Time to pump the brakes on California’s zero-emission diesel truck regulations

OPINION – In 2023, the California Air Resources Board (CARB) approved what was characterized as a world-leading regulation to phase out the sales of medium and heavy-duty combustion engines. At the time, California Governor Gavin Newsom proclaimed, “The future happens here first, and California is once again showing the world what real climate action looks like.” And so began a national movement to transition the trucking industry to Zero Emission Vehicles (ZEVs).

That was then, not now. Truck manufacturers are not mass producing heavy-duty commercial electric trucks, a sign that the Advanced Clean Trucks (ACT) regulations hailed revolutionary, are not working as intended. Like a caution sign on the road, other states considering California’s lead should slow down and pay close attention.

The ACT’s success is contingent on the success of a credit trading market that incentivizes truck manufacturers to build Zero Emission Vehicles (ZEVs) commercial trucks. The credits, functioning like a waiver, allow manufacturers to import combustible engine trucks into California while their assembly lines transition to Zero Emission Vehicles (ZEVs).

Not even a year after the regulations were enacted, manufacturers have yet to build heavy-duty trucks that support the range, performance, and safety standards required of most heavy-duty trucks. So, when assembly lines are not rolling off commercial ZEV trucks in mass, manufacturers are not generating sufficient credits to support the current demand for combustion engine trucks.

While CARB may dispute the contention that the credit market is not working, they acknowledge that the regulations have led to a decline in truck inventories. No one is disputing this, including California State Legislators who wrote CARB, saying, “…the situation has grown increasingly severe as many heavy-duty truck dealers are now facing an alarming 80-90% reduction in vehicle inventory for 2024.”

Due to a lack of transparency, no one can say what regulatory tweaks would provide immediate relief to California small businesses. In stark contrast to the state’s Cap and Trade program, the public can’t see who has credits, how many, whether they are traded, and to whom – a critical component to achieving Newsom’s climate change goals. It’s like asking a mechanic to repair a vehicle without lifting the hood.

All this is not surprising because it is becoming increasingly apparent that regulators recognized the risks from the beginning. Emergency vehicles such as police and fire vehicles, including government-owned towing and recovery trucks, are exempt from these regulations, but not the 4,700 towing companies that clear over 1,200 road accidents and 2,400 mechanical breakdowns daily.

The failure of these regulations leaves the state’s towing industry in the lurch, like a stranded motorist desperate for help. As the existing inventories of truck chassis are depleted, no more towing and recovery trucks will be built or sold in California. Even temporarily, these businesses and jobs could be spared from going out of business. However, despite pleas for support, the Governor has not come to the rescue.

Other states following California’s lead on climate change should see the caution signs before it is too late and come to terms with the reality that ZEV technology must first be economically and technologically feasible. This is what effective climate change regulations should look like. Until then, it is time for the Newsom Administration to pump the brakes on a plan with real economic consequences for working-class Californians who provide towing services to millions of California motorists.

Iran Chima is the owner of Chima’s Tow, a towing and recovery service in Sacramento. Brandon Neal is the owner of Truck Body Sales, a towing/recovery truck sales company also in Sacramento.