In the final days of the administration, the U.S. Environmental Protection Agency has released a flurry of approved waivers for California to enact stringent emissions standards for on-road and off-road vehicles.

In the final days of the administration, the U.S. Environmental Protection Agency (EPA) has released a flurry of approved waivers for California to enact stringent emissions standards for on-road and off-road vehicles. Two waivers remain to be approved, impacting locomotives and fleets. EPA waivers for California have nationwide implications as other states are then able to adopt California’s standards. AGC also anticipates direct costs for engines/equipment and supply chain implications.

President-elect Trump has signaled disapproval of the waiver for California’s Advanced Clean Cars II regulations—indicating that the incoming administration will attempt to reverse the decision. That waiver is also the focus of a lawsuit that has already filed.

EPA provided waivers for the following regulations:

• Advanced Clean Cars II regulations – applicable to new 2026 and subsequent model year California on-road light- and medium-duty vehicles; requirements for low- and zero-emission vehicles.
• Omnibus Low NOx regulations – applicable to new 2024 and subsequent model year California on-road heavy-duty vehicles and engines and portions of the Low NOx (nitrogen oxides) program regarding off-road diesel engines.
• Small Off-Road Engines (SORE) amendments – applicable to most 2024 and subsequent model year SORE engines and equipment (e.g., pressure washers, generators); exhaust and evaporative emission standards and associated test procedures.
• Commercial Harbor Craft amendments (pre-publication) – applicable to most types of harbor craft that operate in California; Advanced Technology (“ZEAT”) requirements apply to new and in-use ferries and new excursion vessels and phase in beginning December 31, 2024.
• Transport Refrigeration Unit (TRU) amendments (pre-publication) – applicable to some TRUs manufactured after a certain date; requires use of refrigerants with specified global warming potential, meet particulate matter standards, transition to zero-emission technology refrigeration units, as well as registration and reporting requirements.
• In-Use Off-Road Diesel Fueled Fleet amendments (pre-publication) – applicable to fleets of in-use off-road diesel-fueled vehicles; requires phase of older diesel vehicles, prohibits acquiring high-emitting vehicles, requires use of specified renewable diesel, establishes administrative requirements for prime contractors and public works awarding bodies, encourages adoption of zero-emission technologies. Phase-in 2024 through the end of 2036.

The federal Clean Air Act generally forbids the states to set emission standards. The statute, however, makes an exception for the state of California. If California’s new standards meet with federal approval (i.e., EPA grants a waiver to California), other states with air pollution concerns are free to adopt an identical rule. More information on the waiver process is available on EPA’s website.

For additional information please contact Melinda Tomaino.