Apply for a Nationwide Grant to Reduce Diesel Emissions for Your Fleet

The Diesel Emissions Reduction Act (DERA) is a nationwide grant program that aims to do exactly what its name says: reduce diesel emissions. For fleet owners committed to reducing their carbon footprint, this grant covers a significant portion of the costs of transitioning to zero-emissions vehicles (ZEVs). At present, the availability of funds under the is restricted due to the ongoing reauthorization process.

Introduced in 2005 by the Environmental Protection Agency (EPA), DERA’s goal is to help with vehicle upgrades, without incurring prohibitive expenses. The long-term benefit is to improve air quality, decrease public health risks, and promote the adoption of cleaner technologies through the reduction of harmful pollutants emitted by diesel engines.

DERA grants make the transition to zero tailpipe emissions trucks more affordable for fleets. Nikola dealers have the Tre Battery-Electric Vehicle (BEV) and Tre hydrogen Fuel cell Electric Vehicle (FCEV) available as you make the change toward a sustainable future. By understanding funding details, eligibility requirements, and application process, you may be in a strong position to receive this generous grant and benefit from substantial financial assistance.

Save up to 45% of Costs with DERA Funding

DERA’s financial assistance covers both BEVs and FCEVs. Here are the most important aspects of the funding:

• Up to a 45% price reduction: DERA grant funding can cover up to 45% of the total cost of a new zero-emissions truck. It is paid as a reimbursement after a grant application is awarded, and a vehicle purchase has been made
• Stacking: Funding from DERA can be stacked with other available incentives, including the Qualified Commercial Clean Vehicle Credit (currently in place until 2032) and additional local incentives (depending upon your state).
• Competitive process: DERA grants are awarded through a competitive selection process. Not all applicants will be funded, so a fleet owner must submit a thorough application for a greater chance of receiving benefits.
• Burden on fleet owner: While the fleet owner is responsible for managing the application process, some states may offer flexibility by allowing third-party assistance.
• Limited window, limited funding: Timely applications are critical to meet application windows that may only be open for specific periods. Currently, DERA has limited funds because it is going through a process of reauthorization. Once renewed, $100 million may be available each year through 2029.

Determine Your Eligibility for Fleet Assistance

DERA funding is accessible to a broad range of fleets, but eligibility criteria and state requirements vary. Here’s what you may need to know:

• Fleet types: Both private and public fleets operating diesel-powered vehicles are eligible for DERA funding. Private and public fleets operating diesel-powered vehicles may qualify for Diesel Emissions Reduction Act (DERA) funding. There is a higher likelihood of funding for fleets with older vehicles, as these trucks typically produce more emissions. By replacing older trucks, the reduction in emissions is more significant, enhancing the environmental impact of these applications and increasing their appeal to funding bodies.
• Fleet size: Both small and large fleets are welcome to apply. DERA is designed to be inclusive, offering the same opportunities to smaller companies that may not have the same resources as larger fleets.
• Community awareness: DERA emphasizes reducing diesel emissions in areas historically affected by industrial pollution, which may assist smaller companies, minority business owners, and marginalized neighborhoods that have historically suffered from higher pollution levels.
• State participation: All states are eligible to participate in the DERA program, but not all do. Currently, the following states actively offer DERA funding to upgrade Class 8 trucks: Alabama, Arkansas, Arizona, Connecticut, Iowa, Louisiana, Maine, Michigan, Minnesota, Missouri, , North Carolina, , New Hampshire, New Mexico, Nevada, Pennsylvania, Rhode Island, South Carolina, , Tennessee, Utah, and Vermont.

Prepare for the DERA Application Process and Guidelines

Fleet owners must stay up to date on application windows and requirements in order to avoid missing funding opportunities. While some states fully follow federal guidelines, each state handles applications and funding differently. Below is a general overview of the application process you may expect:

1. Identify eligibility and funding opportunities: Determine how your fleet may qualify for DERA funding and identify specific funding opportunities available.
2. Prepare application: Gather required documentation and information, including details about your current fleet, diesel trucks you’re replacing, and new ZEVs you plan to purchase.
3. Submit application: Submit your completed application by the deadline according to your state’s guidelines.
4. Order the new ZEV: When your application is approved, order the new BEV or FCEV according to grant guidelines.
5. Scrap the old truck: Where applicable, follow state or program-specific requirements to scrap the old diesel truck.
6. Submit reimbursement request: After purchasing your new ZEV and scrapping your old truck, submit a reimbursement request to receive grant funds.
7. Remain compliant: Complete any operational or reporting requirements for your new zero-emissions fleet.

Nikola is Here to Assist with Your DERA Application

Consider the following ways that the Nikola team may help you:

• Third-party assistance: While DERA places the burden of application on fleet owners, some states may allow third-party assistance to help manage the process and guarantee compliance. Contact Nikola directly to see if your state allows third-party assistance.
• Support: For states that do not permit third-party applicants, Nikola may still be able to guide you through each step, which may streamline the process.
• Updates: Nikola regularly provides updates on new and existing incentives. Subscribe to the Nikola incentive newsletter to receive updates as they are available.

Since DERA has limited application windows and funding, act now to secure your grant and upgrade your fleet to zero-emissions vehicles. Contact your Nikola Dealer today!