Daimler Truck North America has announced that it will not be selling its diesel-powered trucks in Oregon. The decision comes as the company clashes with new medium and heavy-truck standards set by the Oregon Department of Environmental Quality (DEQ).
On December 20, Daimler Truck North America informed dealers and sales managers through a letter that it was halting sales of its diesel trucks intended for Oregon registration. The company attributes this pause to a misunderstanding regarding the state’s alignment with California’s emissions rules, which Oregon and other states have adopted under the federal Clean Air Act. While Daimler claims there are subtle differences between Oregon’s approach and California’s, DEQ representatives have stated that any discrepancies stem from confusion, not actual discrepancies in the rules themselves.
According to Daimler Truck North America, the issue centers on how Oregon handles credits for zero-emissions vehicle sales. The company says it is unable to predict its credit balances in the state, which could put its compliance at risk. While DEQ clarified the process for earning such credits, Daimler has yet to lift its sales hold in Oregon.
The Oregon Clean Truck Rules, adopted in 2021, set stricter standards for medium and heavy-duty vehicles, including emission limits for particulate matter and nitrogen oxides. These rules, mirroring California’s approach, require truck manufacturers to sell a certain percentage of zero-emission vehicles beginning in 2025. As part of this framework, companies will need to ensure that by 2036, up to 75% of their sales could be electric vehicles, depending on the class of the vehicle. However, for manufacturers like Daimler, this could mean a significant shift in how they operate in the state.
One challenge facing the trucking industry, according to advocates, is the lack of sufficient infrastructure to support electric vehicles. Currently, Oregon has only one high-powered public charging station for large trucks, located at Daimler’s headquarters. Nonetheless, state regulators have added flexibility to the rules, allowing manufacturers up to three extra years to make up any shortfalls in electric vehicle sales.
Despite clarifications regarding how manufacturers can earn credits for electric vehicle sales, Daimler Truck North America is holding firm on its sales pause in Oregon, citing continued concerns over how their vehicles will be treated under the updated rules. The company has requested more assurance from DEQ that its approach to credit reporting will be aligned with California’s standards.
Daimler is still in talks with the DEQ, and both parties hope to reach a resolution soon. The ongoing back-and-forth highlights the challenges manufacturers face in transitioning to a greener fleet while meeting state and federal requirements, and it remains unclear when the sales pause in Oregon will be lifted.