On April 28, 2023, California authorities approved a regulation to phase out sales of medium- and heavy-duty combustion-engine trucks by 2036. This milestone supports the state’s governor, Gavin Newsom, in his larger goal of accomplishing a complete transition to zero-emission models for all trucks used in the state by 2045. 

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Advocates for the Advanced Clean Fleet rule say it will bring improvements for some of the state’s most vulnerable communities located near transportation corridors or busy warehouses with perpetually polluted air. They also say the trucking industry will save billions of dollars by switching to cleaner vehicles. However, not everyone is enthusiastic about the mandate, and some opposers have collectively shown their displeasure.

What Does the Advanced Clean Fleet Rule Require? 

Trucking companies subject to ACF regulations must transition from vehicles that have internal combustion engines within stated timelines. The Advanced Clean Fleet rule applies to trucks involved in drayage operations at seaports and rail yards, as well as medium- and heavy-duty on-road vehicles weighing more than 8,500 pounds. Light-duty parcel or mail delivery vehicles and off-road yard tractors must also comply. In addition, the directive includes government fleets used in the state and operations identified as high priority within California. 

Which specifics apply to the last bullet point? State authorities define high-priority fleets as those owning, operating or directing at least one vehicle in California and that achieve at least $50 million in gross annual revenue or that own, operate, have common ownership or control 50 or more vehicles. 

Both federal government and high-priority fleets must comply with a default model-year schedule or opt into a zero-emission vehicle (ZEV) milestone option. The first choice allows companies to continue using trucks until the end of their useful lives, with some stipulations. 

The end of a vehicle’s useful life is 13 years from the model year associated with the engine certified by federal or state regulators. It also occurs when the truck exceeds 800,000 miles traveled or reaches 18 years from the model year engine certification — whichever is earlier. 

No matter which of these applies, fleet managers must complete their transition by the following January 1 after the vehicle meets the above dates.

The Effects on New Vehicle Purchases

Some industry professionals realize that, despite the high upfront expense of new vehicles, these purchases should help them minimize costs over time. However, updated trucks are not the only way to save. Research suggests the potential for up to 20% cost savings based on an operator’s likelihood of engaging in aggressive driving. That is because quick acceleration and hard braking can increase maintenance needs and shorten life spans. 

Regardless, California’s ACF rules center on transitioning from fuel-burning models. When fleet owners choose the model-year transition schedule, all new vehicles they purchase must be zero-emission options. However, those proceeding with this option can choose when they buy as long as they meet the other time-based requirements. 

Once drayage trucks reach the end of their minimum useful lives, fleet owners must cease operating them and buy zero-emission vehicles to replace them. Additionally, they must all be that type by 2035. In contrast, although government agencies may keep using current fleets past the useful-life point, they must buy ZEVs when it is time to replace them or opt into the ZEV milestone timeline. 

Additionally, government and high-priority fleets may purchase zero-emission or near-zero-emission vehicles until 2035. However, after that year, California will only permit the purchases of ZEVs.

Other Stipulations

Manufacturers play essential roles in these changes, too. As of 2036, they can only sell zero-emission versions of medium- and heavy-duty vehicles. 

There are other time-specific requirements for government fleets, too. They must ensure that at least half of their vehicle purchases are zero-emission options from now until 2027. After that point, they must all be that kind. However, government fleets of 10 vehicles or less can wait until 2027 to start purchasing their ZEVs. 

Failing to comply with these measures carries a daily fine of up to $10,000 per vehicle, emphasizing why it is in people’s best interest to understand and abide by the requirements. However, not everyone believes the Advanced Clean Fleet rules are good for the industry.

Compliance Difficult for Some

Some fleet professionals within and outside California are not pleased with what the ACF requires. One of the main reasons is that logistics companies operating elsewhere must gradually invest in new ZEVs if their routes include California. Since the state is so large and has numerous ports, it is a significant part of the supply chain. 

A possible workaround is to have noncompliant trucking companies drop their loads near the California border for pickup by vehicles that align with ACF regulations. However, working out the details could take time. People familiar with the matter have also drawn attention to another border-related matter.

Mexico has more than 200,000 trucking companies, but many are not ready to comply with the regulations. The expense is a significant barrier, with single electric trucks costing as much as $100,000. Some company representatives say they are not ready to comply, partially because they lack financial resources. Moreover, the issues go beyond the trucks themselves. Mexico would also need to invest in the necessary charging infrastructure. 

These challenges span outside of Mexico and affect any fleets that pass through California or will soon. Delays due to insufficient numbers of charging points or the time required to drop shipments off at the border for further transport could cause substantial delays. Now is the time to start thinking creatively about feasible solutions. 

Resistance to California’s Requirements

Some trucking professionals have banded together to actively protest what the ACF regulations require. Many industry association members have collectively filed lawsuits against California. Among other factors, they take issue with how the requirements ban noncompliant trucks from traveling within the state’s borders, regardless of where someone purchased or registered those vehicles. 

Opposers also assert that California’s rules will make it more difficult for people in the industry to obtain the work trucks they need to perform their duties without disruption. It is not just trucking association members who disagree with the impending requirements. Regulators in several states are pondering how to delay implementation so affected parties have more time to comply. They stipulate that they are not against the ACF’s goals and do not advocate for abandoning them, but they believe people should have more time to prepare. 

One of their primary concerns is the inadequate infrastructure necessary for supporting an influx of trucks that need charging points. Relatedly, the market must have enough compliant trucks for all affected entities to purchase. The increase in demand over a relatively short period could lead to people being put on lengthy waiting lists rather than immediately being able to buy and use the vehicles.

An Uncertain Future

As the ACF deadlines get closer, it should become clearer whether more parties will decide to push back or do what they must to comply. Much of the uncertainty stems from how California’s legislators were the first to take this decisive action to phase out fuel-burning vehicles. How things pan out for that state could determine how eager other parties in power are to follow suit.