In 2016 Alaska Energy Authority (AEA) received $286,241 from the EPA under the Diesel Emission Reduction Act (DERA) and AEA is contributing $310,094 from the Rural Power System Upgrade Program as well as an additional contribution from the Denali Commission of $152,874 for a total project budget of $749,209. This project is expected to replace five generators with four generators in Hughes, Chignik Lagoon and Kokhanok.

In the spring of 2016 AEA replaced four diesel engines in the power plants of four Alaskan rural communities: Chuathbaluk, Crooked Creek, Sleetmute and Stony River. With support of this DERA grant, these non-certified, mechanically controlled engines were upgraded to marine certified Tier 2 and Tier 3 electronically controlled engines, improving efficiency and lowering emissions. The project was completed with the final installations and testing completed in September 2016.