Updated July 11, 2022
The Diesel Emissions Reduction Act (DERA) Program
Emissions from diesel engines—especially particulate
than 50 states qualified, the remaining funds were to be
matter (PM), nitrogen oxides (NOx), sulfur oxides, and air
allocated among the qualifying states proportionally based
toxics—have been shown to contribute to air pollution that
on their population.
adversely impacts public health and welfare in the United
Under EPAct 2005, EPA was to prioritize projects that (1)
States. Since 1970, the Clean Air Act (42 U.S.C. §7401 et
maximize public health benefits; (2) are cost-effective; (3)
seq.) has required the federal government to limit these
serve areas with the highest population density and the poorest
emissions, among others, from new stationary (industrial)
air quality; (4) include a certified engine configuration,
sources and new mobile sources. In the decades since, the
verified technology, or emerging technology that has a long
U.S. Environmental Protection Agency (EPA) has
expected useful life; (5) maximize the engine’s expected
promulgated emission standards for a variety of source
useful life; (6) conserve diesel fuel; and (7) use diesel fuel
categories, including new heavy duty highway and nonroad
with a sulfur content of 15 parts per million or less.
diesel engines.
Diesel Emissions Reduction Act of 2010
EPA’s most recent set of emission standards for newly
The Diesel Emissions Reduction Act (DERA) of 2010 (P.L.
manufactured heavy duty highway and nonroad diesel
111-364) amended EPAct 2005 to authorize $100.0 million
engines took effect in 2007 and 2008, respectively. At the
annually through FY2016 and modify provisions related to
time, the standards required a 90% and 95% reduction in
the program. DERA 2010 defined state to include the District
emission levels for PM and NOx, respectively, over the
of Columbia and the U.S. territories. The act authorized EPA
previous standards. However, because of the long
to offer rebates in addition to grants and loans to eligible
operational lives of diesel engines, millions of pre-2007
engines remain in use. According to EPA’s estimates in
entities, including any private individual or entity that owns a
diesel vehicle or fleet. The distribution of funds was revised
2016, 10 million pre-2007 diesel engines remain in use in
to provide not less than 95% of funds to projects using a
the United States, and 1 million of those engines could still
certified engine configuration or verified technology and not
be in use in 2030. The Clean Air Act does not provide EPA
more than 5% of funds for development and
the authority to set new emission standards on existing, or
“legacy,” diesel engines. To address
commercialization of emerging technologies. Under the act,
concerns over legacy
EPA was to develop a simplified application process to
diesel engines, EPA began a Voluntary Diesel Retrofit
expedite provision of funds, taking into consideration special
Program in 2000 and a Clean School Bus Initiative in 2003,
circumstances affecting small fleet owners. The act expanded
among other programs.
the priority given to applications that serve areas receiving a
Congress enacted the “Diesel Emissions Reduction”
disproportionate quantity of air pollution from diesel fleets to
program in the Energy Policy Act of 2005 (EPAct 2005,
include construction sites and schools in addition to truck
P.L. 109-58, Title VII, Subtitle G §§791-797; 42 U.S.C.
stops, ports, rail yards, terminals, and distribution centers.
§§16131-16137). It authorized EPA to administer a national
In 2020, the DERA program was reauthorized through
and state-level grant and loan program to promote
FY2024, with no other changes, under Division S, Section
emissions reductions from legacy diesel engines. Through
101, of the Consolidated Appropriations Act, 2021 (P.L.
the Diesel Emissions Reduction program (as amended),
116-260).
EPA has provided loans, grants, and rebates to projects that
use certified engine configurations and verified
DERA Program Implementation
technologies, or that develop and commercialize emerging
EPA’s National Clean Diesel Campaign within the Office
technologies, in order to replace legacy diesel engines.
of Transportation and Air Quality administers the DERA
Energy Policy Act of 2005
program. In its DERA Fourth Report to Congress (July
2019), EPA reports that it awarded more than $629.0
EPAct 2005 authorized $200.0 million annually for
million between FY2008 and FY2016 to retrofit or replace
FY2007-FY2011 for the Diesel Emissions Reduction
67,300 engines in vehicles, vessels, locomotives, and other
program. Of the funds appropriated, 70% were to be used
equipment. EPA estimates that the program has resulted in
for national competitive grants and low-cost loans
the reduction of emissions of NO
administered by EPA, and 30% were to support loan and
x by 474,700 tons, PM by
15,490 tons, and hydrocarbons by 17,700 tons over the
grant programs administered by states. Of the funds
lifetime of the affected engines. Further, EPA estimates the
administered by EPA, the majority was to be provided for
total present value of monetized health benefits over the
the benefit of public fleets, with not less than 90% going to
lifetime of the affected engines as $19.0 billion, including
projects using a certified engine configuration or verified
