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Funding

Federal, State and local funding opportunities associated with emissions reduction

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BIL Clean School Bus (CSB) Program

The Bipartisan Infrastructure Law provides $5 billion over five years (FY 2022-2026) to the EPA Clean School Bus (CSB) Program for the replacement of existing school buses with clean and zero-emission school buses. To date, the EPA has awarded almost $3 billion to fund approximately 8,500 school bus replacements at over 1,000 schools. Awards to date by selectee can be viewed on the CSB Awards website.

Rebates

The 2024 CSB Rebate Program is now open! Applications will be accepted by 4:00 PM ET on Thursday, January 9, 2025. Eligible applicants include public school districts, tribal applicants, and third parties. School districts are eligible to apply directly, even if they contract out bus service to a private fleet; if selected, the school district could pass funds to the private fleet(s) to replace the buses. For more information on this funding opportunity, including how to submit an application, visit the CSB Rebates website.

Grants

Awards for the 2023 CSB Grant Program were announced on January 8, 2024. Stay tuned for announcements on future grant opportunities, and learn more about the CSB Grant Program on the CSB Grants website.

Diesel Emissions Reduction Act (DERA) Grants

The Diesel Emissions Reduction Act (DERA) establishes voluntary national, state, and tribal/territory grant and rebate programs to reduce emissions from existing diesel engines through clean diesel retrofits or replacements. Emissions from older diesel vehicles and equipment can be reduced between 20 and 100 percent with cost-effective retrofit technology or by replacing the vehicle or equipment with newer EPA-certified diesel, California Air Resource Board (CARB) low nitrogen oxide (NOx), or zero-emission models. Between Fiscal Year 2008, when the first DERA grants were awarded, and Fiscal Year 2018, the EPA estimated that the DERA program resulted in air pollutant reductions of 491,000 tons of NOx and 16,800 tons of particulate matter, along with diesel fuel savings of 520 million gallons. Additionally, $801 million of funds have been appropriated in that time, resulting in $8 billion in monetized health benefits.

The DERA program was originally authorized under the Energy Policy Act of 2005 (pdf) (3.2 MB) and has since been reauthorized twice, most recently in the Consolidated Appropriations Act, 2021 (pdf) (4.8 MB), which authorizes $100 million each year through Fiscal Year 2024. The DERA Program is administered by EPA's Office of Transportation and Air Quality.

National Grants

EPA is authorized under DERA to offer funding assistance to accelerate the upgrade, retrofit, and turnover of the legacy diesel fleet. This funding is equivalent to 70 percent of the annual DERA appropriation. Eligible activities under the DERA National competition include the retrofit or replacement of existing diesel engines, vehicles, and equipment with EPA and CARB certified engine configurations and verified retrofit and idle reduction technologies.

For more information on the DERA National progra, visit the DERA website.

The FY22-23 National grant selectees have been announced! Learn about selectees in Clean Air Northeast or view all selectees.

State Grants

EPA allocates DERA funds to eligible U.S. states and territories for the establishment of diesel emissions reduction programs. Using the formula outlined in the Energy Policy Act of 2005 (pdf) (3.2 MB), the State Grants are allocated 30 percent of the annual DERA appropriation. Of the state portion of the funding, two-thirds is provided to participating states and territories as base funding. The remaining third is allocated as an incentive to those states and territories that voluntarily provide a match equal to the base funding.

To learn more about current state grant funding opportunities, including the newly announced FY2024 funding schedule, check out the DERA website.

Tribal and Territory Grants

EPA allocates DERA funds to federally recognized Tribal governments (or intertribal consortia), Alaska Native Villages, or government agencies of the U.S. Virgin Islands, Guam, American Samoa, and Commonwealth of the Northern Mariana Islands, which have jurisdiction over transportation or air quality. Eligible diesel emissions reduction solutions include verified retrofit technologies, verified idle reduction technologies, verified aerodynamic technologies, verified low rolling resistance tires, certified engine replacements and conversions, and certified vehicle or equipment replacement.

The 2024 DERA Tribal and Territory Notice of Funding Opportunity is now open! Applications will be accepted through Friday, December 6, 2024, and these grants have no mandatory cost share requirement. For more information about this opportunity, and to learn more about the DERA Tribal and Territory Grants program, visit the DERA website.

State Programs

Your state may have resources for their own diesel emissions reductions programs, including projects funded through DERA grants. Find out more by clicking on the state links below:

Historic $450 million available for Port Infrastructure Development Program (PIDP) grants from the Bipartisan Infrastructure Law

The U.S. Department of Transportation’s Maritime Administration (MARAD) has announced nearly $450 million in newly available grant funding for port-related projects through the Port Infrastructure Development Program (PIDP) — by far the largest investment ever in the program. The Bipartisan Infrastructure Law also expanded the list of eligible projects to explicitly include projects that reduce or eliminate port-related criteria pollutant or greenhouse gas emissions such as:

  • port electrification or electrification master planning
  • harbor craft or equipment replacements or retrofits
  • development of port or terminal microgrids
  • provision of idling reduction infrastructure
  • purchase of cargo handling equipment and related infrastructure
  • worker training to support electrification technology
  • installation of port bunkering facilities from ocean-going vessels for fuels
  • electric vehicle charging or hydrogen refueling infrastructure for drayage and medium or heavy-duty trucks and locomotives that service the port and related grid upgrades; or
  • other related port activities, including charging infrastructure, electric rubber-tired gantry cranes, and anti-idling technologies.

MARAD will host a series of webinars explaining the PIDP grant application process. Details and registration information regarding these webinars will be made available here.

Incentives and Funding Opportunities for Idle Reduction Projects

Various federal, state, and nonprofit organizations provide funding that can be used for the reduction of emissions from long-duration truck and locomotive idling.

Congestion Mitigation Air Quality (CMAQ) Funds

The U.S. Department of Transportation's CMAQ program provides funds to state DOTs, MPOs, and transit agencies to invest in projects that reduce air pollution from transportation-related sources.

The CMAQ program is one source of funds for Transportation Control Measures (TCMs) employed for the purposes of reducing congestion and improving air quality.

Port Authority Truck Program

The Port Authority of New York & New Jersey Regional Truck Replacement Program (TRP) is a special first-come, first-served limited offer to provide grants and financing to eligible truck owners to help them purchase newer, cleaner and more environmentally-friendly trucks.

ELIGIBILITY:

  • Own a drayage truck (Class 8, 33,001 pounds gross vehicle weight rating (GVWR) and higher) equipped with an engine Model Year 1993 or older
  • Demonstrate a history of regularly calling to the Port of NY & NJ marine terminals (approximately 200 times in the last 12 months)
  • Be willing to scrap old drayage truck
  • Possess a valid vehicle registration, license plate, and driver's license
  • Have acceptable credit history and cash flow if applying for low-interest financing

Clean Cities Funding

There are many financial opportunities available. When applying for funding, ask your local Clean Cities coordinator for help. Coordinators can offer sound advice on how to successfully navigate the process to obtain the funding needed to meet petroleum reduction goals.