(2) The standards adopted by the commission under this section must require, at a minimum:

(a) For the qualifying replacement of a motor vehicle powered by a diesel engine, that:

(A) The motor vehicle to be scrapped has at least three years of remaining useful life; and

(B) The engine model year of the equivalent motor vehicle is 2010 or newer.

(b) For the qualifying replacement of a piece of equipment powered by a nonroad diesel engine, that:

(A) The nonroad piece of equipment to be scrapped has at least three years of remaining useful life; and

(B) The equivalent equipment is powered by:

(i) A nonroad diesel engine, whether or not capable of being powered by alternative fuel, that meets or exceeds United States Environmental Protection Agency Tier 4 exhaust emission standards for nonroad compression ignition engines;

(ii) A nonroad engine capable of being powered by alternative fuel that meets or exceeds United States Environmental Protection Agency Tier 2 exhaust emission standards for nonroad spark ignition engines; or

(iii) A nonroad engine powered by electricity.

(c) For the qualifying repower of a nonroad diesel engine, that the repower will be accomplished using:

(A) A nonroad diesel engine, whether or not capable of being powered by alternative fuel, that is at least one tier higher than the engine to be scrapped, based on the United States Environmental Protection Agency tier standards for nonroad compression ignition engines;

(B) A nonroad engine capable of being powered by alternative fuel that meets or exceeds United States Environmental Protection Agency Tier 2 exhaust emission standards for nonroad spark ignition engines; or

(C) A nonroad engine powered by electricity.

(d) For the qualifying retrofit of a diesel engine, a resulting reduction of diesel particulate matter emissions by at least 85 percent when compared with the baseline emissions for the relevant engine year and application.

(e) That a list of technologies approved as qualifying repowers or retrofits that have been verified by the United States Environmental Protection Agency or the California Air Resources Board is included in the standards.

(3) The commission by rule shall establish standards for the methods of recycling used for scrapping a motor vehicle, a piece of equipment powered by a nonroad diesel engine or a nonroad diesel engine after a qualifying replacement or repower.

(4) A qualifying replacement, repower or retrofit may not include the replacement, repower or retrofit of a motor vehicle, piece of equipment or engine for which a grant or loan under ORS 468A.803 has previously been awarded or allowed, unless the replacement, repower or retrofit will reduce emissions further than the replacement, repower or retrofit funded by the previous grant or loan. [2007 c.855 §8; 2007 c.855 §8a; 2017 c.742 §§5,6]