Existing law establishes the Air Quality Improvement Program that is administered by the State Air Resources Board for purposes of funding projects related to, among other things, the reduction of criteria air pollutants and improvement of air quality. Existing law establishes the Medium- and Heavy-Duty Zero-Emission Vehicle Fleet Purchasing Assistance Program (program) within the Air Quality Improvement Program to make financing tools and nonfinancial supports available to operators of medium- and heavy-duty vehicle fleets to enable those operators to transition their fleets to zero-emission vehicles.

This bill, for any regulation adopted to develop or implement the program, or other regulations that are regarding the procurement or use of medium- and heavy-duty zero-emission vehicles by a public or private fleet, would require the state board to consider specified things, including, among other things, the environmental and supply chain benefits of renting medium- and heavy-duty zero-emission vehicles compared to procuring them.

Existing law establishes the Air Quality Improvement Program that is administered by the State Air Resources Board for purposes of funding projects related to, among other things, the reduction of criteria air pollutants and improvement of air quality. Existing law establishes the Medium- and Heavy-Duty Zero-Emission Vehicle Fleet Purchasing Assistance Program (program) within the Air Quality Improvement Program to make financing tools and nonfinancial supports available to operators of medium- and heavy-duty vehicle fleets to enable those operators to transition their fleets to zero-emission vehicles.

This bill, for any regulation adopted to develop or implement the program, or other regulations that are regarding the procurement or use of medium- and heavy-duty zero-emission vehicles by a public or private fleet, would require the state board to consider specified things, including, among other things, the environmental and supply chain benefits of renting medium- and heavy-duty zero-emission vehicles compared to procuring them.

GOVERNOR′S VETO

GV Bill Id:AB 620

Author:(Jackson)

As Enrolled Ver:September 8, 2025

2/3 vote

SUMMARY

Requires the California Air Resources Board (CARB) to consider specific provisions when analyzing the role of rental companies and rental vehicles when adopting or amending a regulation regarding the procurement or use of medium- and heavy-duty zero-emission vehicles (ZEV).

Major Provisions

1. Requires CARB to consider the following when adopting or amending a regulation regarding the procurement or use of medium- and heavy-duty ZEVs:
2. That customers, not rental companies, drive rental vehicles and are responsible for the miles driven and any associated emissions;
3. The role that rental or shared mobility of medium- and heavy-duty ZEVs can play in helping obligated entities comply with regulations in a more cost-effective and flexible manner;
4. The role that rental or shared mobility of medium- and heavy-duty ZEVs can play in exposing customers to medium- and heavy-duty ZEV technology and related charging infrastructure and educating them about associated benefits, including lower maintenance and fuel costs;
5. The public health, air quality, and climate benefits of minimizing vehicle miles traveled of fossil-fueled medium- and heavy-duty vehicles, or of increasing vehicle miles traveled of medium- and heavy-duty ZEVs via rental vehicles; and,
6. The environmental and supply chain benefits of renting medium- and heavy-duty ZEVs compared to procuring them.

Governor′s Veto Message

This bill would require the California Air Resources Board (CARB) to consider, for any future regulation or amendment regarding the procurement or use of medium- and heavy-duty (MD/HD) zero-emission vehicles (ZEVs) by a public or private fleet, that car rental customers are responsible for a car′s miles driven and any associated emissions.

In 2020, I issued Executive Order (EO) N-79-20, which directed CARB, among other things, to develop strategies to transition in-state sales of new passenger vehicles and trucks to 100 percent ZEVs by 2035, where feasible. Following this EO, CARB developed the Advanced Clean Fleets (ACF) regulation. While the United States Environmental Protection Agency did not grant a waiver to authorize the ACF regulation before the climate-change-denying Trump Administration took office, California remains committed to transitioning to zero-emission transportation. This is why I recently issued EO N-27-25 reaffirming California′s leadership in promoting ZEVs to protect our future, health, and economy.

In my veto message to Assembly Bill 637 (Jackson) last year, I encouraged rental vehicle companies to work with CARB to explore the environmental and economic benefits of MD/HD ZEV rentals through existing regulatory processes. I continue to encourage rental vehicle companies to do so.

COMMENTS

Why regulate vehicle emissions? Mobile sources and the fossil fuels that power them are the largest contributors to the formation of ozone, GHG emissions, fine particulate matter (PM_2.5), and toxic diesel particulate matter. In California, they are responsible for approximately 80% of smog-forming nitrogen oxide (NO_x) emissions. They also represent about 50% of greenhouse gas emissions when including emissions from fuel production, and more than 95% of toxic diesel particulate matter emissions. Statewide, more than 21 million out of over 39 million Californians live in areas that exceed the federal ozone standards; within these areas, there are many low-income and disadvantaged communities that are exposed to not only ozone, but also particulate and toxic, pollutant levels significantly higher than the federal standards which have immediate and detrimental health effects.

The National Ambient Air Quality Standards. The Clean Air Act of 1970 instructs the U.S. Environmental Protection Agency (USEPA) to set primary National Ambient Air Quality Standards (NAAQS) to protect public health, and secondary NAAQS to protect plants, forests, crops and materials from damage due to exposure to six air pollutants. These pollutants include: particulate matter, ozone, nitrogen oxides, sulfur oxides, carbon monoxide, and lead.

Federal law (42 United States Code 7409 and 7410) requires that all states attain the NAAQS and develop State Implementation Plans (SIP) for nonattainment areas to attain the NAAQS, and attainment areas to maintain attainment. Failure of a state to reach attainment of the NAAQS by the target date can trigger penalties, including withholding of federal highway funds.

Under State law (Health and Safety Code (HSC) 39602), CARB is responsible for developing the SIP emission reduction strategies for cars, trucks, and other mobile sources to meet the requirements in the Clean Air Act. The California Department of Pesticide Regulation (DPR) is the State agency responsible for controlling pesticide emissions. Local air districts are primarily responsible for controlling emissions from stationary sources such as factories and power plants. CARB coordinates closely with the local air districts in the development of attainment plans which are then incorporated into the SIP.

