California Air Resources Board

In May 2021, the California Air Resources Board (CARB) adopted the Clean Miles Standard – a first-of-its-kind fleet regulation to cut vehicle emissions from transportation network companies (TNCs) like Uber and Lyft. The use of TNCs over the past decade had exponentially increased prior to the COVID-19 pandemic and is showing signs of growth again. TNCs provide convenience and flexibility for passenger travel and boost the gig economy, but also increase public concerns over excess vehicle miles traveled (VMT), congestion, and the resulting smog and climate change emissions.

The transportation sector, including all passenger cars and light trucks, heavy-duty trucks, off-road vehicles, and the fuels needed to power them, is responsible for more than half of California’s greenhouse gas emissions. It is also responsible for the majority of smog-causing pollutants and is a significant source of toxic air contaminants that directly impact community health, the environment, and the economy.

Specifically, CARB's Scoping Plan identifies reductions in single-occupancy vehicle travel are necessary to achieve the statewide emissions target of 40% below 1990 levels by 2030. Even more will be needed to achieve California’s carbon neutrality goal by 2045.

The Clean Miles Standard aligns with the new Advanced Clean Cars II automaker regulations, as well as the SB 375 program – the Sustainable Communities and Climate Protection Act – which requires regional GHG reductions through land use and transportation planning.

The Regulation 

Pursuant to Senate Bill 1014 (Skinner, Chapter 369, Statutes of 2018), CARB is working with the California Public Utilities Commission (CPUC) to cut overall emissions from TNC services. With CARB’s vehicle emissions expertise and authority and CPUC’s authority over TNC permits in the state, the Clean Miles Standard is a joint effort to gradually increase zero-emission miles and reduce greenhouse gas emissions. The regulation will ensure that passenger miles traveled on TNC platforms become cleaner.

Estimated cumulative statewide emission reductions from the regulation from 2023-2030 are 93 tons of PM_2.5, 298 tons NOx, and 1.81 million metric tons of greenhouse gas emissions.

The chart below outlines the annual percent electric VMT (eVMT) target and greenhouse gas target in grams CO₂ per passenger mile traveled for the regulation:

Table: Annual percent eVMT and greenhouse gas (GHG) targets

Compliance Options

TNCs will need to work with their drivers, and where applicable, their partner automated vehicle operators to enable zero-emission vehicle uptake. Compliance options for the greenhouse gas target include cleaner fleet vehicles, deadhead mile reduction (reducing miles driven without a passenger), increased shared rides (pooling of passengers) and optional credits.

Optional credits may be earned by TNCs for trips that connect to transit and for investments in active transportation infrastructure such as sidewalks and bike lanes. These actions support alternative modes of travel and help reduce VMT. TNCs may select the strategies that work best for their business model to meet the annual greenhouse gas targets, though they first need to meet the minimum eVMT requirement.

To reduce the risk of adverse cost impacts on TNC drivers, CARB staff used a model to derive electrification targets that would result in a zero-net cost to the driver within one year. The targets also have a slow ramp up in the early years of the regulation and increase in later years, a timeframe in which makes zero-emission vehicle purchases more feasible by drivers. For more information, see Clean Miles Standard TNC Driver Fact Sheet.

Implementation Schedule

CARB adopted the regulation in May 2021 and following the CPUC's proceeding to implement the regulation, TNCs must begin complying with the greenhouse gas and eVMT targets. In the first quarter after each compliance year, TNCs must submit an annual compliance summary report.

TNCs with less than or equal to 5 million annual vehicle miles traveled are exempt from the required targets but must continue to submit annual data as required by CPUC. Once a TNC exceeds 5 million annual miles traveled, it must submit a two-year plan and begin compliance with the targets.

Program Milestones

• May 2021: CARB Board Approval of the Clean Miles Standard (CMS) Regulation
• November 2021: CPUC Order Instituting Rulemaking
• October 2022: CMS Regulation Effective Date
• November 2022: CPUC Phase 1 Staff Proposal
• May 2023: CPUC Phase 1 Supplemental Staff Proposal
• January 2024: CPUC Phase 1 Proposed Decision

When will I be able to take a zero-emissions ride?

Right now, in select markets. Uber and Lyft have already made announcements about their sustainability commitments and offer “green” rides in select U.S. markets.

Incentives

• To view California incentive programs, visit: Purchase Incentives | California Air Resources Board
• To view zero emission vehicles and local and state incentives eligibility, visit: DriveClean | Clean Car Buying Guide
• To view incentives for low- and medium-income drivers, visit: Home | Access Clean California