HomeMy WebLinkAbout2024-01-11; California Air Resources Board New Regulatory Requirements (Districts All); Gomez, PazTo the members of the:
CITY COUNCIL
Date ll\l /2.f cA v cc ✓ C M~✓ DCM (3) ~
January 11, 2024
Council Me morandum
To:
From:
Honorable Mayor Blackburn and Members of the City Council
Paz Gomez, Deputy City Manager, Public Works
Via:
{city of
Carlsbad
Memo ID# 2024002
Re:
Geoff Patnoe, Assistant City Manager~
California Air Resources Board New ~~atory Requ irements {Districts -All )
This memorandum provides information regarding recent amendments to existing regulations
and approval of new regulations adopted by the California Air Resources Board (CARB) that
have varying level of impacts to City of Carlsbad fleet operations, which became effective
January 1, 2024.
Background
On November 17, 2022, the CARB approved amendments to the existing In-Use Off-Road
Diesel-Fueled Fleets Regulation. These amendments bolstered the regulation's existing
requirements with the goal of further reducing emissions from off-road diesel equipment.
On April 28, 2023, the CARB also adopted a new Advanced Clean Fleets Regulation, designed to
accelerate the deployment of heavy-duty zero emission vehicles operating in California. This
regulation applies to trucks performing local freight operations at seaports and railyards, fleets
owned by state, local and federal government agencies, and high priority fleets. The regulation
affects medium-and heavy-duty on-road vehicles with a gross vehicle weight rating greater
than 8,500 pounds, off-road yard tractors and light-duty mail and package delivery vehicles.
Additional details and information regarding this regulation are in Attachment A.
Discussion
Since its adoption in 2008, the city has retained full compliance with the In-Use Off-Road Diesel-
Fueled Fleets Regulation. The current amendments do not affect the city's existing equipment
replacement planning. One provision that may impact the city's operations is a new
requirement for public works awarding bodies, such as the city, and prime contractors to obtain
and retain a fleet's valid Certificate of Reported Compliance from contractors, and to not enter
into a contract with a fleet for which it does not have a valid Certificate of Reported
Compliance.
The Advanced Clean Fleet rule includes requirements for state and local government fleets to
ensure 50% of applicable vehicle purchases are zero-emission beginning in 2024 and 100% of
applicable vehicle purchases are zero-emission by 2027.
Public Works Branch
Fleet & Facilities Department
2480 Impala Drive I Carlsbad, CA 92010 I 442-339-5193 t
Council Memo -California Air Resources Board New Regulatory Requirements (Districts -All)
January 11, 2024
Page 2
Staff have been preparing for compliance with this regulation since 2020. The city is currently
poised to be fully compliant with this regulation.
Next Steps
The following actions by the city will ensure ongoing compliance with these regulations:
• Contractors registered with the city have been notified of the potential applicability of
the regulation, and existing contract language has been updated to reflect the new
requirements
• Staff will establish a process for validation and annual verification of contractor
compliance with the regulation prior to the award of a new contractual agreement or
renewal to an existing contractual agreement
• Staff will complete mandatory annual reporting to the CARB attesting to compliance
with the regulations
Attachment: A. Advanced Clean Fleets Regulation Summary
cc: Scott Chadwick, City Manager
Cindie McMahon, City Attorney
Laura Rocha, Deputy City Manager, Administrative Services
Zach Korach, Finance Director
Gina Hererra, Assistant City Attorney
John Maashoff, Public Works Manager
Bradley Northup, Public Works Superintendent
Craddock Stropes, Senior Management Analyst
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CALIFORNIA
AIR RESOURCES BOARD
Advanced Clean Fleets Regulation Summary
Accelerating Zero-Emission Truck Markets
DATE May 17, 2023
CONTACT
Advanced Clean Fleets
Email zevfleet@arb.ca.gov
Phone (866) 634-3735
CATEGORIES
Topics On-Road Heavy-Duty Vehicles
Programs Advanced Clean Fleets, Drayage Trucks at Seaports & Railyards
ATTACHMENT A
The following information summarizes the Advanced Clean Fleets (ACF) regulation,
which is one part of a broader strategy to deploy medium-and heavy-duty zero-
emission vehicles (ZEV) everywhere feasible.
