Oregon’s goal to reduce greenhouse gas emissions from the state’s largest sectors is getting a boost from federal funding it was awarded last year.

On Tuesday, the Oregon Department of Environmental Quality’s commission received an update on the Climate Pollution Reduction Grant program. Across the U.S., the federal program is set to provide $5 billion in funding for climate action through the Biden administration-backed Inflation Reduction Act. It targets community-driven projects that reduce carbon emissions and help the transition to more renewable energy.

Last year, Oregon was chosen to receive $197.2 million to reduce emissions from the building, transportation and waste and materials sectors. Those sectors account for nearly 70% of the state’s greenhouse gas emissions, according to DEQ.

The five-year grant is being implemented through a collaborative effort between DEQ and four other state agencies, along with the Energy Trust of Oregon. So far, work is on track despite the Trump administration’s efforts to claw back funding for other federal climate programs.

Climate Pollution Reduction Grant funding is being used in programs that already exist across Oregon, and also to implement new programs. For example, DEQ’s Clean Vehicle Rebate program received a $31 million boost to help low- to moderate-income residents get into electric vehicles. About half of those funds have already been issued to qualified Oregonians.

Through the Oregon Department of Energy, 712 heat pump rebates have been issued, helping homeowners and renters get heat pumps in their homes. Energy Trust of Oregon has also issued more than 360 home construction rebates for new homes that are at least 10% more energy efficient than current building codes.

So far, funding from the grant has been issued in 32 out of 36 counties.

Despite the multiple agencies’ work during the program’s first year, there is still some uncertainty that looms from the federal government.

Since day one of Donald Trump’s presidency, the administration has cut billions of dollars of federal funding for climate action programs. The administration has vowed to gut programs that focus on renewable energy or climate action. But so far, the Climate Pollution Reduction Grant remains intact.

“We have not had any issues with accessing the Climate Pollution Reduction Grants to date,” DEQ’s Director Leah Feldon said. “So this has been stable funding to date in terms of implementing our climate work in Oregon.”

Though the state agency cannot guarantee the funds will continue to be dispersed by the federal government, it has updated plans with the Environmental Protection Agency in an effort to allocate funds more quickly.

DEQ’s Colin McChonnha said the speed also comes with other benefits.

“We’re rushing ahead because we know the sooner we can get these monies invested, the sooner we get reductions of benefits. We have confidence in this grant program that the EPA fully obligated these funds already,” McConnaha said. “We’re moving ahead expeditiously wherever possible here because we want to get these monies out the door in Oregon, but not trying to get ahead of administration.”

There are also secondary benefits, DEQ’s Climate Pollution Reduction Grant Coordinator Kali Glenn-Haley said, “such as lower utility bills for many Oregonians, improved health outcomes, incentivizing housing production, and increased market demand for various products and services.”

Oregon’s Climate Pollution Reduction Grant program is distributing these funds to its three target sectors:

· $66 million towards Transportation

· $66 million toward residential and commercial buildings

· $61 million towards material and waste management

DEQ plans to implement the grant through 12 measures across those three sectors, while also prioritizing community benefits, engaging with tribes and communities most impacted by climate change, and understanding gaps in policies and data.

Overall, DEQ expects the federal grant could reduce the state’s greenhouse gas emissions by 6.5 million metric tons over five years. That’s equivalent to removing about 1.5 million gas-powered vehicles from Oregon roads.

Oregon was one of 25 grantees and the only West Coast state to receive the federal funding.

DEQ’s Climate Pollution Investments Coordinator, Morgan Schafer, said Oregon was chosen because of the state’s existing programs and strategies already focused on reducing carbon emissions and promoting community resilience.

“There was a lot of effort put together where all the states and the municipalities came together to learn from each other and to help and support each other,” she said.

News Source : https://www.opb.org/article/2025/12/02/one-year-in-a-200m-climate-grant-has-funded-work-in-32-of-oregons-36-counties/