Opportunity Information: Apply for EPA OAR OTAQ 26 01
The 2026 Diesel Emissions Reduction Act (DERA) National Program is a competitive EPA grant opportunity designed to speed up the cleanup of the nations older, higher-polluting diesel engines by helping applicants upgrade, retrofit, replace, or retire legacy diesel vehicles and equipment. The overall goal is to cut harmful diesel emissions by moving fleets away from older technology and toward cleaner options, especially where diesel exhaust impacts public health. The program focuses on real-world diesel emissions reductions by supporting projects that put EPA and California Air Resources Board (CARB) certified or verified technologies into service, either by adding emissions controls to existing engines (retrofits) or by replacing engines, vehicles, and equipment outright.
Funded activities generally fall into two buckets: retrofits of existing diesel engines and replacements of older diesel engines or vehicles/equipment with cleaner, compliant alternatives that meet the EPA/CARB certification or verification requirements referenced in the notice. The NOFO makes clear that DERA is aimed at the "legacy diesel engine fleet," meaning older equipment that typically lacks modern emissions controls and therefore produces disproportionately high levels of particulate matter and nitrogen oxides. While the notice summary emphasizes certified and verified technologies, the practical intent is straightforward: replace or modernize older diesel assets so communities see measurable improvements in air quality and related health outcomes.
A notable feature of this national program is the flexibility in how projects can be delivered. If an applicant already owns the vehicles or equipment targeted for upgrades, the applicant can directly carry out the project as the fleet owner. If the applicant is working with outside fleet owners, the program allows the applicant to structure financial support to those partners through subawards or through participant support costs such as rebates, depending on the roles and responsibilities in the project. In other words, applicants can act either as direct implementers (owner-operators) or as pass-through entities coordinating upgrades and replacements for multiple fleets. The NOFO points applicants to Section 9.B for detailed instructions on funding partnerships, which matters because compliance, documentation, and reporting responsibilities can change depending on whether funds flow through subawards versus rebate-style participant support.
EPA also highlights that the DERA program requirements have been revamped after an extensive program review. The stated intent of these updates is to align the program more closely with current Administration priorities, improve the quality of funded projects, broaden technology options, and simplify the overall program structure in response to stakeholder feedback. The notice ties these revisions to agency-wide grants policies and to updates under 2 CFR 200.204 as well as DERA statutory requirements. For applicants, the takeaway is that this NOFO may differ in important ways from prior DERA competitions, including how EPA expects projects to be designed, competed, documented, and managed, so it is not safe to assume that last years approach will automatically fit this cycle.
This opportunity is specifically the DERA National Program competition, and EPA distinguishes it from other related funding paths. EPA notes there is a separate competitive DERA Tribal and Territory Program that supports similar diesel-reduction work but is limited to eligible Tribal and territorial applicants. EPA also points applicants interested in school bus replacements to the EPAs Clean School Bus Program, which is another competitive funding source geared specifically toward that vehicle category. Separately, EPA administers a non-competitive DERA State Program that provides funds directly to U.S. states and territories, meaning not all DERA funding is awarded through open competition, but this particular NOFO is.
Key administrative details included in the listing are that the agency is the Environmental Protection Agency, the opportunity number is EPA OAR OTAQ 26 01, and the assistance listing (CFDA) is 66.039. The funding instrument is a grant, the opportunity category is discretionary, and the activity category is environment. The posting lists an award ceiling of $12,000,000 and anticipates around 120 awards, indicating EPA expects to fund a relatively large number of projects rather than only a handful of very large ones, although the actual award sizes will vary by project design and scope. The original closing date shown is 2027-01-22, and the creation date is 2026-09-25. Eligibility is summarized broadly as "Others" in the listing, with applicants directed to Section 2 of the NOFO for the full eligibility definitions and requirements, which is where entities should confirm they qualify and understand any limitations or documentation expectations.
In practical terms, a strong application under this NOFO will usually be one that clearly identifies the older diesel assets to be addressed, explains exactly what certified or verified technology will be installed or what replacement will occur, and lays out a credible implementation plan that includes procurement, partner roles (if any), budgets, schedules, and how emissions reductions and benefits will be achieved. Since EPA emphasizes program improvements and alignment with updated grant requirements, applicants should also expect close attention to project quality, accountability, and the structure of partnerships and pass-through funding if fleet owners are involved.Apply for EPA OAR OTAQ 26 01
- The Environmental Protection Agency in the environment sector is offering a public funding opportunity titled "2026 Diesel Emissions Reduction Act (DERA) National Program" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 66.039.
- This funding opportunity was created on 2026-09-25.
- Applicants must submit their applications by 2027-01-22.
- Each selected applicant is eligible to receive up to $12,000,000.00 in funding.
- The number of recipients for this funding is limited to 120 candidate(s).
- Eligible applicants include: Others.
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2026 DERA National Program (EPA OAR OTAQ 26 01) FAQs
What is the 2026 Diesel Emissions Reduction Act (DERA) National Program?
The 2026 DERA National Program is a competitive EPA grant opportunity intended to speed up the cleanup of older, higher-polluting diesel engines by helping applicants upgrade, retrofit, replace, or retire legacy diesel vehicles and equipment.
What is the main goal of this grant opportunity?
The overall goal is to reduce harmful diesel emissions by moving fleets away from older diesel technology and toward cleaner options, especially in places where diesel exhaust affects public health. The program is focused on real-world emissions reductions that lead to measurable air quality and health benefits.
What types of diesel engines or equipment does DERA focus on?