Accelerating Zero-Emission Truck Markets
The Advanced Clean Fleets (ACF) regulation is part of the California Air Resources
Board's (CARS or Board) overall approach to accelerate a large-scale transition to
zero-emission medium-and heavy-duty vehicles. This regulation works in
conjunction with the Advanced Clean Trucks (ACT) regulation, approved March
2021, which helps ensure that zero-emission vehicles (ZEV) are brought to market.
More information on the ACT regulation is available in this fact sheet. The ACF
regulation is critical to achieving both our health protective ambient air quality
standards and the climate goals established Governor's Executive Order N-79-20.
This regulation is expected to save $26.5 billion in statewide health benefits from
criteria pollutant emissions and a net cost savings of $48 billion to fleets. The
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following information summarizes the ACF regulation, which complements the ACT
regulation, and is a part of a broader strategy to deploy medium-and heavy-duty
ZEVs everywhere feasible.
Which fleets does the ACF regulation affect?
The ACF regulation applies to fleets performing drayage operations, those owned by
State, local, and federal government agencies, and high priority fleets. High priority
fleets are entities that own, operate, or direct at least one vehicle in California, and
that have either $50 million or more in gross annual revenues, or that own, operate,
or have common ownership or control of a total of 50 or more vehicles (excluding
light-duty package delivery vehicles). The regulation affects medium-and heavy-
duty on-road vehicles with a gross vehicle weight rating greater than 8,500 pounds,
off-road yard tractors, and light-duty mail and package delivery vehicles.
What are the different components of ACF?
• Manufacturer sales mandate. Manufacturers may sell only zero-emission
medium-and heavy-duty vehicles starting in 2036.
• Drayage fleets. Beginning January 1, 2024, trucks must be registered in the
CARB Online System to conduct drayage activities in California. Non-zero-
emission "legacy" drayage trucks may register in the CARB Online System
through December 31, 2023. Legacy drayage trucks can continue to operate
through their minimum useful life. Beginning January 1, 2024, only zero-
emission drayage trucks may register in the CARB Online System. All drayage
trucks entering seaports and intermodal railyards would be required to be zero-
emission by 2035.
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• High priority and federal fleets. High priority and federal fleets must comply
with the Model Year Schedule or may elect to use the optional ZEVMilestones
Option to phase-in ZEVs into their fleets:
0 Model Year Schedule: Fleets must purchase only ZEVs beginning 2024
and, starting January 1, 2025, must remove internal combustion engine
vehicles at the end of their useful life as specified in the regulation.
o ZEVM ilestones Option (Optional): Instead of the Model Year Schedule,
fleets may elect to meet ZEV targets as a percentage of the total fleet
starting with vehicle types that are most suitable for electrification. The
schedule is laid out in Table 1.
• State and local agencies. State and local government fleets, including city,
county, special district, and State agency fleets, are required to ensure 50
percent of vehicle purchases are zero-emission beginning in 2024 and 100
percent of vehicle purchases are zero-em ission by 2027. Small government
fleets (those with 10 or fewer vehicles) and those in designated counties must
start their ZEV purchases beginning in 2027. Alternately, State and local
government fleet owners may elect to meet ZEV targets using the ZEV
Milestones Option as shown in Table 1. State and local government fleets may
purchase either ZEVs or near-ZEVs, or a combination of ZEVs and near-ZEVs,
until 2035. Starting in 2035, only ZEVs will meet the requirements.
What is the ZEV Milestones Option?
Fleets that fall under the High Priority and Federal Fleets or the State and Local
Government Fleets parts of ACF may choose to use the ZEV Milestones Option,
shown in Table 1, to meet their ZEV targets.
