While the EPA has recently granted California a waiver for Low-NOx fuels on heavy-duty trucks and has approved zero-emission rules for passenger cars in the state, the California Air Resources Board (CARB) still awaits a decision from the U.S. Environmental Protection Agency on whether CARB may implement its Advanced Clean Fleets (ACF) rule requiring motor carriers to transition to zero emission vehicles (ZEVs) in California over the coming years. Under federal law California may adopt emissions standards which differ from the federal Clean Air Act, but only if EPA grants a waiver or determines one is not necessary (https://www.prepassalliance.org/the-latest-on-electric-trucks-in-california/). Even if you do not operate in California, several other states have adopted emissions standards that mirror the ACF rule, so the pending EPA decision has nationwide impacts.
Meanwhile, there are developments concerning both the ACF and California’s Advanced Clean Trucks (ACT) rules which apply to the sale of zero emission vehicles by truck dealers:
California withholds some enforcement. Under the ACF rule, “high priority fleets,” those with 50 or more trucks and $50 million in annual revenue, were to begin their transition to ZEVs on January 1, 2024. In an updated Enforcement Notice, CARB said that it “has decided to exercise its enforcement discretion” and not act against high priority fleets for violations between 1/1/2024 and 90 days after the grant of an EPA waiver.
What constitutes a “high priority fleet” has changed. Under its original posted guidance, CARB had attempted to lump independent contractors and owner-operators into the “high priority fleets” definition if 50 or more of them worked for the same broker – i.e., carry Amazon freight, buy an electric truck! Now litigation has forced CARB to essentially redefine “high priority fleets” as those where the vehicles are under common ownership and control.
Not so fast, drayage trucks! The ACF rule prohibited the registration of diesel-powered drayage trucks, those serving California ports and railheads, after December 31, 2023. While the lack of an EPA waiver has allowed the continued registration of drayage trucks, the CARB Enforcement Notice says that those trucks will not be allowed to operate in California once a waiver is granted. In other words, diesel-powered drayage trucks registered in California after 12/31/2023 may be forced to leave the state.
Truck dealers devastated by the ACT. On the dealer side of the zero emissions debate, the Advanced Clean Trucks rule has truck dealers in several states worried about their financial future. The ACT sets increasing percentage goals for the sales of ZEVs by truck dealers. For Classes 2-6, ACT offers some flexibility in meeting those percentage goals – sales of more ZEVs in one Class can offset the lack of sales in another Class. However, ACT does not offer that flexibility for Classes 7 & 8, the heavy-duty trucks operated by motor carriers. With the limited range of heavy-duty electric trucks, the lack of charging infrastructure, the added weight of batteries, plus the significant price tag limiting Class 7 & 8 sales, truck dealers face an ominous future under the ACT (https://www.prepassalliance.org/1-trillion-the-cost-of-epas-phase-3-emissions-rule/).
One result – litigation. The ACF rule has been challenged in court. Now, so has the ACT rule:
- Last June 19 states sued the EPA, asserting that the ACT rule violated the Clean Air Act. That case is pending.
- Six states which had agreed to “opt-in” to the CARB rules if an EPA waiver was granted have now told EPA they would need more time to adjust.
- Recently, the Nebraska attorney general brought an antitrust lawsuit against the major truck manufacturers for colluding to force the purchase of electric trucks. The manufacturers had joined with EPA in the “Clean Truck Partnership,” agreeing to support CARB’s zero-emission regulations, even if those regulations were found to be illegal. Under antitrust law, that is labeled “restraint of trade.”