Volume 3: EPA Diesel Emissions Reduction Act (DERA) State Grants Program

Abstract

This report, part of the Policy Pathways to a Low Carbon Fishing Fleet series, evaluates the performance of the Diesel Emissions Reduction Act’s (DERA) state grants program in supporting emissions reduction initiatives for commercial fishing vessels. Administered by the Environmental Protection Agency (EPA), DERA provides funding for diesel engine replacements and retrofits that improve air quality. Under DERA, the EPA allocates 30% of total funding among qualifying states, who can increase their share of funding by matching it with other sources such as state allocations under the Volkswagen Diesel Emissions Environmental Mitigation Trust. Each state determines its own eligibility and prioritization criteria for its state-run DERA program, leading to variability in project and applicant eligibility. As a result, some states permit marine vessels and individual businesses, like fishing operators, to apply for funding, while others restrict eligibility, excluding fishing businesses from accessing DERA funds for engine upgrades.

Drawing on desk research and interviews with fishing industry stakeholders, engine installers, and state DERA program administrators, this report synthesizes benefits and barriers experienced by fishing vessel owners in accessing state DERA funding and includes preliminary recommendations from the fishing industry on how these programs can be enhanced. Key factors supporting the success of fishing businesses in state DERA programs include awareness of the program and its criteria, ability to access assistance with applications, ability to secure matching funds, and persistence. Barriers include the complexity of the application process, financial management and budget considerations, narrow project eligibility criteria, and rigid application and project timelines. Fishermen’s recommendations include increased outreach to the fishing industry, simplified applications for smaller projects, increased funding for fishing industry projects, flexible timelines, and broader qualifying criteria that include greenhouse gas emissions reduction as a program objective.

While the EPA’s state DERA program was designed with the goal of mitigating the impacts of particulate matter (PM), nitrogen oxides (NOx), and other air pollutants on human health, it offers a template that can be modified or replicated as a basis for programs that reduce emissions of planet-warming greenhouse gas pollutants like carbon dioxide (CO2). This report is a starting point for fishermen and their partners in government and beyond to collaboratively design incentive programs that support a transition to a low carbon fishing fleet.