Passenger Vehicles
Passenger vehicles include cars, light trucks (pickups) and SUVs. Technology advancements in passenger vehicles include both fuel-efficient and electric vehicle options. Both present an opportunity to reduce greenhouse gas emissions.
Passenger vehicles: emissions reduction vision
By 2050, 95% of registered passenger vehicles in Oregon will be electric. A 2019 Oregon law set a more detailed vision:
By 2020, register 50,000 EVs in Oregon (or about 1-2% of total registered vehicles).
By 2025, register 250,000 EVs in Oregon.
By 2030, at least 25% of registered vehicles, and 50% of new vehicles purchased, will be EVs.
By 2035, 90% of new vehicles sold annually will be EVs.
By 2050, increase the fuel efficiency of traditional gasoline passenger vehicles to at least 60 miles per gallon (or to 100 MPGe equivalent when adding in EVs).
How Oregon is doing:
This action is identified as a high risk area that represents reversed progress from previous cycles. Legal uncertainty regarding Oregon’s clean vehicle regulations will slow EV adoption.
Together, these policies expanded consumer choice, encouraged automakers to bring a wider range of EVs to Oregon, and supported continued improvements in vehicle range and performance.
By 2024, new electric passenger vehicles offered an average driving range of approximately 280 miles, approaching the range of many gasoline powered vehicles. The popular state EV purchase incentives, including those focused on low-income buyers, met only a fraction of consumer demand due to limited funding.
Despite this progress, Oregon now expects a significant slowdown in the pace of electric passenger vehicle adoption across the state, compared to projections developed in 2024.
We can attribute much of this slowdown to actions by the federal government. In September 2025, they ended federal tax credits for buying a new or used EV.
More significant are the recent moves by federal lawmakers to undo environmental protections that allow Oregon and other states to implement stronger vehicle emission standards for cars and trucks. This has created legal uncertainty around Oregon's authority to regulate vehicle sales using tools like the Advanced Clean Cars II regulation.
Oregon, along with a coalition of nine other states, is challenging the change to environmental protections in federal court. If the federal action is upheld, Oregon will not be able to implement and enforce the Advanced Clean Cars II regulation
Until the courts resolve this pending litigation, Oregon has issued enforcement discretion for the 2026 and 2027 model year. With this threat to clean vehicle regulations, Oregon faces a formidable legal and regulatory challenge to our electric passenger vehicle adoption rates that won’t easily be reversed.
Compounding the federal actions is the response of automakers. Given fewer federal incentives and regulations, U.S. automakers are retreating from the EV market. They are canceling models, delaying next-generation vehicles, and reverting EV plants back to producing gasoline vehicles instead.
A California analysis attributes half the drop of EV sales in California to the limited supply of EVs by automakers, and the other half to the ending of federal EV purchase incentives. As evidence of this supply limitation, when Oregon public agency fleets work to electrify, bulk purchasing has encountered limited availability of certain types of EV models.
It is difficult to assess the future impact of these various changes at this stage. It is clear that while litigation continues in court, challenges to Oregon’s clean vehicle regulations and the resulting decisions from automakers are already slowing consumer adoption of EVs. This is a severe setback on our ability to reach state climate goals.
Fuel efficiency
The National Highway Traffic Safety Administration administers the Corporate Average Fuel Economy standards, which regulate how far vehicles must travel per gallon of fuel. These national standards have made significant improvement in fuel efficiency in new vehicles, reducing emissions and saving drivers money at the pump.
Unfortunately, these gains have been stalled. In 2025, fines for manufacturers violating federal fuel economy standards were eliminated. That allows automakers to produce larger and less fuel-efficient vehicles, which will lead to higher driving costs and increased emissions in the coming years.
While cancellation of penalties does not affect vehicles built in years before the rollback, when the CAFE standards change, it does affect manufacturer choices about what vehicles manufacturers to bring to market in the future. Without meaningful federal fuel efficiency standards, Oregon expects more fossil fuel consumption, increased emissions, and higher transportation costs for drivers. Recent research indicates closure of U.S. electric vehicle plants and expansion of larger higher-end vehicle models limits availability for people seeking more affordable fuel-efficient vehicles.
Consumer preferences
Consumer choices also impact fuel efficiency and the associated emissions per mile. Larger vehicles like SUVs and pickups continue to be popular in Oregon; they make up more than half of registered passenger vehicles in the state, and that share is growing. These larger vehicles tend to be less fuel efficient than more compact autos and sedans.
Additionally, electric options for pickup trucks aren’t as common, although new EV light truck options are becoming available if automakers follow through on production plans. A 2019 global study warned that the popularity of larger vehicles was reducing the environmental benefits of EVs and contributing to the rise in greenhouse gas emissions. People in Oregon also keep their cars an average of 13 - 14 years, which is longer than other state averages. This slows the transition from gas- and diesel-powered vehicles to newer lower emission vehicles.
