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Home My WebLink AboutAgenda Item V-1_Advanced Clean Trucks (ACT) Rule Update PowerPointDepartment of Environmental Quality Information Item —Proposed Advanced Clean Trucks Rule Update March 8, 2023 Zach Pierce and Randy Strait March AQC Meeting Agenda •Overview of Outreach Sessions •Review Executive and Departmental Actions •MHD Emissions and Transportation Profiles •Advanced Clean Trucks Rule •Outreach Session Feedback •Rule Related •Other (Environmental Justice, Investment Needs, Infrastructure/Workforce) •Next Steps for Proposed Rulemaking 2 EO 80 •Reduce GHG emissions by 40% below 2005 levels by 2025 •Increase total number of registered LD ZEVs to at least 80,000 by 2025 •Reduce energy consumption in state-owned buildings by 40% below 2002-2003 levels Oct. 2018 MHD ZEV MOU •Advance & accelerate MHD ZEV sales & reduce GHGs from this sector •30% of all new MHD vehicle sales be zero-emission vehicles by 2030 •100% of all new MHD vehicle sales be zero-emission vehicles by 2050 July 2020 EO 246 •Reduce GHG emissions by 50% below 2005 levels by 2030 & net-zero by 2050 •Increase total number of registered LD ZEVs to at least 1.25 million by 2030 •Increase the sale of ZEV so that 50% of in-state sales are zero emission by 2030 •NC DOT to develop Clean Transportation Plan by April 2023 Jan. 2022 EO 271 •MHD vehicle manufacturers to sell increasing percent of ZEVs each year (Advanced Clean Trucks Program) •NC DHHS to publish report on EJ impacts of transportation-related pollution •NC DOT to develop NC ZEV Infrastructure Needs Assessment Oct. 2022 Reducing GHGs: NC Executive Actions Growing NC’s Zero-Emission Vehicle Market 4 Executive Order 271 •Signed October 25, 2022 •Accelerate transition to clean energy economy •Create good jobs and opportunities for all •Protect public health and the environment •Advance environmental justice and equity Link to EO 271: https://governor.nc.gov/media/3457/open EO 271 FAQ: https://governor.nc.gov/media/3456/open Executive Order 271 –Sections 1.Advanced Clean Trucks Rule 2.Distribution of State and Federal Funds 3.Complementary Strategies 4.Public Health and Health Equity 5.Zero-Emission Vehicle Infrastructure Needs Assessment 6.State Motor Fleet ZEV Transition 7.Environmental Stewardship Initiative 5 Aligned Clean Transportation Initiatives 6 Oct 2019 The North Carolina Zero-Emission Vehicle Plan (NCDOT) Ongoing Volkswagen Settlement Program (NCDEQ) Aug 2022 The NC Electric Vehicle Infrastructure (NEVI) Deployment Plan (NCDOT) Oct 2022 2022 NC Motor Fleet ZEV Update (NCDOA) Feb 2023 NC Deep Decarbonization Pathways Analysis (Governor’s Office) April 2023 NC Clean Transportation Plan (NCDOT) 7 Truck Classifications Vehicle classes are based on gross vehicle weight rating (GVWR). Class 2 is subdivided into: •Class 2a: GVWR of 6,001-8,500 lbs. •Class 2b: GVWR of 8,501-10,000 lbs. MHDVs under ACT consist of classes 2b-8. So u r c e : U . S . D e p a r t m e n t o f E n e r g y 8 Distribution of 2018 North Carolina Transportation GHG Emissions 9 Onroad Light-Duty Gas Vehicles 72% Onroad Medium/Heavy-Duty Gas Vehicles 1% Onroad Light-Duty Diesel Vehicles 2% Onroad Medium/Heavy- Duty Diesel Vehicles 16% Onroad Medium/Heavy-Duty CNG Vehicles <1% Non-Highway 9% Total GHG = 57.31 MMT CO2e MHD Vehicles 10 •Represent 3.2% of NC’s registered vehicles •32% of NC’s on-road fine particle pollution (PM2.5). •26% of NC’s on-road nitrogen oxide (NOX) emissions. •NC is in statewide attainment with the PM2.5, ozone, and all other National Ambient Air Quality Standards (NAAQS) •Additional emission reductions would ensure ongoing compliance in the future when the U.S Environmental Protection Agency (EPA) lowers the NAAQS Source: EPA 2017 National Emissions Inventory. Environmental Justice Data Layers 11 The Potentially Underserved Communities layer is comprised of groups that meet criteria for both race/ethnicity AND poverty. Department of