Private Fleet Diesel Electrification and Low-NOx Grant

The Private Fleet Diesel Electrification and Low-NOx (PF-DEAL) grant is administered by the District of Columbia Department of Energy and Environment (DOEE), specifically through the Air Quality Division of the Environmental Services Administration. This competitive grant is funded through a combination of the U.S. Environmental Protection Agency’s (EPA) State Diesel Emissions Reduction Act (DERA) and the Volkswagen Settlement Fund. Its purpose is to improve air quality and public health in the District of Columbia by incentivizing the replacement of class 4 and higher diesel-powered vehicles with zero-emission vehicle equivalents that operate predominantly within the District. The program is part of broader efforts to reduce nitrogen oxides (NOx), particulate matter (PM2.5), and other harmful diesel-related pollutants, particularly in communities that are most affected by traffic-related air pollution. Applicants eligible for this grant include nonprofit organizations (including IRS 501(c)(3) and 501(c)(4) entities), faith-based organizations, universities or educational institutions, and private enterprises. Government agencies are listed as eligible in the full RFA, but the public notice limits eligibility to non-governmental entities, indicating a possible restriction or narrowed focus. Projects must replace diesel vehicles either registered in the District or that operate within the District for at least 60% of the time. The replacement vehicles must be zero-emission equivalents, and any vehicles being replaced must be permanently scrapped according to detailed EPA and Volkswagen Settlement guidelines to ensure that emissions reductions are permanent and verifiable. The funding ceiling for the program is $2,396,457. Rebates under this program vary depending on the vehicle’s age, fuel type, and gross vehicle weight rating. For example, diesel vehicles from model years 2009 or older may qualify for a rebate of up to 75% of the cost of an electric vehicle replacement. Newer vehicles may qualify for up to 45% rebate of the difference between a zero-emissions vehicle and a comparable new diesel vehicle. Additional rebate amounts are available for eligible charging infrastructure per vehicle, up to 45% of associated costs. Rebates are also prorated based on the percentage of operation time the vehicle spends in the District. Only eligible costs as defined under the DERA guidelines are allowable under this program, with some restrictions applying to equipment and installation expenses. The application window for this grant opens on December 19, 2025, and closes on February 9, 2026, at 11:59 p.m. Applications must be submitted electronically through the DOEE Grants Management System (GMS). A pre-application information session is scheduled for January 7, 2026, at 3:00 p.m. via WebEx. Applicants must prepare a detailed vehicle replacement plan, including vehicle specifications, estimated emissions reductions using the EPA Diesel Emissions Quantifier, and supporting documentation such as manufacturer quotes. Applications will be reviewed by a panel based on seven scoring criteria, including the quality of the vehicle replacement plan, community benefits, and budget clarity. All submissions must include several supporting documents, including a Certificate of Good Standing, Clean Hands Certificate, IRS W-9 form, current fiscal year budget and financial statements, and proof of nonprofit status (where applicable). The grantee is expected to submit quarterly reports and a final project report with quantifiable metrics. Grants are reimbursed for allowable expenses unless an advance is pre-approved. Projects are expected to conclude by September 30, 2026, although extensions may be considered depending on performance and fund availability. This grant does not recur annually, and the opportunity will close after the current deadline unless reauthorized or reissued.

Clearly document vehicle eligibility and quantify emissions reduction; use EPA tools and provide a detailed scrap plan.