Illinois EPA Seeks Partners For Diesel Emissions Reduction Program

SPRINGFIELD – The Illinois Environmental Protection Agency (Illinois EPA) today issued a competitive Call for Partners (CFP) for the U.S. Environmental Protection Agency (U.S. EPA) 2026 Diesel Emissions Reduction Act (DERA) National Program. Illinois EPA seeks partners that currently operate fleets of diesel-powered on road or nonroad equipment within the State of Illinois and are willing to collaborate on eligible projects that will reduce harmful diesel emissions while strengthening the long-term operational resilience of Illinois fleets amid rising diesel fuel costs.

“Illinois is pursuing every available funding opportunity to help address the rising cost of diesel and accelerate the transition to cleaner transportation,” said Illinois EPA Director James Jennings. “With this Call for Partners we are trying to leverage every available resource and bring together public and private partners to tackle two interconnected challenges—the fuel cost crisis facing our businesses and communities and the climate crisis.”

U.S. EPA announced the availability of up to $12 million for individual awards (with $180 million in total program funding) under the 2026 DERA National Program (Funding Opportunity Number: EPA OAR OTAQ 26 01). This competitive program provides financial assistance to incentivize and accelerate the upgrade or retirement of legacy diesel engines, vehicles, and equipment. Eligible activities under this funding will focus on the replacement of existing medium and heavy-duty diesel vehicles and equipment with newer technologies – certified or verified by U.S. EPA or California Air Resources Board (CARB)– that achieve the greatest possible reductions in diesel emissions.

Interested parties should review the 2026 DERA National Program NOFO in its entirety before responding to this CFP. This solicitation does not obligate Illinois EPA to select any partners identified through this process. Illinois EPA may elect to pursue any proposed projects, alternative projects, or none at all. Proposals must be submitted to EPA.DERAgrants@Illinois.gov by 11:59PM on December 4, 2026, Central Standard Time.

PROGRAM BACKGROUND

Illinois EPA’s efforts under this CFP are supported by the Illinois Clean Trucks Program, which supports the reduction of emissions from medium and heavy-duty vehicles by enabling the adoption of cleaner, lower emission, or zero emission technologies in sectors with significant diesel pollution impacts under the broader Driving a Cleaner Illinois (DACI), the State of Illinois’ primary initiative for reducing emissions from mobile sources. DACI operates under the foundational agency powers of the Illinois Environmental Protection Act (415 ILCS 5/4), which empowers Illinois EPA to design and administer grant and incentive programs to reduce air pollution from vehicles and equipment using state and federal funding. DACI incorporates funding from the Volkswagen Environmental Mitigation Trust (established under the federal court-approved Environmental Mitigation Trust Agreement) and allocations provided under Public Act 102 0662 (the Climate and Equitable Jobs Act), among other sources.

These efforts are further informed by Illinois Executive Order 2021 08, which directs state agencies to integrate lower and zero emission vehicle technologies into state fleet procurement, “to the maximum extent practicable,” and to support statewide transportation emission reduction efforts. This Executive Order reinforces the goals of DACI and aligns with efforts to assist Illinois fleets in reducing diesel dependence and managing operational challenges associated with rising and increasingly volatile diesel fuel costs.

Proposals submitted under this CFP must be no more than two pages in length (excluding optional attachments) and should provide a brief statement of interest that addresses the following elements:

ELIGIBLE PROJECTS

Eligible projects under this CFP will focus on high impact diesel emissions reduction activities permitted under the 2026 DERA National Program. Illinois EPA is specifically seeking proposals that replace high use diesel equipment and vehicles with those EPA or CARB certified options that deliver the greatest achievable reductions in diesel emissions. Prioritized project categories include, but are not necessarily limited to, the following:

• Airport ground support equipment (GSE): replacement of eligible diesel powered GSE, such as baggage tractors, belt loaders, and tugs
• Ground power and auxiliary equipment: replacement of diesel ground power units and similar auxiliary equipment that contribute to airport area noise and emissions
• Nonroad heavy equipment: Replacement of eligible diesel construction, industrial, or material handling equipment used in freight, logistics, construction, and other high impact sectors
• Medium and heavy duty on road vehicles: replacement of eligible diesel vehicles, including long-haul tractors, vocational trucks, refuse trucks, delivery vehicles, and other Class 5–8 fleet assets, with comparable vehicles capable of achieving measurable and sustained reductions in diesel emissions

PROPOSAL REQUIREMENTS

Proposals submitted under this CFP should be no more than two pages in length (excluding optional attachments) and should provide a brief statement of interest that addresses the following program elements:

1. Project Introduction: a short description of the applicant organization, its operations, and the diesel-powered vehicles or equipment currently in use
2. Equipment or Vehicles Proposed for Replacement: identification of the specific diesel vehicles, engines, or equipment proposed for replacement, including quantities and general operational roles. Applicants should describe the replacement units proposed for their project(s) by make and model, and may describe the expected reductions in diesel emissions consistent with DERA eligibility requirements – USE DIESEL EMISSIONS QUANTIFIER (optional; attach)
3. Project Cost and Funding Request: a summary of anticipated project costs and the amount of DERA funding requested through Illinois EPA
4. Cost Share Commitment: a statement affirming the applicant’s ability to meet the required cost share, including the source of cost share funds and confirmation that the funds are available, eligible, and not derived from other federal assistance
5. Additional Benefits to Illinois: a brief description of any benefits beyond diesel emission reductions – examples may include noise reductions, operational improvements, or benefits to local communities or economic activity

EVALUATION

Illinois EPA will review submissions based on the following factors:

• Eligibility: confirmation that the applicant and proposed project elements meet federal DERA eligibility requirements
• Emission Reduction Potential: the extent to which the proposed vehicle or equipment replacements are expected to deliver significant, quantifiable reductions in diesel emissions consistent with DERA program priorities
• Project Feasibility: the likelihood that the applicant can successfully implement the proposed replacement project, considering fleet operations, organizational capacity, and product availability given extended industry lead times
• Cost Share Availability: the applicant’s demonstrated ability to provide the required non federal cost share from eligible sources
• Additional Benefits to Illinois Residents: identification of any benefits beyond diesel emission reductions, including potential operational improvements, reduced noise, or other benefits to local communities or the Illinois workforce

Illinois EPA may also consider geographic diversity, project type diversity, and overall alignment with statewide transportation and air quality priorities when determining which partners to include in a future application to U.S. EPA.

QUESTIONS

Applicants may submit questions to EPA.DERAgrants@Illinois.gov. Questions should be submitted as early as possible to allow adequate time for response. If warranted, a Frequently Asked Questions (FAQ) page will be posted.

SUBMISSION

Proposals must be submitted electronically to EPA.DERAgrants@Illinois.gov, with the Subject: line reading “DERA Federal IL CFP [Name of Organization] and should be no more than two pages in length. Responses and should not include sensitive or confidential information. Response materials may be subject to disclosure as required by Illinois law.

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