What is the CARB Advanced Clean Fleets Regulation?
In April 2023, the California Air Resources Board (“CARB”) adopted the Advanced Clean Fleets (“ACF”) regulation[1] The ACF mandates a phased transition of medium- and heavy-duty vehicle fleets to zero-emissions vehicles and applies to all vehicles with a gross vehicle weight greater than 8,500 owned, leased, or operated by any state or local government agency. Therefore, the term “vehicle” when it is used in the ACF regulation, and this article refers only to vehicles with a gross vehicle weight rating greater than 8,500 pounds.
Under the ACF, school districts must choose between two approaches for complying with the new requirements:
Model Year Schedule Option
Under the Model Year Schedule Option, beginning January 1, 2024, fifty percent of the total number of vehicles acquired by a school district each calendar year must be zero-emission vehicles (“ZEVs”). Beginning January 1, 2027, 100% of the total number of vehicles purchased for a school district fleet must be ZEVs. However, there is an exception for school districts either (a) in a designated low-population county or (b) that with ten or fewer vehicles in its fleet. Under this exception a school district is exempt from complying with the January 1, 2024, fifty percent requirement, but must comply with the January 1, 2027, requirement that all vehicle acquisitions must be ZEVs.
ZEV Milestones Option
The ZEV Milestones option focuses on the percentage of ZEVs across a school district’s entire fleet of applicable vehicles. This option allows for phasing ZEVs into a school district’s fleet between 2025 and 2042, depending on the type of vehicle and its usage.
Starting January 1, 2025, school districts choosing this option must continuously meet or exceed the ZEV Fleet Milestone percentage obligation requirement, which is calculated via the table below:
Note that a school district choosing the ZEV Milestones option must opt-in to this option before January 1, 2030, and cannot switch back to the Model Year Schedule Option if it ultimately decides to do so.
What are the Pros/Cons of Each Option?
The Model Year Schedule is straightforward and convenient because it only concerns school districts that are adding to or replacing existing vehicles with a gross vehicle weight rating greater than 8,500 pounds, whereas the ZEV Milestones option applies to a school district’s entire fleet of applicable vehicles.
However, the ZEV Milestones option allows a school district to “ramp up” or phase-in ZEVs into its fleet since the percentage in the early years is lower than the fifty percent requirement of the Model Year Schedule option. The ZEV Milestones option also defers specialty and work vehicles until later in the timeline. Note that although the ZEV Milestone approach offers more flexibility, the calculations for ensuring compliance can be complex; therefore, a school district considering this option should consult with an attorney before making the choice.
When deciding which option to choose, the ZEV Milestones Option might align better with a school district that turns its vehicles over more frequently, while the Model Year Schedule may be better suited for school districts that hold onto their vehicles for a longer time.
Exceptions and Extensions Under the ACF
There are notable exceptions to the ACF, such as an exemption for school buses. In addition, a school district may be eligible for an extension to comply with the ACF. Legal counsel can help determine whether any exemptions or extensions apply to an individual district’s situation.
CARB Reporting Requirements and Penalties for a Failure to Comply
School districts must submit a compliance report online through the CARB Advanced Clean Fleets reporting portal annually each March (Model Year Schedule) or January (ZEV Milestones) until the year 2045. School districts opting for the Model Year Schedule option were required to submit their compliance reports by April 1, 2024. Under the ZEV Milestones option, the deadline was February 1, 2024. However, school districts can avoid any penalties for a failure to report if they submit their reports before January 1, 2025. A school district that fails to comply with the reporting requirements or whose fleet fails to comply with the ACF regulation may be subject to harsh penalties assessed by CARB.
The information provided herein is intended solely as a summary of the California Air Resources Board Advanced Clean Fleets Regulation as it pertains to school districts. For a more thorough explanation and for specific legal guidance, please contact the author or other Tao Rossini counsel.
[1] The provisions of ACF are in Title 13 of the California Code of Regulations at Division 3, Chapter 1, Article 3.2