Driving a Cleaner Illinois - Diesel Emissions Reduction Act (DERA)

The Illinois Environmental Protection Agency (Illinois EPA) strives to achieve reductions in diesel emissions through its Driving a Cleaner Illinois Program. The Illinois EPA receives Diesel Emission Reduction Act (DERA) funding from the U.S. Environmental Protection Agency for the purpose of making awards to eligible applicants for implementing electric vehicle projects that reduce diesel emissions. Grants are awarded to selected applicants through the Driving a Cleaner Illinois – DERA Program.

This Notice of Funding Opportunity (NOFO) is to inform potential applicants of the availability of funds through the DERA Program in Illinois. Under this NOFO, the Illinois EPA will fund up to 45% of the eligible costs associated with replacing (not repowering) eligible diesel-powered Class 5-8 trucks (at least 16,001 lbs. GVWR). The new vehicle must be fully battery-electric, have no internal combustion engine, and have a vehicle model year of 2021 or newer.

The diesel-powered vehicle being replaced can be of any engine model year and must be scrapped. Grantees will be required to submit proof of scrappage that complies with U.S. EPA guidelines and must attest that:

• The vehicle being scrapped is fully operational. A fully operational vehicle can: start, idle, and move forward and backward under its own power; and can perform its primary vocational function without major mechanical failure.
• The grantee has owned and operated the vehicle being scrapped for two full calendar years prior to scrappage.
• The vehicle being scrapped has accumulated at least 7,000 miles/year during the two years prior to scrappage.

NOTE: if the vehicle being scrapped is predominately used in a nonroad application (e.g. emergency response vehicles, vocational trucks, terminal tractors, etc.), the grantee must attest that the vehicle has operated 500 hours/year during the two years prior to scrappage. Special approval is required from U.S. EPA to use operating hours instead of mileage, and eligibility will be determined on a case-by-case basis.

• The vehicle being scrapped has at least three years of remaining life.

Scrappage costs are not eligible.

The new vehicle:

• Must be fully battery-electric with no internal combustion engine; hybrid or plug-in hybrid models are not eligible.
• Must be a brand-new vehicle model year of 2021 or newer.
• Must be of the same weight class as the vehicle being replaced (cannot be lower or higher weight class).
• Must resemble and continue to perform a similar function of the vehicle being replaced.
• Must be registered (plated) as a commercial vehicle in the State of Illinois.

Eligible costs also include the purchase and installation of one (1) electric charging unit per vehicle being purchased. Eligible costs for charging units are limited to the charger, charging cable, and either a wall mount or pedestal. Chargers may be L2 or L3 (DC fast chargers), and must be compliant with Build America Buy America (BABA) requirements.

Funding cannot be used for “Make-Ready” infrastructure costs. Ineligible costs may include, but will not be limited to:

• power distribution to the pedestal, electrical panels and their installation
• upgrades to existing electrical panels or electrical service, transformers and their installation
• wiring/conduit and its installation
• electricity
• operation and maintenance
• stationary battery energy storage systems that power the equipment and their installation
• on-site solar, wind, or other power generation systems that power the equipment and their installation.

Applications may be downloaded below, and will be processed on a first-come, first-served basis. Applications must meet all minimum requirements to be funded. Applications will be accepted until funding is depleted. See the IEPA’s Driving a Cleaner Illinois website at https://epa.illinois.gov/topics/air-quality/driving-a-cleaner-illinois.html for announcements regarding funding availability.

Details

• Awarding Agency: Illinois Environmental Protection Agency
• Departments: Bureau of Air
• CSFA Number: 532-10-2086
• CSFA Popular Name: Driving a Cleaner Illinois - DERA
• Funding Opportunity Number: 27-2086-01
• Assistance Listings Number: 66.040
• Announcement Type: Initial Announcement
• Award Type: Competitive
• Total Funding Available: $935,220.00
• Funding Sources: Federal Or Federal Pass Through
• Capital Grant: Yes
• Indirect Costs Allowed: Yes
• Award End: January 31, 2028

Funding Source Description

This is Federal pass-through funding from the United States Environmental Protection Agency (U.S. EPA).

In completing projects under this NOFO, applicants must comply with all applicable federal, state, and local laws, ordinances, and regulations thereunder.

Funding for this program is provided through the U.S. EPA’s Diesel Emissions Reduction Act (DERA) Program.

Applicants may not combine funding from this program with other funding such that they receive in excess of 100% funding for any project. Applicants may not combine funding from this program with funding from Illinois-VW funding, Illinois EPA’s Climate Pollution Reduction Grants, or any other state or Federal funding.

Build at-risk or pre-award costs may be allowed if the costs are incurred AFTER the publication of this NOFO and are directly in anticipation of receiving an award, where such costs are necessary for efficient and timely performance of the project. Such costs are allowable only to the extent that they are eligible costs and would have been allowable if incurred after the date of an award. Reimbursement of pre-award costs may only occur post-award and post-execution of a grant agreement between the Illinois EPA and the applicant.

For the Budget section, IEPA expects most expenses to be in the following categories: (4) Equipment and (6) Contractual Services & Subawards.

An applicant may have personnel/fringe/travel if their employees are installing the chargers.

State Award Notices

Successful applicants will receive notice of a successful application.

Once all the final requirements have been completed, the Grant Agreement between the Illinois EPA and the applicant will be sent to the applicant for signature. This must be returned within 90 days of receipt. Once the agreement is fully executed by the Agency, a copy will be returned to the applicant.

The State of Illinois is not obligated to make an award as a result of this NOFO. The State of Illinois may award additional funding based on funding availability

Reporting

The Uniform Periodic Performance Report (PPR) and the Uniform Periodic Financial Report (PFR) are required at a minimum on an annual basis. Annual reporting will be required unless different reporting is required pursuant to specific award conditions.

These reports will describe the expenditure(s) of the funds and performance measures related thereto. Failure to submit the required PPR and PFR report may cause a delay or suspension of funding.

As part of the grant agreement, all grantees will be required to submit semi-annual reports (unless otherwise specified in the grant agreement) to the Illinois EPA describing the progress of the projects and costs incurred. Illinois EPA will check in periodically on these awards via email to the Grantees between the annual reports. Requests may include the status of the project, including dates of specific tasks completed during the reporting period and tasks that remain to be completed, specific costs incurred and paid by the grantee during the reporting period, and projected date of project completion. Grantees must remain responsive to these requests. Grantees will also be required to submit a close-out report including task completion with dates and costs incurred with supporting information.

Bi-Annual Certification and Reporting Post Project Completion

After the project is completed, the grantee is to provide annual certification and usage reports for a minimum of five years from its initial in-service date, unless otherwise agreed by the Illinois EPA. The grantee is to certify twice a year from the initial in-service anniversary date that the vehicle and associated charging equipment is still operating.

Submission Timeline

• Submission Opens: October 28, 2026
• Submission Closes: January 31, 2028
• Submission Timeline: One Time

Question Submission

• Questions Open: September 1, 2026
• Questions Close: October 1, 2027
• Questions Email: epa.deragrants@illinois.gov

Application(s) may be downloaded by using the link, below (links to all forms required for Section 1.2.1. as well as attestations required for 1.2.2. may be found in the application).

Attachments

• DERA_FY2027_APPLICATION_31AUG26

Apply on AmpliFund: https://il.amplifund.com/Public/Opportunities/Details/5db15f52-59fa-4091-94cd-3d3850d0368e