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As we reported, the California Legislature passed SB 1014 – the Clean Miles Standard and Incentive Program (the “Clean Miles Program”) – to reduce greenhouse gas emissions from “rideshare” vehicles. This led to the creation of the Clean Miles Standard regulation, which the California Air Resources Board (“CARB”) fully adopted in May 2021 after receiving stakeholder input. In sum, the Clean Miles Program directed CARB and the California Public Utilities Commission (“CPUC”) to develop and implement new requirements for transportation network companies (“TNCs”) like Uber and Lyft.  In this blog post, we discuss the goals and three core requirements of the Clean Miles Program, the new regulations CARB just adopted in furtherance of those core requirements, and other obligations that lie ahead for TNCs.

The Clean Miles Program sets more stringent emissions standards for TNCs over time and encourages TNC drivers to shift to electric vehicles.  The Clean Miles Program has three core requirements:

  • In 2020, CARB established a greenhouse gas (“GHG”) emissions baseline for vehicles used in TNCs on a per-passenger-mile basis using 2018 as the base year;
  • In 2021, CARB and CPUC adopted and implemented, respectively, targets and goals (beginning in 2023) for TNCs to reduce GHG emissions per passenger-mile driven; and
  • By January 1, 2022, and every two years thereafter, each TNC shall develop a GHG emissions reduction plan.

 CARB satisfied the first requirement and determined the baseline emission rate (301 grams of carbon dioxide (“CO2“) for each mile traveled.

In furtherance of the second and third requirements—CARB adopted (in May 2021) a “Clean Miles Standard” regulation that imposes new requirements that require TNCs to provide information including, but not limited to: (i) total miles that TNC drivers complete; (ii) share of miles completed by qualified “zero-emissions” (e.g., zero-emission vehicle); (iii) miles-weighted average of network-wide CO2 to produce an estimate of the GHG emissions; and (iv) total passenger-miles completed using an average passengers-per-trip estimate to account for trips where exact passenger headcount was not captured.  The new regulation also requires TNCs to submit annual reports and a compliance plan every two years starting in January 2022.…

Continue Reading Electrifying transportation network companies in CA: Updates to SB 1014’s Clean Miles Standard + Incentive Program

As we reported last year, the California Air Resources Board (“CARB”) adopted the Advanced Clean Trucks regulation to support its efforts to reduce air pollutants and meet state climate change targets.  The regulation has a one-time reporting requirement for large entities that operate or dispatch vehicles in California with a manufacturer’s gross vehicle weight rating (“GVWR”) greater than 8,500 lbs.  That includes medium duty vehicles like vans and ¾-ton pickups (i.e., the F250 or Ram 2500) and heavier vehicles of all configurations and fuel types.  However, the regulation does not apply to lighter vehicles such as cars and light duty pickups, among other exemptions.

This regulation applies to a wide range of businesses.  Examples include entities that meet any of the following criteria:

  • Had gross annual revenues greater than $50 million in the United States for the 2019 tax year, and had one or more vehicles over 8,500 lbs. GVWR under common ownership or control that were operated in California in 2019; or
  • Any fleet owner in the 2019 calendar year that had 50 or more vehicles over 8,500 lbs. GVWR under common ownership or control; or
  • Any broker or entity that dispatched 50 or more vehicles over 8,500 lbs. GVWR into or throughout California, in the 2019 calendar year.

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Continue Reading Advanced Clean Trucks Rule — California announces extension of large entity reporting deadline

Beginning in May 2021, California Air Resources Board (“CARB”) enforcement staff will begin additional analysis of fuel samples taken during ocean-going vessel inspections. CARB is seeking to improve compliance due to changing international regulatory sulfur limits, which has created situations where a vessel’s fuel may meet international and California regulatory sulfur limits, but not meet…

The California Air Resources Board (“CARB”) has again proposed revisions to the State’s existing “Ocean-Going Vessels At-Berth Regulation” of air emissions from ships docked in California. As revised, further reductions in air emissions will be required, but some of the earlier implementation dates have been extended.

Most substantive changes were made in response…