Biden administration allocates $125M for cleaner vehicle solutions under DERA

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Andrew Wheeler EPA Administrator | U.S. Environmental Protection Agency

Biden administration allocates $125M for cleaner vehicle solutions under DERA

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The U.S. Environmental Protection Agency (EPA) has announced selections totaling nearly $125 million under the Diesel Emissions Reduction Act (DERA) National Grants Program. The initiative aims to encourage the upgrade or retirement of older diesel engines in favor of cleaner and zero-emission alternatives, providing significant benefits to air quality and public health. The grants are currently in final workplan negotiations with the selected applicants.

EPA Administrator Michael S. Regan stated, “Every community deserves to breathe clean air, but too many communities are still over-burdened by pollution from older diesel equipment.” He emphasized that this funding round will enhance efforts towards a healthier future for Americans.

Acting EPA Region 4 Administrator Jeaneanne Gettle highlighted the importance of these grants, noting that they promote clean diesel technologies which lead to improved health outcomes by reducing harmful diesel exhaust.

Approximately 70 national DERA projects have been tentatively selected. These projects span various transportation sectors, including engine replacements and upgrades for school buses, port equipment, and construction equipment. More than half of the selections involve replacing older vehicles with zero-emission technologies such as all-electric school buses and terminal tractors. The focus is on reducing diesel pollution while benefiting local communities facing environmental justice concerns.

Eligible activities under this program include retrofitting or replacing existing diesel engines with certified configurations and verified retrofit technologies. This is critical as nearly eight million legacy diesel engines remain operational in the U.S., emitting higher levels of pollutants linked to serious health issues like asthma and heart disease.

Priority was given to projects in areas with poor air quality or those that reduce emissions from ports and goods movement facilities. Projects were also evaluated based on their potential benefits to local communities and their plans for workforce development.

The DERA program supports the Biden-Harris Administration’s Justice40 Initiative by ensuring that 40 percent of certain federal investment benefits flow to disadvantaged communities affected by pollution.

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