The Advanced Clean Fleets regulation: Paving the future of zero-emission transportation

California's Advanced Clean Fleets (ACF) regulation isn't a policy shift--it's a seismic disruption of the transportation industry that could redefine the future of logistics and environmental policy nationwide. Beginning in October 2023, this innovative regulation seeks to convert the state's truck and bus fleets to zero-emission vehicles (ZEV). However, the path forward is complex and fraught with hurdles, including a crucial pending preemption waiver from the Environmental Protection Agency (EPA) and looming legal challenges.

With these complexities in mind, the stakes for the ACF regulation are at their highest. This article examines the historical background, regulatory obstacles and broader consequences of this revolutionary transportation and climate change regulation.

The evolution of the ACF regulation

Executive Order N-79-20

On Sept. 23, 2020, Governor Gavin Newsom's Executive Order N-79-20 set audacious targets for California's transportation sector, envisioning a carbon-free future. The mandate targets all new passenger vehicles in the state to be zero-emission by 2035, with medium- and heavy-duty vehicles achieving the same by 2045, and a 2035 deadline for drayage trucks.

Advanced clean cars and trucks regulations

Building on this vision, the California Air Resources Board (CARB) introduced the Advanced Clean Cars II and Advanced Clean Trucks regulations, compelling manufacturers to accelerate the production and sale of battery-electric vehicles (BEVs) with a goal to phase out internal combustion engines by 2035.

The ACF regulation

The ACF regulation, effective from Oct. 1, 2023, extends this ambitious agenda into the realm of fleet operators and owners, encompassing a diverse range of vehicles, including semi-trucks, medium-duty trucks, vans, buses, and yard tractors. Key components of this regulation include:

• Battery-electric truck mandate: This targets large fleets, demanding a transition to zero-emission vehicles.

• Internal-combustion truck sales ban: Bans the sale of new internal-combustion trucks by 2036.

• Drayage truck zero-emission mandate: Requires all new drayage trucks at ports and railyards to be zero-emission by 2024, fully transitioning by 2035.

• Government fleet zero-emission mandate: Mandates state and local government agencies to purchase only zero-emission vehicles by 2027.

Exemptions and extensions. The ACF regulation includes exemptions if the vehicle type is not available in a zero-emissions model and timeline extensions for infrastructure delays.

Challenges and hurdles

CARB's preemption waiver request and the preemption waiver process

California's unique authority to set stricter air quality standards hinges on EPA's preemption waiver. CARB's application, submitted on Nov. 15, 2023, is the linchpin for enforcing the ACF regulation's stringent measures.

Despite the regulation becoming state law in October, CARB announced on Dec. 28, 2023, that it will delay enforcement of certain provisions pending the EPA's preemption waiver decision. This announcement affects key segments of the regulation:

• Drayage truck requirements: CARB will not enforce the reporting requirements or registration prohibitions until the EPA grants or deems the waiver unnecessary.

• Until the EPA responds to its waiver, CARB is suspending the reporting and registration requirements imposed on high priority fleets.

The EPA's waiver process comprises multiple stages:

1 Submission of waiver request: CARB submitted its request on Nov. 15, 2023, outlining the ACF's regulations and its justifications for enforcement on a preemption basis.

2 Public hearing and comment: The EPA has scheduled a virtual public hearing for Aug. 14, 2024, with a deadline for written comments on Sept. 16, 2024.

3 Ruling: The EPA Administrator will make a ruling on the CARB preemption waiver, determining whether the preemption requirements under Section 209(b) of the Clean Air Act are met.

Historically, CARB has sought around 60 waivers under the Clean Air Act to establish stricter air quality regulations than those imposed by the federal government. Most of CARB's waiver requests have been approved by the EPA.

Legal battles

Select states and industry factions are suing CARB, alleging that the ACF regulation violates the Constitution and federal law by banning internal combustion engines. Key legal arguments include:

• Economic protectionism: Allegedly favors in-state businesses.

• Undue burden on interstate commerce: Imposes costly financial burdens and logistic challenges.

• Lack of uniformity: Creates a complex compliance landscape for interstate fleets.

The lawsuits argue that the ACF regulation could cause major disruptions in the economy and logistics sector.

A glimpse of technology

The pivot to zero-emission vehicles isn't merely a regulatory and legal challenge; it's a technological one. Battery technology, while advancing, still faces hurdles such as limited range and long charging times. Innovations like solid-state batteries and ultra-fast charging infrastructure are crucial to overcoming these barriers. Moreover, upgrading California's aging power grid is necessary to handle increased demand from electric fleets.

Global context and comparisons

California isn't alone in this endeavor. European countries like Norway and Germany have set aggressive targets for phasing out internal combustion engines, providing valuable case studies in both policy implementation and industry adaptation. By examining these international parallels, we can garner insights into potential challenges and solutions.

Economic implications

The economic implications of the ACF regulation are vast. Transitioning fleets to ZEVs involves significant upfront costs, but long-term savings from fuel and maintenance could offset these investments. A report by the Union of Concerned Scientists suggests that widespread adoption of ZEVs could lead to net economic benefits through reduced healthcare costs from improved air quality.

Potential domino effects

California frequently sets the tone for national policy. If the ACF regulation withstands legal and regulatory scrutiny, it could set a precedent for other states, and possibly federal regulations, to follow. This would greatly speed up the country's transition to zero-emission vehicles.

Environmental justice

The ACF regulation also plays a critical role in addressing environmental justice. Disadvantaged communities, often near major logistics hubs, bear the brunt of air pollution from diesel trucks. Implementing zero-emission fleets can significantly enhance air quality and public health, making this regulation essential for broader environmental justice initiatives.

Industry adaptation

Despite the challenges, industry giants like UPS and PepsiCo are already integrating battery-electric trucks into their fleets, demonstrating that adaptation is workable. Government incentives such as the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) and Community Air Protection Incentives are crucial in easing this transition for fleet operators.

Conclusion

California's ACF regulation represents a visionary leap towards the state's ambitious climate and air quality goals. While it offers substantial environmental and economic advantages, it faces critical regulatory and legal tests. The outcomes of these challenges will not only shape the future of California's transportation landscape but could also serve as a blueprint for nationwide zero-emission vehicle policies. As we navigate through these pivotal moments, it's clear that the transition to a sustainable transportation future is both a daunting challenge and an unprecedented opportunity.