Accelerating the Shift to Zero-Emission Reefer Fleets, Profitably, Right Away

The Advanced Clean Fleets (ACF) regulation is part of the California Air Resources Board's (CARB) broader strategy to significantly reduce tailpipe emissions by promoting zero-emission medium- and heavy-duty vehicles. This regulation complements the Advanced Clean Trucks initiative, which was approved in 2021, ensuring the availability of zero-emission vehicles (ZEVs) for sale in the market. ACF is vital for achieving California's health-protective ambient air quality standards and overarching climate goals. It is projected to deliver $26.5 billion in health benefits statewide and produce net savings of $48 billion for fleets.

Targeted Fleets Under the ACF Regulation

The ACF applies to various fleet types, including:

• Drayage operations at seaports and railyards

• Fleets owned by state, local, and federal government agencies

• High-priority fleets, which are defined as entities that own or operate at least one vehicle in California with gross annual revenue of $50 million or more, or those that control 50 or more vehicles.

This regulation affects medium- and heavy-duty on-road vehicles with a gross vehicle weight rating over 8,500 pounds, off-road yard tractors, and light-duty mail and package delivery vehicles.

Almost all of AEM.GREEN's customers are the largest food distributors in the country, and they are all affected. Robert Koelsch, AEM's CEO figured out the best way for them to get their fleets zero-emission compliant, and in a way that improves their finances, relatively quickly.

The Main Factors Behind the Easiest and a Financially Sound Solution:

• AEM's SolarTechTRUs qualify for CARB CORE vouchers, WAIRE credits, and other incentives.

• Their technology is the only ZE solution that is all low voltage DC based.

• Because everything is low voltage (46 volt) DC, they also have automatic charging pads.

• This is also unregulated low voltage infrastructure that is fast, inexpensive, and easy to install.

• AEM's system also transforms trailers and other existing structures into a low voltage micro-grid that enables zero electricity bills, and resilience.

• Low voltage DC power also enables automatic charging. No plugin oversights or electrocutions.

• AEM also offers AC and DC power infrastructure that bypasses the long waits for PG&E.

• Then, you throw in leasing terms with the ability to work in ITC and STC (solar) tax benefits.

Impact on Existing Trucks and Equipment

Alternatively, high-priority fleets can comply with the ACF using one of two options: the default Model Year Schedule or the opportunity to participate in the ZEV Milestone Option.

• The Model Year Schedule allows fleet operators to continue using existing diesel trucks until the end of their useful life, which is defined as the later of either:

  1. 13 years from the model year certified by CARB or the U.S. Environmental Protection Agency (EPA), or

  2. When the vehicle exceeds 800,000 miles or 18 years from the model year (whichever comes first).

High-priority fleets must remove internal combustion engine (ICE) vehicles from the California fleet by January 1 of the calendar year after the minimum useful life mileage thresholds are exceeded or when the engine's model year reaches 18 years old.

All new additions to the California fleet must be ZEVs under the Model Year Schedule. Alternatively, fleets may choose the ZEV Milestone Option, allowing them flexibility in managing fleet composition over the phase-in period while meeting ZEV milestones.

State and local government fleets can retain their existing vehicles beyond their useful life, but they must either adhere to a zero-emissions purchase requirement or opt into the ZEV Milestones Option. By 2035, all drayage trucks are required to be zero-emissions.

Components of the ACF Regulation

1. Manufacturer Sales Mandate: Starting in 2036, manufacturers will only be allowed to sell zero-emission medium- and heavy-duty vehicles in California.

2. Drayage Fleets: Beginning December 31, 2023, trucks must be registered in the Truck Regulation Upload, Compliance, and Reporting System (TRUCRS) to conduct drayage activities in California. Non-ZEV “legacy” trucks can register through December 31, 2023, but only zero-emission trucks will be permitted to register starting January 1, 2024. All drayage trucks must be fully zero-emissions by 2035.

3. High Priority and Federal Fleets: Until 2035, these fleets can purchase a mix of ZEVs and near-ZEVs. From 2035 onward, only ZEVs will meet compliance requirements. These fleets need to submit an initial compliance report by February 1, 2024.

4. Model Year Schedule Compliance: Fleets must begin purchasing only ZEVs starting in 2024. By January 1, 2025, they must remove ICE vehicles at the end of their specified useful life.

5. ZEV Milestones Option: Fleet owners can follow specific ZEV targets based on a percentage of their total fleet, focusing on vehicle types that are most suitable for electrification.

6. State and Local Agencies: Beginning in 2024, California state and local government fleets must ensure that 50% of vehicle purchases are zero-emissions, reaching 100% by 2027. They must also submit a compliance report by April 1, 2024.

Focus on Zero-Emission Refrigerated Transport- Save $ Millions

A key area for emissions reduction is the transition from diesel-powered refrigerated trailer units (TRUs). Alarmingly, one diesel-powered TRU emits 27 tons of toxic black carbon annually. To support compliance and significantly cut carbon emissions, fleet managers should prioritize converting their diesel-powered TRUs to Advanced Energy Machine's zero-emission SolarTechTRU. This strategic shift not only enhances regulatory compliance and helps reduce carbon footprints by tens of thousands of tons per year, but also improves operational balance sheets and delivers immediate financial benefits. Plus, this solution for your fleet circumvents complex and exorbitant expenses of power infrastructure, and the injuries and deaths that occur every year from high voltage AC electrocutions.

If you have any questions as to how you can navigate through the Advanced Clean Fleets regulation compliantly, and Go Green in the Black, simultaneously, contact [email protected].

Fleet managers must now begin planning for these crucial changes to remain compliant and foster a sustainable future. Making informed decisions today will place fleets in a strong position to meet the evolving landscape of regulations and environmental expectations.

No waiting years for PG&E, or spending millions on infrastructure. Plus, no electrocutions. Set a low voltage standard for your facility, and Go Green in the Black: www.aem.green [email protected]