Daimler Truck North America has resumed selling new trucks with internal combustion engines in Oregon.
The state and Daimler said Monday that the two sides had discussed the “misunderstanding” that led Daimler to stop sales in Oregon. At issue was the calculation of credits and deficits for determining Daimler’s compliance with the Oregon version of the Advanced Clean Trucks rule, modeled after California’s precedent-setting program.
“Daimler Truck North America is resuming acceptance of all orders for new internal combustion engine (ICE) vehicles intended for registration in Oregon,” a spokeswoman said in an email to FreightWaves. “Acceptance of ICE orders was paused due to a misunderstanding in how zero-emission vehicles (ZEV) credits would be recognized in the state’s implementation of the Advanced Clean Truck rule (ACT).”
While the “pause” lasted only a few weeks – it began Dec. 20 – it could also be an indicator of what is likely to be a new battleground over calculating OEM compliance under the state-by-state versions of the ACT. Several states have committed to following the basic parameters of the ACT, with some variations.
Rachel Sakata, Oregon’s transportation strategies manager for the Department of Environmental Quality, also used the word “miscommunication” to describe the basis of the sales pause. “We thought we clarified that miscommunication with them at the end of the year, but they had questions,” she said in an interview with FreightWaves. “So we met with them last week to clarify everything, and we were able to move forward.”
The credit and deficit system is key when an OEM sells a vehicle into a state.
The sale of an ICE vehicle generates deficits under the ACT. The sale of a near-ZEV vehicle, like one powered by natural gas, generates credits. The sale of a full-ZEV vehicle generates even more credits. But the specifics are more complicated than that.
“This situation underscores the necessity for feasible, obtainable, and clearly defined regulations, enabling companies to align their business practices accordingly,” the Daimler spokeswoman said. “Commercial vehicles are vital to Oregon’s economy, and DTNA values the ability to support our customers, the fleets of this nation, and the state’s economy.”
One part of credit generation in Oregon has been strong
Oregon began enforcing its version of the ACT this year, Sakata said. Credits that have been generated earlier with the sales of ZEV and near-ZEV trucks – but not Class 8 tractors – should cover OEM compliance for 2025, she said. Those are known as “early action” credits.
But Sakata added that credits generated through nontractor ZEVs and near-ZEVs can’t be used to cover compliance for Class 8 tractors, which is a separate regulation. Generation of credits from selling ZEV or near-ZEV tractors can be used for nontractor trucks, like box trucks, she said. But it doesn’t work in reverse.
Sakata said the state has not calculated the number of credits generated in 2024 in Oregon. But she added that “based on current reported sales, there’s not a lot of (ZEV) tractor sales happening.”
Credits generated by an OEM in one state cannot be used in another state at present, Sakata said. But that sort of transfer is in discussion among the states that have chosen to follow the ACT standards, she said, adding that she and her counterparts in other states generally speak at least every other week.
The Oregon ACT is in the first year of a three-year launch that doesn’t come with heavy enforcement. “We wouldn’t necessarily be able to enforce anything until after the three-year period because we need to see where the manufacturers are with regards to their credits and deficits overall,” Sakata said.
Other states that have agreed to follow California’s lead are Colorado, Massachusetts, New Jersey, New Mexico, New York, Rhode Island and Washington. While they may be following the standards of the Golden State, their commitment – which isn’t new – recently set off a series of back-and-forth missives about the impact of that compliance.
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