Table 1: ZEV Fleet Milestones by Milestone Group and Year
Percentage of vehicles that must be 10% 25% 50% 75% 100%
zero-emission
Milestone Group 1: Box trucks, vans,
buses with two axles, yard tractors,
light-duty package delivery vehicles
2025 2028 2031 2033 2035 and
beyond
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Milestone Group 2: Work trucks, day
cab tractors, buses with three axles
Milestone Group 3: Sleeper cab
tractors and specialty vehicles
2027 2030 2033 2036 2039 and
beyond
2030 2033 2036 2039 2042 and
beyond
How will this regulation affect existing trucks or
equipment?
The ACF regulation will transiti on fleets to ZEVs over the course of the upcoming
decades and guarantees a full useful life. The ACF regulation's default Model Year
Schedule beg ins in 2024, and allows drayage and high priority and federal fleets to
continu e using their existing trucks until the earlier of 18 years or 800,000 miles or a
minimum of 13 years if the truck has over 800,000 miles. State and local
government fleets have no requirement to end the use of their existing compliant
vehicles. Th is means affected fleets may keep their existing combustion-powered
vehicles for the full useful life provided by Senate Bill 1 (Beall, Statutes 2017,
Chapter 5) under the Model Year Schedule. As an alternative to the Model Year
Schedule, the ZEV Milestones Option is phased-in over almost two decades and
allows fleets full flexibility to manage their fleet compos ition over the phase-in period,
as long as the ZEV Milestones targets are met.
What if there isn't a zero-emission truck to
replace what a fleet needs?
There are over a hundred ZEV models available now and more are comin g as
manufacturers begin to ramp up their sales. However, the High Priority and Federal
Fleets and the State and Local Government Fleets requirements include an
exemption for cases in which a ZEV is not available for purchase and is needed to
comply. The ZEV Purchase Exemption allows a fleet owner to purchase a new
internal combustion eng ine veh icle and exclude it from the internal combustion
engin e vehicle removal requirement of the Model Year Schedule, or exclude it from
the ZEV Milestones calculation. Exemptions to purchase internal combustion eng ine
veh icles would only be needed if the fleet cannot otherwise meet the ZEV targets. A
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list of vehicles that are not available as ZEVs or near-ZEVs will be kept on the CARS
website, and fleet owners can apply for fleet-specific exemptions if the needed
vehicle is not listed and if the fleet falls under the High Priority and Federal Fleets or
the State and Local Government Fleet requirements.
Zero-emission truck availability (as of July 2022)
• 148 models in North America are ava ilable for order or pre-order.
• 135 models are actively being produced and delivered to customers.
• At least 35 manufacturers are prnducing vehicle Class 2b through 8 ZEVs.
The ACF regulation will be phased-in over the next two decades, allowing fleets time
to replace their existing convention al medium-and heavy-duty vehicles with
comparable ZEVs. Fleet managers with vehicles in Milestone Group 3, which
includes specialty vehicles, will have the most time to make decisions about the
order and timing of vehicle replacements in their fleets. The specialty truck and
sleeper cab tractor phase-in requirement starts in 2030, and by this time, ZEV
technology is expected to have advanced to the point that range and vehicle weight
are no longer barriers. Based on Large Entity Reporting data collected in 2021, 3
percent of the medium-and heavy-duty vehicles in California are specialty vehicles,
as defined in the ACF regulation.
How many vehicles will be affected by the ACF
regulation?
The ACF regulation is expected to significantly increase the number of medium-and ·
heavy-duty ZEVs on California roads, beyond the sales expected from the ACT
regulation. The 2 regulations together are expected to result in about 510,000,
1,350,000 and 1,690,000 ZEVs in California in 2035, 2045, and 2050, respectively.
Figure 1 below provides details of these increases over time.
Figure 1: Statewide medium-and heavy-duty ZEV population forecast
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1,800,000
1,600,000
C 1,400,QQQ
0 ·;::
<TJ 1,200,000 :::; a.. o 1,000,000 Q..
