Diesel School Bus Replacement Program

October 04, 2023


In response to the Volkswagen settlement, the Oregon Department of Environmental Quality (DEQ) established the diesel school bus replacement program to support the replacement or retrofit of school buses. Under this program, school districts have the option to install diesel particulate filters or to scrap and replace buses in their fleet. Buses selected for replacement must have at least three years of remaining useful life, have operated in Oregon in the past year, and will continue to operate in Oregon for at least the three years following. The funding amount is up to 100% of costs to purchase and install exhaust controls, or the lesser of $50,000 or 30% of replacement costs to purchase an Oregon minimum standard bus to replace the bus that is scrapped.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Oregon
Incentive Type: Grant Program
Web Site: https://www.oregon.gov/deq/aq/programs/Pages/VW-Diesel-Settlement.aspx
Administrator: Oregon Department of Environmental Quality
Start Date:
Eligible Renewable/Other Technologies:
  • Electric School Buses
Incentive Amount: 30% of cost, up to $50,000 for new buses
Up to 100% of cost for retrofitting buses


This program has 1 incentives
Technologies: Electric School Buses
Sectors: Schools
Parameters: The incentive is 30.00 % of cost, The incentive has a minimum of $50000.00


Name: ORS 468A.805


Name: Diesel Grants
Organization: Oregon Department of Environmental Quality
Phone: (503) 229-5159
Email: dieselgrants@deq.oregon.gov

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.