GHG reduction goals. The Legislature has set a number of goals to reduce GHG emissions and address climate change. The Global Warming Solutions Act of 2006, AB 32 (Nuñez), Chapter 488, Statutes of 2006 and subsequent companion legislation SB 32 (Pavley), Chapter 249, Statutes of 2016, requires California to reduce statewide GHG emissions to 40% below the 1990 level by 2030. AB 1279 (Muratsuchi), Chapter 337, Statutes of 2022 establishes the policy of the state to achieve carbon neutrality as soon as possible, but no later than 2045. CARB is responsible for developing a Scoping Plan to detail how the state will achieve its GHG emissions reduction targets mandated by law.

Advanced Clean Fleet (ACF) Regulation. To further these efforts, at the end of 2020, Governor Newsom issued EO N-79-20 which requires 100% of in-state sales of new passenger cars and trucks to be zero-emission by 2035. EO N-79-20 charges CARB with developing and proposing passenger vehicle and truck regulations requiring increasing volumes of new ZEVs sold in the state. CARB spent three years developing ACF which went into effect in late 2023 with initial compliance and reporting dates phasing in for certain fleets December 31, 2023. ACF was developed to require sales of new medium and heavy-duty vehicles and for drayage trucks, high priority fleets (fleets that have either $50 million or more in gross annual revenues, or that own, operate, or have common ownership or control of a total of 50 or more vehicles) and state and local fleets to phase-in ZEVs.

California is granted special authority under the Clean Air Act (42 United States Code 7543) to adopt regulations that apply stricter emissions requirements on vehicles than set by the federal government. CARB must apply for a federal waiver from the USEPA to enforce these regulations. CARB applied for a waiver to enforce the ACF regulation on July 12, 2024. CARB withdrew their waiver request January 13, 2025. Without a federal waiver, CARB is only able to enforce the portion of ACF that requires state and local fleets to phase-in ZEVs.

Committee comments: This bill requires CARB to consider specific provisions relating to the role of rental companies and rental vehicles when adopting or amending a regulation regarding the procurement or use of medium- and heavy-duty ZEVs. In the context of ACF, rental companies, such as Enterprise Mobility (the sponsors of this bill), would be considered high priority fleets and CARB currently has no enforcement authority over these fleets. Currently under ACF, if a state or local fleet rents or leases a ZEV under a rental or leasing agreement of one year or longer that specifies the renting operator or lessee of the vehicle is the party responsible for compliance with state laws, that vehicle may be counted towards compliance for the state or local fleet.

According to the Author

″Certain CARB regulations, like the Advanced Clean Feet (ACF) rule, were a missed opportunity to consider how rental ZEV trucks can provide regulatory compliance flexibility, reduce emissions, and improve public health. Fundamentally, customers of rental companies drive the trucks and thus should be responsible for the associated emissions. Regulations that reflect this reality can provide regulated entities like local governments with meaningful and cost-effective compliance options given the well-documented cost premium of EV trucks and lack of sufficient charging infrastructure.″

Arguments in Support

According to the League of California Cities, ″On behalf of the League of California Cities, we are pleased to communicate our support for AB 620, which would provide public fleets with additional options to meet the zero-emission vehicle (ZEV) procurement requirements under the Advanced Clean Fleet (ACF) regulation, adopted by the CA Air Resources Board on April 28, 2023. Unfortunately, the ACF regulation does not allow a fleet owner to claim compliance credit for renting a zero-emission truck over its internal combustion engine counterpart. This oversight unreasonably restricts the options available to public fleet owners, particularly those with less resources and limited budgets that are looking for cost-effective ways to meet the ACF′s ambitious goals. As a matter of policy, we believe that public fleets should have a variety of options available when developing their compliance plans. For local agencies that rent zero emission vehicles to supplement their existing fleets, we strongly believe that the use of zero emission vehicles should count towards the total compliance obligation for those fleets. The increased utilization of zero emission trucks would benefit local air quality, reduce the investment costs for public entities electing to utilize those vehicles, and provide much needed flexibility that will allow public fleets to better serve the needs of the public.″

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee, this bill will requires ARB to undertake analytical work whenever it adopts or amends certain regulations that ARB would not undertake, absent this bill. Therefore, the bill is likely to result in significant new costs to ARB, to the extent ARB amends or adopts such regulations.

For its part, ARB estimates this bill will entail costs of $678,000 in fiscal year 2026-27 and each year thereafter (Air Quality Improvement Fund) to pay for three new positions to undertake the following activities: (1) establish a rental vehicle liaison to study and evaluate the medium- and heavy-duty rental vehicle market and the role of rental companies and shared mobility, (2) determine the relative environmental and supply chain benefits of renting medium- and heavy-duty ZEVs and shared mobility and (3) incorporate the information derived from the preceding activities into regulations.

VOTES

ASM TRANSPORTATION: 16-0-0

YES: Wilson, Davies, Aguiar-Curry, Ahrens, Carrillo, Hadwick, Harabedian, Hart, Jackson, Lackey, Lowenthal, Papan, Ransom, Rogers, Tangipa, Ward

ASM APPROPRIATIONS: 14-0-1

YES: Wicks, Arambula, Calderon, Caloza, Dixon, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache, Ta, Tangipa

ABS, ABST OR NV: Sanchez

ASSEMBLY FLOOR: 79-0-0

YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

SENATE FLOOR: 39-0-1

YES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

ABS, ABST OR NV: Reyes

UPDATED

VERSION: September 8, 2025

CONSULTANT: Aaron Kurz / TRANS. / (916) 319-2093 FN: 0002143

 THIRD READING  

Bill No: AB 620

Author: Jackson (D)

Introduced: 2/13/25

Vote: 21

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 8-0, 7/2/25

AYES: Blakespear, Valladares, Dahle, Gonzalez, Hurtado, Menjivar, Padilla, Pérez

SENATE TRANSPORTATION COMMITTEE: 15-0, 7/8/25

AYES: Cortese, Strickland, Archuleta, Arreguín, Blakespear, Cervantes, Dahle, Gonzalez, Grayson, Limón, Menjivar, Richardson, Seyarto, Umberg, Valladares

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/29/25

AYES: Caballero, Seyarto, Cabaldon, Dahle, Grayson, Richardson, Wahab

ASSEMBLY FLOOR: 79-0, 6/2/25 - See last page for vote

SUBJECT: Medium- and Heavy-Duty Zero-Emission Vehicle Fleet Purchasing Assistance Program: rental vehicles

SOURCE: Enterprise Mobility

DIGEST:

This bill requires the California Air Resources Board to consider certain factors regarding the impacts and benefits of rental medium- and heavy-duty zero-emission vehicles in any regulation regarding their procurement.

