The bill removes EPA authorization for DERA, trading short-term federal funding and planning certainty (risking lost grants and worse air quality) for increased local flexibility and the possibility of a future, more targeted reauthorization.
Local governments and fleet operators (municipalities, transit agencies, utilities) would face reduced federal oversight and fewer earmarked funding constraints if the EPA authorization is removed, giving them more flexibility in running fleet and emissions programs.
If Congress later enacts a replacement authorization, local governments and utilities could receive a restructured, potentially more targeted funding mechanism better aligned with current diesel-reduction needs.
Owners and operators of diesel fleets — including municipalities, transit agencies, and small businesses — would lose access to about $100 million per year in DERA grants through FY2024, reducing funding for vehicle and equipment upgrades and retrofits.
Urban and rural communities could see slower diesel-emissions reduction projects and worsened air quality and health outcomes if federal authorization and funding decline.
State and local governments would face budgetary and program-planning uncertainty without the continuing federal authorization, complicating long-term project planning and administration.
Based on analysis of 2 sections of legislative text.
Removes the statutory authorization in 42 U.S.C. §16137(a) that had authorized $100 million annually for DERA for FY2012–FY2024, without inserting a replacement authorization.
Official title: Amend the Energy Policy Act of 2005 to reauthorize the diesel emissions reduction program.
Introduced July 10, 2025 by Sheldon Whitehouse · Last progress July 10, 2025
Removes the existing statutory authorization for annual appropriations previously set for the Diesel Emissions Reduction Act (DERA). In practice, the bill deletes the current authorization language that had authorized $100,000,000 per year for fiscal years 2012–2024 (and the associated availability/until-expended language) without replacing it with any new authorization text. The immediate legal effect would be to eliminate the statute's standing authorization to appropriate funds for DERA grants and related activities unless later legislation restores or replaces the deleted language. This would affect federal grant programs that fund diesel engine retrofits, replacements, and emissions reduction projects administered through EPA and partner entities.