Environmental Quality 12 Transportation/Warehousing Outreach Timeline 13 •Information Session –Jan. 9, 2023, from 3-4 p.m. via WebEx •Charlotte Stakeholder Meeting —Jan. 13, 2023, from 9-11 a.m. •Burlington Stakeholder Meeting —Jan. 23, 2023, from 4-6 p.m. Live Spanish Interpretation Offered •Pembroke Stakeholder Meeting —Jan. 25, 2023, from 1-3 p.m. •Stakeholder Input Webinar #1 —Feb. 1, 2023, from 2-4 p.m. via WebEx. Live Spanish Interpretation Offered •Stakeholder Input Webinar #2 —Feb. 1, 2023, from 6-8 p.m. via WebEx. Live Spanish Interpretation Offered •Final Stakeholder Webinar —Feb. 21, 2023, from 1-2:30 p.m. via WebEx. Department of Environmental Quality Outreach Sessions -How to Keep in Touch Today’s slides to be posted on our website: www.deq.nc.gov/ACT Send us a comment via email or phone: Email: daq.publiccomments@ncdenr.gov Voice mail: 919-707-8726 Email/Phone comments accepted until Feb. 24, 2023 14 Department of Environmental Quality Executive Order 271 –Section 1 15 •DEQ to develop rules for an Advanced Clean Trucks (ACT) program for consideration to the Environmental Management Commission (EMC). •DEQ to collaborate with stakeholders in developing the rules. The ACT program will require medium-and heavy-duty vehicle manufacturers to sell an increasing percentage of zero-emission vehicles (ZEVs) over time. •Provisions provide flexibility to manufacturers, through credits, trading & other features. •Sales targets drive investment in other zero-emission technologies. •Rules will ensure inventories of ZEVs will be available for purchase in the state. •Bolsters NC’s competitiveness in seeking federal support for clean energy development. California Advanced Clean Trucks Rule 16 The Advanced Clean Truck regulation is part of California’s holistic approach to accelerate a large-scale transition of zero-emission medium-and heavy-duty vehicles from Class 2b to Class 8, resulting in decreases in greenhouse gases, NOX, PM, and SO2 emissions from this source sector over time. The regulation has two components: •Zero-emission truck sales targets •Vehicle manufacturer reporting Department of Environmental Quality Clean Air Act -Section 177 Applicability•Section 177 only provides authority to states with non-attainment plan provisions approved by EPA.•Most states, including NC, have had non-attainment plan provisions approved by EPA. Identicality•When adopting/enforcing motor vehicles emissions standards, Section 177 requires:“… such standards are identical to the California standards for which a waiver has been granted for such model year …” Lead Time•Section 177 provides:“… California and such State adopt such standards at least two years before commencement of such model year …” Third Vehicle Prohibition•Standards are either CA or Federal; states cannot cherry-pick standards 17 Department of Environmental Quality Year Class 2b-3 Class 4-8 Class 7-8 Tractors 2024 5%9%5% 2025 7%11%7% 2026 10%13%10% 2027 15%20%15% 2028 20%30%20% 2029 25%40%25% 2030 30%50%30% 2031 35%55%35% 2032 40%60%40% 2033 45%65%40% 2034 50%70%40% 2035+55%75%40% 18 Note: NC’s entry year in the proposed ACT rule would be model year 2027. ACT Rule ZEV Sales Targets by Model Year Department of Environmental Quality Year Class 2b-3 Class 4-8 Class 7-8 Tractors Totals Percent of Total New Registrations 2027 11,700 3,900 1,200 16,800 16% 2028 15,800 5,900 1,700 23,400 22% 2029 19,900 8,000 2,100 30,000 28% 2030 24,100 10,100 2,600 36,800 34% 2031 28,400 11,100 3,000 42,500 39% 2032 32,900 12,300 3,500 48,700 44% 2033 37,300 13,500 3,500 54,300 48% 2034 41,900 14,600 3,600 60,100 53% 2035 46,500 15,800 3,600 65,900 57% 19 Preliminary Estimate of ZEV Sales by Model Year (Based on New Vehicle Registrations)* * These preliminary projections may be overestimated because they include new vehicle registrations associated with vehicle owners that purchased their vehicle in another state and registered their vehicle in NC when they moved to NC. In