2023 Diesel Emissions Reduction Program (DERA) in Iowa
Iowa Department of Transportation
October 2, 2023
For-profit organizations other than small businesses, Nonprofits, County governments
The Iowa Department of Transportation (Iowa DOT) is soliciting proposals from eligible entities for participation in the State of Iowa’s 2023 Diesel Emissions Reduction Program (DERA) in Iowa.
Donor Name: Iowa Department of Transportation
County: All Counties
U.S. Territory: American Samoa, Guam, Commonwealth of Puerto Rico, Commonwealth of Northern Mariana Islands, U.S. Virgin Islands
Type of Grant: Grant
Size of the Grant: $423,576
Grant Duration: 2 years
The DERA in the Energy Policy Act of 2005 authorizes the U.S. Environmental Protection Agency (EPA) to support grant, rebate, and loan programs administered by eligible states and territories that are designed to achieve significant reductions in diesel emissions. In accordance with DERA, EPA makes 30 percent of the annual allocation available to eligible states and territories in the form of assistance agreements under the State Clean Diesel Grant Program. Two-thirds of the state portion of funding is provided to participating states and territories, while the remaining third is used as an incentive to those states and territories that provide a voluntary match equal to the base funding. If a state/territory provides a voluntary match equal to the base allocation offered by EPA, EPA will provide a matching incentive equal to 50 percent of the base allocation.
In 2023, Iowa received a base allocation of $423,576. Iowa is voluntarily matching the base amount with monies from the Iowa Volkswagen Settlement Environmental Mitigation Trust program.
EPA Base Allocation: $423,576
Iowa’s Voluntary Match for Bonus: $423,576
EPA Matching Incentive Bonus: $211,788
Project and Budget Period
The project and budget period for 2023 funds will be October 1, 2023 to September 30, 2025.
A broad range of diesel emission reduction solutions are eligible for DERA grant funding. Projects must include one or more of the following diesel emission reduction solutions that utilize a certified engine configuration and/or a verified technology:
Vehicle and Equipment Replacements
Certified Remanufacture Systems
Idle Reduction Technologies
Verified Retrofit Technologies
Clean Alternative Fuel Conversions
Verified Aerodynamic Technologies Verified Low Rolling Resistance Tires
Eligible on-road or non-road vehicles and equipment may include:
School buses (of Type A, B, C, and D);
Medium-duty and Heavy-duty Transit Buses (defined as Class 5 through Class 8);
Medium-duty or Heavy-duty Trucks (defined as Class 5 through Class 8);
Marine Engines (operating at least 1000 hours per year);
Locomotives (operating at least 1000 hours per year);
Nonroad engines, equipment, or vehicles used in:
Handling of cargo (including at a port or airport);
Energy production (including stationary generators or pumps)
Engine, vehicle, and equipment replacement projects are eligible for funding on the condition that the following criteria are satisfied:
To be eligible for replacement, the replaced vehicle, engine or equipment must be fully operational and in current, regular service.
The replacement vehicle, engine, or equipment will continue to perform similar function and operation as the vehicle, engine, or equipment that is being replaced.
The replacement vehicle, engine, or equipment will be of similar type and gross vehicle weight rating or horsepower as the vehicle, engine, or equipment being replaced.
Nonroad: Horsepower increases of more than 25 percent will require specific approval by EPA prior to purchase, and the applicant may be required to pay the additional costs associated with the higher horsepower equipment.
Highway: The replacement vehicle must not be in a larger weight class than the existing vehicle. The engine’s primary intended service class must match the vehicles weight class
The vehicle, equipment, and/or engine being replaced must be scrapped and rendered permanently disable within ninety (90) days of being replaced.
2023 DERA grant funding is available for profit, nonprofit, and public entities that own or operate diesel fleets and equipment in any of the 99 counties in the state of Iowa.
Federal and state government agencies and employees are not eligible to receive funding from Iowa’s 2023 DERA Grant Program. Ineligible applicants also include entities or individuals that are currently suspended or debarred by the State of Iowa or the federal government.
For more information, visit Iowa DOT.