I'm not sure whether it passed or not, but they were trying to pass some new emissions law similar to California's. If they passed it, it's suppose to take effect in 2009. Like said above, I think they just hook up the newer cars to your computer port and if no thrown codes are detected, your good to go. Can't remember all the details, so I'm probably leaving stuff out.
Oregon and Washington have debated such proposals for some time. The issue always hinges upon available state funds. In the case of Oregon, such regulations will likely not go into affect. ODOT has enough budget woes as it is. I doubt that Washington will implement any new legislation, even if it does pass.
The whole emissions debate is kind of funny. Some people are pushing for the OBD-II cars to be sniffed. Statistically, the cars that pollute the most are the old beaters we see around everywhere. They represent 5% of the cars on the road and cause 90% of the pollution. There was a movement in Oregon to have OBD-II cars sniffed, while only visually inspecting OBD-I cars. Thankfully, there will likely be on change in Oregon, as a result of lacking state funds. Sometimes, it is good when bureaucrats don't have adequate money to squander!