17 Things to Know About CARB’S Advanced Clean Fleets Rule

The California Air Resources Board (CARB) recently approved a new rule requiring a phased-in transition toward zero-emission medium-and-heavy duty vehicles, as well as a rule aimed at kickstarting the transition to zero-emission vehicles (ZEVs) in all public fleets. Under the Advanced Clean Fleets rule, fleet owners operating vehicles for federal fleets such as the Postal Service, along with state and local government fleets, will begin their transition toward ZEVs starting in 2024. 

CARB’s Advanced Clean Fleets Rule at a Glance

There are many things fleet managers need to know as they begin planning future vehicle purchases; we’ll get into specifics in a moment. First, here are some of the basics:

• State and local agencies must ensure that 50% of vehicle purchases are zero-emission beginning in 2024, and 100% beginning in 2027. 
• Small government fleets — those with 10 or fewer vehicles — and those in designated counties must start their ZEV purchases beginning in 2027.
• An alternate plan — the ZEV Milestone Phase-In Option — uses a phased in approach based on vehicle type.

Two California fleet managers teamed up to offer a webinar on the operational and budgetary impacts of CARB’s new rule. David Renschler, CPFP, fleet division manager for the city of Fairfield, and David Worthington, fleet manager for the county of Santa Clara, addressed common questions and concerns related to the new rule.

Note: the webinar did not address the impacts to federal fleets or drayage fleets. You can find more information on the impact to drayage fleets on Heavy Duty Trucking.

1. The Rule Doesn’t Cover All Vehicles

CARB’s Advanced Clean Fleets rule is only for vehicles over 8,500 GVWR. These vehicles are known as Class 2b-Class 8 on-road vehicles.

2. HEVs are Not ZEVs

Under CARB’s Advanced Clean Fleets rule, hybrid electric vehicles (HEVs) are not considered ZEVs. Keep this in mind when planning vehicle purchases. Here are the vehicle types that are considered ZEVs:

• Battery-electric vehicles (BEVs).
• Hydrogen fuel cell electric vehicles (FCEVs).
• Plug-in hybrid electric vehicles (PHEVs).

However, PHEVs are considered as Near Zero Emissions Vehicles (NZEV) and have minimum are limited by their all-electric range requirements beginning in 2024 to qualify.

3. The Normal Fleet Vehicle Replacement Plan Option will Likely Make More Sense for Your Fleet

There are two paths fleet managers have to choose from in adopting ZEVs: the normal fleet vehicle replacement plan, and the ZEV Milestone Phase-In option.

“I believe the normal fleet vehicle replacement plan is more advantageous. It is based on normal replacement plans and requires a percentage of new truck purchase to be ZEVs instead of a percentage of the total number of applicable

trucks in your fleet. If you need to delay the purchase of a truck you can. It gives you a lot of flexibility, provided you can prepare and maintain that vehicle,” Worthington explained.

Worthington said that initially, the Milestone Phase-In option was not included as an option. It was only included so that CARB could provide more flexibility for utility and wastewater operations.

You must declare by April 1, 2024, whether you are choosing the Milestone Phase-In option. You cannot switch back after that.

4. Expect to Pay More for ZEVs Up Front

ZEVs cost more to procure than internal combustion engine (ICE) vehicles. For example, ZEV trucks cost anywhere from 1.5-5x more than conventional trucks. While you will see ROI in things like lower maintenance costs due to fewer components under the hood, expect to pay more up front when purchasing the vehicle.

5. There is Some Flexibility for Vehicle Replacements

In the case of an accident where a vehicle is deemed non-repairable, there is flexibility to purchase used ICE vehicles to ensure you can quickly put a vehicle back in service. However, the used vehicle must be the same model year or newer.

6. You Can Submit Vehicle Exemption Requests

Fleet managers may submit an exemption request application if a ZEV is not available for a specific body configuration, or if a ZEV cannot meet operational range and duty cycle needs. You are required to include data and documentation to back up your request. CARB will then have 45 days to confirm its exemption approval by email. There is currently no appeal process to dispute a declined exemption.

7. Emergency Vehicles Are Exempt…Sort Of

Public safety vehicles as defined by California Vehicle Code Sec. 165 are exempt from the rule. However, as the market begins to only sell electric vehicles (EVs), those fleets will eventually have no choice but to purchase EVs, Renschler explained.

8. Backup Vehicles are Exempt

Vehicles that are part of your reserve fleet are exempt from the rule. However, this only applies to vehicles that are used for less than 1,000 miles per year. Any vehicles used more than that must comply with the rule.

9. Public Works Vehicles are Not Exempt

Vehicles used for public works duties are not exempt. However, certain types do have a delayed deadline for ZEV transition. For example, fleet managers may continue to purchase intermittent snow removal vehicles with internal combustion engines until 2030.

Fleets that are implementing organic waste diversions programs have more time to implement the ZEV transition. However, those fleets must be exclusively fueling vehicles with bio-methane.

The ZEV requirement is deferred to 2030 for eligible fleets that elect to use the ZEV milestone compliance path.

10. Some Truck Types are Exempt

CARB is currently working to put a list together of truck types that are exempt from the ZEV purchase requirement. Those included on that list are trucks that are not currently on the market as a ZEV or NZEV. That list will be published on the CARB Advanced Clean Fleets website. CARB staff have until January 1, 2025 to publish the list. Not included on the list will be pickup trucks, buses, box trucks, vans, or any tractors. Initial vehicle exemption requests submitted by fleets will be used by CARB staff to determine what to include on its list. Expect these exemptions to only consist of specialty vehicles.

