The Oregon Department of Environmental Quality announced that its Zero-Emissions Rebates for Oregon Fleets Program has committed nearly all of its $17 million in available funding within eight months of launch, the agency said on August 19, 2026.
DEQ expects to reach the program's 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 weight classes 2b through 8. Rebate amounts range from $2,500 to $120,000 depending on vehicle weight class.
As of mid-August, the program was supporting the purchase or lease of more than 150 new zero-emissions vehicles across Oregon, including 90 heavy-duty vehicles such as refuse trucks, big rigs, semi-trucks, yard trucks, school buses, delivery trucks and a logging truck, plus more than 60 vehicles in lighter classes including cargo vans and utility box vehicles.
Sixty percent of state funding has been invested in communities disproportionately affected by diesel pollution, including areas near freight corridors, industrial regions and major roadways, according to the agency.
"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."
The program's $17 million in total funding came from $3 million approved by the Oregon Legislature in 2023 through House Bill 3409, plus an additional $14 million awarded through the Climate Equity and Resilience Through Action grant. During the application period, DEQ established a funding cap for Class 3 vehicles at 12% of the total program allotment to ensure balanced support across vehicle classes with varying emissions impacts.