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House approves DERA funding extension
Replacement and retrofits of older diesel trucks, engines funded by program
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The DERA program provides grants and rebates to retrofit and replace older diesel vehicles and engines. (Illinois Department of Transportation)
Key Takeaways:
- The House on Sept. 15 passed the Diesel Emissions Reduction Act of 2025, 343-79, extending EPA funding through fiscal 2029 at $100 million annually.
- DERA helps replace or retrofit older diesel vehicles and engines, and EPA said funded projects cut emissions and saved 572 million gallons of fuel.
- Companion Senate legislation remains pending after being introduced in October 2025.
The U.S. House of Representatives on Sept. 15 approved bipartisan legislation to reauthorize a federal program that helps fund the replacement or retrofitting of older diesel trucks and engines.
The Diesel Emissions Reduction Act of 2025 would extend the DERA program through fiscal 2029 at $100 million annually.
Administered by the Environmental Protection Agency, DERA provides grants and rebates to replace older diesel vehicles and engines to help reduce emissions and accelerate deployment of cleaner technologies for heavy-duty trucks and other equipment.
The bill advanced by a vote of 343-79, with 212 Democrats, 130 Republicans and one independent voting to approve. The bill now moves on for consideration in the Senate.
Henry Hanscom, chief advocacy and public affairs officer at American Trucking Associations, celebrated the news.
“The trucking industry’s tremendous success at reducing its environmental impact is rooted in innovation, investment and collaboration,” stated Hanscom on Sept. 16. “DERA has helped accelerate the deployment of cleaner, more efficient trucks while supporting the movement of America’s freight. By passing this bipartisan legislation, the House has taken an important step toward ensuring carriers can continue modernizing their fleets, which will deliver fuel savings and further emissions reductions.”
Thirty percent of DERA funding is reserved for state grants supporting EPA-approved retrofit technologies. Eligible equipment includes Class 8 highway trucks, construction, cargo and agricultural vehicles, and buses. Funding can support engine upgrades and replacements, cleaner fuels and additives, low-rolling-resistance tires and other emissions-reduction efforts.
The program also funds national grants, tribal and territorial grants, and school bus rebates. Tribal grants support many of the same types of projects while addressing the unique needs of tribal governments. School bus rebates help replace older diesel-powered buses.
Created under the Energy Policy Act of 2005, DERA has been reauthorized twice and has drawn bipartisan support over the years.
Today, my bipartisan Diesel Emissions Reduction Act passed @EnergyCommerce. It helps communities replace older diesel trucks, school buses and equipment with cleaner technology, cutting pollution right where we live. pic.twitter.com/ydHuRN8y71
— Rep. Doris Matsui (@DorisMatsui) September 2, 2026
Rep. Doris Matsui (D-Calif.) sponsored the House bill. Co-sponsors are Reps. Ken Calvert (R-Calif.), Nick Langworthy (R-N.Y.) and Chellie Pingree (D-Maine).
American Trucking Associations praised the committee vote, saying the program has been instrumental in helping carriers modernize fleets and reduce emissions.
“We applaud the committee’s unanimous vote to reauthorize this successful program and appreciate the leadership of Reps. Matsui, Calvert, Pingree and Langworthy,” said Henry Hanscom, ATA’s chief advocacy and public affairs officer. “Continuing DERA will strengthen supply chains, support American manufacturing jobs and deliver further environmental benefits through a collaborative, market-based approach.”
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Allen Schaeffer, executive director of Engine Technology Forum, also touted DERA’s success.
“DERA has been a bipartisan success story from the very beginning because of its structure and competitive process, successful implementation, ongoing need and continued funding support,” Schaeffer said. “As outlined in the U.S. Environmental Protection Agency’s Sixth Report to Congress, it’s a program that has upgraded a wide range of technologies across the country, from marine and locomotive engines, port drayage trucks, and school buses to fire trucks and industrial stationary generators in tribal communities.”
According to a June 2026 EPA report to Congress, the agency estimates DERA-funded projects from fiscal years 2008 through 2020 reduced nitrogen oxide emissions by 499,000 tons, particulate matter emissions by 16,600 tons and carbon monoxide emissions by 66,600 tons. The EPA also estimates the projects reduced diesel fuel consumption by 572 million gallons over the lifetime of the affected engines and vehicles.
Annual appropriations for the program fell to $20 million in 2013 and 2014 before increasing in subsequent years.
Companion legislation in the Senate is sponsored by Sen. Sheldon Whitehouse (D-R.I.) and has bipartisan co-sponsors. The bill has been idle since October 2025.
