The California Air Resources Board has voted unanimously to finalize its Advanced Clean Fleets rule, a massive new regulation on medium- and heavy-duty fleet vehicles that, among other things, requires all new medium- and heavy-duty vehicles sold or registered in the state of California to be zero-emission come 2036.
The rule is a complement to CARB’s previous Advanced Clean Trucks rule adopted in 2020.
The two rules are similar but distinct. ACT was primarily a manufacturer requirement, requiring that manufacturers supply enough electric trucks. ACF will be a fleet adoption requirement, requiring that commercial fleet operators purchase a certain percentage of electric trucks.
In the interim few years, it has become apparent that not only are climate change and pollution becoming even more urgent, but that the market for EV trucks has advanced significantly, with hundreds of total models available, across every truck class from 2b through 8. And these trucks have more than enough range for most fleet applications, which often have predictable daily usage schedules.
Because of this, the ACF rule has been strengthened since it was first proposed. Despite originally starting as an urban delivery truck requirement, then morphing into a sales requirement for several types of fleets, it has now been modified to improve on ACT and require even more of manufacturers.
Among these requirements is a new 2036 target for an end to diesel truck sales. This was lowered from an early 2040 target, with the thought that 2040 would be too late to reach California Governor Gavin Newsom’s goal for 100% zero-emission medium- and heavy-duty vehicles by 2045. Nine years gives a lot more wiggle room than five years to turn over the entire state’s fleet, though nine years is still a tight timeline.
Notably, the new 2036 target is only one year off from California’s 2035 target for cars. In many locales, truck regulations have a later timeline than car regulations, so being only one year off sets quite a precedent. It suggests that other locations may not need to delay truck regulations quite as long as they often do, and that medium- and heavy-duty vehicles are just as prime for electrification as light-duty is.
The rule has many categories and exceptions for niche applications, and recognizes that there may be some applications for which commercial solutions may not exist, or where infrastructure installations might delay implementation. And timelines differ for certain entities – “high-priority” entities like state and local governments and large commercial operators must comply earlier, whereas smaller operators and less optimal applications like long-haul trucking have more time to comply.
It also doesn’t affect existing equipment for the most part, and has provisions to allow vehicles to continue being used throughout their typical full useful life.
But it also includes many milestones that are sooner than the 2036 target. For example, state and local agencies must purchase 50% ZEV by 2024, and 100% ZEV by 2027. And drayage vehicles, the category of trucks that transport cargo from ports to distribution centers, must reach 100% all-electric purchases by 2024 (!).
These sales targets will enable a smooth transition to ZEV fleets, with in-service fleets reaching:
100% zero-emission drayage trucks, last-mile delivery, and government fleets by 2035
100% zero-emission refuse trucks and local buses by 2040
100% zero-emission capable utility fleets by 2040
Additionally, California expects that nearly half of all semi-trucks that travel on its highways will be zero-emission by 2035 and about 70% will be zero-emission by 2042, with the eventual goal of 100% by 2045.
Local air quality concerns in California
The drayage regulation is particularly important in Southern California, where the two largest container ports in the US, the adjacent Ports of Los Angeles and Long Beach, operate. These ports contribute to poor air quality in the LA basin and the Inland Empire, the area inland of LA where many of the nation’s largest warehouses and logistics and distribution centers operate.
Both regions exist in a “bowl” between the mountains of Southern California, trapping air pollution from thousands of cargo trucks. The same applies to California’s Central Valley, which produces half of the nation’s fruits, nuts, and vegetables, but is surrounded by large mountains that trap pollution from farm equipment and cargo trucks bringing food up and down Interstate 5.
As a result of all this activity and these mistakes of geography, California has some of the most-polluted cities in the US. Despite California’s history of clean air action, there is still a lot of cleaning up to do.
CARB considered allowing CNG trucks to qualify as part of the regulation, but data shows that it’s nowhere near as clean as ZEV and not much better than diesel, so the focus with these regulations is on zero-emission trucks only, including both plug-in and hydrogen-fueled. It recalls the old Henry Ford quote: “any customer can have a car painted any color that he wants, as long as it is black” – you can use any powertrain you want, as long as it’s electric.
CARB says that the regulations in question will save $26.5 billion in statewide health benefits from lower emissions of dangerous pollutants, and an additional $48 billion in net savings to fleets from lower operational costs. These numbers don’t include other environmental benefits (like reducing noise pollution), beyond the direct benefits to human health through higher air quality and cost benefits to fleet operators.
While initial costs can be high for purchasing new electric vehicles, particularly heavy-duty vehicles, tens of billions in funding is available in the form of purchase incentives (both at the state and federal level) and utility infrastructure installation programs. Availability of funding is one reason that CARB felt confident pushing regulations forward.