ANALYSIS:

Existing law:

1. Establishes California Air Resources Board (CARB) as the air pollution control agency in California and requires CARB, among other things, to control emissions from a wide array of mobile sources and coordinate with local air districts to control emissions from stationary sources in order to implement the Federal Clean Air Act. (Health and Safety Code (HSC) § 39602; HSC § 39602.5)
   
2. Provides, pursuant to the California Climate Crisis Act (AB 1279 (Muratsuchi), Chapter 337, Statutes of 2022) that it is the policy of the state to achieve net zero greenhouse gas (GHG) emissions as soon as possible but no later than 2045; and ensure that by 2045, GHG emissions are reduced to at least 85% below 1990 levels.
   
3. Establishes, the Advanced Clean Fleets (ACF) Regulation, Title 13 California Code of Regulations (CCR), Article 3.2 et seq.
   

This bill:

1. Requires CARB, for any regulation adopted or amended pursuant to the Medium- and Heavy-Duty Zero-Emission Vehicle Fleet Purchasing Assistance Program or any other mandate for medium- and heavy-duty ZEV purchase, to consider:
2. Who drives rental vehicles.
3. The role rentals or shared mobility can play in cost-effective compliance.
4. The role rentals or shared mobility can play in consumer education.
5. The benefits of maximizing ZEV vehicle miles traveled via rentals.
6. The environmental and supply chain benefits of renting ZEVs versus buying them.

Background

1. Medium- and heavy-duty ZEV rules. Nearly 40% of California's GHG emissions are generated by the transportation sector, which includes both the light-duty (passenger) and medium- and heavy-duty fleets. Heavy-duty diesel trucks also contribute to unhealthy levels of ozone, inhalable particulate matter, carbon monoxide, nitrogen oxide (NOx), and sulfur dioxide, affecting local air quality. Trucks make up only 6% of the state’s vehicle population, but they represent almost a quarter of the state's transportation GHG emissions and nearly half the NOx emissions. In the transportation sector, measures to reduce GHG emissions include requiring the use of low-carbon fuels, cleaner vehicles, and strategies to promote sustainable communities and improved transportation choices that reduce growth in number of vehicle miles traveled.
   
   To further the transition to a zero-emission fleet, at the end of 2020, Governor Newsom issued Executive Order (EO) N-79-20, which requires 100% of medium- and heavy-duty vehicles in the state to be zero-emission by 2045 for all operations where feasible and by 2035 for drayage trucks. EO N-79-20 charges CARB with developing and proposing medium- and heavy-duty vehicle regulations requiring increasing volumes of new zero-emission trucks and buses sold and operated in the state towards that goal. To this end, and in furtherance of their mandate to reduce emissions from mobile sources to help reach the state’s climate and air quality goals, CARB unanimously approved the Advanced Clean Fleet (ACF) regulations.
   
2. Advanced Clean Fleets. Approved by the CARB Board in April 2023, ACF requires a phased-in transition toward zero-emission medium- and heavy-duty vehicles. The rule is expected to generate $26.6 billion in health savings from reduced asthma attacks, emergency room visits, and respiratory illnesses. Furthermore, fleet owners will save an estimated $48 billion in their total operating costs from the transition through 2050.
   
   Under the rule, fleet owners operating vehicles for private services such as last-mile delivery and federal fleets such as the Postal Service, along with state and local government fleets, will begin their transition toward zero-emission vehicles starting in 2024. The rule includes the ability to continue operating existing vehicles through their useful life. Due to the impact that truck traffic has on residents living near heavily trafficked corridors, drayage trucks will need to be zero-emissions by 2035. All other fleet owners will have the option to transition a percentage of their vehicles to meet expected zero-emission milestones, which gives owners the flexibility to continue operating combustion-powered vehicles as needed during the move toward cleaner technology. For example, last-mile delivery and yard trucks must transition by 2035, work trucks and day cab tractors must be zero-emission by 2039, and sleeper cab tractors and specialty vehicles must be zero-emission by 2042.
   
3. …But then, everything changed. On January 13^th, 2025 (425 days after the request was submitted to the U.S. EPA), CARB withdrew the Federal Clean Air Act waiver requests pending U.S. EPA approval that were necessary to enforce the majority of the ACF regulations.^[1] Accompanying the decision, CARB issued an update that read:
   

“California has withdrawn its request for a waiver and authorization for the addition of the ACF Regulation to its emissions control program. At this time, CARB is evaluating next steps. CARB is not enforcing the existing portions of the ACF Regulation that require a federal waiver or authorization, such as the portions of the ACF Regulation that apply to high priority and drayage fleets. However, not all elements of the ACF Regulation require a federal waiver or authorization. The state and local government fleets portion of the ACF Regulation remains unaffected. Because CARB is committed to reducing air pollution to protect public health, we encourage affected industries to continue reducing their emissions and we look forward to continued partnership in these efforts.”

Comments

1. Purpose of Bill. According to the author, “Certain CARB regulations, like the Advanced Clean Feet (ACF) rule, were a missed opportunity to consider how rental ZEV trucks can provide regulatory compliance flexibility, reduce emissions, and improve public health. Fundamentally, customers of rental companies drive the trucks and thus should be responsible for the associated emissions. Regulations that reflect this reality can provide regulated entities like local governments with meaningful and cost-effective compliance options given the well-documented cost premium of EV trucks and lack of sufficient charging infrastructure.”
   
2. How do rentals work with ACF? The ACF regulation covers state and local government fleets, drayage trucks, and “high-priority” fleets (those of companies that either have $50M+ in gross annual revenues or that control 50 or more vehicles). By both criteria, many car rental companies (including this bill’s sponsor, Enterprise) would count as a high-priority fleet, and so they must comply with ACF.
   
