17 www.ortrucking.org Issue 3 | 2023 of renewable diesel was determined to be insufficient to meet demand. This bill was extremely similar to a bill that failed to pass in 2022. And just as before, a coalition of fuel distributors, producers, and users, including the trucking, agriculture, construction, and recreation industries, mounted a strong opposition to the bill. The bill was ultimately turned into a study by the Department of Environmental Quality on phasing out of fossil diesel fuels with high carbon intensity value as transportation fuels in Oregon. This amended bill then moved to the Ways and Means Committee, where it died without funding. CLEAN TRANSPORTATION LEGISLATION Two other clean transportation bills from past sessions were resurrected in 2023. Rep. Maxine Dexter introduced HB 2396, which would have created a new indirect source review program at the Department of Environmental Quality. The proposed program would have applied broadly to indirect sources of carbon emissions throughout the state, including retail stores, offices, government buildings, schools, hospitals, ports, and development projects, among others. When a similar bill was introduced in the 2021 session, there were more than a dozen DEQ programs focused on reducing mobile sources of air emissions. Two years later, at least a half dozen more new regulatory programs have been adopted that will reduce air emissions such as the Climate Protection Program, Clean Fuels Expansion, Clean Trucks rule, Clean Cars rule and Portland’s Renewable Fuel Standard. Additionally, Oregon has long regulated indirect sources and DEQ has evaluated more than 400 sources under its indirect source program. None has ever been found to cause a violation of air quality standards. A large coalition that included the Oregon Trucking Association, the Associated General Contractors, Oregon Business & Industry, and others expressed strong opposition to the bill. A public hearing was held in mid-February, but the only amendment introduced would only have made the program more prescriptive and onerous for businesses and DEQ. The bill died in committee. In addition to the renewable diesel mandate, Rep. Nosse introduced HB 3158, which would have imposed several new taxes, including: an excise tax on the retail sale of tires, a privilege tax on nonroad diesel equipment, a tax on the use in Oregon of nonroad diesel equipment purchased out of state, a heavy equipment rental tax on rentals of nonroad diesel equipment, a privilege tax on heavy-duty vehicles, and a license tax on dyed diesel for transfer to the Clean Diesel Engine Fund. These new taxes would have required the bill to pass with three-fifths majority in both chambers. Environmental advocates argued that the money from the taxes could have helped trucking operations transition to lower carbon alternatives, but the arguments did not land, and the bill died in committee after one hearing. One policy moved forward at the very end of session that could help move the needle on helping transition to cleaner trucking operations. Similar to how the state already incentivizes zero emission passenger vehicles, the legislature, as part of HB 3409, created a rebate program at the Department of Environmental Quality for the purchase or lease of zero-emission medium and heavy-duty trucks. DEQ will determine the rebate amounts and establish different rates for different vehicles based on their emissions. Rebate recipients must maintain records of miles driven or hours of use and provide an annual report to DEQ showing that more than 50% of vehicle use occurred in Oregon. Only $3 million was appropriated for the program with disbursements beginning in the 2025–2027 biennium. While this is not a significant amount for an industry as expensive as trucking, hopefully, the establishment of the program may provide a carrot for the transition to lower emitting transportation options. HIRING AND RETENTION BONUSES In 2017, Oregon passed a landmark pay equity law that requires every worker receive equal pay for equal work regardless of gender, race, age, or other protected characteristics. This includes wages, benefits, bonuses, and more. In 2021, when workforce shortages began to affect nearly every industry, state lawmakers temporarily amended Oregon’s Equal Pay Act and exempted hiring and retention bonuses from pay equity considerations in response to the COVID-19 pandemic. Those changes
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