The program targets the "legacy diesel engine fleet," meaning older vehicles and equipment that typically lack modern emissions controls and therefore produce disproportionately high levels of particulate matter and nitrogen oxides.
What kinds of projects does the program fund?
Funded activities generally fall into two main categories: (1) retrofits of existing diesel engines and (2) replacements of older diesel engines or vehicles/equipment with cleaner alternatives that meet the EPA and California Air Resources Board (CARB) certification or verification requirements referenced in the notice.
What does a "retrofit" mean under this program?
A retrofit generally means adding emissions controls to an existing diesel engine using EPA/CARB certified or verified technologies in order to reduce real-world diesel emissions.
What does "replacement" mean under this program?
A replacement generally means replacing an older diesel engine, vehicle, or piece of equipment with a cleaner, compliant alternative that meets the EPA/CARB certification or verification requirements referenced in the NOFO.
Are the technologies required to be EPA or CARB certified/verified?
Yes. The program emphasizes putting EPA and CARB certified or verified technologies into service, either through retrofits or through replacements, consistent with the requirements referenced in the NOFO.
Can the applicant carry out the project directly as a fleet owner?
Yes. If the applicant already owns the vehicles or equipment targeted for upgrades, the applicant can directly carry out the project as the fleet owner.
Can applicants apply even if they do not own the fleets being upgraded?
Yes. The program allows applicants to work with outside fleet owners and structure financial support to those partners through subawards or through participant support costs such as rebates, depending on the roles and responsibilities in the project.
What is the difference between using subawards versus participant support costs (rebates)?
The NOFO indicates that applicants may support outside fleet owners either through subawards or through participant support costs such as rebates. The choice matters because compliance, documentation, and reporting responsibilities can change depending on whether funds flow through subawards versus rebate-style participant support. The NOFO points applicants to Section 9.B for detailed instructions on funding partnerships.
Where does the NOFO explain how to structure partnerships and pass-through funding?
The NOFO directs applicants to Section 9.B for detailed instructions on partnership funding approaches, including subawards and participant support costs such as rebates.
Has the DERA program changed compared to prior years?
Yes. EPA states that DERA program requirements have been revamped after an extensive program review. The updates are intended to align the program with current Administration priorities, improve the quality of funded projects, broaden technology options, and simplify the overall program structure based on stakeholder feedback.
Should applicants assume last year's DERA approach will work for this competition?
No. The notice indicates this NOFO may differ in important ways from prior DERA competitions, including expectations for how projects are designed, competed, documented, and managed.
What policies or requirements are the program updates tied to?
The notice links the revisions to agency-wide grants policies, updates under 2 CFR 200.204, and DERA statutory requirements.
Is this opportunity competitive or non-competitive?
This specific opportunity (the DERA National Program competition) is competitive. EPA separately administers a non-competitive DERA State Program that provides funds directly to U.S. states and territories, but that is not this NOFO.
How is this DERA National Program different from the DERA Tribal and Territory Program?
EPA notes there is a separate competitive DERA Tribal and Territory Program that supports similar diesel-reduction work but is limited to eligible Tribal and territorial applicants. This opportunity is the DERA National Program competition.
How is this opportunity different from EPA's Clean School Bus Program?
EPA directs applicants interested in school bus replacements to the EPA Clean School Bus Program, which is described as a separate competitive funding source geared specifically toward school buses.
Who is the funding agency for this opportunity?
The funding agency is the U.S. Environmental Protection Agency (EPA).
What is the opportunity number?
The opportunity number is EPA OAR OTAQ 26 01.
What is the assistance listing (CFDA) number?
The assistance listing number is 66.039.
What type of funding instrument is used?
The funding instrument is a grant.
What is the opportunity category?
The opportunity category is discretionary.
What is the activity category?
The activity category is environment.
What is the maximum (ceiling) award amount listed?
The posting lists an award ceiling of $12,000,000.
How many awards does EPA expect to make?
The listing anticipates around 120 awards. The actual award sizes may vary by project design and scope.
What is the closing date shown for this opportunity?
The original closing date shown is 2027-01-22.
What is the creation date shown for the listing?
The creation date shown is 2026-09-25.
Who is eligible to apply?
Eligibility is summarized broadly as "Others" in the listing. Applicants are directed to Section 2 of the NOFO for full eligibility definitions, requirements, and any limitations or documentation expectations.
Where should applicants confirm whether they are eligible?
Applicants should review Section 2 of the NOFO to confirm eligibility and to understand any limitations or documentation expectations.
What does EPA seem to be looking for in a strong application?
Based on the notice summary, a strong application will typically (1) clearly identify the older diesel assets to be addressed, (2) specify the certified or verified technology to be installed or the replacement to be made, and (3) present a credible implementation plan covering procurement, partner roles (if any), budgets, schedules, and how emissions reductions and benefits will be achieved.
What parts of project planning are emphasized in the summary?
The summary emphasizes clear project design, credible implementation, and accountability, including details on procurement, roles and responsibilities (especially when working with outside fleet owners), budgets, schedules, and how emissions reductions and public health benefits will be achieved.
Why does the structure of partnerships matter in this program?
The summary explains that compliance, documentation, and reporting responsibilities can change depending on whether an applicant acts as a direct implementer (owner-operator) or provides funding to outside fleet owners through subawards or rebate-style participant support.
What is the program trying to achieve for communities?
The program aims to deliver measurable improvements in air quality and related health outcomes by reducing real-world diesel emissions from older, higher-polluting diesel engines and equipment.
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