Cal Cities secures important carveouts for cities in new, sweeping Advanced Clean Fleet rule, which takes effect next year

May 3, 2023

Cities will need to make significant investments, despite these exemptions and extensions

After two years of iterations, intense negotiations, and workshops, the California Air Resources Board (CARB) approved the final Advanced Clean Fleets regulation late last week. The new rule requires local municipal fleets to begin transitioning to zero-emission trucks as soon as next year.

Since the regulations were first proposed two years ago, the League of California Cities has actively engaged with CARB to secure several exemptions and extensions that provide greater flexibility for cities.

Throughout the rulemaking process, including during the final vote on April 27, Cal Cities and other stakeholders voiced support for the decarbonization of fleet vehicles but expressed strong concerns about the rule’s timing, cost, and implementation.

What does this new regulation require?  

The Advanced Clean Fleets regulation is part of a larger strategy to achieve a statewide zero-emission truck and bus fleet by 2045. For some vehicle classifications, such as those used in last-mile consumer delivery, drayage trucking — used to move cargo from ports and railroads — and public fleets, the deadline is significantly earlier.

The regulation specifically requires manufacturers to sell only electric trucks in Class 2b-8 beginning in 2036. For local agencies, this Class 2b-8 classification includes vehicles like the Ford F-250, street sweepers, water delivery vehicles, garbage trucks, and transit buses. Agencies must make half of their fleet purchases zero-emission vehicles by 2024. The requirement ramps up to 100% by 2027.

Cal Cities warned CARB that some classes of electric trucks might not be available in time for deadlines. Fleet owners are just now understanding what it takes to successfully operate these trucks. What they have learned so far is these trucks are significantly more expensive and refueling infrastructure is nonexistent. Moreover, zero-emission vehicles are not necessarily a one-for-one replacement: More trucks will be needed to move the same amount of freight.

What flexibility did Cal Cities secure?

Despite these issues, the adopted regulation includes several important exemptions and extensions, including:

Zero-emission vehicle milestones option flexibility. Until Jan. 1. 2030, fleet owners may select a percentage of their fleet to gradually phase in zero-emission vehicles.

Near zero-emission vehicle flexibility. Model year 2035 and earlier near zero-emission vehicles are counted the same as zero-emission vehicles for purposes of compliance.

Early zero-emission vehicle purchases. Any zero-emission vehicle acquired before the compliance deadlines or more than the amounts required count towards future purchase requirements if the vehicle is still active in the fleet.

Infrastructure construction delay extension. Fleet owners may submit waivers from the regulation if there are delays in the construction or electrification of a zero-emission vehicle refueling service yard.

Mutual aid assistance. Fleet owners may continue to purchase an internal combustion engine vehicle if the vehicles are needed to provide emergency response for mutual aid assistance service.

Backup, seasonal, and emergency vehicle exemption. Under specific circumstances, fleet owners may continue to purchase an internal combustion engine vehicle for backup, seasonal, and emergency vehicles.

CARB also agreed to form an implementation working group to further tailor the finalized regulation. Despite these exemptions and waivers, local municipalities will still need to make significant investments to purchase new vehicles and transform their infrastructure. Cal Cities will be part of the working group to advocate for cities and is engaging the Legislature on additional carveouts, extensions, and state funding opportunities for cities.