The New Jersey Business & Industry Association (NJBIA) is advocating for a delay in the state's compliance with California's clean-engine rules for medium and heavy-duty trucks. This comes as legislation, specifically Bills A-4967 (Calabrese, D-36) and S-3817 (Diegnan, D-18), was introduced to postpone the implementation of the Advanced Clean Trucks (ACT) regulations from January 1, 2025, to at least January 1, 2027.
Ray Cantor, NJBIA Deputy Chief Government Affairs Officer, expressed concerns about the current timeline. "As we forecasted when challenging the rule originally, the demand, affordability, and feasibility for the purchase of electric trucks in such a compressed time frame isn’t there for many businesses," Cantor stated. He warned that without legislative intervention or modifications to the ACT rule as it stands, there could be significant financial impacts on the trucking industry and logistics sector in New Jersey.
Massachusetts recently joined Oregon in delaying their implementation of similar regulations set by the California Air Resources Board (CARB). Meanwhile, efforts to alter or delay these rules are gaining momentum among lawmakers in New York. Additionally, ACT is facing challenges in federal court from attorneys general across 19 states alongside a coalition of stakeholders.
Under New Jersey's current ACT regulation starting with model year 2025, manufacturers must ensure a certain percentage of new truck sales are zero-emission vehicles (ZEVs), with this percentage increasing annually through model year 2035. In California’s system, ZEV credits are awarded only when a ZEV is sold to its final purchaser within the state. If these vehicles remain unsold, diesel trucks cannot be sold either.
Cantor explained that this situation forces manufacturers to deliver ZEV trucks until enough are purchased to generate credits allowing them to supply non-ZEV vehicles. "Until that point," he said, "dealers are stuck with ZEV trucks that few people want to buy."
He also highlighted potential adverse effects on local dealers if purchasers resort to buying diesel trucks out-of-state due to availability issues within New Jersey.
CARB may consider revising how ZEV credits are allocated. Cantor emphasized urgency as implementation looms near: "Obviously, there are many issues with the implementation of this rule," he remarked. He urged legislative action before potential disruptions occur in New Jersey’s supply chain and exacerbate existing affordability challenges.
