Opportunity Information: Apply for EPA OAR OTAQ 21 02
The 2021 Diesel Emissions Reduction Act (DERA) National Grants opportunity (EPA OAR OTAQ 21 02) is a nationwide competitive funding program run by the U.S. Environmental Protection Agency (EPA), Office of Transportation and Air Quality, to support projects that deliver measurable, significant reductions in harmful emissions from diesel engines. The focus is on cutting pollutants commonly associated with diesel exhaust, especially in places where people are most exposed, such as communities near freight corridors, ports, rail yards, warehouses, and other high-traffic or industrial locations. Funding is offered through a discretionary cooperative agreement, meaning recipients work closely with EPA during implementation and reporting, rather than receiving a simple no-strings grant.
Projects can target a broad range of diesel-powered vehicles and equipment. Eligible fleets and equipment categories include buses; Class 5 through Class 8 heavy-duty highway vehicles; marine engines; locomotives; and nonroad engines or equipment used in sectors like construction, cargo handling, agriculture, mining, and energy production. This flexibility is meant to reach the diesel sources that contribute heavily to local air pollution and that often operate for long hours, idle frequently, or work in close proximity to neighborhoods and workplaces.
The program funds a wide menu of proven emissions-reduction approaches, particularly those that are verified or certified under recognized EPA or California Air Resources Board pathways. Eligible solutions include verified retrofit technologies such as exhaust after-treatment (for example, diesel particulate filters and other emissions-control devices), engine upgrades, and cleaner fuels or fuel additives. It also supports verified idle reduction technologies, as well as efficiency-focused measures like verified aerodynamic technologies and verified low rolling resistance tires. In addition, the opportunity covers bigger capital shifts such as certified engine replacements and conversions, and certified vehicle or equipment replacement, allowing applicants to propose projects ranging from retrofits to full replacements when justified by emissions benefits and project design.
Eligibility to apply is limited to certain public, quasi-public, and nonprofit entities that can administer fleet-focused emissions reduction programs. Applicants may include regional, state, or local agencies; tribal governments (including intertribal consortia) and native villages; and port authorities, as long as they have jurisdiction or a clear role in transportation or air quality. Nonprofit organizations and institutions may also apply if they either represent diesel fleets or provide pollution reduction or educational services to diesel fleets, or if their principal purpose is to promote transportation or air quality. Private fleet owners cannot apply directly for DERA national grant funding, but they can still participate and benefit as subrecipients or partners through projects led by eligible applicants, which is how the program is designed to reach both public and private diesel fleets.
EPA signals clear funding preferences tied to public health need and equity-focused outcomes. Priority is given to projects that serve fleets operating in areas with poor air quality and fleets connected to goods movement facilities, reflecting the higher diesel exposure often associated with freight and logistics activity. Additional preference is given to proposals that show direct benefits to affected communities, meaning places that bear disproportionate pollution burdens, and to projects that actively involve those communities in the project design and implementation rather than treating community benefits as an afterthought. EPA also places weight on durability and long-term impact, favoring projects that demonstrate the ability to sustain emissions-reduction efforts after the grant period ends, such as through continued fleet turnover plans, ongoing partnerships, or institutional capacity to keep deploying cleaner technologies.
From an administrative standpoint, the opportunity was posted January 14, 2021, with an original closing date of March 16, 2021 (with applicants instructed to follow the full announcement for exact submission requirements and any updates). The CFDA program number is 66.039. EPA anticipated making about 80 awards, and the maximum award amount listed (award ceiling) is $4,000,000 per award, indicating that the program supports both mid-sized and relatively large, multi-fleet or multi-technology deployments. Overall, the grant is aimed at helping eligible organizations plan and execute practical, near-term diesel emissions reduction projects using verified strategies, while steering investments toward communities and locations where the air quality and health gains are likely to be greatest.Apply for EPA OAR OTAQ 21 02
- The Environmental Protection Agency in the environment sector is offering a public funding opportunity titled "2021 DIESEL EMISSIONS REDUCTION ACT (DERA) NATIONAL GRANTS" 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 Jan 14, 2021.
- Applicants must submit their applications by Mar 16, 2021 Please refer to the announcement, including Section IV, for additional information on submission methods and due dates.. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $4,000,000.00 in funding.
- The number of recipients for this funding is limited to 80 candidate(s).
- Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
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