Salem, Oregon – More than $7 million is now on the table for Oregon fleet owners looking to replace aging diesel equipment, move toward zero-emission vehicles or build the charging infrastructure needed to support cleaner transportation.
The Oregon Department of Environmental Quality has opened its 2026 diesel mitigation and infrastructure grant programs, offering funding for projects ranging from engine replacements and exhaust retrofits to electric transit buses and charging systems.
The largest share, approximately $6 million, is available through Diesel Emissions Mitigation Grants and federal Diesel Emissions Reduction funding. The money combines Volkswagen settlement funds with expected federal DERA funding.
Eligible applicants include Oregon businesses, organizations, Tribal Nations, local governments and individuals operating medium- and heavy-duty diesel fleets from model years 1992 through 2009. Funding can support replacing older vehicles, engines or equipment with newer and cleaner alternatives, including zero-emission technology, or installing qualifying exhaust controls.
Another approximately $600,000 is available through the Oregon Zero-Emission Fueling Infrastructure program. Those grants are aimed at planning and installing public or private charging infrastructure for medium- and heavy-duty zero-emission fleets.
Public transit providers can also compete for roughly $500,000 through the Congestion Mitigation and Air Quality Improvement program. Eligible projects include battery-electric or hydrogen fuel-cell transit buses and infrastructure that directly supports zero-emission transit operations.
“Fleet owners across the state continue to show strong interest in cleaner technologies,” said Oregon DEQ Air Quality Transportation Strategies Section Manager Rachel Sakata.
“These grants and incentives help them make the transition while reducing harmful air pollution and protecting the health of Oregon communities.”
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Funding may also help owners meet requirements under DEQ’s Diesel Retrofit Compliance Program, including installation of diesel particulate filters. Certain construction equipment, such as concrete mixer and dump trucks, may qualify for replacement or upgrades.
The 2026 application cycle is the only opportunity to apply for these grants this year, although previous recipients may seek additional funding.
Applications for diesel mitigation and zero-emission infrastructure grants can be submitted through the DEQ Grants portal. Diesel Emissions Mitigation applications are due by 5 p.m. PDT Oct. 21. The zero-emission infrastructure and CMAQ programs will accept applications on a rolling basis until available funds are obligated.
