Advanced Clean Cars Program

Advanced Clean Cars Program
Name	Advanced Clean Cars Program
Jurisdiction	California Air Resources Board
Introduced	2012
Status	Active

Advanced Clean Cars Program

The Advanced Clean Cars Program is a set of California Air Resources Board regulations integrating zero-emission vehicle and Low-Emission Vehicle standards to reduce greenhouse gas and criteria pollutant emissions from passenger cars and light-duty trucks. Initiated under California executive priorities and state legislation such as the Global Warming Solutions Act of 2006 and informed by federal interactions with the Environmental Protection Agency and National Highway Traffic Safety Administration, the program coordinates technology-forcing mandates with market incentives to accelerate deployment of battery electric vehicle, plug-in hybrid electric vehicle, and fuel cell vehicle technologies.

Overview

The program was developed by the California Air Resources Board following technical work with stakeholders including Automotive industry, Environmental Defense Fund, Union of Concerned Scientists, and utilities such as Pacific Gas and Electric Company and Southern California Edison. It builds on precedents set by the Clean Air Act amendments and the California Clean Car Standards to establish fleetwide targets across manufacturers like Toyota, General Motors, Ford Motor Company, Honda Motor Company, Volkswagen Group, Nissan Motor Corporation, BMW, Mercedes-Benz Group, and Tesla, Inc.. Early rules referenced studies from institutions such as the Lawrence Berkeley National Laboratory, National Renewable Energy Laboratory, and university programs at University of California, Davis and Stanford University.

Regulatory Framework and Goals

Framework components include a Zero-emission vehicle mandate tied to vehicle sales percentages, technology-neutral credit trading systems, and fleet average emissions targets aligned with California Air Resources Board's emission inventories and state climate goals. The goals reflect commitments under the Global Warming Solutions Act of 2006 and coordination with regional initiatives like the Cap-and-Trade Program and California Climate Investments. Primary objectives are to reduce carbon dioxide emissions, improve air quality in regions such as the Los Angeles Basin and San Joaquin Valley, and stimulate clean transportation markets involving suppliers like Panasonic Corporation, LG Chem, CATL, and Ballard Power Systems.

Program Components and Requirements

Key components include a phased Zero-Emission Vehicle Regulation requiring increasing shares of zero-emission sales, vehicle emissions standards specifying greenhouse gas limits per vehicle, and a crediting mechanism for technologies including PHEV, BEV, and FCEV. Manufacturers earn credits similar to mechanisms used in Corporate Average Fuel Economy discussions with the National Highway Traffic Safety Administration. The program mandates reporting, on-board diagnostics consonant with On-Board Diagnostics II protocols, and compliance pathways that allow credit banking and credit trading. Additional elements include outreach to California Energy Commission, coordination with municipal fleets in cities like Los Angeles, San Francisco, and San Diego, and incentives linked to programs such as Clean Vehicle Rebate Project and state-funded charging infrastructure grants involving partners like ChargePoint and Electrify America.

Implementation and Compliance

Implementation relies on manufacturer reporting, enforcement by the California Air Resources Board, and market monitoring by state agencies and non-governmental researchers from Union of Concerned Scientists and International Council on Clean Transportation. Compliance activities include audits, credit accounting, and recall coordination with agencies such as the National Highway Traffic Safety Administration when safety defects intersect with emissions controls. Implementation also interfaces with federal policies under the Environmental Protection Agency and has influenced executive actions by California governors and procurement policies of municipal authorities like the Metropolitan Transportation Commission and Los Angeles County Metropolitan Transportation Authority.

Impact and Outcomes

The program has driven increases in model year offerings of battery electric vehicle and plug-in hybrid models from manufacturers including Chevrolet, Ford Mustang Mach-E, Nissan Leaf, Hyundai Kona Electric, and Kia Niro EV, and supported expansion of hydrogen stations by collaborations with FirstElement Fuel and Toyota Motor Corporation. Observed outcomes include market share growth documented by California New Car Dealers Association and air quality improvements in Sacramento and Los Angeles Basin reported by state air monitoring networks. Economists and analysts at Goldman Sachs, Bloomberg New Energy Finance, and McKinsey & Company have assessed macroeconomic and technology-innovation impacts, while lifecycle analyses from Argonne National Laboratory and Lawrence Berkeley National Laboratory evaluate total emissions reductions and energy use from the shift to electric drivetrains.

Criticism and Legal Challenges

Critics include trade associations such as the Alliance of Automobile Manufacturers and state governments that have contested California’s waiver under the Clean Air Act administered by the Environmental Protection Agency, leading to litigation in courts including the United States Court of Appeals for the Ninth Circuit and attention from the United States Supreme Court. Arguments by opponents emphasize interstate commerce concerns, technological feasibility for small manufacturers, and infrastructure readiness in rural counties like Kern County and Fresno County. Environmental justice advocates and groups like Communities for a Better Environment have both supported stricter standards and raised concerns about equitable access to incentives, while utilities and regulators negotiate rate designs with agencies like the California Public Utilities Commission to address charging impacts.

Category:Environmental policy