Here’s what you need to know:
- California Air Resources Board (CARB) is amending its Advanced Clean Truck (ACT) rule to create flexibility around how OEMs earn and use ZEV credits.
- Key changes include a new “pooling” option for OEMs to use within opt-in states and a credit offset program where OEMs can use Class 2b-3 and Class 4-8 truck credits to offset deficits in Class 7-8 tractor segment.
- CARB believes the amendments support the Clean Truck Partnership and “remains steadfast in its commitment to work with manufacturers” to reduce emissions in the state.
The California Air Resources Board (CARB) amended its Advanced Clean Truck (ACT) and Zero-Emission Powertrain (ZEP) certification standards last week to enable flexibility for commercial vehicle sales in rule adopting states.
CARB states the new amendments constitute minor changes with no significant cost or emissions impact that were developed in response to comments received by industry stakeholders since the ACT rule was implemented in Jan. 2024. CARB also states the updates further support the Clean Truck Partnership agreed to with commercial truck OEMs in 2023 to continue reducing emissions from the industry in the state.
Whatever impetus given by the state, the amendments unquestionably positive for OEMs and their dealer partners.
CARB summarizes the new amendments as follows:
- Adding a “pooling” option for manufacturers to transfer surplus zero-emission vehicle (ZEV) and near-zero emission vehicle (NZEV) credits generated between states that adopted the ACT regulation.
- Permitting manufacturers to offset a portion of deficits generated in the Class 7-8 tractor group with Class 2b-3 or Class 4-8 group ZEV credits for each model year, allowing manufacturers more flexibility and to account for fluctuations in ZEV and NZEV sales across states and vehicle classes.
- Adjusting the minimum all-electric range requirement for NZEV in later years
- Providing manufacturers increased flexibility on the order in which they retire credits.
- Modifying the communication protocols of the ZEV connector criteria for certifying zero-emission powertrains.
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“California’s commitment to cleaner trucks has created an ecosystem of programs and incentives that will continue to drive progress despite the federal administration’s unlawful actions challenging our state’s efforts to reduce emissions and deploy to clean transportation technologies,” says CARB Chair Liane Randolph.
“The amendments approved today provide manufacturers with flexibility, and we look forward to continued collaboration with manufacturers in efforts to reduce emissions, protect public health and ensure global competitiveness as the rest of the world shifts to zero-emission technologies.”
The ACT rule has been under fire since its implementation.
The new rule reduced new truck orders in California by more than 50% in 2024, and dealers in 2025 opt-in states reported the complete elimination of new truck orders in the first quarter of the year. Sales became so bad in some areas that Massachusetts and Oregon — both 2025 opt-in states — chose to delay enforcement in their states to enable the ordering of diesel trucks in 2025, while future opt-in states Vermont and Maryland also punted their implementation timelines.
Then in June, President Trump signed a resolution that revoked the EPA waiver provided to CARB for the ACT rule, which immediately led to CARB announcing its intent to fight the President’s action in court, as well as guidance for manufacturers subject to the regulations. “This remains an unconstitutional, illegal and foolish attempt to undermine California’s clean air protections,” Randolph stated at the time.
In the months since, dealers and their customers in California, Washington, New York and New Jersey have remained hamstrung by the uncertainty of the regulation.
In the on-highway segment, the decision to enable manufacturers to use credits earned for Class 2b-3 and Class 4-8 truck deliveries for Class 7-8 tractor credits is a substantial change that could finally drive steady orders in opt-in states. CARB announced last year its commercial vehicle ZEV sales totals through 2023 were “two years ahead of schedule,” but Class 7-8 tractors represented only 1.92% of those sales.
[RELATED: Analyzing the details of California early ZEV sales success]
And with fleets under no obligation to purchase ZEV equipment due to CARB scrapping its Advanced Clean Fleets (ACF) rule in May, demand for ZEVs in the on-highway and vocational spaces has yet to materialize.
The state does not appear deterred by those facts at this same.
“Despite the market uncertainty and disruption brought on by the federal government, California remains steadfast in its commitment to work with manufacturers to keep moving toward a cleaner transportation system while also reducing harmful and costly air pollution,” CARB stated last week.
