Grant program DERA targets replacement of diesel vehicles

Propane industry leaders are touting opportunities available under the Diesel Emissions Reduction Act (DERA) for more fleets to adopt alternative fuels like propane in their vehicles.

The U.S. Environmental Protection Agency’s (EPA) notice of funding opportunity under DERA makes about $180 million available to help modernize aging diesel fleets nationwide in accordance with congressional direction.

EPA says the funding will support the retrofit, replacement or retirement of older diesel engines, vehicles and equipment with newer technologies, helping eligible organizations reduce fuel consumption, lower maintenance costs, improve fleet reliability and strengthen transportation infrastructure.

The funding opportunity is expected to provide between four and 12 grants per EPA region, with projects expected to span two to four years. Eligible projects include buses, medium- and heavy-duty trucks, marine engines, locomotives and nonroad equipment used in construction, cargo handling, agriculture, mining and energy production.

The National Propane Gas Association says it will be working with state and regional associations to provide grants assistance to would-be applicants. Applications are due Jan. 22, 2027.

For more information, visit epa.gov/dera.

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