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Cooperative Agreements to USA Nonprofits, Agencies, and School Districts for Programs to Reduce Air Pollution

2022-2023 Diesel Emissions Reduction Act (DERA) National Grants


GrantWatch ID#

Funding Source
U.S. Environmental Protection Agency (EPA)
CFDA Number: 66.039
Funding or PIN Number: EPA-OAR-OTAQ-23-03
Array ( [0] => American Samoa (USA); [1] => Guam (USA); [2] => Puerto Rico (USA); [3] => Virgin Islands (USA); [4] => Northern Mariana Islands (USA); )

Geographic Focus
USA Territories: American Samoa (USA);   Guam (USA);   Puerto Rico (USA);   Virgin Islands (USA);   Northern Mariana Islands (USA);

Important Dates
Deadline: 12/01/23 11:59 PM ET Save

Grant Description
Cooperative agreements to USA and territories nonprofit organizations, government agencies, tribes, and school districts for programs to reduce air pollution. Applicants are advised that required registrations may take several weeks to complete. The purpose of funding is to implement programs that incentivize and accelerate the upgrading or retirement of the legacy diesel fleet.

The Diesel Emissions Reduction Act (DERA) allows EPA to prioritize certain applicants in the DERA National Grants. The statute enables the program to prioritize projects that maximize public health benefits, are the most cost-effective, and serve areas with the highest population density, are poor air quality areas (including nonattainment or maintenance areas and areas with toxic air pollutant concerns), that receive a disproportionate quantity of air pollution from diesel fleets, or that use a community-based multistakeholder collaborative process to reduce toxic emissions.

Eligible activities include the retrofit or replacement of existing diesel engines, vehicles, and equipment with EPA and California Air Resources Board (CARB) certified engine configurations and verified retrofit and idle reduction technologies.

Eligible diesel vehicles, engines, and equipment include:

  • School buses
  • Class 5 – Class 8 heavy-duty highway vehicles
  • Locomotive engines
  • Marine engines
  • Nonroad engines, equipment, or vehicles used in construction, handling of cargo (including at ports or airports), agriculture, mining, or energy production (including stationary generators and pumps).

Grant funds may be used for diesel emission reduction projects including:

  • EPA-verified technologies or certified engine configurations
  • California Air Resources Board (CARB) verified technologies or certified engines
  • Idle-reduction technologies that are EPA verified
  • Aerodynamic technologies and low rolling resistance tires that are EPA verified
  • Early engine, vehicle, or equipment replacements with certified engine configurations.


  • Others (see text field entitled "Additional Eligibility Criteria" for clarification)

Additional Eligibility Criteria
The following entities are eligible to apply:

1. A regional, state (including the District of Columbia), or local agency, Tribal agency, or port authority, which has jurisdiction over transportation or air quality. School districts, municipalities, metropolitan planning organizations (MPOs), cities, and counties are all generally eligible entities under this assistance agreement program to the extent that they fall within this definition.

2. A nonprofit organization or institution that:
a. Represents or provides pollution reduction or educational services to persons or organizations that own or operate diesel fleets; or
b. Has, as its principal purpose, the promotion of transportation or air quality.

Non-profit organization, as defined by 2 CFR 200.1, means any corporation, trust, association, cooperative, or other organization that: (1) is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest; (2) is not organized primarily for profit; and (3) uses its net proceeds to maintain, improve and/or expand its operations.

Note that 2 CFR Part 200 specifically excludes the following types of organizations from the definition of “non-profit organization” because they are separately defined in the regulation: (i) institutions of higher education; and (ii) state, local and federally-recognized Indian Tribal governments. While not considered to be a “non-profit organization(s)” as defined by 2 CFR 200.1, Institutions of Higher Education are, nevertheless, eligible to submit applications under this NOFO to the extent they fall within the definition in 2.a. and b., above. Hospitals operated by state, Tribal, or local governments or that meet the definition of nonprofit at 2 CFR 200.1 are also eligible to apply.

For Threshold Criteria, see

For-profit colleges, universities, trade schools, and hospitals are not eligible to apply.

For-profit organizations are not an eligible entity for this funding opportunity. Additionally, non-profit organizations described in Section 501(c)(4) of the Internal Revenue Code that engage in lobbying activities as defined in Section 3 of the Lobbying Disclosure Act of 1995 are not eligible to apply.

DERA funds may not be used to meet mandatory cost sharing requirements for projects funded with environmental mitigation funds resulting from federal settlements (e.g., Volkswagen Environmental Mitigation Trust). Further, federal environmental mitigation funds may not be used to meet non-federal mandatory cost share requirements of any DERA grant.

Funds awarded under this program cannot be used to fund emission reductions mandated by federal law. Equipment for testing emissions or fueling infrastructure is not eligible for funding.

Pre-Proposal Conference
EPA will host an information session on the following dates:
- Tuesday, August 22, 2023 - 3:00 PM ET:
- Wednesday, August 30, 2023 @ 2PM EST
- Thursday, September 14, 2023 @ 6PM EST

EPA encourages potential applicants to take advantage of these information sessions to learn more about the DERA program and the grant application process. Participants will have the opportunity to have their questions answered by EPA in a public forum. EPA will attempt to answer any appropriate questions in these public forums. Pre-registration is not required.

For more information and to register, see the Full Grant Text RFP link.

Pre-Application Information
Important Dates:
- Wednesday, August 2nd, 2023: Notice of Funding Opportunity (NOFO) Opens
- Friday, November 10th, 2023, 11:59 PM ET: Final Date to Submit Questions
- Friday, December 1st, 2023, 11:59 PM ET: NOFO Closes – Application Deadline
- March 2024 Anticipated: Notification of Selection
- June 2024 – August 2024: Anticipated Awards

Application packages must be submitted electronically to EPA through no later than Friday, December 1, 2023, at 11:59 p.m. Eastern Time (ET) to be considered for funding.

Organizations applying to this funding opportunity must have an active registration, which includes a UEI number.

Once your account is active, you must register in Please note that this process can take a month or more for new registrants. Applicants must ensure that all registration requirements are met in order to apply for this opportunity through and should ensure that all such requirements have been met well in advance of the application submission deadline.

Applicants must request funding from the EPA regional office which covers their geographic project location. For a list of regions divisions, see here:

View this opportunity at

Additional application documents may be found on the Full Grant Text RFP link, under the Application Documents section.

Additional Funding Information

Estimated Total Program Funding:


Number of Grants
Approximately 4-10 cooperative agreements per EPA region.

Estimated Size of Grant
Award Ceiling: $4,500,000; for funding limits by region, see page 14 of the NOFO in Supporting Documents.

Term of Contract
The estimated project period for awards resulting from this solicitation is 24 months, however project periods of up to 48 months will be allowed where justified by the activities, timeline, and milestones detailed in the workplan.

The estimated project period of performance start date for awards will begin starting July 1, 2024.

Contact Information
Direct questions to:

Contact for assistance at 1-800-518-4726 or to resolve technical issues with

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