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CARB Passes ZEV Mandate on Local Agency Medium-Duty and Heavy-Duty Fleets

By Kristin Withrow posted 05-02-2023 11:45 AM

  

Last week, CARB approved its Advanced Clean Fleet (ACF) regulation which will require local government medium and heavy-duty fleets to begin transition to zero emission vehicles (ZEVs) as soon as January 1, 2024. CARB passed the regulation unanimously, as amended to include amendments read by CARB Executive Officer Steven Cliff as well as a reference to CalOSHA as a stakeholder for implmentation. CSDA testified in opposition, citing timeline, cost, infrastructure, and emergency response concerns. 

In addition to providing public testimony, CSDA partnered with CalCities and the California State Association of Counties on joint comment letter, met with CARB staff, organized several virtual roundtables with CSDA members and CARB board members to share local examples of implementation concerns, and spoke with reporters covering the issue, gaining coverage in CalMatters and the Sacramento Bee. However, following many hours of testimony, CARB approved the regulation and corresponding resolution


SB 1383 and 2025 “Check-In” Added to CARB Resolution in Response to Sanitation Agency Concerns

In response to concerns from sanitation agencies, CARB added a section to the end of its April 27 adopted resolution making reference to SB 1383 (Lara, 2016). In addition, CARB added a “report-back” in 2025 on progress that would include any other actions that are necessary that the board or others might need to take to achieve the regulation’s goals. Executive Officer Steven Cliff read into the record the following amendment to the final paragraph:

“Be it further resolved that, consistent with the latest Scoping Plan, the Board recognizes that the successful implementation of the food waste diversion requirements and methane emissions reductions mandated by SB 1383 are critical to the State’s climate goals. The Board further recognizes that multiple reliable uses for non-fossil biomethane will be needed for successful implementation. The Board recognizes the need for coordination meetings with other state agencies such as CEC, CPUC, State Water Resources Control Board, CalRecycle, CDFA, CNRA, and other relevant stakeholders such as the California Association of Sanitation Agencies and the California Air Pollution Control Officers Association, to implement SB 1383 and SB 1440.54 As such, the Board directs staff to prioritize policy discussions related to SB 1383 and SB 1440 implementation and discussions on how to transition biomethane into hard to decarbonize sectors, or as a feedstock to produce hydrogen for FCEV fuel and to produce electricity to charge BEVs to achieve the SB 1383 target. The board further directs staff to report to the board by the end of 2025 on progress for alternative uses of biomethane, including identifying any appropriate regulatory actions as needed.


CARB Staff Outlines Added and Amended Exemptions and Extensions

Over the course of the regulation drafting process, CARB established a number of noteworthy exemptions and extensions to the ACF. However, CARB ultimately retained its fundamental implementation timeline requiring 50 percent of all newly purchased medium-duty and heavy-duty vehicles to be ZEV starting January 1, 2024 and 100 percent starting January 1, 2027.

The CARB board and staff detailed several exemption options and pathways for compliance in the regulation as part of their meeting presentation.


New Flexibilities Highlighted by CARB

State and Local Government Fleets: A number of changes were made to provide more flexibility for State and Local Government, including:

  • ZEV Milestone Phase-In Option:  State and local governments are now able to use the optional ZEV milestone phase-in option that provides flexibility for fleets to prioritize the phase-in of ZEVs based on suitability.
  • Fleets of 10 or less: Divisions that have 10 or fewer vehicles, or agencies that are in certain designated counties will remain exempt from the ZEV purchase requirement until 2027.
  • Near Zero-Emission Vehicles (NZEVs): State and local government fleets may now count NZEVs the same as ZEVs, for the purposes of determining compliance, until 2035. An NZEV is defined as a plug-in hybrid vehicle with a minimum all-electric range.

Waste and Wastewater Fleets Provisions: This provision provides more time for certain vehicles in waste and wastewater fleets who are implementing organic waste diversion programs and exclusively fueling eligible vehicles with biomethane. This provision would defer ZEV requirements until 2030 for eligible fleets who elect to comply with the ZEV Milestone option.

Accident/Non-Repairable Vehicle Provision: This provision allows for the purchase of another used internal combustion engine (ICE) vehicle with the same or newer model year engine as the vehicle that was rendered non-repairable due to a one-time event like a fire or accident without affecting the compliance date associated with the vehicle that was deemed to be non-repairable.

