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 Emission 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.
According to the Oregon Clean Trucks Report, medium- and heavy-duty vehicles are currently responsible for an estimated 9.3 million metric tons of greenhouse gas emissions in Oregon 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.
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.
Note: Vehicles must be purchased or leased from a certified vehicle dealer OR an original equipment manufacturer. No person-to-person sales allowed.
To be eligible for a medium and heavy-duty vehicle rebate, a motor vehicle must be:
- A qualifying vehicle, as defined in OAR 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);
- A new zero emission vehicle. Retrofits and repowers of existing vehicles or those already owned by the Applicant are not eligible;
- 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;
- Procured from a vehicle dealer that meets program eligibility requirements.
- 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.
Rebates are only available for qualified purchases from an approved vehicle dealer or an original equipment manufacturer that does not have licensed franchised new automobile dealers in Oregon. For a vehicle dealer or original equipment manufacturer without franchised dealers in Oregon to be eligible, it must:
- Be registered or register to conduct business in Oregon.
- Provide documentation to support buyer applications and functionality of the vehicle, including:
- A link to vehicle dealer website that indicates qualifying vehicles available for sale, and their related specifications or other documentation that provides this information;
- A specification sheet or, if custom vehicle, specification sheets for all major components, corroborating vehicle capabilities, charging/fueling needs, design appropriate to Purchaser's planned use, and eligibility;
- Timeline and process/plans by which vehicle dealer intends to comply with the terms of the rebate (e.g., delivery of vehicle,) prior to expiration of rebate; and
- Agree to accept DEQ's rebate amount as a portion of the Purchaser's final vehicle payment, deducting the full rebate(s) amount from the upfront cost.
- Provide any additional information and documentation requested by DEQ that is necessary to ascertain that the applicant, vehicle, and vehicle dealer qualify for a rebate.
$17 Million Available
- $3 million from the State of Oregon
- $14 million from EPA Climate Equity and Resilience Through Action (CERTA) grant
Rebate Amounts by GVWR Class:
- Class 2b vehicles between 8,501 – 10,000lbs: $2,500
- Class 3 vehicles between 10,001 – 14,000lbs: $45,000
- Class 4 vehicles between 14,001 – 16,000lbs: $60,000
- Class 5 vehicles between 16,001 – 19,500lbs: $60,000
- Class 6 vehicles between 19,501 – 26,000lbs: $85,000
- Class 7 vehicles between 26,001 – 33,000lns: $85,000
- Class 8 vehicles 33,000+lbs: $120,000
Complete eligibility application, get access to the ZERO Fleet Online Portal, and apply for rebates.
- Purchaser Eligibility Application
This application assesses eligibility to participate in the program. Once approved, you will be able to access the Purchaser Login and apply for individual rebates in the web portal. - Purchaser Login
Apply for rebates once logged in. Must have completed Purchaser Eligibility Application and been approved to be able to access Purchaser Login. - Dealer / OEM Approval Application
This application assesses eligibility to participate in the program. Once approved, you will be able to access the Dealer Login and apply manage rebate applications at your dealership. - Dealer / OEM Login
Manage applications associated with the Dealership here. Must have completed Dealer/OEM Eligibility Application and be an Approved Dealer to access Dealer/OEM Login.
Contacts
If you have questions, please email zerofleet@deq.oregon.gov.
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