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Grants to North Carolina Public and Private Entities for Emission-Reducing Projects


Conference Date
Application Deadline

11/14/22 11:59 PM Eastern Time

See more info

Geographic Focus

USA: North Carolina

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North Carolina Diesel Emissions Reduction Act (DERA) Grant

North Carolina Department of Environmental Quality (NCDEQ), Division of Air Quality (DAQ)

Agency: State

GrantWatch ID #164512

Grant Description

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Grants to North Carolina public and private entities for emission-reducing projects. Applicants must request access to the online application portal prior to applying. Funding is intended for projects that help reduce diesel emissions from on-road and non-road vehicles and equipment. Grants can be used to repower equipment with cleaner-burning engines, convert vehicles to run on alternative fuels, and expand biodiesel storage and distribution equipment. All equipment funded must be EPA verified.

Eligible Vehicle, Engine, and Equipment Types 

  • School Buses
  • Transit Buses
  • Medium-duty or heavy-duty trucks 
  • Marine Engines
  • Locomotives 
  • Nonroad engines, equipment, or vehicles 

For alternative fuel conversions, systems for engine model years 2006 and earlier must achieve at least a 30% NOx reduction and a 10% PM reduction from the applicable certified emission standards of the original engine. Conversion systems for engine model years 2007 and newer must achieve at least a 20% NOx reduction with no increase in PM from the applicable certified emission standards of the original engine.

Bonus Points:

  • Project takes place in one of the following EPA Priority Counties: Cabarrus, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, or Union
  • Project involves replacement of diesel vehicle/equipment with an all-electric option
  • Project is owned by a minority and women-owned business
  • Project takes place in one of the 37 identified historically under-reached communities (Attachment B in the RFP below) 

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Additional Eligibility Criteria:

Any private or public sector entity or individual stationed in North Carolina is eligible.

Awarded funds cannot be used for:
• Fueling infrastructure projects.
• Standalone cleaner fuel projects unless combined with another clean diesel project on the same vehicle (e.g., repower).
• Meeting compliance for emissions reductions that are mandated under federal law.
• The purchase of vehicles, engines or equipment to expand a fleet.
• Matching funds for other federal grants.
• Emissions testing and/or air monitoring.
• The purchase of engine retrofits, idle-reduction technologies, low-rolling resistance tires or advanced aerodynamic technologies if similar technologies have previously been installed on the truck or trailer.

For further information about ineligible expenses, see the following link:

Pre-proposal Conference:

Division of Air Quality staff will hold a webinar to discuss the Mobile Sources Emissions Reduction Program with interested stakeholders and applicants. During this webinar, staff will discuss the Request for Proposal and application requirements, and answer questions. Advance registration is required.

When: Sept. 28, 2022, from 10 a.m. to 12 p.m.


Pre-Application Information:

Applications must be submitted electronically via DAQ’s Grant Management System at by 11:59 pm Eastern Time, Monday, November 14, 2022, to be considered.

Schedule for 2022/2023 Diesel Emissions Reduction Grants:
- Request for Proposals period opens: September 12, 2022
- Question and answer webinar on Grant Management System: September 28, 2022
- Request for Proposals period closes: November 14, 2022
- Proposals processed and awardees selected: December 2022
- All applicants notified of their application status: January 2023
- Awardee contracts are processed: February-March 2023
- Awarded projects’ work begins: Within 1 month of contract execution
- All diesel emissions reductions grant projects completed: September 30, 2023
- Invoices, Certificate of Engine/Chassis Destruction and final reports submitted to DAQ: September 30, 2023

All applicants must apply electronically through the NC Division of Air Quality’s Grant Management System. If you currently do not have access to this system you must request access prior to applying.

Additional Funding Information:

Estimated Total Program Funding:


Term of Contract:

Awarded projects are expected to begin in early 2023 and must be completed by September 30, 2023.

Contact Information:

Apply Online:

Direct questions to

North Carolina Department of Environmental Quality
217 West Jones Street
Raleigh, NC 27603

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