Hydrogen Laws and Incentives in Oregon
The list below contains summaries of all Oregon laws and incentives related to hydrogen.
Laws and Regulations
Alternative Fuel Excise Tax
Compressed natural gas motor fuel is subject to the state fuel excise tax at the rate of $0.34 per 123.57 cubic feet. Liquefied petroleum gas motor fuel is subject to the state fuel excise tax at the rate of $0.34 per 1.353 gallons. Hydrogen motor fuel is subject to the state fuel excise tax at the rate of $0.34 per kilogram. Liquefied natural gas motor fuel is subject to the state fuel excise tax at the rate of $0.34 per 1.71 gallons.
(Reference Oregon Revised Statutes 319.530)
Alternative Fuel Vehicle Acquisition (AFV) and Fuel Use Requirements
Beginning January 1, 2025, all new light-duty state agency fleet vehicle purchases or leases must be all-electric, plug-in hybrid electric, or hydrogen fuel cell vehicles, to the maximum extent possible. If purchasing or leasing these vehicles is not feasible, state agencies may purchase or lease light-duty AFVs or qualifying low-emission vehicles. Each state agency must develop and report a greenhouse gas reduction baseline and annual reduction targets to the Oregon Department of Administrative Services (DAS). Reports to DAS must include the number of purchases or leases of ZEVs, AFVs, and AFV conversions and the quantity of each type of alternative fuel used annually by state agency fleets.
(Reference Executive Order 20-04, 2020 and Oregon Revised Statutes 267.030 and 283.327)
Clean Transportation Fuel Standards
The Oregon Department of Environmental Quality (DEQ) administers the Oregon Clean Fuels Program (Program), which requires fuel producers and importers to register, keep records of, and report the volumes and carbon intensities of the fuels they provide in Oregon. Phase 2 of the Program, implemented in 2016, requires fuel suppliers to reduce the carbon content of transportation fuels.
In 2022, a new goal was implemented to reduce the carbon content of transportation fuels by 20% below 2015 levels by 2030, and 37% below 2015 levels by 2035.
DEQ must conduct rulemaking for the Program to support greater electric vehicle (EV) adoption. DEQ must also develop a method to aggregate and monetize all eligible EV credits in the Program to assist in achieving the state goal of 250,000 registered EVs in Oregon by 2025. For more information, see the DEQ Oregon Clean Fuels Program website.
(Reference Oregon Revised Statutes 468A.266, Oregon Administrative Rules 340-253, and Permanent Administrative Order DEQ 17-2022)
Electric Vehicle (EV) and Vehicle Efficiency Fees
All-electric vehicle owners must pay an annual fee of $115 or a per-mile road use fee of $0.02 per mile through the OReGo program. Hybrid electric vehicles and plug-in hybrid electric vehicles must pay an annual fee in the following amounts:
| Vehicle Efficiency | Annual Fee |
|---|---|
| Vehicles with a rating of 0-19 miles per gallon (mpg) | $20 |
| Vehicles with a rating of 20-39 mpg | $25 |
| Vehicles with a rating of 40 mpg or greater | $35 |
These fees are in addition to standard registration fees. Drivers with EVs or vehicles with ratings over 40 mpg are exempt from additional registration fees if they enroll in the OReGo program. For more information, including how to apply, visit the OReGo program website.
(Reference Oregon Revised Statutes 803.420-803.422)
Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Deployment Support
California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of MHD ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).
In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.
For more information, see the MHD ZEVs: Action Plan Development Process website.
Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Requirement
Oregon has adopted the California Advanced Clean Trucks requirements specified in Title 13 of the California Code of Regulations requiring manufacturers to meet California’s ZEV production and sales requirements. Beginning with model year 2025, manufacturers will be required to sell zero-emission trucks as an increasing percentage of their annual sales for Class 2b through Class 8 vehicles in Oregon. ZEVs include all-electric and fuel cell electric vehicles. For more information, see the Oregon Department of Environmental Quality Clean Vehicles website.
