Volkswagen and DERA Funding Available for School Buses and Other Diesel Vehicle Projects

For Immediate Release: October 17, 2018

Contact: Erin Hatfield, (405) 702-7119

The Oklahoma Department of Environmental Quality (DEQ) is pleased to announce the availability of funding from two programs, the Oklahoma Clean Diesel Program (DERA) and the Alternative Fuel School Bus Program, to be spent towards reducing vehicle emissions in the state. Each program will offer funding for different types of projects.

“I am pleased to support the rollout of the Volkswagen Environmental Mitigation Trust funds and DERA funding for school bus projects across Oklahoma,” said Governor Mary Fallin. “This is an exciting opportunity for school districts across Oklahoma to upgrade aging school buses, in addition to taking on the environmental responsibility of transporting students in cleaner-burning fuel buses.”

The Alternative Fuel School Bus program, funded by the Volkswagen State Environmental Trust, is offering approximately $4.1 million towards projects within the state that promote the use of alternative fuels in school buses for pre-Kindergarten through grade 12. Alternative fuels included under this program include all-electric, electric hybrid, propane (LPG), and natural gas (LNG or CNG). Potential projects are below:

Replacement of 2009 or older Class 4-8 diesel school buses with new alternative fuel buses

Repower of 2009 or older Class 4-8 diesel school buses with new alternative fuel engines

Electric charging infrastructure, if applying for an all-electric bus repower or replacement

The Clean Diesel / DERA program is offering approximately $638,000 towards the following project types:

  • Installation of exhaust control retrofits on a wide variety of engine model year (EMY) 1995-2006 diesel vehicles, including but not limited to municipal buses, heavy duty trucks and non-road vehicles.
  • Replacement of EMY 1995-2006 Class 5-8 school buses with new diesel or gasoline buses

Funding applications for both programs will be accepted from October 16 through December 3, 2018. To find more information on these funding opportunities, visit, or call the DEQ Air Quality Division at (405) 702-4100.