The Rhode Island Department of Environmental Management (DEM), Office of Air Resources, has opened the 2026 State Diesel Emission Reductions Act (DERA) funding round. The current DEM program page, last updated September 4, 2026, states that the application deadline was extended to Friday, October 2, 2026, and all funded projects must be completed by December 2027.
School districts are expressly eligible applicants, along with state and local agencies, fleet operators, local businesses, independent owner operators, marine operators, and other qualified entities. For schools, the 2026 program permits school bus replacements only with zero-emission/electric or fuel-cell technology. Eligible vehicles generally must be operated primarily in Rhode Island, with at least 50% of vehicle miles traveled or operating hours projected to occur in the state for five years following reimbursement.
Funding and required cost share: zero-tailpipe-emission school-bus vehicle replacements may receive DERA reimbursement of up to 45% of eligible cost, requiring at least a 55% owner cost share. Zero-tailpipe-emission school-bus engine replacements may receive up to 60%, requiring at least a 40% owner cost share. The current RFP does not publish a single statewide 2026 funding pool or fixed per-applicant dollar ceiling; awards are percentage-based and contingent on Rhode Island DEM receiving federal EPA DERA funds.
Applicants must be in good standing and demonstrate administrative and financial capacity. Awards are reimbursement-based. Applicants should not purchase equipment or begin project work before receiving a signed Grant Agreement and Project Confirmation Letter. State procurement requirements apply, including competitive bidding and applicable MBE/WBE participation goals. Certain pre-award, administrative, lobbying, penalty, infrastructure, electricity, operation-and-maintenance, stationary-storage, and related costs are ineligible as described in the RFP.
Deadline control: DEM’s current webpage and the September 4 RFP cover both identify October 2, 2026 as the deadline, with the RFP cover stating proposals are due by close of business. A later sentence in Section 10 of the same RFP inconsistently says 4:00 p.m. on Friday, October 3, 2026, even though October 3, 2026 is a Saturday. Atlas therefore treats October 2, 2026 as the conservative controlling date and does not claim a reliably verified exact clock time or timezone until DEM publishes a correction or clarification.
Atlas assessment: Atlas Opportunity Score 63/100. N9+ Fit 0/100. QC Healthcare Fit 0/100. This is a legitimate Rhode Island school-fleet and environmental funding opportunity, but there is no credible healthcare, telehealth, remote-examination, or QC Healthcare role to force into the program. Dr. Miltie is not being advanced as a direct applicant or vendor for this opportunity.
Program contact: Chelsea Priest, Rhode Island DEM Office of Air Resources, chelsea.priest@dem.ri.gov, 401-537-4390; program email DEM.AirDERA@dem.ri.gov.
Last verified September 11, 2026.