The Oregon Legislature in 2017 authorized a focused project list looking only to upgrade or replace at least 450 older diesel school buses. The DEQ accordingly issued a notice in May 2018 indicating that its plan is to target the replacement or upgrade of at least 450 school buses. Of the 2800 or so diesel school buses older than model year 2007 the DEQ determined that there would still be 450 buses remaining in 2025 after normal turnover had occurred. This funding is meant to facilitate the change out of these remaining buses. As per the direction in statute, buses were randomly selected among public and private school fleets operating in the state. This project will take about $18-20 million of the $72.9 allocation to the state of Oregon. DEQ anticipates the Oregon Legislature in the 2019 legislative session will consider authorizing additional priorities for the remaining funds. There will be opportunities for your involvement in this priority setting process both in the legislative and administrative realms.
25% - School bus program
75% - Flexible funding
SB1008. Includes authorization permitting the VW Settlement Funds to be deposited in the Clean Diesel Engine Fund. Requires that VW funds be used to reduce NOx emissions, and directs that funds be used first to replace 450 school buses. Use of VW funds for other purposes may not be granted without prior approval of the Legislative Assembly. Funding for school buses includes $50,000 or 30% of the cost to purchase a school bus that meets minimum standards established by the School Board, or up to 100% of cost to retrofit school with PM controls that reduce emissions by 85% or more. Replaced diesel buses must have at least 3 years remaining life and new buses must be used in Oregon for three years following award. Status: Governor signed 8/16/17.