Understanding California’s Advanced Clean Truck Regulation

The Advanced Clean Truck (ACT) regulation requires original equipment manufacturers (OEMs) of medium- and heavy-duty vehicles to sell an increasing percentage of zero-emissions vehicles (ZEVs) or near-zero-emissions vehicles (NZEVs) between 2024 and 2035. Compliance is managed through a credit-based system where OEMs can generate credits via sales, purchase them from others, or bank them for future use. The regulation aims to reduce up to 17 million tons of CO2 emissions by 2040 and has been adopted by six other US states.

• The Advanced Clean Truck (ACT) regulation mandates that original equipment manufacturers (OEMs) of medium- and heavy-duty vehicles increase the percentage of zero-emissions vehicles (ZEVs) or near-zero-emissions vehicles (NZEVs) in their annual sales from 2024 to 2035. ZEVs are defined as producing "zero tail-pipe emissions," while NZEVs include vehicles with an internal combustion engine and an electric energy storage system.
• Compliance is based on a credit system where OEMs selling more than 500 vehicles annually must report sales and balance deficits. Credits from NZEV sales are valued at up to 75 percent of a ZEV credit and can only cover half of an OEM's annual deficits. Credits accrued between 2021 and 2024 are usable through 2030, while credits earned from 2024 onward can be banked for a maximum of five years.
• The California Air Resources Board (CARB) tracks credit earnings and annual reports, though it does not set the value of credits as this is determined by market demand. OEMs have 90 days after the model year to document compliance; failure to resolve outstanding deficits within one model year results in civil penalties.
• California expects the ACT regulation to accelerate the adoption of medium- and heavy-duty ZEV trucks, resulting in a reduction of up to 17 million tons of CO2 emissions by 2040. Beyond California, the rule has been adopted by Maryland, Massachusetts, New Jersey, New York, Oregon, and Washington.

APA

RMI (2023). Understanding California’s Advanced Clean Truck Regulation. https://rmi.org/resources/understanding-californias-advanced-clean-truck-regulation/

Chicago

RMI. Understanding California’s Advanced Clean Truck Regulation. 2023. https://rmi.org/resources/understanding-californias-advanced-clean-truck-regulation/.

Wikipedia

{{cite report |author=RMI |title=Understanding California’s Advanced Clean Truck Regulation |date=27 June 2023 |url=https://rmi.org/resources/understanding-californias-advanced-clean-truck-regulation/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2023understanding, author = {{RMI}}, title = {{Understanding California’s Advanced Clean Truck Regulation}}, institution = {RMI}, year = {2023}, month = jun, url = {https://rmi.org/resources/understanding-californias-advanced-clean-truck-regulation/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }