Advanced BioFuels USA

(ACT News) There is a regulatory hurricane on the horizon in California. The California Air Resources Board (CARB) is just a few short months away from finalizing what will likely be the most consequential environmental regulation in the state’s history. In development since February of 2020, the Advanced Clean Fleets (ACF) regulation is set to transform California’s medium- and heavy-duty diesel fleets to zero-emissions vehicles in less than 20 years. A daunting task, for sure, and one that will require motor carriers to take proactive steps to stay in compliance.

Fleet operators who haven’t been paying attention to this draft regulation should start, because it could change the way they do business. How ACF will ultimately affect a fleet depends on how that fleet operates. The current draft regulatory language divides motor carriers into three categories: High Priority and Federal fleets, Drayage fleets, and State and Local Government fleets. Some motor carriers may be subject to multiple provisions depending on the makeup of their fleets.

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Currently, CARB has presented two pathways for High Priority and Federal fleets to comply with ACF.

The first is via Zero-Emissions Vehicle (ZEV) additions. With this pathway, fleets achieve compliance through the acquisition of ZEVs. In fact, starting in 2024, carriers that opt for this pathway can only add ZEVs to their fleets — no diesel, gasoline, or natural gas allowed. Additionally, vehicles that have gone beyond their useful life as defined by California law must be removed from the fleet. This pathway is simple and straightforward but does not allow for really any flexibility.

The second pathway utilizes percentage milestones for different vehicle groups to calculate an overall ZEV requirement a fleet must meet in compliance years. This pathway, while more complicated, allows fleets to continue to add traditional internal combustion engine (ICE) vehicles to their fleet and remain compliant, provided they meet their milestone obligations. This added flexibility provides fleets with the ability to continue to manage their vehicles and routing in a way that makes the most sense to their business model.

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State and Local Government fleets will have an acquisition requirement, rather than a fleet composition requirement. From 2024 to 2026, 50% of all vehicles acquired by state or local governments that have a GVWR over 8,500 pounds must be ZEV. In 2027, that mandate moves to 100%. There are currently no requirements to remove existing ICE vehicles from these fleets, so forced retirement of older vehicles should not be necessary.

There are several important factors to consider when planning for the inevitable impact this regulation will have on a fleet.   READ MORE

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Webinar: Navigating California’s Evolving Fleet Regulatory Landscape (ACT News)