   Despite being high-priority fleets, rental companies serve a different role than most others in that classification. Despite purchasing and owning the vehicles, rental companies themselves are not the ones putting the miles on them. Instead, individuals, businesses, and governments all might be the end user actively driving the vehicle, some of whom may themselves be covered under ACF.
   
   Recognizing this incongruence—and the potential role long-term rentals could play in ACF compliance—CARB included a provision in the ACF regulation stating that long-term (i.e. 365+ day) rentals could count for the renter as compliance with ACF for that year.
   
   However, as was discussed with last year’s AB 637, assigning appropriate credit for the ZEV proved difficult under ACF. In short, since some car rental companies are high-priority fleets, they are required to purchase ZEVs. Since some ACF-covered fleets may choose to comply through long-term rentals, they may wish to rent those same ZEVs. Since CARB does not want to “double-count” a vehicle, they wanted any given vehicle to only count towards one or the others’ obligations. This created incentives that were at odds with the intended outcomes (i.e. requiring car rental companies to buy ZEVs but discouraging them from renting them out long-term).
   
   Given all of the consternation around the implementation of rental fleets under ACF, this bill directs CARB to consider certain relevant factors. This leaves CARB the discretion to develop regulations without prescriptive requirements for rental fleets, but it should provide more confidence that future regulations would not face the same issues ACF does. Particularly given the uncertain future California’s ZEV mandates face, such an open-ended approach may be reasonable here.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee:

• CARB estimates ongoing costs of $678,000 annually (Air Quality Improvement Fund) and three positions to undertake the following activities: (1) establish a rental vehicle liaison to study and evaluate the medium- and heavy-duty rental vehicle market and the role of rental companies and shared mobility, (2) determine the relative environmental and supply chain benefits of renting medium- and heavy-duty ZEVs and shared mobility and (3) incorporate the information derived from the preceding activities into regulations

SUPPORT: (Verified 8/29/2025)

Enterprise Mobility (Source)

Associated General Contractors, California Chapters
California Electric Transportation Coalition
California Special Districts Association
California State Association of Counties
California Trucking Association
Contra Costa Water District
Enterprise Holdings
Lake Forest; City of
League of California Cities
Visalia; City of

OPPOSITION: (Verified 8/29/2025)

None received

ASSEMBLY FLOOR: 79-0, 6/2/25

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

Prepared by: Heather Walters / E.Q. / (916) 651-4108

8/29/25 20:47:06

**** END ****

1. Advanced Clean Fleets. CARB. https://ww2.arb.ca.gov/our-work/programs/advanced-clean-fleets Accessed 6/13/25 ↑

SENATE COMMITTEE ON

Senator Anna Caballero, Chair

2025 - 2026 Regular Session

AB 620 (Jackson) - Medium- and Heavy-Duty Zero-Emission Vehicle Fleet Purchasing Assistance Program: rental vehicles

Bill Summary:

This bill would require the California Air Resources Board (CARB) to consider certain factors regarding the impacts and benefits of rental medium- and heavy-duty zero-emission vehicles in any regulation regarding their procurement.

Fiscal Impact:

• CARB estimates ongoing costs of $678,000 annually (Air Quality Improvement Fund) and three positions to undertake the following activities: (1) establish a rental vehicle liaison to study and evaluate the medium- and heavy-duty rental vehicle market and the role of rental companies and shared mobility, (2) determine the relative environmental and supply chain benefits of renting medium- and heavy-duty ZEVs and shared mobility and (3) incorporate the information derived from the preceding activities into regulations.

Background:

Medium- and heavy-duty ZEV rules. Nearly 40% of California's GHG emissions are generated by the transportation sector, which includes both the light-duty (passenger) and medium- and heavy-duty fleets. Heavy-duty diesel trucks also contribute to unhealthy levels of ozone, inhalable particulate matter, carbon monoxide, nitrogen oxide (NOx), and sulfur dioxide, affecting local air quality. Trucks make up only 6% of the state’s vehicle population, but they represent almost a quarter of the state's transportation GHG emissions and nearly half the NOx emissions. In the transportation sector, measures to reduce GHG emissions include requiring the use of low-carbon fuels, cleaner vehicles, and strategies to promote sustainable communities and improved transportation choices that reduce growth in number of vehicle miles traveled.

To further the transition to a zero-emission fleet, at the end of 2020, Governor Newsom issued Executive Order (EO) N-79-20, which requires 100% of medium- and heavy-duty vehicles in the state to be zero-emission by 2045 for all operations where feasible and by 2035 for drayage trucks. EO N-79-20 charges CARB with developing and proposing medium- and heavy-duty vehicle regulations requiring increasing volumes of new zero-emission trucks and buses sold and operated in the state towards that goal. To this end, and in furtherance of their mandate to reduce emissions from mobile sources to help reach the state’s climate and air quality goals, CARB unanimously approved the Advanced Clean Fleet (ACF) regulations.

Advanced Clean Fleets. Approved by the CARB Board in April 2023, ACF requires a phased-in transition toward zero-emission medium- and heavy-duty vehicles. The rule is expected to generate $26.6 billion in health savings from reduced asthma attacks, emergency room visits, and respiratory illnesses. Furthermore, fleet owners will save an estimated $48 billion in their total operating costs from the transition through 2050.

Under the rule, fleet owners operating vehicles for private services such as last-mile delivery and federal fleets such as the Postal Service, along with state and local government fleets, will begin their transition toward zero-emission vehicles starting in 2024. The rule includes the ability to continue operating existing vehicles through their useful life. Due to the impact that truck traffic has on residents living near heavily trafficked corridors, drayage trucks will need to be zero-emissions by 2035. All other fleet owners will have the option to transition a percentage of their vehicles to meet expected zero-emission milestones, which gives owners the flexibility to continue operating combustion-powered vehicles as needed during the move toward cleaner technology. For example, last-mile delivery and yard trucks must transition by 2035, work trucks and day cab tractors must be zero-emission by 2039, and sleeper cab tractors and specialty vehicles must be zero-emission by 2042.