During the public comment period at CARB’s board meeting, many members of the public came forward – some with the help of an interpreter – to describe the effects that living near truck depots has had on their health. Workers, children, environmental leaders, and members of many communities told heartfelt tales of the woe caused by pollution and begged the board to adopt these rules.
Industry representatives mostly recognized that these plans were coming in some form or another, but asked for specific carveouts or adjustments (many of which were reasonable, some which are already included in the regulation), or stated that the timelines are just too early and would be too hard to meet.
These same industry representatives rarely acknowledged the difficulty of, for example, being diagnosed with asthma as a child and knowing that you will have to deal with that for your entire life, at no fault of your own. Given that industry constantly complains about the difficulty of complying with regulations, it would be nice if they acknowledged the difficulty they foist on others through noncompliance.
A diverse coalition led the effort
The regulation saw a surprising coalition of support, which is what allowed it to be strengthened over the course of the rulemaking process.
In particular, the Environmental Justice community took center stage. Environmental Justice is the concept that environmental problems are exceptionally insidious because their effects are disproportionately felt by disadvantaged communities.
With California’s previous ACC2 regulation for cars, this was a consideration, but not as much as with ACF.
We spoke with Sasan Saadat, a senior policy analyst with Earth Justice, who pointed out that “cars don’t have the same super localized and acute health impact that trucks have on communities of color in California.” Logistics centers tend to be concentrated in places where land value is comparatively cheap, and trucks tend to drive along routes in less wealthy areas, so the local pollution from trucking affects those communities more.
But the laborers who work in heavy-duty vehicles are affected as well. We’ve heard that truck operators who switch to electric trucks typically feel better driving these trucks than those with dirty diesel engines. With less noise, vibration, and fumes, electric trucks are easier on the body than diesel trucks are. And cleaning the air around a port will mean workers in that port suffer fewer health problems from breathing all the junk in the air around them.
This may have influenced unions to be more in favor of ACF than they might have otherwise, as labor can sometimes resist change out of fear that it might jeopardize jobs. Saadat called it an “unlikely partnership between environmental justice groups and labor unions” because “labor unions softly supported or were mostly neutral on the car side, but they are strongly in support on this regulation.”
Truck driver unions were likely influenced to support the rule due to a history of industry misclassifying employees as independent contractors, which gave “a much clearer sense that the corporate entity is the enemy, because the logistics industry and the trucking industry exploit drivers like crazy,” said Saadat.
ACF includes provisions to stop this practice, a callback to California’s recent AB5 law, which reduced the number of employees who can be categorized as such. ACF puts the onus on “controlling companies,” not drivers, to comply with the rule.
The coalition also included the usual suspects – public health and environmental organizations (you know, scientists – ugh, who listens to those people). Then there were electrical unions who will largely be tasked with installing this infrastructure, and even several business groups and fleets who not only see the writing on the wall and want a seat at the table, but who see the huge potential savings from electrification of their fleets. TCO analysis shows that many ZEVs are already cheaper than diesel, and all will be cheaper in the coming years.
California leads the way, again
The ACF rule is thought to be the strongest medium- and heavy-duty truck regulation in the world, and the first to ban the sale of diesel trucks. California’s light-duty car targets are strong, but could be stronger, and are exceeded by many national and subnational governments worldwide. But the new ACF rule is a true gauntlet-throw compared to all other governments we’re aware of.
We have been known to ask “why not sooner?” when new EV regulations come into play, but in this case we don’t think that question is necessary. This is soon. This is big.
Regardless, California, as the world’s fifth biggest economy (ahead of UK and India, behind Germany) and a major car market, and with so much influence on policy in other US states, is sending a drastic signal here that manufacturers need to be ready for a zero-emissions future, and need to be ready fast.
The same has happened with other regulations in the past. California has wide authority to adopt its own clean air regulations because of a longstanding waiver the state has held with the EPA, due to it having its own Clean Air Act passed before the national Clean Air Act was passed. Other states can adopt California’s version of regulations, as long as they take them in an all-or-nothing manner.
And it’s especially timely that CARB’s vote happened just two days after Senate republicans voted to poison Americans by trying to roll back nationwide EPA truck regulations. That rollback won’t make it past President Biden’s veto pen, but shows the stark contrast between a heavily Democratic state that is working to lower costs and improve health with a broad coalition of support, and a national republican Party that has signaled it wants to do the opposite.
