Zero Emission Rebates for Oregon Fleets

​​The 2023 Oregon Legislature passed House Bill 3409, authorizing the Oregon Environmental Quality Commission to adopt rules  to implement a new rebate program supporting the purchase of zero-emissions medium- and heavy-duty vehicles. 

HB 3409 authorizes DEQ to establish the Zero-Emissions Rebates for Oregon Fleets program (ZERO Fleet). The Environmental Quality Commission adopted rules for the ZERO Fleet program that specify details including application requirements, rebate allocation criteria, other requirements included in the statute, and program elements to alleviate disproportionate air pollution burdens among frontline communities. 

In Oregon, medium- and heavy-duty vehicles are currently responsible for an estimated 9.3 million metric tons of greenhouse gas emissions annually—approximately 42 percent of all greenhouse gases from the on-road vehicle fleet. This new rebate program will provide critical support for Oregon's transportation fleets to transition to zero emissions technologies and reduce these emissions statewide. ​​

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The ZERO Fleet program offers a cash rebate for Oregon businesses, non-profits and government entities who purchase or lease electric medium and heavy-duty vehicles. It is not a tax credit. DEQ designed the program to reduce vehicle emissions by encouraging more Oregon to purchase or lease electric vehicles rather than gas vehicles. 

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• Applicants must be a registered Oregon business, non-profit, or government entity.  
• To be eligible for a medium and heavy-duty vehicle rebate, a motor vehicle must be:  
1. A qualifying vehicle, as defined in 340-270-0030(21), and must have a purchase or lease date on or after effective date of the program for the type of vehicle, as established in OAR 340-270-0020(3);  
2. A new zero emission vehicle. Retrofits and repowers of existing vehicles or those already owned by the Applicant are not eligible;  
3. Purchased or leased and registered within twelve months of receipt of rebate approval. An applicant may request and DEQ may approve an extension for up to an additional six months, on a form provided by DEQ. Any extension request will be reviewed on a case-by-case basis; and;  
4. Procured from a vehicle dealer that meets program eligibility requirements.  
5. Vehicles rebated by the Oregon Clean Vehicle Rebate Program, as established in OAR 340-270-0010 through OAR 340-270-0500, are not eligible for a ZERO Fleet rebate. 
• Applicants can receive a maximum of 5 rebates per calendar year.  

 

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• 17 Million Available  
• $3 million from Oregon Vehicle Privilege Tax  
• $14 million from EPA CERTA Grant  
• Rebate Amounts by Gross Vehicle Weight Rating (GVWR) Class:  
• Class 2b vehicles between 8,501 – 10,000 GVWR: $2,500 
• Class 3 vehicles between 10,001 – 14,000 GVWR: $45,000 
• Class 4 vehicles between 14,001 – 16,000 GVWR: $60,000  
  
• Class 5 vehicles between 16,001 – 19,500 GVWR: $60,000 
• Class 6 vehicles between 19,501 – 26,000 GVWR: $85,000 
• Class 7 vehicles between 26,001 – 33,000 GVWR: $85,000 
• Class 8 vehicles 33,000+ GVWR: $120,000 ​

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When will the applications be available?  

• Applications launch late 2025 

What class of vehicle is considered medium or heavy-duty?  

• Vehicles with a Gross Vehicle Weight Rating between Class 2b – Class 8.   

Are leases eligible for ZERO Fleet?  

• Yes, the vehicle must be owned, operated, and registered in Oregon for a minimum of three (3) years.  

Do pre-owned MHD EVs qualify?  

• Pre-owned (or used) medium and heavy-duty electric vehicles are not eligible for rebates.  

Who are the approved dealers?  

• Approved dealers are listed in the ZERO Fleet online portal. If you do not see your preferred dealer listed, please have the dealer apply on the  ZERO Fleet Dealer Site or contact us at zerofleet@deq.oregon.gov.  

How do I become an approved dealer?  

• Dealers must be registered and in good standing with the Oregon Secretary of State and the Oregon DMV. Please visit the ZERO Fleet Dealer Site to apply to become an approved dealer.  

How is GVWR defined and determined for rebate class?  

• Gross Vehicle Weight Rating is determined by the manufacturer and is listed along with the vehicles VIN.  

How do dealers and rebate recipients coordinate payment?  

• Approved dealers will deduct the rebate amount from the vehicle's purchase price, and the DEQ will reimburse the dealer directly. The rebate benefit is provided to the purchaser, with the dealer being compensated for the rebate amount deducted from the vehicle's purchase price.  

Is scrappage required for the ZERO Fleet program?   

• No, you do not need to scrap a vehicle to be eligible for the ZERO Fleet program.  

Do the vehicles have to be new?  

• Yes, vehicles must be purchased or leased new from an approved dealer.   

Do vehicles have to be on-road? 

• Vehicles must be registered wit the Oregon DMV for a minimum of 3 years.  ​

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