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 2024, Iowa received a base allocation of $396,060. Iowa voluntarily matched the base amount with monies from the Volkswagen Settlement. Therefore; the EPA granted an additional 50 percent, bringing Iowa’s total 2024 DERA allocation to $990,150.
Funding Sources
Amount
EPA base allocation
$396,060
Iowa's voluntary match from VW settlement funds
$396,060
EPA incentive bonus
$198,030
Total:
$990,150
DERA FAQs
No. To be eligible to receive funds from the 2017 Iowa DERA Grant Program you will need to apply for a complete bus replacement (no partial buses). The bus(es) you are replacing will need to be in normal operating condition with an engine model year between 1995 and 2009 and not subject to normal attrition. The replacement vehicle must serve the same function and must be of the same type and similar gross vehicle weight rating or horsepower as the vehicle being replaced. The replaced bus must be scrapped or permanently disabled within ninety (90) days of being replaced.
If we only request the differential to upgrade our purchase from diesel replacement buses to all electric would we qualify under “engine replacement – all electric”, which only has a 40% match requirement?
The project would be a vehicle replacement. The mandatory cost-share required for a diesel bus replacement with an all-electric bus is at least 55 percent typically contributed by the fleet owner. These funds may not come from federal funds.
TRUs are eligible for nonroad engine replacement and equipment replacement. “Equipment replacement” consists of replacing the entire existing TRU, including the diesel engine and the compressor/cooling unit, with a newer, cleaner TRU. Equipment replacement may also consist of replacing the entire trailer and TRU. Table 6 in the information guide would be applicable to this scenario. “Engine replacement” consists of replacing just the engine and not the compressor/cooling unit. Table 7 of the information guide would be applicable to this scenario. The engines need to meet the model year and horsepower requirements shown in the eligibility tables.
If the chargers are strictly battery chargers, then the costs are rolled into the equipment costs of the TRU and subject to the same cost-share. If they are idle reduction truck stop electrification (TSE)/electrified parking space (EPS) hook ups, they are funded as a second technology subject to the 30 percent TSE cost share.
No, submitting an application does not obligate the applicant. After the selection process, the applicant will be notified of the potential award and must sign an award agreement if they are interested in receiving the award.