Gas prices also play a significant role in shifting consumer demand to hybrid and electric passenger vehicles. While official forecasts of energy prices remain low, the volatility is high. When gas prices spike, the recent automaker pull back on EV production means fewer vehicle choices will be available to meet consumer demand.
Even before federal setbacks, since people in Oregon hold onto their vehicles for 13 - 14 years or more, experts predicted nearly half of Oregon’s passenger vehicles will still run on fossil fuels through 2035. Dropping the anticipated fuel efficiency gains of new gas vehicles, as was happening in the Federal CAFE standards, is a significant setback in reducing emissions and consumer operating costs.
Electrification of passenger vehicles is key to our greenhouse gas emissions reduction. After passing landmark regulations, we were on track to meet passenger vehicle emissions per mile by 2050. We are no longer on that path. Recent setbacks slowing passenger vehicle EV adoption have put Oregon's transportation emissions off track. State agencies, cities and counties will need to find other ways to reduce emissions to achieve Oregon’s climate and emission reduction goals.
State agencies use several subcategories under “passenger vehicles” to help people understand the details.
Vehicle mix
We are seeing more EVs on our roads. As of May 2026, Oregon had about 140,000 registered EVs, which is about 3.7% of the total registered passenger vehicles in Oregon. In 2026, Oregon averaged about 1,000 new net registrations of EVs per month.
Strong growth in Oregon’s EV market can be attributed to the federal and state framework that provided incentives for vehicle purchases, investment in EV chargers and the adoption of the Oregon Advanced Clean Cars II regulation in 2022 that required all new passenger cars, trucks and SUVs sold in Oregon to be zero emission by 2035.
How Oregon can improve:
Oregon is likely to see a marked slowdown of EV sales and fuel efficiency for new vehicles with the federal changes and associated response by auto makers. Instead, electrification will proceed at a more modest market-driven pace until regulatory certainty and stronger policy signals return. Encouraging market trends include:
Battery technology is improving rapidly and that is lowering production costs and extending vehicle range. As costs decline, more EV models are expected to reach price parity with internal combustion engine vehicles, broadening their appeal to consumers.
Total cost of ownership of EVs continues to be less than gasoline vehicles thanks to lower fuel and maintenance expenses, especially for high-mileage drivers and fleets. EVs are also not susceptible to gas price volatility. (See Consumer Energy Cost Drivers for more on gas and electricity prices)
Despite the expiration of federal tax credits, the Oregon Clean Vehicle Rebate Program remains in place, offering up to $7,500 in point-of-sale EV rebates (new and used) to help reduce the upfront cost burden.
Oregon continues to invest in public EV charging stations and utility-backed programs aimed at supporting residential and commercial charging.
To counter the severe setback of federal changes, Oregon is working with other states to reassert clean vehicle regulations, supplemented with other state-led programs. The Oregon Department of Environmental Quality opposed the rollback of CAFE standards. Restoring penalties in the federal CAFE new vehicle fuel efficiency standards would further reduce emissions and operating costs.
Two Oregon climate programs, the Clean Fuels Program and Climate Protection Program, are implemented under state law and are thus not impacted by federal rollback. (Learn more on the Fuel Technology page and Pricing, Funding and Markets page)
Additionally, Oregon incentive programming focused on the adoption of zero-emission vehicles remains available using state and federal funds. Oregon is coordinating with other states to identify other best practices that could be implemented at the state level to partially fill the gap created by the federal rollbacks.
State government can improve adoption rates of electric and more efficient passenger vehicles by being a resource for businesses and buyers, and using data to inform future laws and policies. To improve adoption the state could:
Advocate for more funding for targeted state and federal EV incentive programs like the Oregon Clean Vehicle Rebate program, the federal tax credit on EV purchases, and other in-state charging rebate programs. Programs such as the Oregon Clean Vehicle Rebate program’s Charge Ahead Rebate help low- and moderate-income households access EVs by reducing upfront costs and ensuring more people in Oregon can benefit from cleaner transportation options.
Build consumer confidence through education on the cost and advantages of EVs, as well as addressing common ownership concerns.
Use data to help state and federal policymakers create laws that target greenhouse gas emission reduction and regulate vehicle manufacturers.
Support more passenger EVs on Oregon’s roads by partnering with private industry to build more public EV charging infrastructure. (Learn more on the Fuel Technology page).
Work with communities to understand electric micromobility needs (e.g. electric bikes and scooters), create e-micromobility incentive programs, and partner with industry to provide public charger support.
Fuel costs, vehicle costs and availability, and the health of the national economy will also affect progress on low emission vehicle adoption.