(Reference DEQ Administrative Order 17-2021 and Oregon Administration Rules 340)
State Emissions Reductions and Reporting Requirements
Oregon will pursue transportation electrification as part of greenhouse gas emissions reduction targets of at least 45% below 1990 levels by 2035, and at least 80% below 1990 levels by 2050. Select state agencies must report actions to reduce emissions annually. The Oregon Department of Transportation published a report on statewide transportation electrification infrastructure analysis with updates in August 2022. Additional requirements apply.
(Reference Executive Order 20-04, 2020)
Zero Emission Vehicle (ZEV) Deployment Support
Oregon joined California, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Rhode Island, and Vermont in signing a memorandum of understanding (MOU) to support the deployment of ZEVs through involvement in a ZEV Program Implementation Task Force (Task Force). In May 2014, the Task Force published a ZEV Action Plan (Plan) identifying 11 priority actions to accomplish the goals of the MOU, including deploying at least 3.3 million ZEVs and adequate fueling infrastructure within the signatory states by 2025. The Plan also includes a research agenda to inform future actions. On an annual basis, each state must report on the number of registered ZEVs, the number of public electric vehicle (EV) charger and hydrogen fueling stations, and available information regarding workplace fueling for ZEVs.
In June 2018, the Task Force published a new ZEV Action Plan for 2018-2021. Building on the 2014 Action Plan, the 2018 Action Plan makes recommendations for states and other key partners in five priority areas:
- Raising consumer awareness and interest in electric vehicle technology;
- Building out a reliable and convenient residential, workplace and public charging/fueling infrastructure network;
- Continuing and improving access to consumer purchase and non-financial incentives;
- Expanding public and private sector fleet adoption; and
- Supporting dealership efforts to increase ZEV sales.
For more information, see the Multi-State ZEV Task Force website.
State Incentives
Alternative Fuel Loans
The Oregon Department of Energy administers the Small-Scale Local Energy Loan Program which offers low-interest loans for qualifying projects. Eligible alternative fuel projects include fuel production facilities, dedicated feedstock production, fueling infrastructure, and fleet vehicles. Loan recipients must complete a loan application and pay a loan application fee. For more information, see the Energy Loan Program website.
(Reference Oregon Revised Statutes 470)
Clean School Bus Grants
The Oregon Department of Environmental Quality must use funds awarded to Oregon through the Volkswagen (VW) Environmental Mitigation Trust and deposited in the Clean Diesel Engine Fund, to award grants to owners and operators of at least 450 school buses powered by diesel engines. Eligible vehicles include buses that have at least three years of remaining useful life. Grants will be available for 30%, up to $50,000, for the purchase of a new bus or up to 100% of the cost to retrofit a school bus with emissions-reducing parts or technology that reduce diesel particulate matter emissions by at least 85%. Any money not expended under this Clean Diesel Engine Fund will fund grants for the reduction of diesel engine emissions as matching funds under the Diesel Emissions Reduction Act program. For more information, see the VW Settlement website.
(Reference Oregon Revised Statutes 468A.795-468A.807)
Plug-In Hybrid Electric Vehicle (PHEV) and Zero Emission Vehicle Rebates
The Clean Vehicle Rebate Program provides rebates to Oregon residents, businesses, non-profit organizations, and government agencies for the purchase or lease of a new electric vehicle (EV), including a PHEV, electric motorcycle, or fuel cell electric vehicle (FCEV). EVs and FCEVs purchased between April 3, 2024, and June 4, 2024, with a battery capacity greater than 10 kilowatt-hours (kWh), are eligible for a rebate of $2,500. EVs and FCEVs with a battery capacity of less than 10 kWh are eligible for a rebate of $1,500.
Electric motorcycles are eligible for a rebate of $750. EVs may not have an MSRP of more than $50,000, and eligible FCEVs may not have an MSRP of more than $60,000. For more information, see the Clean Vehicle Rebate Program website.
(Reference Oregon Revised Statutes 468.442 - 468.444 and Temporary Administrative Order DEQ 19-2021)
More Laws and Incentives
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