California Settles Multistate Suit, Agrees to Repeal Electric-Truck Mandates

California has agreed to repeal its Advanced Clean Fleets (ACF) regulation as part of a legal settlement with a coalition of 17 states led by Nebraska, following a lawsuit challenging the rule's nationwide impact on trucking companies operating in California. The ACF rule would have required certain fleets to transition away from internal-combustion trucks to electric vehicles, mandating zero-emission trucks for port drayage starting in 2024 and full zero-emission fleets by the mid-2040s, but California withdrew its waiver request from the EPA in early 2025, effectively halting the rule's enforcement. The settlement requires California Air Resources Board (CARB) staff to propose repealing key components of the rule, including high-priority fleet and drayage requirements, with a public hearing scheduled before October 31, 2025, and final rulemaking actions expected by mid-2026. California and its Attorney General have agreed not to enforce these mandates during the repeal process and acknowledged that the 2036 ban on the sale of internal-combustion trucks cannot be enforced without a Clean Air Act waiver from the EPA. Opponents, including multiple state attorneys general and trucking associations, argued that California's regulations constituted regulatory overreach and would impose economic burdens on out-of-state businesses, while California maintains that the policies are necessary to reduce fuel demand and combat climate change. The settlement marks a significant rollback of California's efforts to impose stringent electric truck mandates on fleets nationwide through its influential regulatory authority.