Several states are delaying their compliance with California’s clean-engine rules for medium and heavy-duty trucks.
Will New Jersey do the same?
Well, there is now legislation for that.
Bills A-4967 (Calabrese, D-36); S3817 (Diegnan, D-18) were posted this week. They require the state Department of Environmental Protection to delay the implementation of the Advanced Clean Trucks regulations, currently scheduled to start on Jan. 1, 2025, until at least Jan. 1, 2027.
“There are any number of credible reasons to delay these rules, and they’re basically the same reasons why we and other groups tried to stop the DEP from approving them in the first place,” said NJBIA Deputy Chief Government Affairs Officer Ray Cantor.
“In a nutshell, it will cost hundreds of millions of dollars for the trucking industry, it will decimate the logistics industry, including our ports, and those costs will be passed on to consumers. But above all that, the regulations are not feasible because the technology and infrastructure simply aren’t there yet for full implementation.”
This week, Massachusetts joined Oregon in delaying implementation of Advanced Clean Truck (ACT) regulations, which mirror the same rules set by the California Air Resources Board (CARB).
In New York, efforts to delay the rule by trucking stakeholders are reportedly getting some traction with lawmakers.
At the same time, ACT is also being challenged in federal court by attorney generals from 19 states and a coalition of stakeholders.
In New Jersey, beginning with model year 2025, Advanced Clean Trucks require a certain percentage of sales of new trucks to be zero-emission vehicles (ZEV). That percentage increases every year through model year 2035.
Currently under the ACT regulation in California, a manufacturer generates ZEV credits for each ZEV produced, delivered, and sold for purchase in state for the manufacturer-designated model year.
The rub is that ZEV credits are only earned when a new, on-the-road ZEV is sold to the final purchaser in California. If the ZEVs are not sold, diesel trucks can’t be sold either.
So, what does it mean for an ACT state, such as New Jersey?
“It basically means manufacturers are forced to deliver ZEV trucks to their dealers in their state, until a sufficient number are purchased by consumers that generate enough credits to allow the manufacturers to then start delivering non-ZEV or internal combustion engine trucks to their dealers,” Cantor said.
“Until that point, dealers are stuck with ZEV trucks that fewer people want to buy, and then customers are waiting to buy gas-powered trucks that dealers can’t get from their manufacturers. Obviously, this is not a recipe for business success.
“Further, if the rule is not delayed, purchasers will be forced to buy diesel trucks out–of-state, thus harming in-state dealers.”
CARB is reportedly considering amending the rule to revise when ZEV credits are granted to the manufacturer.
But there are other issues with the rule that can infringe upon the general population, not related to credits.
For example, a bipartisan group of California legislators recently wrote in a letter to CARB:
“Without appropriate actions by CARB, the small businesses in California and their employees will soon suffer layoffs and potential closures. In addition to the impact to families and economic activity, without access to new vehicles, tow and recovery companies will be forced to purchase higher emission, used vehicles from out-of-state, undermining the State’s air quality goals.
“Further, tow and recovery vehicles are part of the essential roadway safety network clearing over
1,200 road accidents and 2,400 mechanical breakdowns daily.”
Closer to home, the New Jersey Building Material Dealers Association this week issued a statement urging a rollback of the ACT rule due to supply chain concerns.
“NJBMDA members employ CDL drivers who make daily deliveries of house loads of lumber, windows, doors, deck packages, and kitchen cabinets to job sites across New Jersey,” the statement read. “These deliveries are crucial to keeping construction, including essential housing and infrastructure projects, moving forward.
“The association stresses that clean truck technology is not yet viable for widespread use. Building material dealers, the final critical link in the construction supply chain, have just begun recovering from the pandemic’s disruptions, and NJBMDA fears this regulation could disrupt essential supply chains in New Jersey, worsening the state’s affordability crisis.”