When the California Air Resources Board’s (CARB) Advanced Clean Fleets (ACF) Rule took effect in January of 2024, it made fleet management more challenging for municipalities and organizations throughout California.
With new, stringent requirements on phasing out gas-powered medium- and heavy-duty trucks and phasing in zero-emission vehicles (ZEVs), municipalities must make measured strides to reduce their emissions—or risk serious consequences.
But this isn’t only a concern for municipalities and organizations in California. Because the state is often a trendsetter in environmental concerns, the new rule could become a framework for emissions reduction efforts in other states as well.
Read our guide to learn more about the Advanced Clean Fleets rule and what it could mean for you.
What Is CARB’s ACF Rule?
The California Air Resources Board’s Advanced Clean Fleets Rule is a regulatory initiative that strives to curb emissions and greenhouse gasses by increasing the number of zero-emission vehicles throughout California.
Ultimately, the initiative has two primary goals:
- Accelerate the adoption of zero-emission vehicles among medium- and heavy-duty fleets throughout the state.
- Grow the market for zero-emission vehicles while encouraging new technological advancements and ZEV infrastructure.
Over time, the Board believes these rule changes will improve air quality through California—while also setting a precedent for other states to model.
What Does the CARB ACF Require?
The California Air Resources Board’s Advanced Clean Fleets rule outlines multiple deadlines for:
- Local government agencies
- State agencies
- Fleets
- Vehicle manufacturers
What you should know:
January 1, 2024
On this day, two important rules took effect:
- For small entities and all municipalities, 50% of annual fleet purchases must be zero-emission.
- For entities with more than $50 million in revenue or operating 50 or more vehicles—these organizations can only add zero-emission vehicles to their California requirements. The Board has laid out other important guidelines for these entities as well
January 1, 2025
By this date, fleets must begin removing internal combustion engine vehicles at the end of their useful life, which the rule defines as the later of one of two events:
- 13 years have passed—beginning with the model year that the engine in the vehicle was first certified for use by CARB or United States Environmental Protection Agency.
- The vehicle exceeds 800,000 miles traveled or reaches 18 years from the model year that the engine in the vehicle was first certified for use (whichever is earlier).
January 1, 2027
On this date, to more rules take effect:
- 100% of annual fleet purchases—including those for city, county, special district, and state agencies—must be zero emission.
- Small government fleets of 10 or fewer vehicles must begin purchasing zero-emission vehicles.
January 1, 2035
The Rule outlines two more rules that go into effect on this date:
- Vehicle manufacturers are required to only sell zero-emission medium- and heavy-duty vehicles, starting with the 2036 model year, in California.
- State and local governments may only purchase zero-emission vehicles.
Find Additional Information
Of course, Advanced Clean Fleets rule outlines additional nuances for all stakeholders, so review the rules carefully for requirements most pertinent to you, your organization, and your fleet.
How Should Municipalities And Other Entities Respond To the Advanced Clean Fleet Rule?
The CARB ACF creates new financial, operational, and administrative challenges for organizations throughout California. To combat these obstacles, organizations should:
1. Explore Electric Fleet Options
While diving into the unfamiliar world of electric vehicles can feel daunting, zero-emission vehicles come with multiple benefits, including:
- Environmental Benefits - This is the most obvious: Thanks to the reduction of emissions, ZEVs directly improve air quality and reduce greenhouse gas use.
- Economic Benefits - ZEVs are cheaper to fuel on a per-mile basis and cost less to maintain—thanks to fewer moving parts. Plus, as we’ll explore in the next two sections, ZEVs may unlock unique financial incentives and tax benefits.
- Operational Benefits - ZEVs may also deliver increased uptime (again, because of fewer internal components) and improved performance, thanks to an increase in torque.
At CUES, you can order CCTV vehicles that align with your ZEV timelines and goals, ensuring your remain in constant compliance with all ACF regulations.
2. Explore Tax Benefits
To incentivize consumers and companies to invest in ZEVs, the federal government and state governments have launched special tax benefits for ZEV owners. Some of the most popular federal tax incentives that could apply in the CARB ACF Rule include:
- Clean Vehicle Tax Credit: The federal government offers tax credits for purchasing qualifying ZEVs. The credit amount varies depending on the vehicle type and battery capacity, but it can go up to $7,500 per vehicle.
- Section 179 Deduction: Businesses may be able to deduct the full cost of eligible ZEVs in the year they are placed into service.
- Alternative Fuel Infrastructure Credit: If you install EV charging infrastructure for your fleet, you may qualify for additional federal tax incentives to cover up to 30% of the installation costs.
States may have their own unique tax benefits as well, so check your state laws to determine what’s available to your organization.
3. Explore Rebate Opportunities
You may have rebates available to you—if you know where to look.
State-Level Rebates
While you should check with your state to see what rebates are available to you, here are two pertinent rebates for the new Rule:
- Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP): The HVIP offers point-of-sale discounts on new zero-emission trucks and buses. Discounts can range from $30,000 to $150,000 per vehicle, depending on the type and size of the fleet.
- California Clean Vehicle Rebate Project (CVRP): The CVRP offers rebates ranging from $1,000 to $7,500 per eligible vehicle for government fleets and businesses. Applications to the CVRP are currently closed, but the Project maintains a standby list for late entries.
Federal Grant Programs
Here’s what you pay close attention to on the federal level:
- Diesel Emissions Reduction Act Grants: While aimed at replacing older diesel vehicles to improve the health of Californians, these grants can sometimes be used to offset the costs of ZEV upgrades. In fact, its grant history shows numerous instances of grants for ZEVs.
- Department of Energy Grants: Offers funding opportunities for organizations adopting clean energy technologies, including ZEVs and charging infrastructure.
- Inflation Reduction Act: The IRA is a major climate investment, and it has enabled multiple EV-related programs to make fleet purchases more affordable.
Rely On CUES
At CUES, we thrive on remaining at the forefront of the latest fleet technologies, including those for zero-emission vehicles.
Schedule a demo, or find a local sales representative to discuss developing the right vehicles for your fleet.
