards are finalized, EPA says it will update the DERA National Awards webpage.

EPA's 2022-2023 DERA recipients

What is the DERA Grants Program?

EPA estimates that nearly 8 million legacy diesel engines across transportation sectors remain in service and emit higher levels of harmful nitrogen oxides and particulate matter than newer diesel engines

See also: Fleets Explained: DEF and NOx

The Diesel Emissions Reduction Act is part of the Energy Policy Act of 2005. EPA’s DERA program funds projects that reduce the number of legacy diesel engines. It includes funding buckets for state grants, school bus rebates, tribal and territory grants, and national grants.

About the Author

Jeremy Wolfe | Editor

Editor Jeremy Wolfe joined the FleetOwner team in February 2024. He graduated from the University of Wisconsin-Stevens Point with majors in English and Philosophy. He previously served as Editor for Endeavor Business Media's Water Group publications.

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