up to 2,300 fewer premature deaths. EPA reports that since
technology and not more than 10% for the development and
the inception of the program, DERA funding requests have
commercialization of emerging technologies. Of the funds
exceeded availability by as much as 35:1 for the rebate
administered by the states, a portion was to be allocated in
program and 7:1 for the national grant competition.
equal shares to each state if all 50 states qualified. If fewer
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link to page 2 link to page 2 link to page 2 link to page 2 link to page 2 link to page 2 The Diesel Emissions Reduction Act (DERA) Program
Appropriations
National Clean Diesel Campaign. This funding is not
Table 1 presents requested and enacted EPA appropriations
reflected in Table 1.
for the DERA program—adjusted and not adjusted for
Table 1. DERA Appropriations:
inflation (FY2021$)—for FY2007-FY2023. Funding for
Requested and Enacted, FY2007-FY2023
DERA is provided within EPA’s State and Tribal
Assistance Grants appropriations account.
($ mil ions; not adjusted and adjusted for inflation [FY2021$])
As indicated in Table 1, FY2009 enacted includes $60.0
Requested
Enacted
million plus additional $300.0 million in Title VII of
Not
Inflation
Not
Inflation
Division A of P.L. 111-5, the American Recovery and
Fiscal Year
Adjusted Adjusted Adjusted Adjusted
Reinvestment Act of 2009. Following the $60.0 million
requested for FY2011, the Obama Administration requested
2007
$49.50
$62.80
a
a
no funding for FY2012, citing limitations associated with
budget constraints. Reduced funding was requested for
2008
$35.00
$43.50
$49.22
$61.17
FY2013 and FY2014. No funding was requested for
2009b
$49.22
$60.56
$360.00
$442.92
FY2015. EPA’s 2015 Justification of Appropriation
Estimates for the Committee on Appropriations stated that
2010
$60.00
$73.18
$60.00
$73.18
“while DERA accelerates the pace at which dirty engines
2011
$60.00
$71.74
$49.90
$59.66
are retired or retrofitted, pollution emissions from the
legacy fleet will be reduced over time without additional
2012
$0.00
$0.00
$29.95
$35.16
DERA funding as portions of the fleet turnover and are
2013
$15.00
$17.30
$18.91
$21.80
replaced with new engines that meet modern emissions
standards.” From FY2016 to FY2021, the Obama and the
2014
$6.00
$6.79
$20.00
$22.62
Trump Administrations requested $10.0 million annually.
2015
$0.00
$0.00
$30.00
$33.55
In FY2022, the incoming Biden Administration increased
2016
$10.00
$11.09
$50.00
$55.46
the request for the DERA program substantially—to $150.0
million—in order to support efforts “in advancing
2017
$10.00
$10.90
$60.00
$65.38
environmental justice and tackling the climate crisis.” Under
2018
$10.00
$10.65
$75.00
$79.86
these objectives, EPA is to “look for ways to help expedite
[the] transition [to more zero emissions options] as part of
2019
$10.00
$10.44
$87.00
$90.87
its DERA implementation effort,” and to “target 40 percent
2020
$10.00
$10.31
$87.00
$89.67
of the benefits of climate investments to disadvantaged
communities.” The Administration stated the increased
2021
$10.00
$10.00
$90.00
$90.00
funding would “focus on priority areas including school
2022c
$150.00
$144.36
$92.00
$88.54
buses, ports, and disproportionately affected communities.”
2023
$150.00
$141.28
n/a
n/a
Title II of Division G of the Consolidated Appropriations
Source: CRS, with data from the Congressional Record; House,
Act, 2022 (P.L. 117-103) appropriated $92.0 million for the
Senate, conference committee reports and tables, and EPA’s FY2013
DERA program for FY2022.
Operating Plan (reflects rescissions and the sequestration).
The Biden Administration’s FY2023 budget request for the
Notes: Inflation adjusted with Bureau of Labor Statistics CPI in
FY2021$. Inflation adjustments for FY2022 and FY2023 are
DERA program is $150.0 million.
estimated.
Infrastructure Investment and Jobs Act
a. $6.90 mil ion appropriated for Clean School Bus Initiative in
FY2007.
As part of the Infrastructure Investment and Jobs Act of
b.
2021 (P.L. 117-58), Title XI of Division G included a Clean

FY2009 enacted includes $60.0 mil ion plus additional $300.0
mil ion in Title VII of Division A of P.L. 111-5, the American
School Bus Program, which provides $5 billion for the
Recovery and Reinvestment Act of 2009.
replacement of existing school buses with clean and zero-
emission school buses and eligible fueling and charging
c. Beginning in FY2022 and continuing through FY2026, the
infrastructure for FY2022 to FY2026. Of this funding, $500
Infrastructure Investment and Jobs Act of 2021 (P.L. 117-58)
million annually is available to fund only zero-emission
provided $1 bil ion annual y for a Clean School Bus Program to
school buses, and $500 million annually is available to fund
be administered by EPA. This funding is not reflected in this
zero-emission and clean school buses (“clean” is defined as
table.
a vehicle that “reduces emissions and is operated entirely or
in part using an alternative fuel”). EPA administers the
Richard K. Lattanzio, Specialist in Environmental Policy
funding for the Clean School Bus Program through the
IF11331


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The Diesel Emissions Reduction Act (DERA) Program


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