California’s push for zero-emission vehicles (ZEVs) has led to a significant reduction in the availability of diesel-powered trucks, raising concerns among truck dealers and fleet operators. The California Air Resources Board’s (CARB) Advanced Clean Trucks (ACT) and low NOx Omnibus regulations are central to this shift, but many in the industry argue that the rapid regulatory transition is leaving businesses without the resources they need to operate effectively.
Diesel Truck Shortages in California
Dealers and fleet operators across California report severe constraints in obtaining new internal combustion engine (ICE) trucks. Some dealerships have seen their truck allocations drop by as much as 90%, with reports of nearly empty lots that were once full of inventory. Chris Shimoda, Senior Vice President of Government Affairs for the California Trucking Association, noted that many dealers are struggling to meet demand, with some contemplating exiting the trucking business altogether.
For instance, one dealer revealed that their truck sales allocation for 2024 dropped from 2,800 to just 39 trucks. Others shared that while ZEVs are available, they remain prohibitively expensive and logistically challenging, making them a less viable alternative for many businesses.
The ACT Regulation and ZEV Adoption
The ACT regulation requires medium- and heavy-duty truck manufacturers to sell an increasing percentage of ZEVs starting with the 2024 model year. CARB representatives report that manufacturers are already ahead of compliance targets, with ZEVs comprising 16% of medium- and heavy-duty vehicle sales in California in 2023. The program offers credit for early sales and allows for flexibility in meeting targets, including credit banking and trading among manufacturers.
Despite these advancements, stakeholders argue that the market for ZEVs is not yet mature enough to meet current demand. Cost remains a significant barrier, with Class 8 ZEVs priced at two to three times their diesel counterparts, even with available grants. Additionally, challenges such as limited range, weight issues, and configuration restrictions hinder broader adoption.
Dealers Voice Concerns Over Policy Impact
Truck dealers assert that CARB’s policies are disproportionately affecting the availability of diesel trucks in California, forcing businesses to make difficult choices. Anthony Bento, Chief Legal Officer of the California New Car Dealers Association, highlighted a more than 80% decline in Class 8 diesel vehicle sales, a figure unique to California and not reflective of national trends.
Bento warned that the scarcity of compliant trucks could push businesses to keep older, more polluting vehicles on the road longer or to purchase trucks from out of state, potentially undermining California’s environmental goals. “Both options harm air quality and contradict our state’s objectives,” he said.
Dealers also expressed frustration with the financial pressures caused by the regulations. Adam VanderBee, Regional Sales Director for Tech Equipment, shared that his company is restricted to selling ZEVs or a limited number of ICE vehicles after selling out of 2024 diesel-compliant inventory. VanderBee noted that while the industry supports the transition to ZEVs, demand and production are not keeping pace with regulatory expectations.
Regulatory Challenges for the Trucking Industry
CARB acknowledges the complexities surrounding the transition to ZEVs but maintains that the ACT regulation is not the primary cause of the diesel truck shortages. Instead, CARB officials attribute the supply challenges to limited production of compliant heavy-duty Omnibus diesel engines. Despite this, truck dealers and fleet operators insist that CARB’s regulatory push is exacerbating supply issues.
Lee Howard, General Sales Manager at California Truck Centers, emphasized the financial strain on dealerships, stating that his company, which operates eight locations, typically sells 2,500 trucks annually but has been forced to rely on older, less efficient vehicles. “We are being swallowed alive,” Howard said, pointing to the challenges faced by both dealers and their customers in meeting operational needs under the current regulatory landscape.
A Slow Road to ZEV Adoption
While CARB’s long-term vision is a transition to cleaner transportation options, the trucking industry faces significant hurdles in achieving this goal. ZEVs, though promising for environmental sustainability, remain cost-prohibitive and operationally limited for many businesses. For now, the trucking sector must navigate the challenges of regulatory shifts, inventory shortages, and the high cost of transitioning to zero-emission technology.
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