…But then, everything changed. On January 13^th, 2025 (425 days after the request was submitted to the U.S. EPA), CARB withdrew the Federal Clean Air Act waiver requests pending U.S. EPA approval that were necessary to enforce the majority of the ACF regulations. Accompanying the decision, CARB issued an update that read:

“California has withdrawn its request for a waiver and authorization for the addition of the ACF Regulation to its emissions control program. At this time, CARB is evaluating next steps. CARB is not enforcing the existing portions of the ACF Regulation that require a federal waiver or authorization, such as the portions of the ACF Regulation that apply to high priority and drayage fleets. However, not all elements of the ACF Regulation require a federal waiver or authorization. The state and local government fleets portion of the ACF Regulation remains unaffected. Because CARB is committed to reducing air pollution to protect public health, we encourage affected industries to continue reducing their emissions and we look forward to continued partnership in these efforts.

Proposed Law:

This bill would require CARB to consider certain factors any time it adopts or amends a regulation to develop or implement the Medium- and Heavy-duty Zero-emission Vehicle Fleet Purchasing Program or any other regulation regarding the procurement or use of medium- and heavy-duty zero-emission vehicles (ZEVs) by a public or private fleet.

The factors ARB must consider are:

1. That customers, not rental companies, drive rental vehicles and are responsible for the miles driven and any associated emissions.
2. The role that rental or shared mobility of medium- and heavy-duty ZEVs can play in helping obligated entities comply with regulations in a more cost-effective and flexible manner.
3. The role that rental or shared mobility of medium- and heavy-duty ZEVs can play in exposing customers to medium- and heavy-duty ZEV technology and related charging infrastructure and educating them about associated benefits, including lower maintenance and fuel costs.
4. The public health, air quality and climate benefits of minimizing vehicle miles traveled of fossil-fueled medium- and heavy-duty vehicles, or of increasing vehicle miles traveled of medium- and heavy-duty ZEVs via rental vehicles.
5. The environmental and supply chain benefits of renting medium- and heavy-duty ZEVs compared to procuring them.

Related Legislation:

AB 637 (Jackson, 2024) allowed both vehicle rental companies and fleets renting those vehicles for at least 260 days per year to count that vehicle towards their compliance with regulations requiring the purchase of zero-emission vehicles. AB 637 was vetoed.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 620

Author:(Jackson)

As Introduced Ver:February 13, 2025

Majority vote

SUMMARY

Requires the California Air Resources Board (CARB) to consider specific provisions when analyzing the role of rental companies and rental vehicles when adopting or amending a regulation regarding the procurement or use of medium- and heavy-duty zero-emission vehicles (ZEV).

Major Provisions

1. Requires CARB to consider the following when adopting or amending a regulation regarding the procurement or use of medium- and heavy-duty ZEVs:
2. That customers, not rental companies, drive rental vehicles and are responsible for the miles driven and any associated emissions;
3. The role that rental or shared mobility of medium- and heavy-duty ZEVs can play in helping obligated entities comply with regulations in a more cost-effective and flexible manner;
4. The role that rental or shared mobility of medium- and heavy-duty ZEVs can play in exposing customers to medium- and heavy-duty ZEV technology and related charging infrastructure and educating them about associated benefits, including lower maintenance and fuel costs;
5. The public health, air quality, and climate benefits of minimizing vehicle miles traveled of fossil-fueled medium- and heavy-duty vehicles, or of increasing vehicle miles traveled of medium- and heavy-duty ZEVs via rental vehicles; and,
6. The environmental and supply chain benefits of renting medium- and heavy-duty ZEVs compared to procuring them.

COMMENTS

Why regulate vehicle emissions? Mobile sources and the fossil fuels that power them are the largest contributors to the formation of ozone, GHG emissions, fine particulate matter (PM_2.5), and toxic diesel particulate matter. In California, they are responsible for approximately 80% of smog-forming nitrogen oxide (NO_x) emissions. They also represent about 50% of greenhouse gas emissions when including emissions from fuel production, and more than 95% of toxic diesel particulate matter emissions. Statewide, more than 21 million out of over 39 million Californians live in areas that exceed the federal ozone standards; within these areas, there are many low-income and disadvantaged communities that are exposed to not only ozone, but also particulate and toxic, pollutant levels significantly higher than the federal standards which have immediate and detrimental health effects.

The National Ambient Air Quality Standards. The Clean Air Act of 1970 instructs the U.S. Environmental Protection Agency (USEPA) to set primary National Ambient Air Quality Standards (NAAQS) to protect public health, and secondary NAAQS to protect plants, forests, crops and materials from damage due to exposure to six air pollutants. These pollutants include: particulate matter, ozone, nitrogen oxides, sulfur oxides, carbon monoxide, and lead.

Federal law (42 United States Code 7409 and 7410) requires that all states attain the NAAQS and develop State Implementation Plans (SIP) for nonattainment areas to attain the NAAQS, and attainment areas to maintain attainment. Failure of a state to reach attainment of the NAAQS by the target date can trigger penalties, including withholding of federal highway funds.

Under State law (Health and Safety Code (HSC) 39602), CARB is responsible for developing the SIP emission reduction strategies for cars, trucks, and other mobile sources to meet the requirements in the Clean Air Act. The California Department of Pesticide Regulation (DPR) is the State agency responsible for controlling pesticide emissions. Local air districts are primarily responsible for controlling emissions from stationary sources such as factories and power plants. CARB coordinates closely with the local air districts in the development of attainment plans which are then incorporated into the SIP.

GHG reduction goals. The Legislature has set a number of goals to reduce GHG emissions and address climate change. The Global Warming Solutions Act of 2006, AB 32 (Nuñez), Chapter 488, Statutes of 2006 and subsequent companion legislation SB 32 (Pavley), Chapter 249, Statutes of 2016, requires California to reduce statewide GHG emissions to 40% below the 1990 level by 2030. AB 1279 (Muratsuchi), Chapter 337, Statutes of 2022 establishes the policy of the state to achieve carbon neutrality as soon as possible, but no later than 2045. CARB is responsible for developing a Scoping Plan to detail how the state will achieve its GHG emissions reduction targets mandated by law.

Advanced Clean Fleet (ACF) Regulation. To further these efforts, at the end of 2020, Governor Newsom issued EO N-79-20 which requires 100% of in-state sales of new passenger cars and trucks to be zero-emission by 2035. EO N-79-20 charges CARB with developing and proposing passenger vehicle and truck regulations requiring increasing volumes of new ZEVs sold in the state. CARB spent three years developing ACF which went into effect in late 2023 with initial compliance and reporting dates phasing in for certain fleets December 31, 2023. ACF was developed to require sales of new medium and heavy-duty vehicles and for drayage trucks, high priority fleets (fleets that have either $50 million or more in gross annual revenues, or that own, operate, or have common ownership or control of a total of 50 or more vehicles) and state and local fleets to phase-in ZEVs.

California is granted special authority under the Clean Air Act (42 United States Code 7543) to adopt regulations that apply stricter emissions requirements on vehicles than set by the federal government. CARB must apply for a federal waiver from the USEPA to enforce these regulations. CARB applied for a waiver to enforce the ACF regulation on July 12, 2024. CARB withdrew their waiver request January 13, 2025. Without a federal waiver, CARB is only able to enforce the portion of ACF that requires state and local fleets to phase-in ZEVs.

Committee comments: This bill requires CARB to consider specific provisions relating to the role of rental companies and rental vehicles when adopting or amending a regulation regarding the procurement or use of medium- and heavy-duty ZEVs. In the context of ACF, rental companies, such as Enterprise Mobility (the sponsors of this bill), would be considered high priority fleets and CARB currently has no enforcement authority over these fleets. Currently under ACF, if a state or local fleet rents or leases a ZEV under a rental or leasing agreement of one year or longer that specifies the renting operator or lessee of the vehicle is the party responsible for compliance with state laws, that vehicle may be counted towards compliance for the state or local fleet.

According to the Author

"Certain CARB regulations, like the Advanced Clean Feet (ACF) rule, were a missed opportunity to consider how rental ZEV trucks can provide regulatory compliance flexibility, reduce emissions, and improve public health. Fundamentally, customers of rental companies drive the trucks and thus should be responsible for the associated emissions. Regulations that reflect this reality can provide regulated entities like local governments with meaningful and cost-effective compliance options given the well-documented cost premium of EV trucks and lack of sufficient charging infrastructure."

Arguments in Support

According to the League of California Cities, "On behalf of the League of California Cities, we are pleased to communicate our support for AB 620, which would provide public fleets with additional options to meet the zero-emission vehicle (ZEV) procurement requirements under the Advanced Clean Fleet (ACF) regulation, adopted by the CA Air Resources Board on April 28, 2023. Unfortunately, the ACF regulation does not allow a fleet owner to claim compliance credit for renting a zero-emission truck over its internal combustion engine counterpart. This oversight unreasonably restricts the options available to public fleet owners, particularly those with less resources and limited budgets that are looking for cost-effective ways to meet the ACF's ambitious goals. As a matter of policy, we believe that public fleets should have a variety of options available when developing their compliance plans. For local agencies that rent zero emission vehicles to supplement their existing fleets, we strongly believe that the use of zero emission vehicles should count towards the total compliance obligation for those fleets. The increased utilization of zero emission trucks would benefit local air quality, reduce the investment costs for public entities electing to utilize those vehicles, and provide much needed flexibility that will allow public fleets to better serve the needs of the public."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee, this bill will requires ARB to undertake analytical work whenever it adopts or amends certain regulations that ARB would not undertake, absent this bill. Therefore, the bill is likely to result in significant new costs to ARB, to the extent ARB amends or adopts such regulations.

For its part, ARB estimates this bill will entail costs of $678,000 in fiscal year 2026-27 and each year thereafter (Air Quality Improvement Fund) to pay for three new positions to undertake the following activities: (1) establish a rental vehicle liaison to study and evaluate the medium- and heavy-duty rental vehicle market and the role of rental companies and shared mobility, (2) determine the relative environmental and supply chain benefits of renting medium- and heavy-duty ZEVs and shared mobility and (3) incorporate the information derived from the preceding activities into regulations.

VOTES

ASM TRANSPORTATION: 16-0-0

YES: Wilson, Davies, Aguiar-Curry, Ahrens, Carrillo, Hadwick, Harabedian, Hart, Jackson, Lackey, Lowenthal, Papan, Ransom, Rogers, Tangipa, Ward

ASM APPROPRIATIONS: 14-0-1

YES: Wicks, Arambula, Calderon, Caloza, Dixon, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache, Ta, Tangipa

ABS, ABST OR NV: Sanchez

UPDATED

VERSION: February 13, 2025

CONSULTANT: Aaron Kurz / TRANS. / (916) 319-2093 FN: 0000503

Date of Hearing: April 30, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 620

Author:(Jackson) – As Introduced Ver:February 13, 2025

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires the Air Resources Board (ARB) to consider certain factors any time it adopts or amends a regulation to develop or implement the Medium- and Heavy-duty Zero-emission Vehicle Fleet Purchasing Program or any other regulation regarding the procurement or use of medium- and heavy-duty zero-emission vehicles (ZEVs) by a public or private fleet.

The factors ARB must consider are:

1. That customers, not rental companies, drive rental vehicles and are responsible for the miles driven and any associated emissions.
2. The role that rental or shared mobility of medium- and heavy-duty ZEVs can play in helping obligated entities comply with regulations in a more cost-effective and flexible manner.
3. The role that rental or shared mobility of medium- and heavy-duty ZEVs can play in exposing customers to medium- and heavy-duty ZEV technology and related charging infrastructure and educating them about associated benefits, including lower maintenance and fuel costs.
4. The public health, air quality and climate benefits of minimizing vehicle miles traveled of fossil-fueled medium- and heavy-duty vehicles, or of increasing vehicle miles traveled of medium- and heavy-duty ZEVs via rental vehicles.
5. The environmental and supply chain benefits of renting medium- and heavy-duty ZEVs compared to procuring them.

