California’s uncertain future with zero-emission vehicle mandate fast approaching
Mandates to comply with unforgiving standards set by an unelected regulatory body will determine the success or failure of many small businesses and local agencies here in California.
The Legislature has passed many bills over the last decade that have allowed the California Air Resources Board (CARB) broad authority to aggressively pursue environmental goals. In order to reach their targets of reducing carbon emissions, CARB has implemented numerous regulations and mandates. In 2021, it passed the Advanced Clean Fleets Regulation. While the intention of implementing these mandates is good, the reality is cities, agencies and businesses are faced with an inflexible time crunch to comply with stringent zero emission standards.
The city of Seal Beach shared serious concerns about its ability to meet this mandate, and so I introduced Assembly Bill 2626. This legislation would provide a 10-year extension for local government agencies throughout the state to comply with the Advanced Clean Fleets regulation set by CARB for medium-duty and heavy-duty specialized vehicles. It would provide more time, so local governments could effectively meet this deadline with planned budgeting and a larger competitive marketplace of zero emission fleet options.
Specifically, the Advanced Clean Fleets regulation mandates that 50% of state and local governments’ new purchasing of fleet vehicles must be Zero-Emission Vehicles (ZEV) by 2024, with an increase to 100% by 2027. Transitioning to electric vehicle fleets may appear simple considering today’s available technology, but the production has yet to ramp up to adequately meet the demand for the large number of vehicles needed – especially when specialized fleet vehicles and heavy equipment are involved.
For many of these specialized fleet vehicles, the marketplace is still waiting on the necessary technological advancements to meet the new CARB standards. If all 484 cities and 58 counties in California were to rush to meet this deadline within the year, it is expected that limited inventories will be depleted and costs will skyrocket.
Supply issues are not the only major concern foreseen with the ZEV mandates. Public procurements and cost escalation are also raising red flags. CARB requires agencies to hire compliant fleet providers, which restricts agency purchasing power and limits the available options for many specialized projects. This provision not only affects operational capacity, but also budgets. The specialized fleet vehicles, which are compliant with ZEV standards, can cost 40-50% more compared to their counterparts. Currently, there is limited funding available to offset these costs; meaning, the fiscal impact on all local governments will be substantial.
An example of a local business strained by electrification mandates is the Balboa Island Ferry in Newport Beach. The Ferry is facing potential closure due to an impending CARB deadline requiring its three boat fleet to electrify. The limited resources available, combined with a lack of infrastructure and funds, have left a century-old family business analyzing whether it can continue to provide services past 2025.
Many local governments, in addition to the Ferry, have been sending SOS signals at the fast approaching deadline, sharing concerns about the ability even to meet the mandate, and further, the financial hit to their budgets. Unfortunately, AB 2626 was never set for a hearing. By doing so, the Committee eliminated a chance for Seal Beach, and other local entities in need of temporary relief, from sharing their experience with the Legislature and the public. Another bill I introduced this year, AB 3153, would have provided the Balboa Island Ferry 15 more years to comply with CARB’s electrification regulations. This bill was ultimately killed in committee.
CARB mandates are just one example of hyper-overregulation in California. While the clean air goals are laudable, mandates cannot be a one-size-fits-all statewide solution. If we are unsuccessful in adjusting these unreasonable mandates through legislation, our communities and businesses throughout California will face daunting technological, operational and logistical challenges over the next two years. Mandates to comply with unforgiving standards set by an unelected regulatory body will determine the success or failure of many small businesses and local agencies here in California. That is simply unacceptable; they need our help.
Diane Dixon represents California’s 72nd Assembly District.