Oregon Department of Environmental Quality

Notice of Proposed Rulemaking

Electric Vehicle Rebate 2019

Table of Contents

Accessibility Information  2

Introduction  2

Request for Other Options  3

Overview  3

Procedural Summary  4

Statement of need  7

Rules affected, authorities, supporting documents  7

Fee Analysis  10

Statement of fiscal and economic impact  11

Federal relationship  15

Land use  16

EQC Prior Involvement  17

Advisory Committee  18

Public Engagement  19

Public Comment  20

Public Hearing  21

Draft Rules - With Edits Highlighted  21

You may review copies of all documents referenced in this announcement at:

Oregon Department of Environmental Quality

700 NE Multnomah St., Ste. 600

Portland, OR, 97232

To schedule a review of all websites and documents referenced in this announcement, call Rachel Sakata, DEQ – Headquarters, 503-229-5659 (800-452-4011, ext. 5622 toll-free in Oregon).

Please notify DEQ of any special physical or language accommodations or if you need information in large print, Braille or another format. To make these arrangements, contact DEQ, Portland, at 503-229-5696 or call toll-free in Oregon at 1-800-452-4011, ext. 5696; fax to 503-229-6762; or email to deqinfo@deq.state.or.us . Hearing impaired persons may call 711.

DEQ invites public input on proposed permanent rule amendments to chapter 340 of the Oregon Administrative Rules.

Background  

In May 2018, The Environmental Quality Commission (EQC) adopted rules to implement a zero-emission vehicle rebate program in Oregon. The program, contains two elements – one element provides rebates for the purchase or lease of eligible new zero-emission vehicles (referred to as standard rebates) if all program requirements are met. The second element, called the Charge Ahead rebate, provides rebates for the purchase or lease of new or used zero-emission vehicles if the purchaser is from a low or moderate-income household.  

DEQ proposal

DEQ is proposing to amend the zero-emission vehicle rebate program by changing the definitions in OAR 340-270-0030 for rebate-eligible light duty zero emission vehicles and plug in hybrid electric vehicles to include vehicles with at least three wheels. Currently light duty zero emission vehicles and plug in hybrid electric vehicles are defined as vehicles with at least four wheels. The proposed change would broaden the range of eligible vehicles to include those with three wheels.

During the public comment period, DEQ asks for public comment on whether there are other options for achieving the rules’ substantive goals while reducing the rules’ negative economic impact, if any, on business.

Brief summary of fiscal impact 

Short summary

DEQ recommends the EQC approve the proposed rule amendment to include three wheeled light duty zero emission vehicles and plug in hybrid electric vehicles in the Zero-Emission and Electric Vehicle Rebate program (EV Rebate Program).

In May 2018, The Environmental Quality Commission (EQC) adopted rules to implement a zero-emission vehicle rebate program in Oregon. The program, contains two elements – one element provides rebates for the purchase or lease of eligible new zero-emission vehicles (referred to as standard rebates) if all program requirements are met. The second element, called the Charge Ahead rebate, provides rebates for the purchase or lease of new or used zero-emission vehicles if the purchaser is from a low or moderate-income household.  

DEQ is proposing to amend the zero-emission vehicle rebate program by changing the definitions in OAR 340-270-0030 for rebate-eligible light duty zero emission vehicles and plug in hybrid electric vehicles to include vehicles with at least three wheels. Currently light duty zero emission vehicles and plug in hybrid electric vehicles are defined as vehicles with at least four wheels. The proposed change would broaden the range of eligible vehicles to include those with three wheels.

Brief history

On August 18, 2017, Oregon Governor Kate Brown signed House Bill 2017 which, in addition to making many other transportation investments, created a program to provide rebates to Oregonians who meet all program requirements and purchase certain types of zero-emission vehicles, including eligible plug-in hybrid zero-emission vehicles, and other eligible zero-emissions vehicles. This program was designed by the Oregon Legislature to encourage higher adoption of zero-emission vehicles to reduce air pollution and progress the state towards its greenhouse gas reduction goals.

In May 2018, The Environmental Quality Commission (EQC) adopted rules to implement a zero-emission vehicle rebate program in Oregon. These rules as adopted defined rebate-eligible light duty zero emission vehicles and plug in hybrid electric vehicles as vehicles with at least four wheels. This language inadvertently prevents participants from applying for rebates for three wheeled zero-emission vehicles. DEQ is proposing to change the definition of rebate-eligible light duty zero emission vehicles and plug in hybrid electric vehicles as those with at least three wheels to make the EV Rebate Program more inclusive of all eligible vehicle types, expand options for businesses and consumers, and ensure equitable application of the EV Rebate Program to all eligible vehicles. This change is also consistent with House Bill 2017, which does not specify the number of wheels in the definitions of light duty zero emission vehicles and plug in hybrid electric vehicles.

