Daimler Trucks North America will be manufacturing two new models of electric heavy duty trucks at its factory in Portland.
Courtesy of Daimler Trucks North America
Environmental regulators are proposing rules that would offer truck manufacturers a pathway to meet Oregon’s medium- to heavy-duty zero-emission trucks guidelines, even if they don’t sell an electric truck.
Officials say this would give the trucking industry time to develop more zero-emission heavy-duty vehicles while still following Oregon Gov. Tina Kotek’s request to keep the rules.
Under the Oregon Department of Environmental Quality’s proposed Clean Truck Rules, the Oregon Optional Credit Program would provide credits to truck makers who continue to sell diesel trucks in 2025 and 2026. Those credits would offset penalties the truck makers might otherwise incur by failing to sell cleaner vehicles.
DEQ Senior Transportation Policy Advisor Gerik Kransky said the program would support an eventual transition to zero-emission vehicles.
“There have been sort of limits on availability of all vehicles, and this optional credit program is designed to ensure that there are credits available for manufacturers to sell all vehicle types starting now, and we think that will help get the manufacturers accustomed to engaging with the credits and deficits,” he said.
Kransky said a requirement to participate in the program would be to agree to “no sales restrictions” of internal combustion vehicles.
That requirement comes after Portland-based Daimler Truck North America abruptly halted sales of its internal combustion engine vehicles in December after receiving incorrect information from DEQ about how it would receive credits when the temporary rules were adopted. The company resumed sales in mid-January after DEQ clarified the program’s rules.
Kransky said there are still some manufacturers withholding sales of their diesel trucks because they want to avoid a penalty from the agency. He said because of this, DEQ created the credit program that would provide 100% of credits needed for manufacturers of large trucks to stay in compliance with the law through at least 2026 without financial penalties.
Those include companies that make 18-wheelers. It would provide 50% worth of credits for all other truck classes, such as pickups, vans and delivery trucks.
DEQ may consider extending the credit program based on the state’s greenhouse gas emissions, public health and truck market conditions.
DEQ’s Clean Truck Rules are trying to align with California’s vehicle and truck emission standards. Oregon is one of 10 states that have adopted California’s standards for these vehicles.
Kransky said “the credit program does not change the zero emissions vehicle delivery requirements” under Oregon law, and the state would stay aligned with California.
The U.S. Environmental Protection Agency under the Trump administration has targeted California’s clean vehicle rules as being too costly, and Republicans have said they are looking for a path to repeal federal waivers that allow the emissions restrictions.
Continued pushback
Besides the addition of the credit program, Oregon’s Clean Truck Rules are facing other proposed changes. Those changes would allow truck companies up to three additional years to be in compliance with state emissions rules. They also would permanently delay rules limiting nitrogen oxide pollution from fossil fuel engines.
Leaders in the trucking industry have said Oregon’s rules are not ready to be implemented, saying there are not enough zero-emission trucks that could meet industry needs for hauling heavy loads and driving long distances. They’ve also pointed out the lack of public charging infrastructure for heavy-duty trucks.
Meanwhile, environmental and public health advocates say the rules have to move forward to reduce the state’s greenhouse gas emissions. According to DEQ, the transportation sector accounts for 35% of Oregon’s overall greenhouse gas emissions.
The push and pull over the rules has also prompted Kotek to send a letter to DEQ in March requesting the agency find a way “to quickly develop a solution” for the largest truck makers.
Last month, Environmental Quality Commissioner Chair Matt Donegan questioned whether the rules were ready to be implemented later this year and suggested a one- to two-year delay may not be enough time to address all the issues.
State Rep. Shelly Boshart-Davis, R-Albany, said the proposed rules from DEQ still won’t work.
“I’ve come to a conclusion that either DEQ doesn’t want to make this work or doesn’t know how to make this work because there’s no manufacturers out there or dealerships, or anybody, that says this will work,” she said.
Representative Shelly Boshart Davis, R-Albany, Feb. 5, 2024, on the opening of the legislative short session at the Oregon state Capitol in Salem, Ore.
Kristyna Wentz-Graff / OPB
Boshart-Davis is the chief sponsor of a House bill that would delay the implementation of the Advanced Clean Truck rules to 2027. The bill is set for a work session on April 8.
She’s heard from truck manufacturers that sales are down because they are trying to sell a zero emissions truck that would keep them in compliance with the rules before they sell a diesel engine. Because of that, truck manufacturers and dealers have not been able to sell any diesel-powered vehicles, she said.
DEQ’s rules do not ban the sale of diesel truck engines, rather they increase the required amount of zero emission truck sales over time.
Boshart-Davis also said the proposed credit program is not a program that California has and questioned if Oregon is opening itself to legal risk by diverging from California’s rules.
“This credit process or this credit scheme, whatever you want to call it, isn’t happening in California, so therefore, it’s not identical,” she said. “And so doing this takes a risk and puts people up for risk of litigation to be sued because they’re not following this. So legally this is not identical to California.”
DEQ is seeking public comment on the rules through April 23. The agency will hold a public hearing on April 17. The Environmental Quality Commission is set to vote on the proposed rules in July.
