California Regulations Leading to Truck Shortages and Increased Costs, Industry Claims

December 18, 2024 TruthUSA

In the meantime, the California Air Resources Board (CARB) contends that the state’s regulations may not be the underlying issue.

The trucking and heavy-duty vehicle sector asserts that California’s zero-emission mandates are leading to truck shortages and escalating costs.

State officials aim to terminate the sale of conventional combustion trucks by 2036.

Under California’s Advanced Clean Trucks (ACT) regulation, manufacturers are required to progressively boost the market share of zero-emission vehicles (ZEVs), including electric and hydrogen options, while diminishing the prevalence of gas and diesel trucks.

According to Anthony Bento, chief legal officer for the California New Car Dealers Association, the new regulations have led to a notable decline in the number of trucks available for the 2024 model year.

“These regulations are limiting product availability, resulting in higher costs as supply diminishes,” Bento told The Epoch Times. “The real-world situation is that consumers and businesses in California will face increased prices due to inadequate supply of new products that fulfill customer needs.”

California’s objectives encompass lowering tailpipe emissions and advancing the adoption and progress of advanced clean trucks. By the conclusion of the 2024 model year, 5 to 9 percent of sales in California must be ZEVs.

The ACT regulation was enacted by the California Air Resources Board (CARB) in 2020 and received approval from the state Office of Administrative Law in March 2021.

Industry representatives argue that these rules are compelling businesses to look outside the state for truck purchases and parts that do not meet California’s compliance requirements, which could lead to companies relocating or closing entirely. Additionally, truck fleet owners are postponing their fleet upgrades to avoid regulatory challenges.

Mark Baatz, owner of Tow Industries in Los Angeles, which provides trucks for emergency roadside assistance, mentioned in an interview on EpochTV’s “California Insider” on Dec. 15 that there are currently no available ZEV options in the towing sector.

“At this point, there isn’t an electric truck suited for our industry, irrespective of cost,” he noted. “The next technological advancement has yet to materialize for us.”

This situation has dramatically reduced the availability of diesel trucks, with Baatz stating that his company sold approximately 600 trucks last year, but only expects around 30 to 50 to be available next year, a drastic reduction that will significantly affect the emergency towing industry.

Meanwhile, CARB has asserted that the ACT regulations are not indicative of the problem, instead suggesting that broader market downturns, lingering supply chain issues, and manufacturers’ lack of readiness for other emissions standards are the culprits.

“Misinformation has led dealers and fleets to assume that the ACT regulations are causing product shortages in the medium- and heavy-duty vehicle sector; however, discussions with all relevant parties do not support this claim based on available data,” Steven Cliff, executive officer of CARB, stated in a memo dated Sept. 25.

“Furthermore, some vehicle modifiers specializing in custom vehicles, including tow trucks, have reached their production maximums nationwide, preventing them from accepting new orders.”

Cliff also highlighted that the price of zero-emission trucks in California has surged by an average of $86,512 since 2021-22, while European truck prices have actually decreased by an average of $12,641 during that same timeframe.

“No apparent reasons exist for this regional discrepancy,” he noted.

On Dec. 6, the board released a fact sheet titled “Myth vs. Fact” to address concerns about the ACT regulations, clarifying that, for example, “The ACT regulation does not contain any clauses that prohibit or limit the types of diesel vehicles that can be registered or used in California.”

CARB did not respond to The Epoch Times’ request for commentary by the time of publication.

Another significant regulation affecting California’s trucking industry is the Heavy-Duty Low NOx rule, which took effect in 2021 and mandates a 90 percent reduction in specific emissions for new heavy-duty vehicles compared to conventional diesel engines by 2031.

ZEV Compliant Trucks

During a CARB board meeting on Oct. 24, Bento pointed out data indicating significant decreases—over 80 percent—for Class 8 heavy-duty trucks exceeding 33,000 pounds, emphasizing that the scale of these declines is exclusive to California and cannot be attributed to national or economic factors.

If the availability of new combustion trucks does not improve, Bento warned that businesses dependent on these vehicles will face limited options.

“They can either continue using their older, more polluting vehicles longer, or acquire trucks from out of state that do not meet CARB regulations,” he noted. “Both of these alternatives compromise our state’s environmental objectives and negatively impact air quality.”

Brian Banks, owner of Action Towing and Road Service in the San Francisco Bay Area, shared that while he advocates for clean energy and desires a pollution-free environment for his children, he must also consider the livelihoods of his 200 employees and their families.

“Regrettably, at this stage, no existing solutions effectively fulfill our industry’s needs. I urge the board to revisit these regulations and contemplate amendments that would allow us to operate our businesses until viable technology emerges,” he stated.

Further commenters have suggested that emergency tow trucks either be exempt from the ACT regulations or that the implementation of the regulations be deferred until technological advancements catch up.

Ashley Porter, sales manager at Tec Equipment in Oakland, expressed that many of their larger truck clients are either relocating out of California or are passing fleet updating costs to consumers.

She described walking clients through the implications of the ACT and other regulations as heartbreaking, noting that various businesses lack the necessary resources to comply.

“The ramifications of these regulations, in their current form, will lead to adverse effects on the California economy for years to come,” Porter cautioned.

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