Under the NY Advance Clean Truck (ACT) rule, manufacturers are required to meet a certain percentage of zero emission vehicle (ZEV) truck sales, beginning in model year 2025, with annual increases thereafter. Manufacturers can accumulate credits and deficits throughout the model year based on specific formulas which consider the specific type and class of vehicles sold. Defects can be counter-balanced the accumulated deficits by earning credits in a few ways. The first is by meeting their annual sales percentage requirements. Manufacturers earns ZEV credits for each ZEV produced and delivered for sale. This credit is considered “earned” when the new vehicle is sold to the ultimate purchaser.
Manufacturers may also utilize “early action banked credits” from sales beginning in Model Year 2022 or trade, sell or transfer credits between manufacturers, provided the transfer is reported properly, to help offset these deficits.
Finally, if a manufacturer does not meet its ZEV requirements in a particular model year, they have an additional model year to resolve the deficit. This system places the burden of compliance on individual manufacturers but also allows manufacturers to support each other in achieving the mandated percentage of ZEVs sold.
Implementation of these rules had been of great concerned to individuals in the agriculture industry, and a delay of implementation was a focus of the joint transportation advocacy day in May. On Friday, May 23rd, the state responded to the recommendations of NEAFA and many others in the agriculture community and other industries, and the New York State Department of Environmental Conservation (DEC) announced they would exercise its authority to utilize enforcement discretion and will not enforce certain provisions of the ACT rules as they relate to pursuing penalties associated with any ZEV deliveries or sales shortfalls associated with Model Years (MY) 2025 and 2026.
More Information can be found in the following PDFS: