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Diesel Emissions Reduction Act (DERA) State Grants is sponsored by ENVIRONMENTAL PROTECTION AGENCY. The Diesel Emissions Reduction Act, 42 U.S.C. 16131 et seq., as amended, authorizes EPA to award assistance agreements to states and territories to develop and implement such grant, rebates, and loan programs in the states and territories as are appropriate to meet state and territory needs and goals relating to the reduction of diesel emissions.
In providing grants, rebates, and loans under this program, states must give priority to projects which: maximize public health benefits; are the most cost-effective; serve areas with the highest population density, that are poor air quality areas (including nonattainment or maintenance of national ambient air quality standards for a criteria pollutant; Federal Class I areas; or areas with toxic air pollutant concerns); serve areas that receive a disproportionate quantity of air pollution from diesel fleets, including truck stops, ports, rail yards, terminals, construction sites, schools, and distribution centers or that use a community-based multi-stakeholder collaborative process to reduce toxic emissions; will only include a certified engine configuration or verified technology that has a long expected useful life; maximize the useful life of any certified engine configuration or verified technology used or funded by the eligible entity; and conserve diesel fuel. This listing is currently active. Program number: 66.040. Last updated on 2024-11-18.
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Or search similar grants →According to the current listing, eligibility includes: State and territory environmental agencies. Confirm the full requirements in the official notice before applying.
The current listing shows $30,000,000 (2025). Verify award ceilings, matching requirements, and allowable costs in the official notice.
Yes — Diesel Emissions Reduction Act (DERA) State Grants is offered by ENVIRONMENTAL PROTECTION AGENCY and this listing comes from SAM.gov, an official U.S. federal source. Federal applications generally require registrations (for example SAM.gov or an agency submission portal), so allow extra lead time.
This opportunity targets applicants in District of Columbia. If your organization operates elsewhere, check the official notice for location requirements.
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Past winners and funding trends for this program
On June 29, 2026, EPA announced it will waive the $25,000 WIFIA application fee and the credit processing fee — averaging roughly $156,000 per loan — for communities of 25,000 or fewer residents in fiscal years 2026 and 2027. Combined, that removes nearly $200,000 in upfront cost from the single most affordable federal water-infrastructure financing program, which carries roughly $11 billion in available capacity and can cover up to 80% of eligible project costs at Treasury-rate pricing. For small towns, rural utilities, and the nonprofits and districts that serve them, this is a rare instance of the federal government lowering the barrier to a program that has historically been out of reach for exactly the communities that need it most. Here is what changed, who qualifies, and how to move on a letter of interest before the window closes.
Read articleFor FY2026 and FY2027, EPA is waiving the $25,000 WIFIA application fee and the ~$156,000 credit-processing fee for water systems serving 25,000 or fewer people — a near-$200,000 discount on access to an $11 billion pool of low-cost federal financing. The waiver removes the single barrier that kept small and rural utilities out of WIFIA for a decade. Here is how WIFIA actually works, who qualifies, why the letter of interest is the real gate, and how a town of 8,000 should think about a program built for billion-dollar projects.
Read articleFor FY2026 and FY2027, EPA is waiving the WIFIA application and credit-processing fees for communities of 25,000 or fewer — saving nearly $200,000 per loan — against roughly $11 billion in flexible financing that covers up to 80 percent of project costs. Here is why WIFIA has been underused by small systems, how the loan actually works, and how a rural utility should build a WIFIA strategy in 2026.
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