Regulated parties

DEQ is preparing to implement the program established by the May 2018 rules. There are no other regulated parties, because the proposed rules do not impose any requirements on parties who do not wish to participate in the program. Other parties who choose to participate in the program may include:

•  Automobile dealers that sell or lease new and or used zero-emission vehicles. Such dealers may be affected by the rules if they choose to apply the rebate to the purchase at the point of sale, by allowing purchasers to assign their rebates to the dealers or by otherwise assisting purchasers in obtaining rebates. Further, dealers could be affected by increased zero-emission vehicle sales.

•  Automobile manufacturers, such as those that manufacture zero-emission vehicles eligible for rebates. Manufacturers may be affected by the rules if they allowed purchasers to assign their rebates or otherwise assist purchasers in obtaining rebates. Further, dealers could be affected by increased zero-emission vehicle sales.

•  Zero-emission vehicle purchasers such as Oregon residents who purchase or lease zero-emission vehicles that qualify for rebates under the program.

Request for other options

During the public comment period, DEQ requests public comment on whether to consider other options for including three wheeled vehicles in the Zero-Emission and Electric Vehicle Rebate program.

More information

Information about this rulemaking is on this rulemaking’s web page: Electric Vehicle Rebate 2019

Public Hearings

DEQ plans to hold one public hearing. Anyone can attend a hearing in person, or by webinar or teleconference.

Information about the public hearing:

•  Date

•  Start time

•  Street address

•  Room

•  City

•  Teleconference phone number: 888-278-0296

•  Participant code: (0296 number) = 8040259

•  Webinar link:

◦  (0296 number) = 888-278-0296 webinar link

•  Instructions on how to join webinar or teleconference: Webinar/teleconference instructions

How to comment on this rulemaking proposal

DEQ is asking for public comment on the proposed rules. Anyone can submit comments and questions about this rulemaking. A person can submit comments through an online web page, by regular mail or at the public hearing.

Comment deadline

DEQ will only consider comments on the proposed rules that DEQ receives by 4 p.m., on December 8, 2018.

Submit comment online

Electric Vehicle Rebate 2019 Comment Page (Note that this link will not be live until the day DEQ publishes notice to the public):

Note for public university students:

ORS 192.345(29) allows Oregon public university and OHSU students to protect their university email addresses from disclosure under Oregon’s public records law. If you are an Oregon public university or OHSU student you may omit your email address when you complete the online form to submit a comment.

By mail

Oregon DEQ

Attn: Rachel Sakata

700 NE Multnomah St., Room 600

Portland, OR 97232-4100

At hearing

DATE/MONTH

You can also participate in the hearing through a teleconference or webinar.

Teleconference call-in number: 888-278-0296

Participant ID: 8040259

Webinar link (webinar has no audio, you must listen on the teleconference): 888-278-0296 webinar link

How to join the teleconference or webinar: Teleconference and Webinar instructions

Sign up for rulemaking notices

Get email or text updates about this rulemaking by signing up through this link:

Electric Vehicle Rebate 2019 Rulemaking Email List;

or on the rulemaking web site: Electric Vehicle Rebate 2019 rulemaking web page.

Get email or text updates about other, future DEQ rulemaking by signing up through this link: DEQ Email Notice List.

What will happen next?

DEQ will include a written response to comments in a staff report DEQ will submit to the Environmental Quality Commission. DEQ may modify the rule proposal based on the comments.

Present proposal to the EQC

Proposed rules only become effective if the Environmental Quality Commission adopts them. DEQ plans to present the proposed rules to the commission for a decision at its January 2019 meeting.

What need would the proposed rule address?

The proposed rule would address the need for a definition of rebate-eligible light duty zero emission vehicles and plug in hybrid electric vehicles that include three wheeled vehicles.

How would the proposed rule address the need?

The proposed rule would change the definition of rebate-eligible light duty zero emission vehicles and plug in hybrid electric vehicles from those with “at least four wheels” to those with “at least three wheels”. This will make the EV Rebate Program more inclusive of all eligible vehicle types, expand options for businesses and consumers, and ensure equitable application of the EV Rebate Program to all eligible vehicles. This change is also consistent with House Bill 2017, which does not specify the number of wheels in the definitions of light duty zero emission vehicles and plug in hybrid electric vehicles.

