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State Grants: Diesel Emissions Reduction Act (DERA)


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EPA allocates DERA funds to eligible U.S. states and territories for the establishment of diesel emissions reduction programs.

Using the formula outlined in the Energy Policy Act of 2005 (PDF)(551 pp, 3.16 MB, August 2005), the State Grants are allocated 30 percent of the annual DERA appropriation. 

Of the state portion of the funding, two-thirds is provided to participating states and territories as base funding. The remaining third is allocated as an incentive to those states and territories that voluntarily provide a match equal to the base funding. 2021 DERA State Grants will be new awards, rather than funds added to prior year State Grants.

Note: States intending to use Volkswagen mitigation funds for the DERA Option in the VW partial settlement should review the DERA Option Factsheet (PDF)(8 pp, 311 K, April 2019, EPA-420-F-19-042).

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2021 Funding Schedule

Activity Date
Release of Notice of Intent to Participate (NOIP) form Wednesday, March 3, 2021
Webinar for states and territories
Held Monday, March 8, 2021
View presentation material (PDF)(40 pp, 385 K, March 8, 2021)
Deadline for states and territories to submit Notice of Intent to Participate form to  Thursday, March 18, 2021
States and territories will be notified of final allocation amounts via email by Wednesday, March 24, 2021
Deadline for states and territories to submit Work Plan and Budget Narrative, and Fleet Description to their EPA Region for review Monday, April 26, 2021
Deadline for states and territories to submit application on Wednesday, May 26, 2021
Project period for FY 2021 awards begins. Regional offices will finalize the FY 2021 Program awards by October 1, 2021 Friday, October 1, 2021

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2021 DERA State Grants Program Documents

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Application Package and Submission Information

Participating states and territories must submit a complete application package electronically to EPA through after they have received their final allocation amount and have had their work plan approved by their EPA Region Project Officer. See Section VII of the 2021 DERA State Grants Program Guide for full application content and submission instructions.

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Eligible Uses of Funding

States and territories may use their grants to fund diesel emissions reduction projects that use:

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Reporting Templates for States and Territories

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