Menu
Open Search

DERA Creation and Passage

The Diesel Emissions Reduction Act Program was created under the Energy Policy Act of 2005. This act gave EPA new grant and loan authority for promoting diesel emission reductions and authorized appropriations to the Agency of up to $200 million per year through FY2011. Congress appropriated funds for the first time under this program in FY2008.

As stipulated in the Energy Policy Act:

  • Seventy percent of the DERA appropriation is to be used for national competitive grants and rebates to fund projects that use EPA or California Air Resources Board (CARB) verified or certified diesel emission reduction technologies.

  • Thirty percent of the DERA appropriation is allocated to the states and territories to fund programs for diesel emissions reduction projects. Base funding is distributed to states and territories using a formula based on overall participation.  Additional incentive funding is available to states and territories that provide matching funds.

The American Recovery and Reinvestment Act of 2009 provided $300 million in new funding for national and state programs for the implementation of verified and certified diesel emission reduction technologies. Recovery Act funding for the National Clean Diesel Campaign, now known as Diesel Emissions Reduction Act (DERA) Funding Program, allowed for the implementation of many additional projects.

The Diesel Emissions Reduction Act of 2010  reauthorized DERA grants to eligible entities for projects that reduce emissions from existing diesel engines. The bill authorized up to $100 million annually for FY2012 through FY2016 and allowed for new funding mechanisms, including rebates.

In 2020, DERA was reauthorized under Division S – Innovation for the Environment section of the Consolidated Appropriations Act, 2021 for up to $100 million annually through 2024. The program will continue to award grants and rebates to achieve diesel emissions reduction.