DERA

Diesel Emission Reduction Act (DERA) Tractor on road  

Eligible Projects

A broad range of diesel emission reduction strategies are eligible for DERA grants, including:

Exhaust Control Devices

  • Pollution control devices installed in the exhaust system or systems that include crankcase emission control.
    • Diesel oxidation catalyst (DOC).
    • Diesel oxidation catalyst + closed crankcase ventilation (DOC + CCV).
    • Diesel particulate filter (DPF).
    • Partial flow filter (PFF).
    • Selective catalytic reduction (SCR) system.
  • Funding restrictions: Able to fund up to 100 percent of the cost (labor and equipment) for an eligible verified emission control.

Verified Idle Reduction Technologies

  • Idle reduction is considered by the EPA to be a "technology or device that reduces unnecessary idling of diesel vehicles or equipment or is designed to provide services (such as heat, air conditioning, and/or electricity) to vehicles and equipment that would otherwise require the operation of the main drive or auxiliary engine(s) while the vehicle is temporarily parked or remains stationary."
  • Funding restrictions:
    • Locomotives: Able to fund up to 40 percent of the cost (labor and equipment) of verified eligible locomotive idle reduction technologies.
    • Electrified parking spaces: Able to fund up to 30 percent of the cost (labor and equipment) of eligible electrified parking spaces, also known as truck stop electrification, technologies.
    • Highway idle reduction technologies: Able to fund up to 25 percent of the cost (labor and equipment) of eligible verified idle reduction technologies on long-haul trucks and school buses.
    • Marine Shore Power Connection Systems: Able to fund up to 25% of the cost (labor and equipment) of eligible marine shore power connection systems.

Aerodynamic Technologies

  • Class 8 long-haul trucks can be retrofitted with aerodynamic trailer fairings or can be provided as new equipment.
  • Funding restrictions: Able to fund up to 100 percent of cost (labor and equipment) for verified aerodynamic technologies installed on long-haul Class 8 trucks only if the technology is combined on the same vehicle with a new eligible verified exhaust control as defined above. Stand-alone aerodynamic technologies are not allowed for funding.

Low Rolling Resistance Tires

  • Certain tire models can provide a reduction in nitrogen oxide (NOx) emissions and fuel savings, relative to the “standard” new tires for Class 8 long-haul trucks, when used on all axles.
  • Funding restrictions: Able to fund up to 100 percent of cost (labor and equipment) for verified low rolling resistance tires installed on  Class 8 long-haul trucks, only if the technology is combined on the same vehicle with a new eligible verified exhaust control as defined above. Stand-alone low rolling resistance tires are not allowed for funding. Low rolling resistance tires are not eligible for funding if they have previously been installed on the truck.

Cleaner Fuels & Additives

  • Eligible cleaner fuels and additives are limited to those verified by EPA and/or CARB to achieve emissions reductions when applied to an existing diesel engine.
  • EPA will not fund stand-alone cleaner fuel/additive use. For new or expanded use, this funding can cover the cost differential between the cleaner fuel/additive and conventional diesel fuel if that cleaner fuel is used in combination, and on the same vehicle, with a new eligible verified engine retrofit or an eligible engine upgrade or an eligible certified engine replacement or an eligible certified vehicle/equipment replacement funded under DERA.

Clean Alternative Fuel Conversion

  • Aftermarket clean alternative fuel conversions involve altering the conventional, original equipment manufacturer (OEM) highway diesel vehicles and engines to operate on alternative fuels such as propane or natural gas.
  • Funding restrictions: Able to fund up to 40 percent of the cost of an eligible, certified clean alternative fuel conversion.

Engine Upgrade and Remanufacturing Systems

  • An engine upgrade involves the removal of parts on a certified engine configuration and replacement with parts to reduce emissions.
  • Some non-road engines and locomotives can be upgraded by applying manufacturer upgrades that are EPA or CARB verified retrofits or a certified remanufacture system.
  • Funding restrictions: Able to fund up to 40 percent of the cost (labor and equipment) of an eligible non-road or locomotive engine upgrade.

Certified Engine Replacement

  • Diesel engine replacement includes - but is not limited to:
    • Engine certified for use with diesel or an alternative fuel (e.g., gasoline, CNG, propane)
    • Diesel engine replacement with a zero tailpipe emissions power source (grid, battery or fuel cell)
    • Diesel engine replacement with an electric generator(s) (genset)
    • Zero tailpipe emissions engine replacements do not require EPA or CARB certification.
  • Funding restrictions: The eligible cost of engine replacement includes the cost of modifications, attachments, accessories, or auxiliary apparatus necessary to make the equipment functional, including related labor expenses.
    • Locomotive, Marine, and nonroad diesel vehicles and equipment: Able to fund up to 40 percent of the cost (labor and equipment) of replacing a diesel engine with a 2019 model year or newer engine certified to EPA’s emission standards. Able to fund up to 60 percent of the cost (labor and equipment) of replacing a diesel engine with a zero tailpipe emissions power source.
    • Highway diesel vehicles: Able to fund up to 40 percent of the cost (labor and equipment) of replacing a diesel engine with a 2016 model year or newer engine certified to EPA’s emission standards. May fund up to 50 percent of the cost (labor and equipment) of replacing a diesel engine with a 2016 model year or newer engine that is certified to CARB’s optional low-NOx standards. Able to fund up to 60 percent of the cost (labor and equipment) of replacing a diesel engine with a zero tailpipe emissions power source.

Vehicle and Equipment Replacement

  • Non-road and highway diesel vehicles in normal operational condition can be replaced with newer, cleaner vehicles that operate on diesel or alternative fuels and use engines certified by EPA or CARB to meet a more stringent set of engine emission standards.
  • Funding restrictions: Funding percentages are based on the type of replacement vehicle and equipment.