The Oregon Department of Environmental Quality is accepting applications for its 2026 Diesel Emissions Mitigation Grants, supporting replacement, repower, or retrofit of qualifying older diesel vehicles and equipment operating in Oregon.
Funding
DEQ expects approximately $6 million to be available through Volkswagen settlement funds and anticipated federal Diesel Emissions Reduction Act funding. DEQ does not publish one universal per-project maximum. Reimbursement varies by project type, equipment, fuel, and owner, generally from 25% to 100% of eligible project cost under the applicable funding matrix. The 2026 program guide states electric-vehicle projects may receive up to 100% of eligible cost for public entities and up to 75% for private businesses and individuals.
Deadline
Applications are due October 21, 2026 at 5:00 PM Pacific Daylight Time through the DEQ Grants/WebGrants system.
Who Can Apply
Public, private, and Tribal entities that own qualifying diesel equipment operating in Oregon may apply. DEQ’s 2026 guidance expressly lists Class 4-8 school buses among qualifying equipment, so Oregon public school districts and other eligible school-bus owners may be viable applicants when their specific fleet meets the program’s model-year, engine, useful-life, and other requirements.
Eligible Projects and Requirements
Eligible project types include replacement, repower, and retrofit. Applicants should be prepared to provide the DEQ Grants application, Fleet Information Spreadsheet, vendor quotes, vehicle and equipment details including VIN and Engine Family Name, and supporting attachments requested in WebGrants. Qualifying old diesel equipment generally must have at least three years of remaining useful life. Awarded projects must comply with applicable retirement, destruction, or approved exhaust-control requirements and grant-administration rules.
Atlas Assessment
Atlas Opportunity Score: 80/100. This is a newly open statewide Oregon opportunity with approximately $6 million expected, an exact deadline, explicit school-bus eligibility, and potentially high reimbursement for qualifying public-entity projects. Applicant-specific fleet eligibility and the exact reimbursement percentage must be verified before pursuing a school-district application.
N9+ Fit Score: 0/100. The verified funded scope is diesel vehicle and equipment replacement, repower, or retrofit. It does not support a legitimate use case for the Nonagon N9+ remote physical examination platform or other QC Healthcare technology.
Program Contact
Rhett Lawrence, Oregon DEQ
Email: rhett.lawrence@deq.oregon.gov
Phone: 503-880-9146
Official source: Oregon DEQ Diesel Grants
Application portal: DEQ Grants