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Diesel Emissions Mitigation Grants

The Oregon Department of Environmental Quality is providing approximately $8 million in grant funding every year for five years, starting in 2021. Revenue for this program is provided by the Environmental Mitigation Trust Fund, subject to the settlement agreement between the United States and Volkswagen Group of America, Inc. In 2019, the Oregon Legislature authorized the creation of a grant program supporting businesses, governments and equipment owners in replacing older and more polluting diesel engines with new, cleaner technologies and exhaust control retrofits. These grants will be disbursed to awardees as a reimbursement of eligible project costs incurred during the project period.

Oregon DEQ received legislative direction from HB 2007 establishing the grant program and guiding the rules for awarding funding to eligible projects in Oregon. Among other priorities, these statues and rules prioritize funding for projects seeking to comply with HB 2007's vehicle phase out deadlines in Multnomah, Washington, and Clackamas counties. As a result, many of the grant awards are concentrated in this area of the state, where diesel pollution is the most severe.

Each year, the Environmental Protection Agency allocates federal Diesel Emissions Reduction Act grants to eligible states for diesel emissions reduction projects, totaling approximately $500K in federal funds. Starting in 2023, Oregon DEQ will allocate available federal DERA State Grant dollars through the annual diesel grant process. This will allow diesel equipment owners to access additional funds through a single application process. EPA published federal guidance for this program in 2023 and 2024. DEQ will award DERA grant dollars for applications that comply with current requirements, available in EPA's Program Guide.


DEQ now offers a way to submit grant applications online.

Key dates for 2024

Estimated dates of grant application and deadlines are below. These are subject to change based on the timing and availability of funds and the schedule of implementation tasks.

  • Feb. 1, 2024 - Grant program opens for applications
  • June 13, 2024 - Grant program closes for applications - *Deadline extended by two weeks*
  • Aug. 15, 2024 - Grant awards announced 
  • Dec. 2, 2024 - Funding for projects becomes available

Resources for retrofitting vehicles and equipment service providers

Key information about the program

In order to reduce diesel emissions, older, more polluting vehicles, equipment and engines must be permanently and verifiably removed from service or fitted with exhaust control technology. The following descriptions of eligible project types provide guidelines regarding potential activities that the grant program can fund:

  • Replacement  
    These projects replace diesel engine motor vehicles with an equivalent motor vehicle or replace a piece of equipment powered by a nonroad diesel engine with equivalent equipment.

  • Repower
    The projects must replace an existing diesel engine with a newer, cleaner engine or power source that is certified by the Environmental Protection Agency and, if applicable, meet a more stringent set of engine emission standards.

  • Retrofit
    The projects must equip a diesel engine with new emissions-reducing parts or convert the diesel engine into an engine capable of being powered by alternative fuel.

Program review

DEQ is providing a snapshot of the investments, emissions reductions, community benefits, and engagement among participants and applicants during 2021 and 2022.

  • View the Program Review and learn about any upcoming public meetings on this topic.


Email with any questions about this program.