Debunking ACT Myths: Understanding New Jersey’s Advanced Clean Trucks Rule

When discussing emissions, the focus often centers on power plants, while the environmental impacts of goods movement (i.e., trucks, trains, ships, and other forms of transportation) are frequently overlooked. In 2020 alone, New Jersey’s Medium- and Heavy-Duty Vehicles (MHDV) fleet neared 423,000 vehicles and was responsible for producing approximately 7.6 million metric tons of greenhouse gases, which are direct contributors to climate change.  Mid-sized vehicles include utility and delivery vehicles, motorhomes, ambulances, and small school buses, while heavy-duty vehicles include dump trucks, tractor-trailers, and construction vehicles, among others. Collectively, MDHVs account for about 20% of greenhouse gas emissions from road fleets.

In addition to their role in the climate crisis, medium and heavy-duty vehicles are major contributors to poor air quality, producing dangerous co-pollutant emissions such as volatile organic compounds (VOCs), particulate matter (PM), and sulfur oxides (SOx). These emissions range in color and weight, but have been demonstrated to have severe health impacts. They disproportionately affect environmental justice communities — particularly low-income communities, and communities Of Color — due to their proximity to transportation hubs and goods movement infrastructure. As a result, EJ communities bear the brunt of our easy access to goods via a myriad of negative health impacts, including higher rates of asthma, heart disease, and respiratory infections, as well as adverse birth outcomes such as low birth weight, premature birth, and neurodevelopmental difficulties. These negative health impacts produce both emotional stress and physical tolls to communities, while also imposing significant economic costs. 

Recognizing the need to address these problems, the New Jersey legislative body adopted the Advanced Clean Trucks (ACT) Rule, modeled after a similar California rule. ACT aims to facilitate a transition to zero-emission medium and heavy-duty (MHDV) trucks from 2025-2035 by requiring manufacturers to sell these trucks at an increasing percentage of their yearly sales. By enacting this rule, New Jersey jas joined a coalition of 11 other states nationwide working to reduce emissions from MHD vehicles, reducing air pollution, and advancing environmental justice through the adoption of electrified vehicles.

In New Jersey, implementation of the ACT Rule will follow a gradual, upward trajectory over ten years. The regulation primarily impacts two main groups: vehicle manufacturers and dealers. Manufacturers comply with the ACT Rule through a credit and deficit structure. Under this framework, each sale of a fossil-fuel-powered vehicle incurs a deficit, while sales of zero-emission vehicles (ZEVs) or near-zero-emission vehicles (NZEVs) generate credits. The value of each credit and deficit is weighed according to the vehicle’s size and classification, with larger trucks incurring more credits/deficits and smaller trucks incurring fewer. By the end of the year, manufacturers reach compliance when the total number of credits retired equals the total deficits. Dealers, then, are responsible for selling and distributing the vehicles that manufacturers produce. 

The chart below demonstrates the progression of zero-emission vehicles (ZEV) that manufacturers must follow:

YearClass 2b-3Class 4-8Class 7-8
20257%11%7%
202610%13%10%
202715%20%15%
202820%30%20%
202925%40%25%
203030%50%30%
203135%55%35%
203240%60%40%
203345%65%40%
203450%70%40%
2035 & beyond55%75%40%

Sales Percentage Schedule (2025-2035)

The successful implementation of ACT in other states has led to a rapid shift in industry behavior, undeniably lowering tailpipe emissions and improving air quality in these states. One such example comes from California, where the state body facilitating ACT implementation noted that ZEV sales more than doubled from 2022-2023. 

Despite the clear and dire need to address the effects of diesel-powered vehicles — including their physical, communal, environmental, and climate impacts — and the demonstrated success of ACT in other states, there has been significant industry opposition to this rule. Additionally, proposed legislation in the New Jersey Assembly threatens to delay implementation of ACT until 2027. 

While we acknowledge that stakeholders may have valid concerns, many of these issues were also raised in California and other ACT states and were successfully addressed in tandem with implementation. Below are a few misconceptions about ACT that NJEJA hopes to dispel.

