17 States File Complaint Challenging Constitutionality of California’s Advanced Clean Fleets Regulation
On May 13, 2024, 17 states filed a complaint in the U.S. District Court for the Eastern District of California challenging California’s Advanced Clean Fleets (ACF) regulation.
The Newest Phase of EPA’s Greenhouse Gas Emissions Standards: Phase 3
On March 29, 2024, the U.S. Environmental Protection Agency (EPA) announced its most recent national greenhouse gas (GHG) pollution standards for heavy-duty (HD) vehicles, including HD vocational vehicles and tractors. The rule establishes new CO2 emission standards for model year (MY) 2032 and later HD vehicles, with more stringent CO2 standards phasing in as early as MY 2027 for certain vehicle categories.
U.S. Department of Transportation Announces $623M in Grants for Electric Vehicle Infrastructure
On January 11, 2023, the Department of Transportation (DOT) announced $623M in grants to expand electric vehicle (EV) charging infrastructure. The grants are part of the Infrastructure Investment and Jobs Act’s Charging and Fueling Infrastructure Discretionary Grant Program and have been made available to fund 47 EV charging and alternative fueling infrastructure projects in 22 states and Puerto Rico. Ranging from $500,000 to about $68.3M, 36 of the grants were awarded to EV charging and hydrogen fueling “community” projects in rural and urban communities, while the remaining 11 grants were awarded to “corridor” projects focused on fueling along roadways to assist in establishing national EV charging and alternative fueling networks.
California Air Resources Board Revisits Advanced Clean Fleets Rule Through Formation of Truck Regulation Advisory Committee
In April 2023, the California Air Resources Board (CARB) passed its Advanced Clean Fleets (ACF) rule, which will require California medium- and heavy-duty truck and bus fleet owners with over $50 million in annual revenue to transition to zero emission vehicles through a phaseout of their existing internal combustion engine–powered vehicles by 2045. On July 26, 2023, while the ACF rule was pending with the California Office of Administrative Law for a final determination prior to release, CARB withdrew the regulatory package with the intention of resubmitting it “at a subsequent date.” CARB is now forming a Truck Regulation Advisory Committee and, on August 22, 2023, will host a public meeting to discuss and solicit feedback on future efforts to implement the ACF rule. Instructions for participation in this public meeting can be found here.
U.S. EPA Memo Offers Direction on Lithium Battery Recycling—Essential to the Future Supply Chain for Battery Electric Vehicles
Lithium-ion batteries are commonly used in a wide variety of applications, from medical devices to laptops — and now, increasingly, in electric vehicles (EVs). With the market for personal and commercial EVs growing, it is essential for U.S. manufacturers to have a secure, reliable supply chain of the critical minerals needed to produce EV batteries, including lithium, cobalt, nickel, and copper. Indeed, a recent study highlights the growing demand for these minerals — and the challenges the U.S. faces to meet this demand from mined sources.
Joint Office of Energy and Transportation Names Electric Vehicle Working Group Members
On August 3, 2023, the Joint Office of Energy and Transportation — created through the Bipartisan Infrastructure Law to facilitate collaboration between the U.S. Departments of Energy (DOE) and Transportation (DOT) — officially announced the members of its Electric Vehicle (EV) Working Group, an independent advisory board. Parties interested in the growth of EVs in the United States should take note of the group, which will coordinate and consult on the development, adoption, and integration of EVs into the transportation and energy systems of the United States.
Best Practices For Auto Boards During Industry Revolution
The Nikola case stands at the intersection of several emerging risk areas in the automotive industry. For example, as regulators in the U.S. and European Union continue to ratchet up the pressure on climate change goals, and environmental, social and corporate governance, boards need to be extra careful about their companies’ commitments to going carbon neutral and the efficacy of electric vehicles.
That means putting clear plans and metrics in place to ensure appropriate follow-through and effective communications with investors so that they are well-informed about the caveats, risks and limitations.