How will DEQ know the rule addressed the need?

DEQ will know the need has been addressed when applicants are able to apply for a rebate for three wheeled vehicles.

Lead division

Air Quality Division

Program or activity

Air Quality Planning

Chapter 340 action

Legislation

House Bill 2017 (2017)

Documents relied on for rulemaking  

Fee Analysis

This rulemaking does not involve fees.

Statement of fiscal and economic impact

Fiscal and Economic Impact

In May 2018, The Environmental Quality Commission (EQC) adopted rules to implement a zero-emission vehicle rebate program in Oregon. The program, contains two elements – one element provides rebates for the purchase or lease of eligible new zero-emission vehicles (referred to as standard rebates) if all program requirements are met. The second element, called the Charge Ahead rebate, provides rebates for the purchase or lease of new or used zero-emission vehicles if the purchaser is from a low or moderate-income household.  

DEQ is proposing to amend the zero-emission vehicle rebate program by changing the definitions in OAR 340-270-0030 for rebate-eligible light duty zero emission vehicles and plug in hybrid electric vehicles to include vehicles with at least three wheels. Currently light duty zero emission vehicles and plug in hybrid electric vehicles are defined as vehicles with at least four wheels. The proposed change would broaden the range of eligible vehicles to include those with three wheels.

DEQ is unable to quantify the potential impact of the proposed rule change at this time because it is unknown how many three wheeled rebate eligible vehicles would be available for use by consumers seeking to participate in the EV Rebate program, and it is also unknown how many applications DEQ could receive for these vehicles. Because three wheeled light duty zero emission vehicles and plug in hybrid electric vehicles are not currently widely available, DEQ expects that the number of rebate applications for these type of vehicles would be low, amounting to a minimal fiscal impact. There could be a positive fiscal impact on large and small businesses potentially selling three wheeled vehicles from rebate incentives, and a positive fiscal impact on the public from expanded consumer options for low cost rebate eligible vehicles.

Statement of Cost of Compliance  

State agencies  

DEQ does not expect the proposed rule change to have a fiscal impact on state agencies. It would not significantly affect DEQ implementation of the EV Rebate Program.

Local governments

DEQ does not expect the proposed rule change to have a fiscal impact on local governments.

Public

The public would not incur any mandatory compliance costs as a result of the proposed rule changes because the proposed rules do not impose any requirements on parties who do not wish to participate in the program. Allowing rebates for eligible three wheeled vehicles may have a positive fiscal impact on consumers choosing to participate in the EV Rebate Program. Inclusion of three wheeled vehicles could increase the range of choices, and could provide additional opportunities for people to buy lower cost vehicles and receive the same level of rebates they could receive for more costly four wheeled vehicles eligible for the program. Members of the public would be eligible to receive standard rebates of $2,500 for the purchase or lease of new three wheeled zero-emission vehicles. Under the Charge Ahead program, qualified low and moderate-income applicants purchasing new zero-emission three wheeled vehicles could realize an additional benefits by combining the $2,500 standard rebate with the $2,500 Charge Ahead rebate for a total of $5,000.

If inclusion in the EV Rebate Program incents addition of numerous three wheeled vehicles to the state roadways, there is potential for a secondary fiscal impact of increased health care costs for consumers driving these vehicles who may be more vulnerable in collisions with larger vehicles. DEQ lacks the data to quantify this potential negative secondary fiscal impact.

Large businesses - businesses with more than 50 employees

Large businesses would not incur any mandatory compliance costs as a result of the proposed rules because the proposed rules do not impose any requirements on parties who do not wish to participate in the program. DEQ has identified there are at least 20 large manufacturers of zero-emission vehicles and a number of large auto dealers who could participate in the program through the assignment of rebates, and up to 29 large manufacturers and some large auto dealers who would not participate because they do not manufacture or sell zero-emission vehicles. DEQ lacks data on the number of large manufacturers of three wheeled zero-emission vehicles. However any of the large auto dealers could potentially participate in the program through assignment of rebates for three wheeled vehicles.

There could be a positive impact on large businesses manufacturing, selling or leasing three wheeled rebate eligible vehicles, as EV rebates could provide an incentive that would increase sales in Oregon.

Large business automobile dealers that sell or lease new and or used zero-emission vehicles may be affected by the rule changes if they choose to apply the rebate to the purchase at the point of sale, by allowing purchasers to assign their rebates to the dealers or by otherwise assisting purchasers in obtaining rebates. Further, dealers could be affected by increased zero-emission three wheeled vehicle sales.

