CARB Proposes to Repeal Advanced Clean Fleets Regulation
The California Air Resources Board (CARB) has proposed to repeal the High-Priority and Drayage components of the Advanced Clean Fleets (ACF) regulations. The proposal also includes changes to the Low Carbon Fuel Standard (LCFS) regulations and implements AB 1594 (flexibility for public utilities).
Congress Eliminates Corporate Average Fuel Economy (CAFE) Penalties for Passenger Cars and Light Trucks
In one of its many changes, the One Big Beautiful Bill Act, enacted on July 4, 2025, eliminated civil penalties for noncompliance with federal fuel economy standards. Specifically, Section 40006 of the Act amends the language of the Corporate Average Fuel Economy (CAFE) statute to reset the maximum civil penalty to $0.00. Although the statute and its implementing regulations otherwise remain in place, this amendment removes any civil penalties for producing passenger cars and light trucks that do not meet fuel economy requirements.
States Propose New Indirect Source Rules Targeting Warehouse Emissions
A growing number of states are advancing indirect source rules (ISRs), making warehouse and related logistics operations responsible for reducing or offsetting air pollution from the vehicles that transport goods to and from the covered warehouses. California’s South Coast Air Quality Management District (SCAQMD) has already adopted Rule 2305 — affecting warehouses in the Los Angeles region — and new legislative and regulatory proposals may soon expand similar obligations statewide in California and to other jurisdictions. These measures aim to address pollution from mobile sources, such as trucks that frequent warehouse hubs indirectly, and require a suite of costly measures aimed at transitioning fleets away from diesel fuels and internal combustion engines. Although these proposals directly regulate warehouse owners and operators, they aim to transition fleets to alternative energy sources by imposing costs for warehouse visits.
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.
