U.S. EPA Announces Selections for $125 Million Funding to Address Diesel Engine Emissions

The U.S. Environmental Protection Agency on Oct.17 unveiled the selections for its $125 million funding opportunity through the Diesel Emissions Reduction Act National Grants Program, or DERA. The program aims to advance the upgrade or retirement of aging diesel engines to accelerate adoption of cleaner or zero-emission technologies, improving air quality and public health through significant emission reductions. The agency made around 70 tentative selections focusing on a wide range of applications such as construction, school buses, and port equipment.

The selections prioritized projects aimed at alleviating climate injustice and supporting disadvantaged communities that suffer disproportionately due to climate pollution. The program advances the Biden administration’s Justice40 Initiative, which aims to ensure that 40 percent of the benefits from specific federal investments reach disadvantaged communities.

As diesel engines can be in operation for almost 30 years, there are still many vehicles that use older, less efficient diesel technology, contributing significantly to emissions. Currently, almost 8 million legacy diesel engines are in operation, releasing higher levels of nitrogen oxides and particulate matter compared to newer engines.

Recent selections of the DERA include projects that retrofit or replace existing diesel engines with configurations that adhere to the specifications of EPA or the California Air Resources Board (CARB).

The DERA program first launched in 2008, as a part of the 2005 Energy Policy Act, which authorized the agency to provide up to $200 million in funding per year to support the development and implementation of diesel emission reduction initiatives.  Under the act, seventy percent of DERA’s funding would go toward national competitive grants and rebates for initiatives that support CARB-compliant diesel emission reduction technologies. The remaining 30 percent would support state-level diesel emission reduction initiatives.