What you need to know:
- The California Air Resources Board (CARB) withdrew its Advanced Clean Fleets (ACF) waiver request from the EPA, causing commercial zero-emission vehicle (ZEV) sales to stall in California and neighboring states.
- CARB's ACF rule, meant to accelerate ZEV truck adoption, complemented the Advanced Clean Trucks (ACT) rule.
- Without regulatory pressure or financial incentives, many fleets paused ZEV purchases.
- A dealer reported a deal for 50 ZEVs fell through, with the buyer only purchasing 7 due to performance issues.
Commercial zero-emission vehicle (ZEV) sales flatlined in California and neighboring states following a key policy reversal by the California Air Resources Board (CARB).
The decision to withdraw the state's Advanced Clean Fleets (ACF) waiver request from the U.S. Environmental Protection Agency (EPA) earlier this year had ripple effects across the West Coast’s commercial vehicle market.
CARB's policy removal disrupts zero-emission truck momentum
The ACF rule, introduced by CARB in 2023, aimed to accelerate the adoption of zero-emission, medium- and heavy-duty trucks across California. This regulation complemented the Advanced Clean Trucks (ACT) rule, which mandated manufacturers increase ZEV sales starting with the 2024 model year.
However, the ACT rule – adopted by 11 states, including Massachusetts, New Jersey, New York, Oregon, and Washington – was recently revoked by President Trump, along with the low-NOx rule affecting diesel truck emissions. The rollback of these regulations disrupted planning for fleet operators who were preparing for a regulatory-driven transition to electric commercial vehicles.
"Removing the ACF rule took away the 'stick' motivation fleets had to go electric," said one dealer group executive who wished to remain anonymous. "Without pressure or incentives, many have hit pause on ZEV purchases."
Commercial EV incentives fall short
Adding to the problem is a lack of sustained incentive funding. California's Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) experienced funding gaps, while other states like Oregon and Washington have yet to offer meaningful alternatives because they followed California’s lead.
[Related: Vermont, Oregon pause adoption of California emission regs]
"Fleets have been left without a 'carrot' or a total cost of ownership justification to buy ZEVs this year," the dealer source explained.
As a result, commercial EV sales have stalled not only in California, but throughout the region.
Fleet investments in EVs now risky
Electric trucks can cost twice as much as their diesel counterparts before incentives. That financial risk is becoming harder to justify for small and medium-sized fleets, especially as federal incentives begin to vanish.
Trump's newly signed "Big, Beautiful Bill" eliminates the commercial EV tax credit after Sept. 30, further shrinking the economic appeal of battery-electric trucks.
[Related: 'Big Beautiful Bill' removes biofuel, renewable diesel 'disadvantage,' experts claim]
"The message fleets are getting is clear: don’t count on government support, cost reductions, or infrastructure in the mid-term," the dealer executive said.
Although CARB has a 58-year history of environmental leadership, its recent reversals combined with political battles in Washington have left dealers and fleets in limbo.
Another California dealer, who also requested anonymity, noted "CARB could easily pause enforcement while this gets sorted out federally. It wouldn’t cost them anything."
Meanwhile, Gov. Gavin Newsom directed CARB to develop a new Advanced Clean Cars III proposal, which would cover a broader spectrum of vehicle emissions. However, court challenges are likely and any progress may be delayed by years.
[Related: California doubles down on emissions regulations, starts work on next generation rules]
EVs not meeting operational needs
Even when interest in ZEVs is high, many fleets find that electric trucks simply don’t meet their operational needs – especially when it comes to payload, range, and flexibility.
"I had a deal for 50 ZEVs. The customer ended up taking just seven," one dealer said, citing issues with distance, cargo requirements, and cold-chain logistics. "My wish is for CARB to let great engineers and brilliant minds keep moving forward with the best technology that gets us the cleanest environment the fastest. Give us some money to get older diesels off the road. Force people to renewable diesel and renewable natural gas (RNG)."
The bottom line: Don't expect fleets to take the risk alone
Many in the commercial trucking industry feel left behind by policies that shift rapidly, lack coordination across states, and fail to support the economic realities of small fleet operators. The slow progress in developing a nationwide charging infrastructure – especially one that supports Megawatt charging, which is essential for Class 8 trucks – makes ZEV implementation even more challenging.
"Nobody can understand the complexities of the commercial truck industry," concluded one dealer. "We've had meetings with CARB staff and board members, and they didn't understand this. It'd be a dream to see the industry pulled in to help and not be the victim. I'm a victim, as are my customers."
