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.
Environmental Groups Bring CEQA Challenges of CARB’s Amendments to the Low Carbon Fuel Standard
Earlier this week, two environmental groups sued the California Air Resources Board (“CARB”) for approving amendments (the “Amendments”) to the Low Carbon Fuel Standard (“LCFS”). CARB had voted to amend the LCFS on November 8, 2024, with the intent of lowering the carbon intensity of the fuel mix in California and encouraging the use of low-carbon transportation fuels. For more details on the LCFS Amendment changes, see Sidley’s Alert.
