ALBANY — New York State’s regulation requiring manufacturers to sell an increasing percentage of zero-emission trucks annually takes effect in January, a rule that the trucking industry and a bipartisan group of state lawmakers say could lead to increased costs for municipalities, taxpayers and consumers.

The complex regulation, known as the Advanced Clean Truck Rule, adopted in 2021, applies to certain medium- and heavy-duty vehicle manufacturers of everything from garbage trucks to snowplows and tractor trailers to ice cream trucks.

It requires manufacturers to sell an increasing percentage of zero-emission vehicles, such as electric trucks. The percent of total sales in New York would increase each year until zero-emission vehicle sales make up between 40% and 75% of sales by model year 2035, with the percentage varying by vehicle type. The rule does not apply to out-of-state sales. Transit buses, motor coaches and emergency vehicles are exempt.

The rule aims to reduce greenhouse gases by transitioning away from diesel- and gas-powered vehicles to help the state meet its climate goal of reducing economywide emissions by 85% from 1990 levels by 2050.

Environmental groups say the state needs to stand firm on its regulation, particularly as the Trump administration takes office next year, casting uncertainty over the fate of laws and rules directed at climate change.

Critics say that parts of the rule are unworkable and that more time is needed to implement the changes. They are calling on the State Legislature and Gov. Kathy Hochul to pause the rollout.

"The challenge with the regulation is that it puts a timeline in place that we aren’t ready for. I don’t just mean 'we' as an industry, I mean 'we' as a state," said Zach Miller, director of metro region operations for the Trucking Association of New York.

Issues include the lack of medium- and heavy-duty public charging stations, the weight and range of batteries and the cost of the electric vehicles, which can be hundreds of thousands of dollars higher than the diesel- and gas-powered trucks, Miller said.

While the rule does not require the purchase of emission-free vehicles, the regulation would reduce the supply of diesel and gas engines, which could spur the sale of emission-free vehicles statewide. As a result, companies and municipalities would eventually have to make the switch, which could increase freight rates and the cost of providing service — costs that would likely trickle down to taxpayers and consumers, experts said.

The state Department of Environmental Conservation proposed amendments that would provide more flexibility and push compliance determinations farther out and essentially delay enforcement as long as manufacturers meet certain requirements, according to the DEC.

"To ensure a smooth transition, manufacturers will have until 2029 to comply with the regulations while DEC is actively working to incorporate additional flexibilities into the regulations," Hochul spokesman Paul DeMichele said.

Regulation, benefits

The Advanced Clean Truck Rule originated in California and is more stringent than federal law.

Under the federal Clean Air Act, states can adopt California’s emissions law instead of federal law, which New York and several other states have done.

The rule sets the percentage of emission-free vehicles manufacturers must sell each year based on the type or class of truck, which is based largely on weight, experts said. For example, class 7 and 8 tractor trailers would have to have 7% of their sales be zero-emissions in model year 2025, increasing to 40% by model year 2035. While smaller, class 2b-3 vehicle sales would need to increase to 7% by 2025 and 55% by 2035.

Model year is the year a product is manufactured and doesn’t always correspond with the calendar year.

Sales to municipalities and agencies will not be included in the percentage in an effort to shield state and local governments from having to purchase zero-emissions vehicles for garbage trucks and street sweepers, according to the DEC. But transportation experts say the regulation will limit the supply of diesel and gas vehicles, so they may end up having to purchase zero-emission trucks.

California adopted some amendments to its law, which are the changes New York is proposing, according to the DEC.

There are some state and federal funding and tax credit programs to aid implementation. The federal government has provided funding to the state for charging infrastructure and state officials are studying charging needs to meet its climate goals and mandates.

"[The] DEC is communicating with members of the Legislature and other key stakeholders regarding the implementation of ACT to address concerns and counter misinformation," spokesman Denis Slattery said.

There’s not a viable pathway to meet the state’s climate goals without the clean truck rule, said Alok Disa, senior research and policy analyst at Earthjustice, a nonprofit environmental group.

Electric and hybrid vehicles will reduce greenhouse gas emissions, he said. The up-front costs can be expensive from the price of the vehicles to the charging infrastructure, but there’s a cost savings over time on fuel as well as maintenance, he said.

The regulation is expected to improve air quality, particularly in environmental justice communities, including low-income communities and communities of color that historically have suffered the burden of pollution — especially on Long Island and in New York City where air quality is consistently poor, he said.

Roadblocks

The Trucking Association and some manufacturers said that while they agree there needs to be a path to electrification, the California law doesn’t necessarily work for New York.

There’s a climate difference, with parts of Upstate New York that are colder than northern California, which could impact vehicle battery usage, Miller said.

And the rule doesn’t take into consideration how trucks are bought and sold, he said.

Dealers traditionally place orders that the manufacturers fill, he said. Currently there’s pressure on dealers to comply with the manufacturers mandate, but the dealers also need to sell equipment that their customers want to use, Miller said.

As a result, truck fleets are holding onto their old equipment a little longer, which isn’t as efficient and not always as clean, experts said.

Another challenge is the secondary market, because most fleets buy used equipment, and there isn’t a market yet for used electric vehicles, Miller said.

"It really is a sales mandate, but, of course, a sales mandate is going to have an impact on the buyers," said Miller.

Peter Nettesheim, president of Long Island Freightliner, said he’s expecting the rule to greatly impact his sales. The company, located in Bohemia, employs about 100 people and sells supplies and parts, services vehicles and sells about 500 trucks a year.

"We have no customers for electric trucks," Nettesheim said, citing the high cost and power needs. A small diesel truck cab and chassis costs about $90,000 and the same electric truck is about $320,000, he said. Some trucks have different power needs that electric batteries can’t meet, he said.

Once the regulation takes effect, "we’ll still be here, but we’re going to have nothing to sell," he said.

There’s a bipartisan push from lawmakers to try to change the timeline, allowing for the cost gap between zero-emission and combustion engine vehicles to narrow and for the development of infrastructure.

"This regulation would place undue financial and operational burdens on our highway departments and severely impact their ability to keep our roads clear for motorists and emergency vehicles, " said State Sen. Anthony Palumbo (R-New Suffolk) in an emailed statement. 

Businesses and local governments are going to have to absorb and pass down the costs to consumers and taxpayers, Assemb. John McDonald III (D-Albany) told Newsday. The state does need to help lower emissions, but the question is how does the state get there without worsening the affordability issue in New York, he said.

"The reality is we might need to slow it down a little bit," he said of the regulation.