This is a summary of annual vehicle sales data reported by manufacturers, credit balances, and credit transactions as required by the Advanced Clean Trucks (ACT) regulation (title 13, California Code of Regulations (CCR) section 1963.5). This summary was last updated October 13, 2023.

The ACT regulation is part of a holistic approach to accelerate a large-scale reduction of tailpipe emissions focusing on zero-emission medium and heavy-duty vehicles. Manufacturers who certify chassis or complete vehicles with a gross vehicle weight rating (GVWR) greater than 8,500 lbs. are required to sell zero-emission vehicles (ZEV) as an increasing percentage of their annual California sales starting with the 2024 model year. Annual reporting began with the 2021 model year. The first report was due by March 31, 2022, and each successive annual report is due no later than 90 days following the end of each model year.

Annual Requirement for Manufacturers

Any vehicle manufacturer that produced and delivered for sale more than 500 on-road medium- and heavy-duty vehicles with a GVWR over 8,500 lbs. into California is required to report annually. Manufacturers that annually produce and deliver for sale 500 or fewer medium- and heavy-duty vehicles into California may elect to voluntarily report to generate ZEV credits and near-zero emission vehicle (NZEV)[1] credits. Manufacturers may earn, bank, and trade credits for ZEVs and NZEVs they produce and deliver for sale in California, including trucks supported with incentives from the Clean Truck and Bus Voucher Incentive Project (known as HVIP).

Credits and Deficits

The vehicle manufacturer of record is the party that can earn credits and accrues deficits. ZEV credits, NZEV credits, and deficits are earned when the vehicle is produced and delivered for sale, and then reported as sold to the ultimate purchaser. Ultimate purchaser “means, with respect to any new motor vehicle or new motor vehicle engine, the first person who in good faith purchases a new motor vehicle or new motor engine for the purposes other than resale” (California Health and Safety Code section 39055.5).

Manufacturer Vehicle Sales and Credits

Table 1 below displays the reported total number of 2022 model year medium- and heavy-duty vehicles produced and delivered for sale in California and the number of 2022 model year ZEVs sold to the ultimate purchaser. Through the 2022 model year, no NZEVs were produced and delivered for sale into California.

Table 1 - Total 2022 Model Year Medium- and Heavy-Duty Vehicle Sales

Table 2 below displays the projected ZEV and NZEV credits and the credits earned for each manufacturer for their 2022 model year sales as of March 31, 2023. The term “projected credits” is used to identify the number of ZEV and NZEV credits that a manufacturer can earn from completing the sale of vehicles delivered for sale into California. ZEV credits for each sale are weighted by the weight class modifier as described in Table A-2 of the ACT regulation (title 13, CCR section 1963.2).

Table 2 - Total 2022 Model Year ACT Credits

Class 7-8 Tractor Sales and Credits

Manufacturers that produce and deliver for sale Class 7-8 tractors must meet compliance obligations by selling Class 7-8 ZEV tractors as described in Section 1963.3(e) of the ACT regulation.

Table 3 below displays the reported total number of 2022 model year Class 7-8 tractors produced and delivered for sale in California and the number of 2022 model year Class 7-8 ZEV tractors sold to the ultimate purchaser. Through the 2022 model year, no Class 7-8 NZEV tractors were produced and delivered for sale into California.

Table 3 - 2022 Model Year Class 7-8 Tractor Sales

Table 4below displaysthe projected Class 7-8 ZEV and NZEV tractor credits and the Class 7-8 tractor creditsearned for each manufacturer for their 2022 model year salesas of March 31, 2023. ZEV credits for each tractor sale are weighted by the weight classmodifier as described in Table A-2 of the ACT regulation (title13, CCR section 1963.2).

Table 4 - 2022 Model Year Class 7-8 Tractor ACT Credits

Manufacturer Total Credit Balance

Manufacturers are required to produce and sell medium- and heavy-duty ZEVs beginning with the 2024 vehicle model year consistent with the ZEV sales percentage schedule described in Table A-1 of the ACT regulation. However, manufacturers can generate early credits for ZEVs and NZEVs sold to the ultimate purchaser for vehicle model years 2021 – 2023. Table 5 displays the credit balances for each manufacturer for 2021 and 2022 model year data reported in ACTRS. The balance reflects credit balances before any credit transfers.

Table 5 - Manufacturer Total Credit Balances Through the 2022 Model Year

Manufacturer Credit Transfers

I. Advanced Clean Trucks Regulation Credits

A manufacturer may bank and trade ACT credits to meet their compliance obligations. Any ACT credit trades must be reported. Manufacturers have not reported any ACT credit trades to other manufacturers at this time.

II. Advanced Clean Cars Credits

A manufacturer that produces Class 2b or Class 3 medium-duty passenger vehicles (with a GVWR from 8,501 to 14,000 pounds) has additional flexibility to count their ZEV sale towards compliance with the Advanced Clean Cars (ACC) regulation instead of the ACT regulation. Table 6 displays the number of ZEVs that are being allocated to earn credits in the ACC regulation and the number of ACT credits that were forgone with the transfer.

Table 6 - ACT Credit Allocations to ACC for the 2022 Model Year

ZEV Sales Summary

The ACT regulation early credit provisions mean that manufacturers are already on target to meet the statewide 2024 ACT ZEV requirements without affecting total California conventional vehicles sales. Manufacturers have already sold more single unit medium- and heavy-duty ZEVs than is needed for 2024.This is based on data reported by manufacturers for 2021 and 2022 and this does not include 2023 and 2024 ZEV sales. Two manufacturers have already transferred some of the ZEV sales to other markets.

In 2022, manufacturers sold ZEVs as 7.5% of total sales when no truck purchase or manufacturer sales requirements were in effect. To put this in context, the statewide ZEV sales requirement in 2024 is about 6% of total annual sales. In 2022, Volvo delivered ZEV tractors for sale at a rate of 5.2% of annual sales which is higher than the 5% ZEV sales requirement that applies to Class 7-8 tractor sales in 2024.

Several manufacturers already have earned ZEV credits beyond what they need to comply by the end of 2024 including Bluebird, BYD, Ford, GreenPower, Lightning eMotors, Lion Electric, Nikola Motor, Rivian, Volvo, and XOS Trucks.

More Information

• ACT Regulation
• ACC Regulation

This report satisfies the public disclosure requirement provided in the ACT Regulation. (Cal. Code Regs., tit. 13, §1963.5 (a)(3))

[1] NZEV is an on-road hybrid electric vehicle that has the capability to charge the battery from an off- vehicle conductive or inductive electric source and achieves minimum all-electric range.