Air Funding FAQs

• According to our Beneficiary Mitigation Plan, DEQ is currently or will in the future be opening up funding opportunities for the following project categories:
• • School Buses
    • Oklahoma Clean Diesel/DERA Program
    • Alternative Fuel School Bus Program
  • Light-Duty Zero Emission Vehicle Infrastructure
    • ChargeOK Program
  • On-Road Vehicles
    • Class 8 Local Freight and Drayage Trucks
    • Class 4-8 Shuttle or Transit Bus
    • Class 4-7 Local Freight Trucks
  • Non-Road Vehicles
    • Freight Switchers
    • Ferries/Tugs
    • Airport Ground Support Equipment
    • Forklifts and Port Cargo Handling Equipment
  • For more information, please see the Beneficiary Mitigation Plan.

Oklahoma will be announcing funding programs in phases. There is currently no timeline for when phases will begin and end, but each phase can be expected to last for at least one year.

• Phase 1 consists of the Alternative Fuel School Bus Program and light-duty zero emission vehicle infrastructure projects. Phase 1 began in 2018 and is complete.
• Phase 2 consists of on-road vehicle projects. Phase 2 began in 2021 and is ongoing.
• Phase 3 will consist of non-road vehicle projects. Phase 3 began in 2023 and is complete.
• The Oklahoma Clean Diesel/DERA Program is ongoing and will recur each year that adequate federal funding is available. Funding is typically announced in the fall of each year.

No. Within Oklahoma, Volkswagen State Mitigation Trust Funds are being administered competitively. A Grant Solicitation will be issued for each funding opportunity. Project applications for each Grant Solicitation will be accepted for a limited time and scored based on criteria in the solicitation. Funds will then be awarded to the top scoring applicants.

Terminal tractors are not eligible vehicles under the OnRoad2 funding opportunity. Using OnRoad2 funding for this equipment does not align with the intent of the program.

Fire trucks can be eligible if they meet the eligibility requirements.

Utility pole trucks can be eligible if they meet the eligibility requirements.

Yes, if they meet the eligibility requirements.

Diesel, gasoline, propane, natural gas, and all-electric powered school bus replacements are eligible under the FY23/24 DERA Program.  Please continue to check the DERA webpage to keep informed. 

The FY23-24 DERA second round application period will open on June 18, 2025, and will stay open until grant funds have been depleted or the project period has ended. This is not a competitive grant, the first complete applications with eligible projects will be awarded until funds are depleted. Subscribe to the GovDelivery Email Updates to keep informed.

Yes. Having successfully completed a DERA project does not disqualify an applicant or impact an applicant’s score. If an applicant had a late completion of a past Clean Diesel Program project, it may negatively impact their application score for future funding, but their application will not be disqualified.

No. A project cannot be started until after the recipient has been awarded and received the Notice to Proceed letter. The DERA grant does not cover any buses that have already been replaced or ordered.

The DERA grant is open to all school districts that transport students in grades pre-Kindergarten through 12.

Currently, only school districts are eligible for grant funding. This could change for future grants. Please continue to check the Oklahoma Clean Diesel (DERA) Program to keep informed.

Yes. Eligible buses must be early attrition projects. Early attrition refers to a project where a vehicle is replaced before that vehicle is scheduled to be replaced. For the purposes of this grant, any vehicle that is due to be replaced, scheduled to be replaced, or has a life expiration date within less than 3 years is normal attrition and therefore not eligible for the Oklahoma Clean Diesel Grant Program funds.

No, the original school bus to be replaced must be diesel.

Yes. If both the new bus and the bus to be replaced meet all eligibility criteria, then the replacement bus may be an activity bus.

There is no award cap for the DERA program. It is encouraged to apply for multiple buses.

Yes, for the second round of applications for the FY23/FY24 DERA grant, applications need to be submitted by email to the cleandiesel@deq.ok.gov inbox. This is to ensure that the application has a time stamp.

No. If scrappage meets the requirements described in the Grant Solicitation as well as the MOA then it does not matter who scraps the bus. DEQ is not allowed to endorse any certain business to scrap buses. Typically, it is a scrap yard or metal recycling business. The Certificate of Destruction must be signed by the school and the dismantler. Additionally, proper clear photographs of the scrappage, a signed destruction form, and copies of any receipts or checks acquired from the scrapping will be required.

Traditional lease agreements without the option to purchase the vehicle are not eligible. However, “Lease Purchase Agreements” or other similar agreements may be eligible only if the award recipient owns the title to the vehicle by the end of the announced project period, and prior to submitting reimbursement paperwork. Eligibility of said agreements will be reviewed on a case-by-case basis.

• Email: VWSettlement@deq.ok.gov
• Phone: 405-702-4100
• Postal Mail:
  • Oklahoma Department of Environmental Quality
  • AQD – Volkswagen Settlement Programs
  • 707 N Robinson
  • PO Box 1677
  • Oklahoma City, OK 73101

• Email: CleanDiesel@deq.ok.gov
• Phone: 405-702-4100
• Postal Mail:
  • Oklahoma Department of Environmental Quality
  • AQD – Clean Diesel Grant Program
  • 707 N Robinson
  • P.O. Box 1677
  • Oklahoma City, OK 73101