And as a first-of-its-type regulation, from a state so influential in environmental policy not just nationwide but world-wide, it may even inspire other countries into similar action.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Trump’s Big Beautiful bill becoming law and going after EVs and solar, Tesla, Ford, and GM EV sales, Electrek Formula Sun, and more
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A new Tesla prototype was spotted again, reigniting speculation among Tesla shareholders, even though it’s likely just a Model Y, potentially a bit smaller, and the upcoming stripped-down, cheaper version.
It sparked a lot of speculation about it being the new “affordable” compact Tesla vehicle.
There’s confusion in the Tesla community around Tesla’s upcoming “affordable” vehicles because CEO Elon Musk falsely denied a report last year about Tesla’s “$25,000” EV model being canceled.
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The facts are that Musk canceled two cheaper vehicles that Tesla was working on, commonly referred as “the $25,000 Tesla” in early 2024. Those vehicles were codenamed NV91 and NV92, and they were based on the new vehicle platform that Tesla is now reserving for the Cybercab.
Instead, Musk noticed that Tesla’s Model 3 and Model Y production lines were starting to be underutilized as the Company faced demand issues. Therefore, Tesla canceled the vehicles program based on the new platform and decided to build new vehicles on Model 3/Y platform using the same production lines.
We previously reported that these electric vehicles will likely look very similar to Model 3 and Model Y.
In recent months, several other media reports reinforced this, and Tesla all but confirmed it during its latest earnings call, when it stated that it is “limited in how different vehicles can be when built on the same production lines.”
Now, the same Tesla prototype has been spotted over the last few days, and it sent the Tesla shareholders community into a frenzy of speculations:
Electrek’s Take
As we have repeatedly reported over the last year, the new “affordable” Tesla “models” coming are basically only stripped-down Model 3 and Model Y vehicles.
They might end up being a little smaller by a few inches, and Tesla may use different model names, but they will be extremely similar.
If this is it, which is possible, you can see it looks almost exactly like a Model Y.
It’s hard to confirm if it’s indeed smaller because of the angle of the vehicle compared to the other Model Ys, but it’s not impossible that the wheelbase is a bit smaller – although it’s hard to confirm.
Either way, the most significant changes for these stripped-down, more affordable “models” are expected to be cheaper interior materials, like textile seats instead of vegan leather, no heated or ventilated seats standard, no rear screen, maybe even no double-panned acoustic glass and a lesser audio system.
As previously stated, the real goal of these new variants, or models, is to lower the average sale price in order to combat decreasing demand and maintain or increase the utilization rate of Tesla’s current production lines, which have been throttled down in the last few years to now about 60% utilization.
If this trend continues, Tesla would find itself in trouble and may even have to close its factories.
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CANNES — Wall Street’s new plumbing is being built on Ethereum and this week its architects took over the same French Riviera villas and red carpet venues that host the Cannes Film Festival in May.
The Ethereum Community Conference, or EthCC, took over the beachside town that was swarming with crypto founders, developers, and some of the institutional giants now building atop the infrastructure.
The crypto elite climbed the iconic red-carpeted steps of the Palais des Festivals — a cinematic landmark now repurposed as the stage for Ethereum’s flagship European event.
“The atmosphere this year was palpable in Cannes,” said Bettina Boon Falleur, the powerhouse behind EthCC for the past seven years. “The prestige of the location, combined with the quality of talks, has reinforced Ethereum’s stature and purpose in the wider ecosystem.”
Private parties sprawled across cliffside estates and exclusive resorts, but the conversations were less about price action and more about the blockchain’s evolving role as the back-end of global finance.
EthCC, now in its eighth year, has tracked Ethereum’s trajectory from scrappy experiment to institutional backbone.
“That impact was unmistakable this year,” Falleur said. “From Robinhood embracing decentralized finance infrastructure via Arbitrum to local governments like the City of Cannes exploring deeper integration with the crypto economy.”
Indeed, one of the boldest moves came this week from Robinhood, which became the first publicly traded U.S. company to launch tokenized stocks on-chain.
At a product showcase held inside a Belle Époque mansion overlooking the sea, Robinhood unveiled a sweeping new crypto strategy — including the ability for European users to trade tokenized U.S. stocks and ETFs via Arbitrum, a Layer 2 network built on Ethereum.
The announcement helped push Robinhood stock past $100 for the first time, capping off a week of fresh all-time highs and a more than 30% rally since being snubbed by the S&P 500 during a recent rebalance.
Inside the Palais des Festivals, ETHCC draws founders, developers, and institutions into the same halls that host the world’s biggest film premieres — this time, for the future of finance.
MacKenzie Sigalos
Ether, the token native to the Ethereum blockchain, was up nearly 6% on the week and several public equities tied to the blockchain have rallied alongside it.
