DEQ’s ZERO Fleet Rebate Program commits nearly all funding

Big news! Just eight months after launching, the Oregon Department of Environmental Quality announced today the Zero-Emissions Rebates for Oregon Fleets Program, also known as the ZERO Fleet Rebate Program, has committed nearly all its available funds following strong demand from Oregon fleets. DEQ expects to reach the program's $17 million funding limit within the next week and will then close the application portal to new applications.

Launched in December 2025, the ZERO Fleet Rebate Program provides money for Oregon businesses, non-profit organizations and government agencies to purchase or lease new, all-electric medium- and heavy-duty vehicles in Gross Vehicle Weight Rating Classes 2b through 8. Rebate amounts range from $2,500 to $120,000, depending on vehicle weight class. The program aims to reduce diesel pollution and quicken the move to cleaner technologies in transportation, considered Oregon's highest polluting sector.

As of mid-August, ZERO Fleet rebates are supporting the purchase or lease of more than 150 new zero-emissions vehicles across Oregon, including:

• 90 heavy-duty vehicles in Classes 6-8, including refuse trucks, big rigs, semi-trucks, yard trucks, school buses, delivery trucks and a logging truck.
• More than 60 vehicles in Classes 2b-5, including cargo and utility box vans and duty-focused straight trucks.
• 60% of state funding invested in communities disproportionately affected by diesel pollution, including areas near freight corridors, industrial regions and major roadways.

"The overwhelming interest in the ZERO Fleet Rebate Program shows Oregon fleets are ready to make meaningful investments in cleaner transportation," said DEQ Transportation Strategies Section Manager Rachel Sakata. "By balancing funding across vehicle classes and prioritizing communities most affected by diesel emissions, we're ensuring these rebates deliver the greatest air quality benefits while helping fleets transition to zero-emissions technologies."

Background

In 2023, the Oregon Legislature passed House Bill 3409, authorizing the Oregon Environmental Quality Commission to adopt rules to create a new rebate program for zero-emissions medium- and heavy-duty vehicles. It also provided $3 million in seed money in hopes of attracting grant funding. The Commission adopted program rules in September 2024, which include elements to improve air quality in communities particularly burdened by diesel pollution.

An additional $14 million was awarded through the Climate Equity and Resilience Through Action, or CERTA, grant, which significantly expanded the program's capacity. A combined total of $17 million became available to help Oregon's truck owners and fleet operators transition to zero-emissions vehicles and reduce emissions statewide.

During the application period, DEQ established a funding cap for Class 3 vehicle rebates to ensure balanced support across vehicle classes with varying emissions impacts. The cap set Class 3 funding at 12% of the total program allotment, equaling just over $2 million. This approach protected funding availability for higher emitting vehicle categories, making full use of the program's ability to reduce pollution statewide.

Once applications have closed, DEQ will continue working with rebate recipients as vehicle purchasing and distribution progresses. DEQ will not maintain a waiting list. If additional funding becomes available, the agency will notify the public.

In the meantime, fleet operators and community members can stay informed about future medium- and heavy-duty grant and incentive opportunities by signing up for DEQ email updates.

For more information on DEQ's clean transportation initiatives, visit our Clean Vehicles web page. If you have technical questions, please email [email protected].