California Air Resources Board

The transportation sector accounts for almost 50 percent of greenhouse gas (GHG) emissions in California when accounting for fuel production, with light-duty vehicles making up 70 percent of the transportation sector’s direct emissions. Additionally, seven of the 10 most polluted cities in the nation are in California, according to the American Lung Association’s 19th Annual Air Quality Report. 

Senate Bill (SB) 32–the California Global Warming Solutions Act as amended in 2016–set forth a statewide GHG reduction goal of 40 percent below the 1990 level by 2030. As outlined in the 2017 Scoping Plan, additional emission reduction programs are needed to ensure California meets that goal.

With the enactment of SB 1014 (2018)–the Clean Miles Standard and Incentive Program – CARB and the California Public Utilities Commission (CPUC) will implement new requirements for transportation network companies (TNCs) for innovative ways to curb GHG emissions as new mobility options grow at a rapid pace.  

This new program 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.

Requirements of SB 1014

The following is a summary of the core requirements of the statutes of SB 1014 as it relates to CARB’s new program. A reference for the full statute is included below.

• By January 1, 2020, the California Air Resources Board shall establish a baseline for emissions of GHGs for vehicles used in transportation network companies on a per-passenger-mile basis using 2018 as the base year.
• By January 1, 2021, CARB shall adopt and the CPUC shall implement annual GHG reduction targets, beginning in 2023, under the 2018 baseline on behalf of TNCs.
  • Targets shall include increasing passenger miles traveled using zero-emission means
  • Targets shall be consistent with the Zero-Emission Vehicle Action Plan and Executive Order B-48-18
  • Targets shall be technically and economically feasible, and be based on data reported by the TNCs to CPUC
• By January 1, 2022, and every two years thereafter, each TNC shall develop a GHG emission reduction plan. 

Principles for Developing the New Regulation

The following principles have been developed by CARB to guide the development of the new Clean Miles Standard, providing clarity on the scope and direction the agency intends to pursue.

Regulation Design

• Decrease GHG emissions and increase zero-emission miles: Develop a new regulation to reduce GHG emissions from TNC fleets using a compliance metric of annual grams-CO₂-per-passenger-mile and increase zero-emission miles traveled, encouraging TNC fleets to provide clean mobility options.
• Promote pooling, active transport and transit usage: Enable strategies for reduction of vehicle miles traveled (VMT) while supporting passenger miles traveled (PMT), including increased vehicle pooling, connections to public transit, connections to first and last-mile transport modes such as bike and scooter share services, and walking. 
• Forward-looking with automated vehicles: Account for driverless automated vehicle operation and other new modes of transportation emerging from continued innovation in TNC fleets to encourage low-emission vehicles and pooling in new mobility modes.
• Aligned with other state policies: Ensure the regulation is synergistic with existing incentive programs and current state policies, including SB 375, the Sustainable Communities Program, and the light-duty vehicle GHG and zero-emission vehicle (ZEV) automaker regulations.
• Maximize transportation access equity: Explore how the regulation design and incentives can promote access of these transportation opportunities to all Californians.  

Development Process

• A synergistic process: Promote collaboration among regional and local transit entities, TNC fleets, research institutions, and State agencies to develop an effective and comprehensive regulation.
• Data-driven: Develop the regulation using the best available data provided by TNC fleets, economic indicators and estimated costs, ZEV market projections and the best available research in these areas.
• Encourage ZEV infrastructure: Evaluate infrastructure needs and explore existing state incentive programs to boost deployment of electric charging and hydrogen fueling stations to support an expanding fleet of ZEVs in TNCs.
• Minimize burden to low- and moderate-income drivers: Ensure that any burden on low- to moderate-income drivers is minimized.