Energy Marketers of America - Regulatory Alert

Regulatory Alert

California Withdraws Electric Truck Waiver Request

EMA Regulatory Counsel Contacts: Jeff Leiter and Jorge Roman

Thursday, January 16, 2025 – The State of California has withdrawn its remaining requests to the U.S. Environmental Protection Agency for federal waivers under the Clean Air Act to limit greenhouse gas emissions from semi-trucks and diesel-powered trains. The California Air Resources Board’s (CARB) decision to withdraw the requests came less than a week before President Biden leaves office and in anticipation of opposition from the incoming Trump administration.

California submitted its Advanced Clean Fleets (ACF) waiver request to EPA in November 2023, which would have required trucking fleets in the State to transition to zero-emission vehicles beginning in 2024, and that all fleets be fully zero-emissions between 2035 and 2042, depending on several factors. ACF also mandated that all new heavy-duty trucks sold in California to be zero-emissions by 2036.

The ACF rule was intended by CARB, in part, to incentivize fleet purchases of zero-emission vehicles. Its counterpart, California’s Advanced Clean Trucks (ACT) rule, was granted a federal waiver by EPA in March 2023. The ACT rule regulates the types of truck OEMs can sell into the California market. EMA is one of the petitioners challenging the ACT waiver in federal court.

The other waiver requests pulled this week by California included a 2023 regulation that would have phased out the sale of new diesel-powered semi-trucks and buses by 2036. Another rule, which CARB also promulgated in 2023, would have banned locomotive engines more than 23 years old by 2030, and would have increased the use of zero-emission technology to transport freight from ports and in rail yards in California.

“CARB’s abandonment of its ACF rule waiver request is welcome news to energy marketers and consumers across the country,” said EMA President Rob Underwood. “This mandate was unachievable since day one.” “We look forward to working with the Trump administration on common-sense approaches for nationwide emissions standards that are achievable and deliver the promised environmental benefits, including reversing the unworkable waiver EPA granted last month to California for its Advanced Clean Car II (ACC II) rule,” Underwood added.

The ACC II rule is a set of requirements for model years 2026 through 2035 for on-road light- and medium-duty engines and vehicles. The ACC II rule includes revisions to both California’s Low Emission Vehicle and Zero Emission Vehicle (ZEV) regulations. The ACC II ZEV provisions specify future zero emission vehicle requirements in California as a percent of annual new vehicle sales. This requirement increases from 35% in model year 2026 to 100% in model year 2035. The Trump administration likely is going to start regulatory efforts to rescind the Biden EPA’s ACC II waiver, while Congress may entertain disapproving it under the Congressional Review Act.

California’s withdrawal of its EPA waiver request for the ACF rule will resonate beyond California, because states can adopt CARB’s EPA-approved vehicle emission rules. CARB’s action does not affect the antitrust lawsuit recently brought by EMA, the State of Nebraska, and others against California and the truck OEMs for their Clean Truck Partnership.

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