ev rebate temp 2019 eqc staff report

DETP/19/50708

''Monday, December 2, 2019 at 9:12:35 AM (GMT+08:00) Goldstein, Meyer:'' DEQ 21-2019 CHAPTER 340 DEPARTMENT OF ENVIRONMENTAL QUALITY FILED 09/27/2019 10:18 AM FILING CAPTION: Oregon Clean Vehicle Rebate Program Temporary Rules EFFECTIVE DATE: 09/29/2019 THROUGH 03/26/2020 AGENCY APPROVED DATE: 09/27/2019 CONTACT: Emil Hnidey 503-229-5946 hnidey.emil@deq.state.or.us 700 NE Multnomah St. Suite 600 Portland,OR 97232 Filed By: Emil Hnidey Rules Coordinator NEED FOR THE RULE(S): What need is DEQ trying to address? House Bill 2592 made changes to the OCVRP, including allowing more flexibility for potential rebate applicants, specifically to the Charge Ahead program. DEQ needs to adjust its rules to account for these legislative changes and to clarify other requirements contained in the rules to ensure successful on-going implementation of the program. The 2019 legislation will be going into effect on September 29, 2019, and DEQ needs to have rules in place by that time to ensure that its rules are consistent with the amended legislation. How would the proposed rule address the need? DEQ’s rules will be consistent with the amended legislation and implement the changes approved by the legislature. DEQ’s rules will provide greater clarity on how the OCVRP will operate. JUSTIFICATION OF TEMPORARY FILING: Consequences of not taking immediate action: DEQ needs to adjust its rules to account for these legislative changes and to clarify other requirements contained in the rules. The 2019 legislation will be going into effect on September 29, 2019, and DEQ needs to have rules in place by that time to ensure that its rules are consistent with the amended legislation. If DEQ does not act promptly to adopt these temporary rules, DEQ’s rules would conflict with the newly enacted Page 1 of 18 legislation when that legislation goes into effect. This would prejudice the interested parties identified in this document because it would result in conflicting requirements for the OCVRP. Notably, a conflict between DEQ’s rules and the legislation creating the OCVRP would create difficulty for DEQ in administrating the program and create confusion among interested rebate applicants regarding program requirements, including what vehicles are eligible for the program. Additionally, failure to adopt rules would delay the ability of purchasers or lessees to receive rebates for purchases made in January through August 2018. Further, the failure to adopt temporary rules to address this issue would effect the public as a whole by undercutting DEQ’s credibility to the public; absent temporary rules that adjust program requirements in response to the 2019 legislation, DEQ’s rules would conflict with its authority to act under the legislation for the OCVRP. Affected parties: • Rebate applicants who purchased or leased an electric vehicle between January 1, 2018 through August 2, 2018 who may now be eligible to apply for a rebate outside of the ordinary 6-month application window; • Oregonians who are interested in purchasing plug-in hybrid vehicles that were not previously eligible for a Charge Ahead rebate but may now qualify under that program; • Automobile dealers that sell or lease new or used plug-in hybrid electric vehicles. Dealers could be affected by increased plug-in hybrid electric vehicle sales; • Automobile manufacturers, such as those that manufacture plug-in hybrid electric vehicles eligible for rebates. The manufacturers could be affected by increased plug-in hybrid electric vehicle sales; • Rebate receipients who later terminate the lease or sell the vehicle for which they received a rebate. Such persons might be eligible for a prorated payback of the rebate or a waiver of the payback requirement; and • Other Oregonians interested in purchasing or leasing a qualifying vehicle under the OCVRP. How temporary rule would avoid or mitigate consequences: The temporary rules would clarify program requirements and adjust as needed to implement the new legislation. The rules would allow DEQ to facilitate implementation of the 2019 legislation in a timely and transparent manner and allow more people and vehicles to qualify for the rebate program. It also provides more flexibility for existing rebate purchasers. The rule encourages higher adoption rates of zero-emission vehicles to reduce air pollution and help move the state towards its greenhouse gas reduction goals. Additionally, Governor Kate Brown issued an Executive Order in 2017, targeting the adoption of 50,000 electric vehicles by 2020, and highlighted the rebate program as one of the key mechanisms to achieve that goal. For DEQ to be able to issue additional rebates at this time will accelerate the State’s ability to reach the Governor’s goal. DOCUMENTS RELIED UPON, AND WHERE THEY ARE AVAILABLE: House Bill 2017 (2017) - https://olis.leg.state.or.us/liz/2017R1/Downloads/MeasureDocument/HB2017/Enrolled House Bill 4059 (2018) - https://olis.leg.state.or.us/liz/2018R1/Downloads/MeasureDocument/HB4059/Enrolled Page 2 of 18 House Bill 2592 (2019) - https://olis.leg.state.or.us/liz/2019R1/Downloads/MeasureDocument/HB2592 HOUSING IMPACT STATEMENT: 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 and automobile dealers and manufacturers who sell or produce zero-emission vehicles. NOTE: Additional PDF filed with this filing not included in this document. Please contact Department of Environmental Quality for a copy of this document. RULES: 340-270-0010, 340-270-0020, 340-270-0030, 340-270-0100, 340-270-0110, 340-270-0120, 340-270-0200, 340- 270-0300, 340-270-0400, 340-270-0410, 340-270-0420, 340-270-0430, 340-270-0500 AMEND: 340-270-0010 RULE SUMMARY: Added language referencing House Bill 2592 and added to statutory authority.