~ 800,000
N
~ 600,000
(0
u 400,000
200,000
0
202 4
Advanced Clean Fleets Regulation Summary
202 8 2032 2036 2040 2044 2048
Calendar Year
-Total ZEVs with ACT and ACF ••••••• ZEVs due to the ACT Regulation
CARB staff estim ate that, of the 1.8 million medium-and heavy-duty vehicles
operating daily in California, 532,000 will be subject to ACF fleet requirements.
Figure 2, below, shows how many vehicles in certain groups of vehicle classes are
estimated to be subject to the ACF regulation, and what percentage of the vehicles
that operate in California that is. The regulation focuses on the truck types that
pollute the most; 67 percent of all Class 7-8 tractors, the largest polluters, will be
covered.
Figure 2: Projected percentage of vehicles affected by regulation
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C 0
250,000
-~ 200,000
:::,
Q_
0 o.... 150,000
...Y u :::,
F 100 ooo -0 '
<ll +-' (1J
5) 50,000
142,000
12%
Advanced Clean Fleets Regulation Summary
225,000 67%
52% 164,000
75% c
0 0)
60% 2 . ·ro • --u .
C 45°,, ·;=
/0 ::e .
> .>
tJ)
30%~
:::,
F
15% 2 u (1) (1)
Q:'. ~ __ ..____._ 09{, <t:
Class 2b-3 Class 4-8 Vocational Cl ass 7-8 Tr actor
■ Trucks Subject to ACF D Percentage Subject to ACF
Why do we need the ACF regulation?
The primary goal of the ACF regulation is to accelerate the market for zero-emiss ion
trucks, vans, and buses by requiring fleets that are well su ited for electrification, to
transition to ZEVs where feasible. The Board directed CARB staff to ensure that
fleets, businesses, and public entities that own or direct the operation of medium-
and heavy-duty vehicles in California purchase and operate ZEVs to achieve a
smooth transition to ZEV fleets by 2045 everywhere feasible, specifically to reach:
• 100 percent zero-emission drayage trucks, last mile delivery, and government
fleets by 2035
• 100 percent zero-emission refuse trucks and local buses by 2040
• 100 percent zero-emission capable utility fleets by 2040
Achieving these and other milestones will also contribute to meeting the goals in the
Governor's Executive Order N-79-20. The ACF regulation continues the progress
toward meeting public health and climate goals by reducing emissions from the
medium-and heavy-duty vehicles on California roads, as shown in Table 2 below.
Table 2: ACF's cumulative total emissions reductions from 2024 to 2050
relative to the Legal Baseline
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Pollutants
Emissions
reductions from
ACF
Advanced Clean Fleets Regulation Summary
Oxides of
Nitrogen (NOx)
146,872 tons
Fine Particulate
Matter (PM2.5)
6,875 tons
Carbon
Dioxide (CO2)
327 million
metric tons
Are zero-emission trucks available and suitable
for today's fleets?
Medium-and heavy-duty ZEVs that are commercially available today are already
capable of meeting the daily needs of most local and regional trucking operations
and a variety of vocational uses. The ACF regulation also provides flexibility to
phase-in ZEVs in the most suitable portions of the fleets, first. Fleet owners reported
information about their vehicles and operations as part of the Large Entity Reporting
data collected in 2021 that shows that the vast majority of trucks drive 100 miles or
fewer per day. Figure 3 provides additional detail. Today's medium-and heavy-duty
ZEVshave energy storage systems that can meet most of these daily operational
requirements.
Figure 3: Estimated average daily mileages for select vehicle categories in
Large Entity Reporting
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100%. C a5 90%
<IJ rn
!'lJ (l)
80%
70%
2 60%
C 50%
(/) w 40%
t.)
L 30%,
~ 20% o 109{.
<IJ rn 0% <,;) ....,
C
(l)
t.)
"-(1) a..
Advanced Clean Fleets Regulation Summary
lil300+ mi.
m 201 -300 r~i.
151-200 mi.
D 101-150 mi.
11<100 mi.
How will disproportionately impacted
communities benefit from the ACF regulation?
The regulation will accelerate the deployment of ZEVs and the air quality benefits
they offer, to communities most impacted by harmful truck emissions.
