SACE | Southern Alliance for Clean Energy
Diesel Emissions Reduction Act Reauthorization
The Diesel Emissions Reduction Act (DERA), originally enacted in 2005 was designed to reduce emissions from the 20 million existing, legacy diesel engines in use today by as much as 90 percent. DERA is an innovative voluntary program of national and state grants and loans for the installation of retrofits on existing heavy-duty diesel vehicles and engines. DERA is implemented through EPA’s National Clean Diesel Campaign and its regional collaboratives. The Southeast Diesel Collaborative in EPA Region 4 is responsible for the DERA grant solicitations, awards, and oversight in our region.
The DERA program creates jobs, provides cost-effective health benefits, and reduces black carbon emissions that recent studies indicate contribute to global warming.
- For every $1 billion spent on retrofits, approximately 19,000 jobs are created (Keybridge, 2008)
- DERA is cost-effective with $13 of economic benefit for every $1 invested (EPA, 2005)
- DERA generates health benefits by reducing particulate matter diesel emissions by up to 90%
Nationally, DERA has provided approximately $600 million (including ARRA funding) in grants to clean up diesel vehicles since 2005. In 2009, the American Recovery and Reinvestment Act (ARRA) included $300 million for the DERA program. EPA was able to solicit grant applications and awarded the grants within six months. EPA received over 650 applications requesting more than $2 billion in funds, more than 6 times the amount allotted.
DERA was reauthorized in December 2010, but funding has not yet been allocated for the program beyond 2011.