Next week marks the first compliance deadline for “high priority fleets” under California’s Advanced Clean Fleets (ACF) regulation. Under the rule, by February 1, 2024, companies that own or direct fleets of vehicles for their business must submit their initial compliance report through the California Air Resources Board (CARB) Truck Regulation Upload, Compliance, and Reporting System, reflecting the composition of the fleet as of January 1, 2024.

Companies are subject to the February 1 deadline if (1) they own, operate, or direct at least one vehicle in California, and they have either $50 million or more in gross annual revenue, or (2) they own, operate, or have common ownership or control of a total of 50 or more vehicles. The ACF regulation covers medium- and heavy-duty on-road vehicles with a gross vehicle weight rating greater than 8,500, off-road yard tractors, and light-duty mail and package delivery vehicles.

Also effective on January 1, 2024, only zero-emission vehicles (ZEVs) or near-zero emission vehicles (such as plug-in hybrids) can be added to fleets, and starting on January 1, 2025, internal combustion engine vehicles must be removed from the fleet at the end of their useful life. Vehicle useful life is defined as later of 13 years from the engine model year, or the date the vehicle exceeds 800,000 miles traveled. Vehicles that never travel 800,000 miles must still be retired 18 years from the engine model year. Alternatively, fleets may opt to follow a ZEV Milestones Option and instead meet ZEV targets as a percentage of the total fleet, giving them the flexibility to first replace vehicle types most suitable to electrification.

While CARB is delaying enforcement of the ACF until EPA grants a Clean Air Act preemption waiver or determines a waiver is not necessary, once the EPA gives the go-ahead, fleet composition will need to be reported as it existed on January 1, 2024, plus any removals from or additions to the California fleet since that date. CARB also cautions that it intends to enforce the rule retroactively and any combustion-powered vehicles added into California high priority fleets after December 31, 2023, may need to be removed once the waiver is granted or determined to be unnecessary.

MoFo’s team of environmental attorneys regularly advises clients on compliance with CARB and Clean Air Act regulations, and are ready to assist companies that own, operate, or direct high priority fleets to comply with California’s Advanced Clean Fleets regulation requirements.

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