Neighborhoods located near seaports, intermodal railyards, warehouses, and
distribution centers are disproportionately affected by high truck traffic from medium-
and heavy-duty trucks. The drayage component of the regulation would require by
2035, that all trucks entering the seaports and intermodal railyards be zero-
emission, which will greatly benefit air quality in neighborhoods surround ing these
locations. Overall, this regulation will result in nearly half of all semi-trucks that travel
on our highways to be zero-emission by 2035 and about 70 percent to be zero-
emission by 2042. The regulation will also affect the vehicles that operate directly in
neighborhoods such as delivery trucks, garbage trucks, and utility trucks. Th is will
greatly reduce the. harmful impacts of tailpipe em issions and disruptive noise in
California communities.
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Can zer,o-emission trucks save fleets money?
Yes, zero-emission trucks have lower operating and maintenance costs than
conventional trucks which can help offset the higher initial purchase price. Today, the
total cost of ownership in California may be comparable to conventional trucks for
certain duty cycles and applications (without factoring in State or federal incentives).
While ZEVs are expected to cost more up front today, reduced fuel costs, lower
maintenance expenses, and Low Carbon Fuel Standard revenues are expected to
deliver a net savings of $48 billion to fleets. As components and battery prices fall
and technology continues to improve, total cost of ownership is expected to become
more favorable.
• Savings of $26.5 billion in statewide health benefits from criteria pollutant
emissions
• Net cost savings of $48 billion to fleets
Is there funding for purchasing zero-.emission
trucks?
The 2021 and 2022 State budgets include a total investment of $10 billion over 6
years to reduce CO2 emissions from the transportation sector by supporting ZEVs
and ZEV infrastructure. This funding will be administered by CARS, the California
Energy Commission, the California State Transportation Agency, and the Governor's
Office of Economic and Business Development. This new funding builds on ZEV and
ZEV infrastructure investments made by the State for more than a decade. These
investments will focus on an equitable ZEV transition by continuing to find ways to
support disproportionately impacted communities.
Several funding programs are available to support the use of advanced
technologies, and because funding programs only pay for early adoption not for
compliance, more funding opportunities exist for those fleets that act early. These
programs are administered by State agencies, federal agencies, and local air
districts. For example, the Hybrid and Zero-Emission Truck and Bus Voucher
Incentive Project (HVIP) provides point-of-sale rebates to help offset the purchase
price of Class 2b through 8 battery electric and fuel cell electric trucks and buses.
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Larger rebates are available for public fleets and small private fleets with vehicles
located in disproportionately impacted communities. A list of all vehicles that are
currently eligible for funding is available at California HVIP.
The Innovative Small e-Fleet Pilot Project is a $35 million set-aside within HVIP to
pilot an incentive program geared toward helping small trucking fleets and
independent owner operators access zero-emission trucks. This pilot project opened
for voucher requests from eligible small fleets in August 2022. More inform ation on
this program is ava il able at the California HVIP small e-fleets webpage.
The Carl Moyer Memorial Air Quality Standards Attainment Program funds the
replacement of old, high-polluting vehicles, engin es, and equipment, with new
technologies that are cleaner than required, or earlier than what is required by rules
and regulations. Grant amounts are based on the cost-effectiveness of harmful
pollutants that will be reduced by the project. This program may also fund the
installation of charging and fueling infrastructure. More information on this program
is ava il able at the Carl Moyer webpage.
The Truck Loan Assistance Program helps small-business fleet owners secure
financing for upgrading their fleets with newer trucks. Small business truck owners
with 100 or fewer employees, $10 million or less in annual revenue averaged over 3
years, and fleets with 10 or fewer heavy-duty vehicles subject to the In-Use Truck
and Bus Regulation are eligible to seek financing under this program. More
information on this program is available at the Truck Loan Assistance Program. This
program is being redesigned as the Zero-Emission Truck Loan Pilot to better support
the financing of zero-emission trucks along with any needed charging or fueling
infrastructure, providing a streamlined lending process for small businesses that are
transitioning to ZEVs.