11. You Can Request an Infrastructure Extension

Fleets facing delays in installing infrastructure needed to support ZEVs may request an extension for up to two years. The delay must be due to circumstances beyond the fleet owner’s control. This includes delays related to fueling equipment. An executed contract must already be in place for ZEV fueling infrastructure installation, including construction permits issued at least one year prior to the next applicable regulatory reporting compliance date. A ZEV purchase agreement must also be entered into prior to submitting an extension request.

Examples of circumstances that may cause a delay include:

• A change in general contractor.
• Delays in the manufacturing and shipment of ZEV fueling infrastructure equipment.
• Delays in obtaining power from an electric utility provider.
• Unexpected safety issues on the project.
• Discovery of archeological, historical, or tribal cultural resources described in the California Environmental Quality Act, Public Resources Code Division 13, Section 21000.
• Natural disasters.

There is currently no appeal process to dispute a declined request.

If you receive the vehicle before the infrastructure is ready, you may end up having to store the vehicle. That impacts the vehicle warranty. A warrant generally starts when the ZEV is delivered, not when it is put into service. If you face delays with infrastructure, the clock for the warranty will still be running.

12. Contractor Fleets Must Also Align with CARB’s Rule

Beginning on January 1, 2024, public fleets that use contractor vehicles or other for-hire fleets must only hire/dispatch Advanced Clean Fleet-compliant fleets. The deadline for the first reporting of the ZEV compliance requirement for these fleets is April 1, 2025. Provided that these fleets are purchasing ZEVs to meet their 2024 regulatory requirements, they will be in compliance up until March 30, 2025.

However, vehicles that are being leased or contracted for one year or less are exempt. But once you pass the one-year threshold, CARB sees those vehicles as part of your fleet, meaning that they must comply.

13. You Are Responsible for Ensuring Compliance

As a fleet manager, you are required to ensure your fleet complies with the new rule. CARB used to complete its own inspections of entities for compliance with the regulations. Now, local governments are required to monitor the companies they hire and retain data for CARB staff to audit. In that sense, CARB is putting the monitoring/reporting of non-compliance on the city, county, and state fleet organizations. 

Additionally, you must keep records of compliant vehicle procurements for five years. Records of a vehicle purchase, rental, lease, etc. must be made available in electronic or paper format to CARB Staff within 72 hours of a written or verbal request for audit.

Fleet owners must submit an annual compliance report no later than April 1^st of each year through 2045. The initial report must be submitted by April 1, 2024. Beginning January 1, 2025, fleet owners that submit initial reporting information after the initial reporting deadline are subject to penalties.

14. It’s a Bad Idea to Plan to Pay Fines for Noncompliance Over Complying

For small fleets, making the transition to ZEVs can seem pricey, leading managers to wonder whether it’s more cost-effective to accept the fines over complying with the rule. This is not an approach Renschler recommends taking. That’s because the fines can be compounded.

Financial penalties range from a minimum of $500 to a maximum of $1,171,000 per violation. Additionally, individuals may be charged with a misdemeanor and not more than one year in county jail.

15. You Will Face Challenges During the Transition

Fleet managers should expect to face a number of challenges during their fleet and infrastructure transition. Those may include reduced parking during construction — or even permanently, due to infrastructure additions.

16. Your Facility Needs to Be Safe to Operate on ZEVs

There are a slew of things to consider when planning for ZEV maintenance. These include things like making room for a 10-ft. clearance between an EV and the closest possible metal object, as well as the clearance you’ll need for vehicles and their chargers.

Another thing to consider is how to store damaged EVs. Truck manufacturers have safety protocols for storing damaged EVs that require a large amount of space. Light-duty EV trucks, for example, require a 50-ft. radius between the vehicle and the next closest object when they have been damaged, or a battery fire has occurred.

You also cannot always lean on a local towing company to safely store these vehicles. A majority of towing vendors do not have space to meet manufacturer-recommended safety protocols for even a single damaged EV sedan. The EV must be parked on concrete, asphalt, or gravel away from combustible materials such as grass or weeds.

17. Expect to Grow Your Fleet Staff

You will likely need to create room in your budget for additional positions like facilities employees whose job it is to manage charging station infrastructure maintenance, repairs, warranties, and regulatory compliance. It may be a good idea to hire employees to focus on research, applications for, and the administration of grants and rebates for ZEVs and infrastructure, as well as employees who focus on ZEV procurement.

Lean on Fleet Groups During Your Transition

The transition to ZEVs won’t be an easy one, and you should expect to face challenges. Renschler and Worthington recommend fleet managers lean on groups like MEMA and NAFA to aid in the transition.

“We’re all going to be running into the same challenges along the way. Why reinvent the wheel when others will be able to help you get past that?,” Renschler said.

The same mindset applies with infrastructure and EV safety. When planning infrastructure installation, collaborate with your utility provider in the process. When preparing technicians to safely maintain EVs, as well as when ensuring your fleet shop is prepared to take on EVs, reach out to your local fire department to discuss safety and best practices.

Setting the Standard for ZEVs

California is not alone in its rulemaking for ZEVs. Section 177 of the Clean Air Act allows other states to adopt California motor vehicle standards. Across the country, 12 states have adopted the Advanced Clean Cars rule, while six states have adopted the Advanced Clean Trucks Rule. Additionally, 17 states and Washington, D.C. have made medium- and heavy-duty ZEV commitments.