Large business automobile manufacturers, such as those that manufacture zero-emission vehicles eligible for rebates may be affected by the rule changes if they allowed purchasers to assign their rebates or otherwise assist purchasers in obtaining rebates. Further, dealers could be affected by increased zero-emission three wheeled vehicle sales.

Small businesses – businesses with 50 or fewer employees

Small businesses would not incur any mandatory compliance costs as a result of the proposed rules because the proposed rules do not impose any requirements on parties who do not wish to participate in the program. The proposed rule could potentially offer additional incentives for sales of three wheeled vehicles that could positively impact small businesses. There could be a positive impact on small businesses manufacturing, selling or leasing three wheeled rebate eligible vehicles, as EV rebates could provide an incentive that would increase sales in Oregon.

Small business automobile dealers that sell or lease new and or used zero-emission vehicles may be affected by the rule changes if they choose to apply the rebate to the purchase at the point of sale, by allowing purchasers to assign their rebates to the dealers or by otherwise assisting purchasers in obtaining rebates.

Small business automobile manufacturers, such as those that manufacture zero-emission vehicles eligible for rebates may be affected by the rule changes if they allowed purchasers to assign their rebates or otherwise assist purchasers in obtaining rebates.

a. Estimated number of small businesses and types of businesses and industries with small businesses subject to proposed rule.

DEQ originally identified up to 245 small business automobile dealers (both new and used) that could participate in the EV Rebate Program. However, participation in assignment of rebates is entirely optional to any automobile dealer, and any associated costs might be offset by the increased number of sales these small businesses would experience in zero-emission vehicles. Any of the small business automobile dealers could potentially participate in assignment of rebates for three wheeled vehicles. DEQ lacks data on the number of small business manufacturers of three wheeled zero-emission vehicles

could be positively impacted by the proposed rule change. DEQ is aware of one Oregon-based business planning to market three wheeled vehicles that could potentially qualify for EV rebates.

b. Projected reporting, recordkeeping and other administrative activities, including costs of professional services, required for small businesses to comply with the proposed rule.

No additional activities are required to comply with the proposed rules.

c. Projected equipment, supplies, labor and increased administration required for small businesses to comply with the proposed rule.

No additional activities are required to comply with the proposed rules.

d. Describe how DEQ involved small businesses in developing this proposed rule.

DEQ did not involve small businesses in developing this proposal because it is a minor rule revision that does not impose any regulatory requirements, and could potentially provide positive fiscal impacts.

Documents relied on for fiscal and economic impact

Advisory committee fiscal review

DEQ did not appoint an advisory committee in developing this proposal because it is a minor rule revision that does not impose any regulatory requirements, and could potentially provide positive fiscal impacts.

Housing cost

As ORS 183.534 requires, DEQ evaluated whether the proposed rules would have an effect on the development cost of a 6,000-square-foot parcel and construction of a 1,200-square-foot detached, single-family dwelling on that parcel. DEQ determined the proposed rules would have no effect on the development costs because they only affect purchasers of zero-emission vehicles, auto dealers and manufacturers who sell or produce zero-emission vehicles.

Federal relationship

Relationship to federal requirements

ORS 183.332 and OAR 340-011-0029 require DEQ to attempt to adopt rules that correspond with existing equivalent federal laws and rules unless there are reasons not to do so.

The proposed rules are in addition to federal requirements since there are no federal regulations regarding rebates for the purchase or lease of zero-emission vehicle, or federal regulations regarding inclusion of three wheeled vehicles in rebate programs. The proposed rules protect the environment by reducing greenhouse gases.

What alternatives did DEQ consider if any?

DEQ considered not amending the EV Rebate Program rules in include three wheeled vehicles, but decided to propose including them to make the EV Rebate Program more inclusive of all eligible vehicle types, expand options for businesses and consumers, and ensure equitable application of the EV Rebate Program to all eligible vehicles. This change is also consistent with House Bill 2017, which does not specify the number of wheels in the definitions of light duty zero emission vehicles and plug in hybrid electric vehicles.

Land use

Land-use considerations

In adopting new or amended rules, ORS 197.180 and OAR 340-018-0070 require DEQ to determine whether the proposed rules significantly affect land use. If so, DEQ must explain how the proposed rules comply with state-wide land-use planning goals and local acknowledged comprehensive plans.