The Fiscal Year 2022-23 Funding Plan for Clean Transportation lncentivesprovides
additional funding for zero-emission refusetrucks. Refuse trucks are present in all
communities statewide, but their impacts are felt particularly strongly by
disproportionately impacted communitiesthat are located near waste transfer
stations andare burdened by multiple pollution sources. There are at least 12 battery
electric refuse truck models availablefor incentives through HVIP. To learn more
about the 2022-2023 Funding Plan, see the Funding Plan webpage.
In addition to California's funding programs, the federal Inflation Reduction Act of
2022 provides complementary and substantial new funding for zero-emission trucks
and related infrastructure. The federal Infrastructure Investment and Jobs Act of
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2021 provides $550 billion in new infrastructure investments, including for roads,
bridges, public transit, water infrastructure, resilience, and broadband. For more
information about CARB's or federal funding opportunities, visit GARB Incentive
Programs, the U.S. Department of Energy's Alternative Fuels Data Center, the
federal Inflation Reduction Act's energy and infrastructure provisions, and the
F~deral Highway Administration webpage on implementation of the Infrastructure
Investment and Jobs Act.
Technical and financial assistance for infrastructure is also available through several
programs. The California Public Utilities Commission has approved $1.054 billion to
support medium-and heavy-duty charging installation pursuant to Senate Bill 350. In
addition to this funding, investor-owned utilities are authorized to make investments
in utility-side infrastructure upgrades to support transportation electrification
pursuant to Assembly Bill 841. The California Energy Commission is also working to
accelerate medium-and heavy-duty vehicle infrastructure for both charging and
hydrogen refueling, and will invest $2.69 billion from the current State budget in
infrastructure that will serve light-, medium-, and heavy-duty infrastructure. The
recently launched Energl/ZE p_rogram provides energy infrastructure incentives for
commercial vehicle fleets.
What is being done to increase charging and
hydrogen fueling infrastructure for ZEVs?
The ACF regulation specifically focuses on the early transition to zero-emission
trucks that typically return to base operations where fleets would install charging
and/or hydrogen fueling stations for their own needs. The public sector, with the
California Energy Commission in the lead, is planning for and investing in the
expansion of charging and hydrogen fueling infrastructure. Their draft Zero-Emission
Vehicle Infrastructure Plan and their Electric Vehicle Charging Infrastructure
Assessment provide more information about what the State is doing to help meet
fleets' needs with respect to infrastructure. The California Energy Commission's
Integrated Energy Policy Report is theState's blueprint for energy generation and
supply, which is used by investor-owned utilities for their own infrastructure planning
needs. In addition to State efforts, the private sector-including vehicle
manufacturers-have made announcements regarding investments in installing
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publicly available charging and/or hydrogen fueling station n~tworks, along both the
east and west coasts of the U.S. and in Texas, and between several of California's
largest metropolitan areas.
What are the next steps?
The ACF regulation will move medium-and heavy-duty ZEVs into the mainstream by
focusing on those fleets that are best able to be on the leading edge, and those of
the greatest public health concern. The 2022 State Strategy for the State
Implementation Plan describes efforts beyond ACF and the ACT regulation. This
plan also describes the new authorities that would be needed for GARB to
accelerate the full transition to zero-emission trucks in a way that minimizes
administrative burden for fleet owners and GARB, and that creates market
mechanisms to encourage those who have operations that are suitable for
electrification to act early while allowing more time for those who can't.
Where can more information be found?
Information about the ACF Regulation and upcoming meetings, workshops, and
events is available at the ACF website. Information about all medium-and heavy-
duty zero-emission regulations, funding, and background can be found at ZEV
Truck Stop.
If you have questions or wish to obtain this document in an alternative format or
language, call (916) 323-2927. For TTY/TDD/Speech-to-Speech users, dial 711 for
the California Relay Service.
Source URL: https:llww2. arb. ca. govlresourceslfact-sheetsladvanced-clean-fleets-
regulation-summary
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