BitMine Immersion Technologies, a company that mines bitcoin, gained more than 1,200% since announcing it would make ether its primary treasury reserve asset. Bit Digital, which recently exited bitcoin mining to “become a pure play” ethereum staking and treasury company, gained more than 34% this week. And SharpLink Gaming, which added more than $20 million in ether to its balance sheet this week, jumped more than 28% on Thursday.
Ether ETF inflows are rising again too — a sign that institutional investors are warming back up.
Ether is still down more than 20% this year and lags far behind bitcoin in market cap and adoption. But funds tracking ETH have seen two straight months of mostly net inflows, according to CoinGlass data. Still, ether ETFs total just $11 billion — compared to $138 billion in bitcoin ETFs.
Institutions aren’t betting on Ethereum for hype — they’re betting on infrastructure.
Even as prices stall and the network faces headwinds from slower base layer revenues and faster rivals like Solana, the momentum is shifting toward utility.
“Ethereum is getting plugged into these core transactional systems,” Paul Brody, global blockchain leader at EY, told CNBC on the sidelines of EthCC. “Investors, savers, people moving money — they are going to start shifting from some of the older mechanisms of doing this into Ethereum ecosystems that can do these transactions faster, cheaper, but also very importantly, with significant new functionality attached to it.”
Crypto founders and developers climb the iconic red-carpeted steps of the Palais des Festivals — a familiar backdrop for the Cannes Film Festival, now repurposed for Ethereum’s flagship European event.
MacKenzie Sigalos
Deutsche Bank recently announced it’s building a tokenization platform on zkSync — a faster, cheaper blockchain built on top of Ethereum — to help asset managers issue and manage tokenized funds, stablecoins, and other real-world assets while meeting regulatory and data protection requirements.
Coinbase and Kraken are also racing to own the crossover between traditional stocks and crypto.
Coinbase has filed with the SEC to offer trading in tokenized public equities, a move that would diversify its revenue stream and bring it into more direct competition with brokerages like Robinhood and eToro.
Kraken announced plans to offer 24/7 trading of U.S. stock tokens in select overseas markets.
BlackRock‘s tokenized money market fund, BUIDL — launched on Ethereum last year — offers qualified investors on-chain access to yield with redemptions settled in USDC in real time.
Stablecoins, meanwhile, continue to serve as the backbone of Ethereum’s financial layer.
“The builders and contributors at EthCC aren’t chasing the next bull run,” Falleur said, “they’re laying the groundwork to make Ethereum home for the next billion users.”
Even as newer blockchains tout faster speeds and lower fees, Ethereum is proving its staying power as a trusted network.
Vitalik Buterin, Ethereum’s co-founder, told CNBC in Cannes that there is an assumption that institutions only care about scale and speed — but in practice, it’s the opposite.
Ethereum co-founder Vitalik Buterin delivers a keynote at ETHCC, laying out the network’s next steps — and its values test — as institutional adoption accelerates.
EthCC
“A lot of institutions basically tell us to our faces that they value Ethereum because it’s stable and dependable, because it doesn’t go down,” he said.
Buterin added that firms often ask about privacy and other long-term features — the kinds of concerns that institutions, he said, “really value.”
Tomasz Stańczak, the new co-executive director of the Ethereum Foundation, said institutions are choosing Ethereum for the same core reasons.
“Ten years without stopping for a moment. Ten years of upgrades, with a huge dedication to security and censorship resistance,” he said.
He added that when institutions send orders to the market, they want to be “absolutely sure that their order is treated fairly, that nobody has preference, that the transaction actually is executed at the time when it’s delivered.”
Those guarantees have become increasingly valuable as stablecoins and tokenized assets move into the mainstream.
Ethereum’s core values — neutrality, security, and censorship resistance — are emerging as competitive advantages.
The real test now is whether Ethereum can scale without losing its values.
“We don’t just want to succeed,” Buterin said from the mainstage of the Palais this week. “We want to be something that is worthy of succeeding.”
He said the hope is that future generations will look back and see a network that truly delivered openness, freedom, and permissionless access to the masses.
White-clad guests dance poolside at the rAAVE party in Cannes.
MacKenzie Sigalos
But the week didn’t end in the conference halls, it closed with tradition. On the balcony of Villa Montana, overlooking the Bay of Cannes, the rAAVE party lit up.
White-clad guests sipped cocktails as the DJ spun by the pool, haze curling from smoke machines.
This year, Chainlink co-founder Sergey Nazarov and DeFi icon Stani Kulechov, founder of Aave, stood atop the balcony overlooking the crowd and the light-dotted skyline of Cannes.
It was a fitting snapshot of the momentum behind Ethereum’s institutional rise and symbolic of Web3’s shift from niche experiment to financial mainstay.