SBF 70 years logo
MenuMENU
SearchSEARCH

DERA Escapes Budget Cuts, Tabbed for 20% Increase

Congress’ new appropriations bill for fiscal year 2017 includes $60 million for EPA’s clean diesel grant program.

Thomas McMahon
Thomas McMahonExecutive Editor
May 4, 2017
DERA Escapes Budget Cuts, Tabbed for 20% Increase

Since it began in 2008, DERA has delivered about 690 grants to retrofit or replace older diesel vehicles — many of them school buses.

2 min to read


Since it began in 2008, DERA has delivered about 690 grants to retrofit or replace older diesel vehicles — many of them school buses.

WASHINGTON, D.C. — After being targeted in federal budget cut proposals, the tables have turned for the Diesel Emissions Reduction Act (DERA): The program has been tabbed for an increase in funding.

Earlier this year, as the Trump administration eyed a so-called “skinny budget,” funding for DERA was one of the targets of proposed cuts. That led a coalition of groups to advocate for DERA in a letter to new Environmental Protection Agency (EPA) Administrator Scott Pruitt in March.

Ad Loading...

On April 19, EPA announced a new round of DERA funding expected to total at least $11 million for clean diesel projects.

However, the new grant opportunity tapped into previously passed funding. DERA’s funding level for the rest of the year remained unclear until Monday, when Congress released its fiscal year 2017 appropriations bill, which provides discretionary funding for the federal government.

Among the line items in the massive bill is a significant bump for DERA: $60 million for fiscal year 2017, which is a 20% increase from the 2016 level of $50 million. The appropriations bill is expected to be approved by the end of this week.

DERA’s escape from the budget axe is not its first: The program has on numerous occasions faced the threat of being “zeroed out.”

In an interview that will appear in the June issue of School Bus Fleet, Allen Schaeffer, executive director of the Diesel Technology Forum, points out that the Obama administration also aimed to “zero out” DERA in budget proposals several times, but Congress stepped in to continue funding the program.

Ad Loading...

“On Capitol Hill, the program is seen as highly effective in making the most of limited federal spending to achieve many environmental benefits,” Schaeffer said. “The school bus retrofit program within DERA is specifically highlighted as a highly effective program.”

Since it began in 2008, DERA has delivered about 690 grants to retrofit or replace older diesel vehicles — many of them school buses. In fact, EPA’s DERA report to Congress last year listed school buses as the program’s most frequently funded vehicle sector from fiscal years 2009 through 2013.

The report, released in March 2016, also showed that nearly 13,000 diesel oxidation catalyst systems and about 1,400 diesel particulate filters had been installed on school buses with DERA funding. (Those numbers are likely higher now.)

In all, 73,000 vehicles or engines had been retrofitted or replaced through the program as of the 2016 report.

As the next step in securing DERA’s future, an effort is underway to pass a reauthorization bill that would extend the program through fiscal year 2021 or 2022. As of press time, the legislation was being readied for introduction in both chambers of Congress.

More Alternative Fuels

An orange and yellow graphic with a black and white image of Blue Bird propane school buses.
Alternative Fuelsby Elora HaynesMarch 19, 2026

Alt-Fuel Moves: EV Charging Expansion & Fleet Deployments

From EV charging growth to V2G testing and new bus deployments, districts and providers advance alt-fuel goals amid challenges.

Read More →
Buyers Guide and Directory thumbnail
SponsoredMarch 13, 2026

2026 School Bus Fleet Vendor Directory & Buyer's Guide

Searching for the right equipment, technology, or services for your school transportation program? This industry guide brings together manufacturers and suppliers across the entire school bus market, all in one place. Download it to find the partners who can help move your operation forward.

Read More →
Front view of an IC Bus next generation electric CE Series bus driving on a suburban street.
Alternative Fuelsby Elora HaynesFebruary 27, 2026

EPA Revamps Clean School Bus Program, 2024 Rebates Halted

The EPA will open a 45-day comment period and is planning a March 3 webinar as it reshapes Clean School Bus funding for 2026.

Read More →
Ad Loading...
An orange and yellow graphic with a black and white image of InCharge Energy employees working on the management system platform.
Alternative Fuelsby Elora HaynesFebruary 23, 2026

Alt-Fuel Moves: Funding Boosts & Charging Innovations

Check out some of the latest moves where alternative fuels and school buses intersect, including electric bus and charging deployments, new funding opportunities, and a new management system.

Read More →
School Bus Fleet graphic with green theme and moss sphere image, headline “Greenhouse Gas Standards Update,” subhead “EPA Officially Repeals 2009 Endangerment Finding,” and photo of a yellow school bus driving away.
Alternative Fuelsby Staff and News ReportsFebruary 18, 2026

EPA Officially Rolls Back Federal GHG Standards

The federal administration called its 2009 Endangerment Finding rescission "the single largest deregulatory action in U.S. history." It eliminates greenhouse gas emission standards for all vehicles and engines for model years 2012 to 2027 and beyond.

Read More →
An orgnge, white, and black graphic with a black and white image ofpropane school buses.
Alternative Fuelsby Elora HaynesJanuary 30, 2026

Alt-Fuel Moves: Product Innovations & Funding Outlooks

Check out some of the latest moves where alternative fuels and school buses intersect, including electric and propane bus deployments, new EV products, and an update from CARB.

Read More →
Ad Loading...
SponsoredJanuary 19, 2026

Fleet Software ROI: Transforming School Transportation

Keeping buses safe, reliable, and on schedule requires more than manual processes. This eBook explores how modern fleet software supports school transportation teams with automated maintenance scheduling, smarter video safety tools, and integrated data systems. Discover practical ways fleets are reducing breakdowns, improving safety, and saving valuable staff time.

Read More →
An orgnge, white, and black graphic with a black and white image of electric school buses.
Alternative Fuelsby Elora HaynesJanuary 14, 2026

Alt-Fuel Moves: Manufacturing Growth & Energy Storage Expansion

Check out some of the latest moves where alternative fuels and school buses intersect, including manufacturing expansions, major funding awards, and energy storage strategies.

Read More →
A man connecting a Zenobē charger to a school bus.
ManagementDecember 12, 2025

Electric School Bus Financing: Making Fleet Transitions Operationally Sustainable for the Long Haul

Electric school bus success hinges on long-term planning, which means smart financing, battery management, and service-based models that keep fleets reliable for years.

Read More →
Ad Loading...
An orgnge, white, and black graphic with a black and white detail shot of lights on a school bus.
Alternative Fuelsby Elora HaynesDecember 8, 2025

Alt-Fuel Moves: New V2G Tech and Electric Bus Rollouts

Check out some of the latest moves where alternative fuels and school buses intersect, including new product announcements and bus deployments across the U.S.

Read More →