Landmark settlement confirms that Sacramento will no longer mandate ACF’s high-priority fleet, drayage rules. California has taken steps that, if completed, would over time effectively end key portions of its Advanced Clean Fleets rule, through a settlement of a lawsuit by 16 states spearheaded by the Nebraska attorney general.

California Files Settlement with 16 States, Ending Key Parts of Advanced Clean Fleets Rule

California has reached a settlement, posted Monday (5/5/25) in the U.S. District Court for the Eastern District of California, with 16 states, signaling a significant shift in its approach to zero-emission vehicle regulations. The agreement requires the California Air Resources Board (CARB) to propose repealing key portions of the Advanced Clean Fleets (ACF) rule, specifically the high-priority fleets and drayage truck mandates. CARB is expected to hold a public hearing on the matter by October 31, 2025.

Background of the ACF Rule

The Advanced Clean Fleets regulation was introduced to accelerate the transition of California’s trucking industry to zero-emission vehicles (ZEVs). Originally, the rule mandated that all newly registered drayage trucks as of January 1, 2024, must be zero-emission, with further fleet electrification targets set for the coming years.

However, earlier in 2025, California withdrew its request for an EPA waiver, which was essential for enforcing its stricter ZEV policies. Without this waiver, the ACF mandates faced mounting legal opposition from other states and industry groups.

Implications of the Settlement

The settlement effectively halts enforcement of ACF’s fleet electrification targets, easing regulatory pressure on commercial fleet operators. While environmental advocates view this as a setback for California’s clean energy ambitions, industry leaders argue that the repeal offers financial relief and operational flexibility for trucking companies navigating supply chain challenges.

Despite the repeal, CARB has stated its continued commitment to public health protections and may explore new, alternative approaches to achieve emissions reductions.

Looking Ahead

This development reshapes the landscape of commercial vehicle regulation in California and beyond. With evolving federal and state policies on emissions and sustainability, fleet operators must remain adaptable as new proposals emerge.

See Freightwaves’ article for more