Intermittent Snow Removal Vehicle Exemption: In the original proposal, dedicated snow removal vehicles were already exempt from the ACF regulation. This provision would provide a temporary exemption for intermittent snow removal vehicles to exclude them from the ZEV requirements until 2030. Intermittent snow removal vehicles are trucks that operate as a snowplow part of the year and other uses when there is no snow to plow.

Transit Fleet Exemption: This provision temporarily excludes transit agencies subject to the Innovative Clean Transit regulation until 2030. This provides more time before ZEV purchases begin for their maintenance and support vehicles allowing them to focus their efforts on electrifying their transit buses first.


Updated Flexibilities Highlighted by CARB

ZEV Purchase Exemption:  This provision allows fleets to delay adding certain vehicles to the fleet if they are not yet available and would now include two options to use the exemption.

  • The existing proposal would require that CARB maintain a list of what vehicles can be purchased as an ICE vehicle if ZEVs are not available to purchase in given configuration type. Fleet owners would not need to apply for an exemption for vehicles on the list and would report the purchase when the vehicle is received.
  • Fleet-specific exemption. In addition to vehicles on the list, a fleet owner may apply for an exemption if the ZEV cannot be configured to meet the primary intended function the fleet owner needs. For example, this would cover cases where the fleet needs a truck upfit with a bucket truck body with 100 ft. of reach and ZEVs are only available in a configuration with a 50 ft. reach. CARB will verify no manufacturers can produce and sell the configuration and shall issue the exemption within 45 days.
    • Fleet protections. Additional modifications were made include more fleet owner protections when assessing what ZEV configurations as considered to be available. For example, a newly added requirement for a ZEV to be considered available is that it will have to meet the Zero-Emission Powertrain certification requirements, it cannot be a demonstration vehicle, and it must be available to purchase within the next two model years.  
    • Exemption coverage. This exemption was also expanded to apply to all vehicle weight classes instead of just heavier trucks. This exemption does not apply to drayage trucks because there are multiple tractor models are already available.

Daily Usage Exemption: This provision allows fleet owners to apply for an exemption to purchase an ICE vehicle if ZEVs are available in a given configuration, but do not meet the fleet’s daily mileage and stationary operational use needs.

  • Miles and operations. Fleet owners would need to submit information to CARB about the daily mileage (or usage) of existing vehicles in the fleet to show that available ZEV could not be placed in the fleet to meet daily needs based on miles and hours of operation in a 30-day period within the prior year. Fleets with mutual aid agreements would also be able to use data from the prior 5 years.
  • The provision was also expanded to give fleet owners the ability to use operational data to compare with fleets that operate ZEVs in a similar application and by shortening the time period fleets would need to collect vehicle data to support a fleet’s exemption request.

Infrastructure Delay: This provision allows fleet owners to receive an extension if the installation of infrastructure at their site was delayed for reasons outside of their control and they took steps to start the project one-year ahead of the next compliance date. The provision was expanded in several ways to address construction delays and utility delays.

  • Construction delays. Unexpected delays after construction started would qualify for an extension for up to two years instead of one and would include delays associated with ZEV infrastructure equipment (e.g., charger and hydrogen dispensing equipment).
  • Utility delays. Site electrification delays by the utility could be used to support extensions for an initial 3-year period and an additional 2-year extension based on the utilities ability to provide sufficient power to the site and based on how many ZEVs can be supported each year.

Mutual Aid Exemption: Fleets that have mutual aid agreements (e.g., public fleets and utilities) would be able to purchase ICE vehicles for up to 25 percent of their fleet. Access to this option was improved by reducing the ZEV threshold before a fleet owner could claim the exemption to purchase ICE vehicles and the provision was expanded to allow for ICE vehicle purchases in all vehicle weight classes. The ZEV threshold was reduced from 75 percent ZEVs to a phased in threshold where fleet owners would become eligible if exceeding 25 percent ZEVs until 2032, 50 percent until 2035, and 75 percent thereafter.

CSDA will be working with CARB to get the most up to date information on the implementation.  Please see CARBs fact sheet, and visit the CARBs website for more information.

CARB has also planned a webinar on May 9, 2023 which you can sign up for here

CSDA will share more as it becomes available. Please reach out to Heidi Hannaman if you have any questions at heidih@csda.net.


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