TL/DR –
Several ports in the US have utilized federal grants to fund emission reduction projects through the Diesel Emissions Reduction Act (DERA), but these funds may be at risk due to President Donald Trump’s One Big Beautiful Bill Act which modifies and rescinds funds that were available through the Inflation Reduction Act (IRA). The new law has already rescinded $60 million meant for the Environmental Protection Agency to provide grants, rebates, and loans to reduce diesel emissions. While some ports may no longer have access to certain funds if the rescission of funding for greenhouse gas emissions continues, others appear to be unaffected as they have other forms of grants or have already received their DERA award.
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Historically, port authorities have relied on federal grants for projects aimed at reducing emissions. Since 2008, various ports have received funding under the Diesel Emissions Reduction Act (DERA), which has been instrumental in funding port equipment such as drayage trucks, electric trucks, gantry cranes, and electric yard tractors.
However, a new law, the One Big Beautiful Bill Act signed by President Donald Trump in July, could reshape the funding landscape for certain environmental programs. The new law modifies and rescinds funds allocated by the Inflation Reduction Act (IRA). Consequently, certain ports may lose access to specific funds if the rescission of funding for greenhouse gas emissions programs continues.
According to the Sabin Center for Climate Change Law at Columbia Law School, the Trump administration rescinded funds that were yet to be disbursed, including $60 million intended for the EPA to provide grants, rebates, and loans to reduce diesel emissions.
The Georgetown Climate Center notes that the potential impact on recent grantees is uncertain, especially if grant agreements are already in place. The U.S. Department of Transportation has initiated review processes that could slow the pace of completing new grant agreements for specific programs.
The new law’s impact on future grants is uncertain. However, most ports seem unaffected by the new law as they can rely on other forms of grants or have already received their DERA awards. This article presents an overview of how ports have utilized DERA-funded projects and the potential impact of the new legislation.
Port of Los Angeles
The new law will not impact the Port of Los Angeles’ current non-committed funds, according to a spokesperson. The port had earlier received a $2 million DERA grant in 2021 to replace a Tier 0+ diesel engine on a switch locomotive with battery electric technology, as stated by the EPA.
Port of Long Beach
Despite having received several DERA grants in the past, the Port of Long Beach is currently unaffected by the new law as it doesn’t have any active DERA projects. Notably, in 2019, the port received over $1.4 million to replace 24 yard tractors with 20 electric yard tractors and four electric automated guided vehicles.
Port of Oakland
Matt Davis, Chief Public Engagement Officer at the Port of Oakland, informed that no projects involving current and/or prospective DERA funding would be affected by the program cuts. However, he expressed disappointment over the potential elimination of future DERA grant funding rounds.
Northwest Seaport Alliance
In 2023, the NWSA received $900,000 to replace 30 pre-2007 drayage trucks with cleaner, newer diesel versions under the port’s Northwest Ports Clean Air Strategy. The port uses DERA funds to cover about 50% of the new truck cost, allowing it to scrap a couple of hundred trucks in the past few years using DERA funds.
Port of New York and New Jersey
The Port of New York and New Jersey leverages DERA awards for its Truck Replacement Program, which helps qualified applicants obtain more environmentally friendly and fuel-efficient vehicles.
Georgia Ports Authority
The Georgia Ports Authority currently has no active grants or applications under the DERA program. In the past, the port authority has received significant funding, including over $1 million in 2021 to replace dray trucks with cleaner vehicles.
North Carolina Ports
The North Carolina Ports does not anticipate any impact from the rescission of DERA awards, given that all of the equipment purchased under the USEPA DERA program has already been reimbursed.
PhilaPort
The Port of Philadelphia last received a DERA award in 2019. The port expressed concerns over losing a key federal funding source to support its clean ports planning efforts with the phase-out of the DERA program. As a result, the port will need to identify alternative funding sources to continue its efforts in reducing diesel emissions around its terminals.
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