HB 2007 – State Diesel Policy

​HB 2007 authorizes DEQ to fully disburse Oregon's remaining Environmental Mitigation Funds. DEQ will conduct a rulemaking to create a new grant program in order to distribute them. The funds will be used to support retrofitting or replacement of older diesel vehicles and equipment. The new program will specify grant application requirements, project selection criteria and other conditions, including those in the bill. 

These funds will help reduce air pollution associated with older diesel vehicles and equipment in Oregon. The overall goal of the Environmental Mitigation Fund at the national level is to reduce nitrogen oxide emissions from mobile sources with a focus on medium- and heavy-duty diesel engines. Oregon's current plan prioritizes benefits for vulnerable populations, areas of the state with the highest levels of pollution from diesel engines, and cost effectiveness of treatment.

Oregon DEQ plans to engage the public and stakeholders in a rulemaking process throughout 2020 and launch the new grant program in early 2021. The rulemaking process will provide an opportunity for diesel equipment owners and operators, community groups, and affected individuals to have input on many of the grant program details. DEQ intends to make grant funding available approximately two years prior to the January 1, 2023 deadline for phasing out vehicles powered by diesel engines that are model year 1996 or older, as specified in HB 2007. Each project that receives funding will achieve lower diesel emissions, as required by the Environmental Mitigation Fund. DEQ will continue to support projects until all statutory requirements are met and all the funds are spent.

• DEQ's diesel school bus replacement program
• Volkswagen Grants 2020 Proposed Rule ​

HB 2007 (2019) established deadlines, after which certain older model diesel engine vehicles cannot be titled or registered in Clackamas, Multnomah and Washington Counties. The first phase is effective Jan. 1, 2023, and includes vehicles equipped with a 1996 or older diesel engine.

Medium- and heavy-duty vehicles with a 1996 or older diesel engine may continue to renew vehicle registration if they participate in the DEQ Retrofit Compliance Program and meet DEQ-approved retrofit requirements.

Please visit DEQ's Diesel Retrofit Compliance Program website for information and program requirements. Act now to find out if your vehicle is eligible for a DEQ-approved retrofit by reviewing the program requirements and consulting with a manufacturer-approved installer.

In addition, DEQ offers annual Diesel Emissions Mitigation Grants to address emissions from a wide array of diesel equipment operating in Oregon. The 2022 grant application process will open in April and owners of qualified medium- and heavy-duty trucks are invited to apply for funding to support the installation of diesel particulate filters.

For questions about vehicle registration renewal or exemptions of medium-duty vehicles, contact the Oregon Driver and Motor Vehicle Division at 503-945-5000. For questions about heavy-duty vehicle registration renewal or exemptions of heavy-duty vehicles, email the Oregon Department of Commerce and Compliance at CCDHB2007Inquiries@odot.state.or.us​ or call 503-378-6699.

HB 2007 directs DEQ to develop a voluntary labeling program that will demonstrate the emissions performance of non-road diesel equipment used in construction. Owners and operators will be able to place a sticker on their diesel-powered equipment during their construction projects in order to show that their equipment meets certain engine standards. DEQ will complete a rulemaking establishing the program elements regarding emissions control labels with an estimated program launch date in 2021.​