Alternative Fuels -- State Regulations for Oregon

This page contains selected data from the Alternative Fuels Data Center (AFDC) at the U. S. Department of Energy. Additional details and the latest updates may be found at the AFDC summary page for Oregon.

Vehicle Acquisition

All vehicles (emissions standards mandate)

Under the Oregon LEV Program, all new passenger cars, light-duty trucks, and medium-duty vehicles sold, leased, licensed, or delivered for sale in the state must meet California vehicle emissions standards stated in Title 13 of the California Code of Regulations, Section 1962. Exemptions may apply. Each motor vehicle manufacturer must comply with the fleet average emission requirements, as well as the warranty, recall, and other applicable requirements. (Reference Oregon Revised Statutes 468A.360 and Oregon Administrative Rules 340-257)

State agency vehicles

All state agencies and transit districts must purchase AFVs and use alternative fuels to operate those vehicles to the maximum extent possible, except when it is not economically or logistically possible to purchase or fuel an AFV. Each state agency must develop and report a greenhouse gas reduction baseline and determine annual reduction targets. Reports to the Oregon Department of Administrative Services must include the volume of ethanol and biodiesel used by state agency fleets, as well as any cost savings attributable to driving more fuel-efficient vehicles and using alternative fuels. (Reference Oregon Revised Statutes 283.327 and 267.030, and Executive Order 06-02, 2006)

Fuel Use

All vehicles (fuel blend mandate, Portland)

All gasoline sold within the Portland city limits must contain a minimum of 10% ethanol (E10), and diesel fuel must contain a minimum of 5% biodiesel (B5) and meet ASTM D6751 standards. Fuel vendors must place signage denoting the type of biofuels mixture available for sale. A retailer who offers a biodiesel blend of 20% (B20) or greater is exempt from the requirement and is allowed to provide for sale, on the same site or a contiguous site, diesel fuel that does not contain biodiesel. For more information, see the City of Portland Development Services Biofuels Portland website.

All vehicles (biodiesel mandate)

All diesel fuel sold in the state must be blended with at least 5% biodiesel (B5). For the purpose of this mandate, biodiesel is defined as a motor vehicle fuel derived from vegetable oil, animal fat, or other non-petroleum resources, that is designated as B100 and complies with ASTM specification D6751. Diesel fuel blends sold between October 1 and February 28 may contain additives to prevent congealing or gelling. Beginning January 2, 2012, renewable diesel will qualify as a substitute for biodiesel in the blending requirement.(Reference House Bill 3693, 2010, House Bills 2827, 2011, Oregon Revised Statutes 646.913-646.923, and Oregon Administrative Rules 603-027-0410 and 603-027-0420)

All vehicles (ethanol mandate)

All gasoline sold in the state must be blended with 10% ethanol (E10). Gasoline with an octane rating of 91 or above is exempt from this mandate, as is gasoline sold for use in certain nonroad applications. Gasoline that contains at least 9.2% agriculturally derived ethanol that meets ASTM specification D4806 complies with the mandate. For the purpose of the mandate, the ethanol must meet ASTM specification D4806. The governor may suspend the renewable fuels mandate for ethanol if the Oregon Department of Energy finds that a sufficient amount of ethanol is not available.(Reference House Bill 3693, 2010, House Bills 2827, 2011, Oregon Revised Statutes 646.913-646.923, and Oregon Administrative Rules 603-027-0410 and 603-027-0420)

All vehicles (low carbon mandate, proposed)

The Oregon Department of Environmental Quality (DEQ) developed a proposed low carbon fuel standard for all transportation fuels, including a lifecycle greenhouse gas (GHG) emission standard for the production, storage, transportation and combustion of fuels. DEQ will conduct a formal rulemaking process to seek review and comments in 2011. The proposed standards aim to reduce average GHG emissions per unit of fuel energy by 10% below 2012 levels by 2022. For more information, see the DEQ Low Carbon Fuel Standard website. (Reference House Bill 2186, 2009)

Exemption (emission control equipment)

Dedicated original equipment manufacturer natural gas vehicles and all-electric vehicles are not required to be equipped with a certified pollution control system. (Reference Oregon Revised Statutes 815.300)

General

Funding (electric trucks)

Through the Commercial Electric Truck Incentive Program (CETIP), the Oregon Department of Transportation (ODOT) provides vouchers to reimburse commercial fleets for $20,000 per qualified zero emission truck purchased. Vouchers are available on a first-come, first-served basis. Eligible vehicles must be new, titled and licensed in Oregon, have a gross vehicle weight rating of at least 10,001 pounds, and replace an existing diesel vehicle. Eligible fleets must operate the vehicles primarily in an air quality nonattainment or maintenance area. ODOT plans to distribute 200 vouchers within the first year of the program and data collection will continue for three years from the date of vehicle purchase. For more information, including detailed eligibility and application requirements, please see the ODOT Commercial Electric Truck Incentive Program website.

Funding (alternative fuel projects)

The Oregon Department of Energy administers the State Energy Loan Program (SELP) which offers low-interest loans for qualified 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. (Reference House Bill 3672, 2011, and Oregon Revised Statutes 470)

Tax Credit (ethanol, biodiesel)

Oregon residents are eligible for an income tax credit of $0.50 per gallon of gasoline blended with at least 85% ethanol (E85) or diesel blended with at least 99% biodiesel (B99) purchased for use in an alternative fuel vehicle (AFV), up to $200 per tax year for each AFV that is registered in Oregon and owned or leased by the resident. For the purpose of this tax credit, an AFV is a motor vehicle that can operate using E85 or B99. This incentive is applicable until January 1, 2013. (Reference Oregon Revised Statutes 315.465)

Tax Credit (alternative fueling infrastructure)

Beginning January 1, 2011, business owners and others may be eligible for a tax credit of 35% of eligible costs for qualified alternative fuel infrastructure projects. Qualified infrastructure includes facilities for mixing, storing, compressing, or dispensing fuels for vehicles operating on electricity, ethanol, natural gas, and propane. Unused credits can be carried forward up to five years. Non-profit organizations and public entities that do not have an Oregon tax liability may receive the credit for an eligible project but must "pass-through" or transfer their project eligibility to a pass-through partner in exchange for a lump-sum cash payment. The Oregon Department of Energy (ODOE) determines the rate that is used to calculate the cash payment. The pass-through option is also available to a project owner with an Oregon tax liability who chooses to transfer their tax credit. The credit is available through December 31, 2018. (Reference House Bill 3672, 2011)

Weight Limit Exemption (idle reduction)

A vehicle equipped with a fully functional idle reduction system designed to reduce fuel use and emissions from engine idling may exceed the maximum weight limitations by up to 400 pounds to accommodate the added weight of the idle reduction technology. (Reference Oregon Revised Statutes 818.030)