The Potential PACE Regulation is part of a suite of mobile-source strategies for reducing emissions of criteria pollutants and greenhouse gases by accelerating the development and production of zero-emission off-road equipment and powertrains. The rule aims to help California achieve the emission-reduction goals outlined in the 2022 State Strategy for the State Implementation Plan as well as the zero-emission technology-deployment goals set forth in the Governor’s Executive Order N-79-20. The PACE Regulation was formerly known as the Off-Road Zero-Emission Targeted Manufacturer Rule; its name has been updated to more accurately reflect the approach, scope, and goal of the proposed regulation.

Zero-emission technologies have been successfully implemented in many off-road applications, with widespread adoption in some, showing the potential for these technologies to be feasible and cost-effective options for manufacturers to produce and end users to purchase and operate. Zero-emission off-road equipment representing a broad range of power categories and applications has been commercialized, including generators and power banks, forklifts, ice resurfacers, yard trucks, top handlers, telehandlers, aerial boom trucks, utility tractors, rollers, compactors, slipform pavers and screeds, asphalt and concrete delivery and placement equipment, landscape maintenance equipment, forestry harvesters, sweepers, skid steers, compact track loaders, excavators and backhoes, trenchers, graders, haul trucks, wheel loaders, foundation drills, piledrivers, large cranes, bulldozers, wheel loaders, mining equipment, and airport ground support equipment.

Since California contains some of the regions most impacted by poor air quality in the nation, significant reductions of particulate matter and oxides of nitrogen are needed to improve and protect public health. Furthermore, it is necessary to emphasize communities that experience disproportionate burdens from exposure since they face the greatest risk of developing adverse health effects. Additional steps are needed to meet California’s air quality and climate goals, and off-road mobile sources are one of the largest contributors to emissions in the state.

As suggested by the measure’s name, CARB staff are considering a multi-phase regulatory approach that would prioritize equipment best suited for electrification first. The proposed concept for the PACE Regulation would require manufacturers of off-road equipment and/or engines to produce zero-emission equipment and/or powertrains as a percentage of their annual statewide sales volume to ensure these emerging and innovative technologies come to California.