Under OAR 660-030-0005(2) and OAR 340 Division 18, DEQ considers that rules affect land use if:

•  The statewide land use planning goals specifically refer to the rule or program, or

•  The rule or program is reasonably expected to have significant effects on:

◦  Resources, objectives or areas identified in the statewide planning goals, or

◦  Present or future land uses identified in acknowledged comprehensive plans

To determine whether the proposed rules involve programs or actions that affect land use, DEQ reviewed its Statewide Agency Coordination plan, which describes the DEQ programs that have been determined to significantly affect land use. DEQ considers that its programs specifically relate to the following statewide goals:

Statewide goals also specifically reference the following DEQ programs:

•  Nonpoint source discharge water quality program – Goal 16

•  Water quality and sewage disposal systems – Goal 16

•  Water quality permits and oil spill regulations – Goal 19

De

Determination

DEQ determined that these proposed rules do not affect land use under OAR 340-018-0030, OAR 660-030-0005(2), or DEQ’s State Agency Coordination Program.

DEQ did not present additional information specific to this proposed rule revision.

Advisory Committee

Background

DEQ did not convene an advisory committee in developing this proposal because it is a minor rule revision that does not impose any regulatory requirements and is consistent with House Bill 2017, which does not specify the number of wheels in the definitions of light duty zero emission vehicles and plug in hybrid electric vehicles.

Public Engagement

Public notice

DEQ provided notice of the proposed rulemaking and rulemaking hearing on Nov. 1, 2018 by:

•  On Oct. 31, 2018 filing notice with the Oregon Secretary of State for publication in the November 2018 Oregon Bulletin;

•  Notifying the EPA by mail;

•  Posting the Notice, Invitation to Comment and Draft Rules on the web page for this rulemaking, located at: Electric Vehicle Rebate 2019;

•  Emailing approximately 11,402 interested parties on the following DEQ lists through GovDelivery:

•  Rulemaking

•  Oregon Clean Vehicle Rebate Program

•  Low Emission/Zero Emission Vehicle Program

•  Electric Vehicle Rebate 2018 Rulemaking

•  DEQ Public Notices

•  stakeholders on the

•  Emailing the following key legislators required under ORS 183.335:

•  

•  

•  

•  Emailing advisory committee members,

•  Postings on Twitter and Facebook

•  Posting on the DEQ event calendar: DEQ Calendar

How to comment on this rulemaking proposal

DEQ is asking for public comment on the proposed rules. Anyone can submit comments and questions about this rulemaking. A person can submit comments through an online web page, by regular mail or at the public hearing.

Comment deadline

DEQ will only consider comments on the proposed rules that DEQ receives by 4 p.m., on November 27, 2018.

Submit comment online

Electric Vehicle Rebate 2019 Comment Page

Note for public university students:

ORS 192.345(29) allows Oregon public university and OHSU students to protect their university email addresses from disclosure under Oregon’s public records law. If you are an Oregon public university or OHSU student you may omit your email address when you complete the online form to submit a comment.

By mail

Oregon DEQ

Attn: Rachel Sakata

700 NE Multnomah St., Room 600

Portland, OR 97232-4100

At hearing

November 20, 2018

You can also participate in the hearing through a teleconference or webinar.

Teleconference call-in number:

Participant ID:

Webinar link (webinar has no audio, you must listen on the teleconference):

How to join the teleconference or webinar: Teleconference and Webinar instructions

Public hearings

DEQ plans to hold one public hearing. Anyone can attend a hearing in person, or by webinar or teleconference.

Information about the public hearing:

•  Date

•  Start time

•  Street address

•  Room

•  City

•  Teleconference phone number: 888-363-4734 OR 888-278-0296

•  Participant code: (4734 number) = 1910322 OR (0296 number) = 8040259

•  Webinar link:

◦  (4734 number) = 888-363-4734 webinar link

◦  OR

◦  (0296 number) = 888-278-0296 webinar link

•  Instructions on how to join webinar or teleconference: Webinar/teleconference instructions

DEQ will consider all written comments received at the hearings listed below before completing the draft rules. DEQ will summarize all comments and respond to comments in the Environmental Quality Commission staff report.

Any person can submit comments on the proposed rules as described in the Introduction section of this document.

ARMITAGE Sarah, 2018-10-29T11:28:00Z
Thoughts about including this?

ARMITAGE Sarah, 2018-10-29T12:07:00Z
Any other documents on three wheelers we want to cite?

ARMITAGE Sarah, 2018-10-29T12:18:00Z
Do we want to share anything about this with the EQC in an information item in November?