Oklahoma Clean Diesel Program

The Oklahoma Clean Diesel Program, administered by the Oklahoma Department of Environmental Quality (DEQ), is a state-level initiative supported through federal Diesel Emissions Reduction Act (DERA) funding and matched with Volkswagen Settlement funds. The program is designed to reduce harmful diesel emissions and improve air quality across Oklahoma, with a particular emphasis on protecting children and vulnerable populations. By targeting diesel school buses, the program aims to modernize transportation fleets used daily by students while reducing environmental and public health risks associated with older diesel engines. The primary purpose of this funding opportunity is to support the replacement of older diesel-powered school buses with newer, cleaner alternatives. Eligible replacement vehicles include diesel, gasoline, all-electric, propane, or natural gas-powered buses that meet current Environmental Protection Agency emissions standards. The program focuses exclusively on school bus replacement projects and requires that all funded vehicles be newly manufactured and compliant with stringent emissions requirements. In addition to vehicle acquisition, certain costs such as charging infrastructure for electric buses may be eligible, while optional add-ons that significantly increase vehicle cost are generally excluded. Funding is provided through reimbursement-based cooperative agreements. Subgrant recipients must first expend their own funds and are reimbursed after submitting proper documentation and invoices. The total funding available for this cycle is approximately 643,482 dollars, with individual reimbursement levels determined by vehicle type. Standard diesel or gasoline replacements may receive up to 25 percent of costs, low-NOx vehicles up to 35 percent, and zero-emission electric buses up to 45 percent. All applicants are required to provide matching funds based on these reimbursement percentages and must comply with procurement and competitive bidding requirements. Eligibility is limited to Oklahoma school districts that transport students from pre-kindergarten through grade 12. Applicants must demonstrate that the buses being replaced meet strict criteria, including age, usage, and operational status. Replacement projects must qualify as early attrition, meaning the buses are being retired before their scheduled end of life. Additional requirements include implementation of an idle reduction policy, compliance with federal procurement standards, and commitment to maintaining the new vehicles in service for at least five years. Quarterly reporting is required for one year following project initiation. Applications are submitted via email and are reviewed on a first-come, first-served basis rather than through a competitive scoring process. The application period opened on June 18, 2025, and remained open until all available funding was awarded. Applicants must include detailed project descriptions, cost estimates supported by quotes, and documentation verifying eligibility. Supporting materials such as vehicle identification details and compliance documentation are also required to ensure completeness. The program operates on a defined timeline tied to project completion requirements. All awarded projects must be completed and funds fully expended by September 1, 2026. Upon selection, recipients must execute a Memorandum of Agreement with DEQ before receiving a Notice to Proceed. Work cannot begin until this notice is issued. Vehicles must be replaced within 120 days of agreement execution unless an extension is approved. The program does not guarantee recurrence but has historically been offered in multiple funding rounds, suggesting potential future opportunities. For assistance or inquiries, applicants may contact the program via the official email address cleandiesel@deq.ok.gov or reach out to the program contact listed in the solicitation. Additional resources, including application guidance and fact sheets, are available through the DEQ Clean Diesel webpage. The program reflects a coordinated effort between state and federal agencies to advance cleaner transportation infrastructure and improve environmental outcomes statewide.

Submit early as awards are first come first served; ensure all eligibility criteria are fully documented including vehicle requirements and quotes; incomplete applications may be rejected