Projects must fall under either the Vehicle/ Equipment Replacement or Engine Replacement diesel emission reduction solutions. Projects may include, but are not limited to, the following heavy-duty diesel emission source types:
- Buses (transit, shuttle, school)
- Medium- or heavy-duty trucks
- Marine vessels
- Locomotives
- Nonroad engines, equipment or vehicles used in:
- Construction
- Cargo handling (including at a port or airport)
- Agriculture
- Mining
- Energy production (including stationary generators and pumps)
For specific eligibility requirements and restrictions regarding projects, review the department's DERA Program Requirements.
Applicants who own eligible heavy-duty diesel highway vehicles or nonroad equipment could receive a percentage of the cost of a new diesel vehicle or equipment or new diesel engine. New diesel school bus replacements are eligible for a percentage of the cost per bus project. Other emission reduction projects could be eligible to receive a percentage of the project cost. This program offers additional funding incentives for adopting alternative fueled engines, equipment or vehicle replacements. All new diesel awards will have a funding cap of $100,000 for a combination of multiple projects or a single large project. For cost-share award amounts, review the department's DERA Implementation Guidelines.
After the department approves projects for an award, the applicant must provide the total upfront cost for the project and fulfill all program requirements. Upon completion of the project, the applicant will receive reimbursement for the cost-share percentage of the eligible cost/ expenses up to $100,000 per applicant for new diesel vehicles, engines or equipment. There is no limit per applicant if new vehicles, engines or equipment are alternative-fueled, low NOx or zero emission replacements.
Note: Awarded applicants must permanently disable the old vehicle or engine.
The application period for the DERA State Grants Program closed Jan. 31, 2023.
The department will select program beneficiaries from the most recent application period using a lottery process from the pool of applications. The department will offer funding for eligible projects associated with each application, in the order drawn. The department will draw all applications in the lottery and keep remaining unfunded applications as alternatives in case any of the initially selected beneficiaries decide not to participate in the program.
