The North Carolina Division of Air Quality (DAQ) administers the Mobile Sources Emissions Reduction Program to fund the replacement of older diesel vehicles with cleaner alternatives. The goal of the program is to achieve signification reductions in diesel emissions, including nitrogen oxides (NOx) and greenhouse gases.

Program Details

Mobile Sources Emissions Reduction grants can fund a wide range of projects. Projects include: 

• Repowering on-road and nonroad equipment with newer, cleaner engines
• Replacing old on-road and nonroad equipment with new, cleaner vehicles
• Converting vehicles to run on alternative fuels
• Expanding medium and heavy duty electric vehicle usage throughout the state

Any private or public sector entity with a physical presence in North Carolina is eligible to apply. All original equipment or vehicles must be operational in the previous two years and the replacement equipment or vehicle must be operated at least 70% in North Carolina for the next 5 years.

Funding

The Mobile Sources Emissions Reduction program is funded by the U.S. Environmental Protection Agency's Diesel Emissions Reduction Act (DERA) program. Funds may be supplemented with North Carolina Volkswagen Mitigation Trust funds.

2022 Grant Program

In 2022, approximately $1,000,000 is expected to be available in the program to replace diesel vehicles. Based on the number of proposals received and the available funding, DAQ will reserve the right to award less than the total amount requested in any application. 

For more information, read the official grant program Request for Proposal guidance.

Grant timeline

Project Eligibility

Use our DERA Eligibility tool to determine project eligibility and cost share requirements.

How to Apply

If you already have access to the DAQ Grants Management System (GMS), you do not have to recomplete steps 1 and 2.

To learn more about this process, visit the Grants Management System information webpage.

1. Register for an NCID

New DAQ Grants Management System users must first register for an individual NCID (How to Create a NCID) on the Identity Manager Dashboard (nc.gov) prior to requesting access to the DAQ Grants Management System.

NCIDs must use the following format or your request for access will be denied. NCIDs with a company or organization name will no longer be accepted. 

• First name or initial
• Middle initial (optional)
• Last name
• Number (if name is already in use)

Example for John D. Doe, options for his NCID are:

• Jdsmith
• Johndsmith123
• John.smith123

The NCID and email used to register the NCID must also match the name and email address on your Enterprise Business Services External Request Application or the request will be denied. Requests typically take up to week to be processed. 

2. Request access to the DAQ Grants Management System

After submitting your NCID request, you must then complete and submit the online Enterprise Business Services External Request Application.

You must also complete and email a State of North Carolina Substitute W-9 Form to daq.mscb.ncdaqgrants@ncdenr.gov to get registered in the GMS system. Federal W-9 forms will not be accepted.

You will not have access to the Grants Management system until your request has been processed and you receive a “Welcome to Enterprise Business System (EBS) Portal” email.

3. Complete and submit an online application

DEQ will only accept applications for the 2022 Diesel Emission Reduction Grant submitted through the DAQ Grant Management System website.

Once registered and logged into the GMS, you will have access to tutorials on how to use the system, submitting applications and submitting claims.

NOTE: The Program ID in the DAQ Grants Management System for the 2022 Diesel Emission Reduction Grant will be NCDEQDAQ0015 when the application is available.

2021 DERA Grant Awards

The 2021 Mobile Sources Emissions Reduction grant awardees were announced in April 2022.

2021 Grant Awardee List