  • CLAIM: ACT bans sales of diesel or combustion-powered vehicles after 2025.
    • FALSE: ACT only mandates the sales of zero-emission vehicles at an increased percentage every year. This does not preclude manufacturers from selling other types of vehicles, but instead requires that they comply with target ZEV sales every year.
  • CLAIN: ACT requires vehicle dealers to buy ZEVs and NZEVs.
    • FALSE: The responsibility of compliance with ACT lies with manufacturers. Any manufacturer’s attempts to shift compliance to dealers by “rationing”, or refusing to sell diesel trucks unless the dealer buys a certain number of ZEVs or NZEVs, are not mandated or authorized by ACT. This tactic allows manufacturers to convince dealers that ACT is not in their best interest. The reality is that ACT does not force dealers to buy cars they do not need, and it provides manufacturers ample flexibility to build a diverse fleet of diesel vs electric vehicles. This challenge can be surmounted through legislative and regulatory oversight at the state level, but should not bar New Jersey from moving forward with ACT implementation.
  • CLAIM: There is no market for zero-emission medium and heavy-duty trucks.
    • FALSE: According to the Zero Emission Technology Inventory, there are over 200 commercially available models of ZEVs  for medium and heavy duty trucks in the United States. California – where the Advanced Clean Trucks rule was adopted in 2021 – saw sales of zero-emission medium and heavy-duty trucks double from 2022 to 2023, demonstrating that the market for ZEVs will continue to grow as demand for these vehicles increases.
  • CLAIM: Zero-emission medium and heavy-duty trucks are more expensive.
    • FALSE: While upfront costs for some ZEVs are currently higher than their diesel counterpart, maintenance costs are reportedly 40-70% lower, and lifetime costs of ZEVs are projected to be lower than operating diesel trucks as well. This results in lower costs overall: both an environmental and economic benefit.
  • CLAIM: New Jersey does not have suitable charging infrastructure for electric vehicles to comply with ACT.
    • FALSE: There are ZEVs on the market that do not require public charging stations, as charging at depots where goods are loaded or unloaded can cover most of these vehicles’ travel range. Additionally, a critical aspect of ACT is that manufacturers can trade credits to be in compliance with the rule. This means that if a fleet of buses can be electrified while other types of heavy-duty vehicles cannot be, then a manufacturer that has an excess of credits due to their electrified bus fleet can sell those credits to other manufacturers until later years when those vehicles can be sold in compliance with ACT.
  • CLAIM: Delaying until 2027 will give the trucking industry enough time to comply with ACT.
    • PARTLY TRUE, PARTLY FALSE: The ACT Rule does not necessitate that all EV charging infrastructure be ready and built, or that all fleets be converted to ZEVs in 2025. Instead, it intentionally starts with small percentages to ease manufacturers, private interests, and public stakeholders into compliance. This leaves space for investment in public charging infrastructure, including $250 million from the IRA for New Jersey, and increases the innovation and scalability of ZEVs, which in turn, would result in the decrease of initial and overall costs over time. While delaying implementation would technically grant more time to the industry, it also means that the starting compliance thresholds are higher in 2027 since a delay doesn’t push back the whole timing.  Waiting two years makes it more difficult to catalyze this process, especially without the safety net of gradual phase-in and early preparation that time undoubtedly adds. 

For the health of our communities, the success of ACT’s implementation, and the growth of the ZEV economy, it is essential to continue on the path started in the initial rule-making and adhere to the original implementation timeline. Diesel emissions not only endanger the health and well-being of surrounding communities but also pose significant risks to those within the industry itself, including truck drivers and warehouse workers who experience prolonged exposure to air pollutants. By advancing the transition to zero-emission vehicles, we can significantly reduce health impacts and improve the well-being and quality of life for workers in the industry. Surely there will be challenges as implementation of a new program is never a simple process, but it is only through cross-sector collaboration (including environmental and social justice groups, community members, workers in the trucking industry, other industry stakeholders, health experts, and elected officials) that we can holistically address these concerns without delaying ACT implementation. Only then can we be sure we are taking the necessary steps towards decreasing local air pollution and greenhouse gases through technology that has been tested and proven to work effectively and at scale. 

References:

Advanced Clean Trucks Rule (CA): https://ww2.arb.ca.gov/sites/default/files/barcu/regact/2019/act2019/fro2.pdf 
CARB: 1 in 6 new trucks, buses, and vans in California are zero-emission: https://ww2.arb.ca.gov/news/1-6-new-trucks-buses-and-vans-california-are-zero-emission
EPA: EPA Awards $250 Million to Electrify I-95 Freight Corridor with Green Technology: https://www.epa.gov/newsreleases/epa-awards-250-million-electrify-i-95-freight-corridor-green-technology
Global Drive to Zero. Zero-Emission Technology Inventory (ZETI). https://globaldrivetozero.org/tools/zeti/
NACFE: https://nacfe.org/wp-content/uploads/2018/10/medium-duty-electric-trucks-cost-of-ownership.pdf
NESCAUM: Advanced Clean Trucks Regulation Frequently Asked Questions: https://www.nescaum.org/documents/ACT-FAQ_website-version_clean_FINAL_09-17-24.pdf 
New Jersey’s Clean Truck Program Report: https://www.ucsusa.org/sites/default/files/2021-10/nj-clean-trucks-report.pdf
World Health Association: https://www.who.int/teams/environment-climate-change-and-health/air-quality-energy-and-health/health-impacts

For questions, please reach out to us at info@njeja.org