FISCAL EFFECT:

This bill will requires ARB to undertake analytical work whenever it adopts or amends certain regulations that ARB would not undertake, absent this bill. Therefore, the bill is likely to result in significant new costs to ARB, to the extent ARB amends or adopts such regulations.

For its part, ARB estimates this bill will entail costs of $678,000 in fiscal year 2026-27 and each year thereafter (Air Quality Improvement Fund) to pay for three new positions to undertake the following activities: (1) establish a rental vehicle liaison to study and evaluate the medium- and heavy-duty rental vehicle market and the role of rental companies and shared mobility, (2) determine the relative environmental and supply chain benefits of renting medium- and heavy-duty ZEVs and shared mobility and (3) incorporate the information derived from the preceding activities into regulations.

COMMENTS:

ARB regulates the emissions of motor vehicles, including the emission of greenhouse gases, to control related air pollution and improve public health. Most relevant to this bill, perhaps, in 2023 ARB adopted the Advanced Clean Fleets (ACF) regulation that requires the state’s largest fleet owners to gradually transition to medium and heavy duty ZEVs, so that all such fleets are 100% zero-emissions by 2025. The author and bill supporters—car rental company Enterprise Mobility, Inc. and groups representing fleet owners (associations of local governments and the California Trucking Association)—contend ARB’s regulations should credit an entity that rents a medium- or heavy-duty ZEV with the reduction in emission associated with the use of that ZEV, thereby incentivizing fleet owners to rent and use the ZEVs purchased by rental companies.

Last year, the author introduced AB 637, which, when heard by this committee, would have directed ARB to allow a fleet owner’s rental of a ZEV to count as ownership of the ZEV for purposes of compliance with ARB regulations regarding fleet ownership. Ultimately, AB 637 was vetoed by the Governor, who objected:

CARB developed the ACF to accelerate transportation sector emission reductions while providing safe, feasible, and flexible compliance options for affected fleet owners that have over 50 vehicles or over $50 million in gross annual revenue. This bill would allow rental vehicle companies to circumvent the ACF regulations, and the flexible and balanced compliance mechanisms CARB has already created, with a new and unclear compliance mechanism. I am concerned this will jeopardize our clean air goals at a time when the state awaits action on its Clean Air waiver by the United States Environmental Protection Agency.

Since the Governor’s veto of AB 627, ARB has abandoned its effort to receive a waiver from the federal government that would allow ARB to implement many aspects of the Advanced Clean Fleets regulation.

In contrast to AB 637, this bill, AB 620, makes no specific requirement of ARB. Rather, AB 620 generally directs ARB to consider certain factors any time it adopts or amends a regulation to develop or implement any regulation regarding the procurement or use of medium- and heavy-duty ZEVs by a public or private fleet.

Analysis Prepared by: Jay Dickenson / APPR. / (916) 319-2081

Date of Hearing: March 24, 2025

ASSEMBLY COMMITTEE ON TRANSPORTATION

Lori D. Wilson, Chair

ABPCA Bill Id:AB 620 (

Author:Jackson) – As Introduced Ver:February 13, 2025

SUBJECT: Medium- and Heavy-Duty Zero-Emission Vehicle Fleet Purchasing Assistance Program: rental vehicles

SUMMARY: Requires the California Air Resources Board (CARB) to consider specific provisions when analyzing the role of rental companies and rental vehicles when adopting or amending a regulation regarding the procurement or use of medium- and heavy-duty zero-emission vehicles (ZEV).

Specifically, this bill:

1. Requires CARB to consider the following when adopting or amending a regulation regarding the procurement or use of medium- and heavy-duty ZEVs:
2. That customers, not rental companies, drive rental vehicles and are responsible for the miles driven and any associated emissions;
3. The role that rental or shared mobility of medium- and heavy-duty ZEVs can play in helping obligated entities comply with regulations in a more cost-effective and flexible manner;
4. The role that rental or shared mobility of medium- and heavy-duty ZEVs can play in exposing customers to medium- and heavy-duty ZEV technology and related charging infrastructure and educating them about associated benefits, including lower maintenance and fuel costs;
5. The public health, air quality, and climate benefits of minimizing vehicle miles traveled of fossil-fueled medium- and heavy-duty vehicles, or of increasing vehicle miles traveled of medium- and heavy-duty ZEVs via rental vehicles; and,
6. The environmental and supply chain benefits of renting medium- and heavy-duty ZEVs compared to procuring them.

EXISTING LAW:

1. Establishes CARB as the air pollution control agency in California and requires CARB, among other things, to control emissions from a wide array of mobile sources and coordinate with local air districts to control emission from stationary sources in order to implement the Federal Clean Air Act. (HSC 39602; HSC 39602.5)
2. Requires CARB, pursuant to California Global Warming Solutions Act of 2006 (AB 32 (Núñez), Chapter 488, Statutes of 2006) to adopt a statewide greenhouse gas (GHG) emissions limit equivalent to 1990 levels by 2020 and to develop a scoping plan for achieving the maximum technologically feasible and cost effective reductions in GHGs. (HSC 38500)
3. Requires, pursuant to SB 32 (Pavley), Chapter 249, Statutes of 2016 that CARB ensure that statewide GHG emissions are reduced to at least 40% below 1990 levels by 2030. (HSC 38566)
4. Provides, pursuant to the California Climate Crisis Act (AB 1279 (Muratsuchi), Chapter 337, Statutes of 2022) that it is the policy of the state to do both of the following:
   1. Achieve net zero GHG emissions as soon as possible but no later than 2045; and, ensure that by 2045, GHG emissions are reduced to at least 85% below 1990 levels.

FISCAL EFFECT: Unknown

COMMENTS: Why regulate vehicle emissions? Mobile sources and the fossil fuels that power them are the largest contributors to the formation of ozone, GHG emissions, fine particulate matter (PM_2.5), and toxic diesel particulate matter. In California, they are responsible for approximately 80% of smog-forming nitrogen oxide (NO_x) emissions. They also represent about 50% of greenhouse gas emissions when including emissions from fuel production, and more than 95% of toxic diesel particulate matter emissions. Statewide, more than 21 million out of over 39 million Californians live in areas that exceed the federal ozone standards; within these areas, there are many low-income and disadvantaged communities that are exposed to not only ozone, but also particulate and toxic, pollutant levels significantly higher than the federal standards which have immediate and detrimental health effects.

The National Ambient Air Quality Standards. The Clean Air Act of 1970 instructs the U.S. Environmental Protection Agency (USEPA) to set primary National Ambient Air Quality Standards (NAAQS) to protect public health, and secondary NAAQS to protect plants, forests, crops and materials from damage due to exposure to six air pollutants. These pollutants include: particulate matter, ozone, nitrogen oxides, sulfur oxides, carbon monoxide, and lead.

Federal law (42 United States Code 7409 and 7410) requires that all states attain the NAAQS and develop State Implementation Plans (SIP) for nonattainment areas to attain the NAAQS, and attainment areas to maintain attainment. Failure of a state to reach attainment of the NAAQS by the target date can trigger penalties, including withholding of federal highway funds.

Under State law (Health and Safety Code (HSC) 39602), CARB is responsible for developing the SIP emission reduction strategies for cars, trucks, and other mobile sources to meet the requirements in the Clean Air Act. The California Department of Pesticide Regulation (DPR) is the State agency responsible for controlling pesticide emissions. Local air districts are primarily responsible for controlling emissions from stationary sources such as factories and power plants. CARB coordinates closely with the local air districts in the development of attainment plans which are then incorporated into the SIP.

GHG reduction goals. The Legislature has set a number of goals to reduce GHG emissions and address climate change. The Global Warming Solutions Act of 2006, AB 32 (Nuñez), Chapter 488, Statutes of 2006 and subsequent companion legislation SB 32 (Pavley), Chapter 249, Statutes of 2016, requires California to reduce statewide GHG emissions to 40% below the 1990 level by 2030. AB 1279 (Muratsuchi), Chapter 337, Statutes of 2022 establishes the policy of the state to achieve carbon neutrality as soon as possible, but no later than 2045. CARB is responsible for developing a Scoping Plan to detail how the state will achieve its GHG emissions reduction targets mandated by law.

Advanced Clean Fleet (ACF) Regulation. To further these efforts, at the end of 2020, Governor Newsom issued EO N-79-20 which requires 100% of in-state sales of new passenger cars and trucks to be zero-emission by 2035. EO N-79-20 charges CARB with developing and proposing passenger vehicle and truck regulations requiring increasing volumes of new ZEVs sold in the state. CARB spent three years developing ACF which went into effect in late 2023 with initial compliance and reporting dates phasing in for certain fleets December 31, 2023. ACF was developed to require sales of new medium and heavy-duty vehicles and for drayage trucks, high priority fleets (fleets that have either $50 million or more in gross annual revenues, or that own, operate, or have common ownership or control of a total of 50 or more vehicles) and state and local fleets to phase-in ZEVs.

California is granted special authority under the Clean Air Act (42 United States Code 7543) to adopt regulations that apply stricter emissions requirements on vehicles than set by the federal government. CARB must apply for a federal waiver from the USEPA to enforce these regulations. CARB applied for a waiver to enforce the ACF regulation on July 12, 2024. CARB withdrew their waiver request January 13, 2025. Without a federal waiver, CARB is only able to enforce the portion of ACF that requires state and local fleets to phase-in ZEVs.

Committee comments: This bill requires CARB to consider specific provisions relating to the role of rental companies and rental vehicles when adopting or amending a regulation regarding the procurement or use of medium- and heavy-duty ZEVs. In the context of ACF, rental companies, such as Enterprise Mobility (the sponsors of this bill), would be considered high priority fleets and CARB currently has no enforcement authority over these fleets. Currently under ACF, if a state or local fleet rents or leases a ZEV under a rental or leasing agreement of one year or longer that specifies the renting operator or lessee of the vehicle is the party responsible for compliance with state laws, that vehicle may be counted towards compliance for the state or local fleet.

According to the author “Certain CARB regulations, like the Advanced Clean Feet (ACF) rule, were a missed opportunity to consider how rental ZEV trucks can provide regulatory compliance flexibility, reduce emissions, and improve public health. Fundamentally, customers of rental companies drive the trucks and thus should be responsible for the associated emissions. Regulations that reflect this reality can provide regulated entities like local governments with meaningful and cost-effective compliance options given the well-documented cost premium of EV trucks and lack of sufficient charging infrastructure.”

Arguments in support: According to the League of California Cities, “On behalf of the League of California Cities, we are pleased to communicate our support for AB 620, which would provide public fleets with additional options to meet the zero-emission vehicle (ZEV) procurement requirements under the Advanced Clean Fleet (ACF) regulation, adopted by the CA Air Resources Board on April 28, 2023. Unfortunately, the ACF regulation does not allow a fleet owner to claim compliance credit for renting a zero-emission truck over its internal combustion engine counterpart. This oversight unreasonably restricts the options available to public fleet owners, particularly those with less resources and limited budgets that are looking for cost-effective ways to meet the ACF’s ambitious goals. As a matter of policy, we believe that public fleets should have a variety of options available when developing their compliance plans. For local agencies that rent zero emission vehicles to supplement their existing fleets, we strongly believe that the use of zero emission vehicles should count towards the total compliance obligation for those fleets. The increased utilization of zero emission trucks would benefit local air quality, reduce the investment costs for public entities electing to utilize those vehicles, and provide much needed flexibility that will allow public fleets to better serve the needs of the public.”

Previous and related legislation: AB 637 (Jackson) of 2023, required CARB to authorize a fleet owner’s rental of a ZEV, or ZEVs, for a cumulative total of 260 days per year to be considered ownership of one ZEV. AB 637 was vetoed by the Governor on September 29, 2024.

REGISTERED SUPPORT / OPPOSITION:

Support

California Electric Transportation Coalition
California Special Districts Association
California State Association of Counties
California Trucking Association
Enterprise Holdings
League of California Cities

Opposition

No opposition on file

Analysis Prepared by: Aaron Kurz / TRANS. / (916) 319-2093