The U.S. Environmental Protection Agency (EPA) announced a new $2 million rebate program to help construction equipment owners replace or retrofit older diesel engines.

Rebates will be offered as part of the Diesel Emission Reduction Act (DERA). Public and private construction equipment owners in eligible counties can apply for rebates to replace or retrofit the engines. EPA will accept applications from until Jan. 15. Rebates should be awarded in February.

Grants are available for diesel particulate filters (DPFs) for diesel-powered Tier 2 and Tier 3 emissions standard engines and engine replacement for diesel-powered unregulated (Tier 0) and Tier 1 engines. Each agency can apply for rebates for up to five engines for a maximum of $120,000 in funding.

This rebate is the second rebate program offered since Congress reauthorized DERA in 2010 to allow rebates in addition to grants and revolving loans. The rebates support the program's effort to replace and update existing diesel vehicles, and target populated areas exposed to unhealthy air.

Since 2008, EPA has awarded more than $500 million in DERA grants to retrofit, replace, or repower more than 50,000 vehicles. To learn more about the rebate program, the list of eligible counties, applicant eligibility, and selection process, visit the EPA's DERA website.