Diesel Emission Reduction Act (DERA)

Energy Policy Act

DERA Overview

As part of the Energy Policy Act of 2005, the Diesel Emissions Reduction Act (DERA) appropriates funds for projects to reduce diesel emissions from diesel fleets. Thirty percent of the annual DERA appropriation is made available by the Environmental Protection Agency to support grant, loan or rebate programs administered by states and territories to achieve significant reductions in diesel emissions through the use of certified engine configurations or verified emission control technologies.

How IT works

Two-thirds of the state/territory portion of funding is provided to participating states and territories, while the remaining third is used as an incentive to those states and territories that provide a voluntary match equal to the base funding. If the state/territory provides a voluntary match that equals or exceeds the base amount, a bonus of half the base amount will be added to the grant total by the EPA.

Iowa DERA allocation

In 2023, Iowa received a base allocation of $423,576. Iowa voluntarily matched the base amount with monies from the Volkswagen Settlement. Therefore; the EPA granted an additional 50 percent, bringing Iowa’s total 2023 DERA allocation to $1,058,940.
Funding sources Amount
EPA base allocation $423,576
Iowa's voluntary match from VW settlement funds $423,576
EPA incentive bonus $211,788
Total: $1,058,940


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