addition, the projections do not account for any trading of credits between vehicle classes by vehicle manufactures once the ACT rule is in effect. ACT States 20 State Beginning Model Year California 2024 Oregon 2025 Washington 2025 New York 2025 New Jersey 2025 Massachusetts 2025 Vermont 2026 Department of Environmental Quality Tentative Rulemaking Timeline Draft rule and fiscal note to Air Quality Committee (AQC)May 2023 Request to Proceed to Public Comment/Hearing -EMC July 2023 Public process / Hearings August–October 2023 Hearing Officer’s report to EMC / Adoption November 2023 Potential Effective date January 2024 21 Outreach Sessions –Stakeholder Questions •What are the greatest potential benefits to NC that you see in adopting the ACT rule? •What does the adoption of the ACT rule mean to you and your community or organization? •What changes do you envision ACT would bring to your business or your community? •What are the biggest challenges to meeting the MHD ZEV sales targets? •What does NC need to do to support a successful transition to MHD ZEVs in our state? •What are some potential challenges that the DEQ may face in developing the ACT rule? •How can the DEQ improve engagement with stakeholders, including Environmental Justice communities, during this process? •What other topics should the DEQ consider in the development of the ACT program that were not covered in the presentations today? 22 Department of Environmental Quality What We Heard –Benefits Questions Participant Reponses What are the greatest potential benefits to North Carolina that you see in adopting the Advanced Clean Truck rule? •Health benefits for potentially underserved communities and reduced strain on healthcare industry. •Keeps NC competitive in the zero-emission vehicle market and abreast of emerging vehicle technology. •Drives investments into the manufacturing of zero emission vehicles. •It’s a real win-win for businesses and the health of our citizens. •Keeps ahead of the Federal Air Quality standards as they change in the future. •Provides the opportunity to demonstrate collaboration between cabinet agencies to tell the full story of a proposed regulatory action. What changes do you envision ACT would bring to your business or your community? •NC would be the first state in the south to adopt ACT. •Will help cities, counties and regional areas meet their climate goals. •Allows vendors in the EV charging industry to participate in the market with fleets and expand partnerships with NC businesses and provide private capital to the state. •Ensure that the state fleets transition to ZEVs as quickly as possible. •More jobs in this sector and any sector (infrastructure) that support this sector. 23 Department of Environmental Quality What We Heard –Program Related Suggestions Next Steps Hold a meeting with the vehicle manufacturers Meeting(s) are planned Hold a meeting with utilities Meeting(s) are planned Provide updated maps showing local truck use and urban/rural differences NC DOT, NC DHHS and NC DEQ working on creating updated maps How will sales targets be enforced?DEQ evaluating using existing tiered enforcement guide 24 What We Heard –Environmental Justice Challenge Next Steps Need to improve two-way communication and trust •Partner with historically underserved and overburdened communities to align local needs with clean transportation initiatives •Reference and update DEQ’s Public Participation Plan with feedback from communities •Conduct targeted outreach to local leaders to communicate stakeholder engagement opportunities Insufficient inclusion in the clean transportation transition •Partner with community-based organizations (CBOs) and non-profit advocacy groups to connect clean transportation messaging and resources with historically underserved and overburdened communities •Engage with the NC Clean Transportation Plan workgroups Many communities experiencing the largest air quality pollution burdens are traditionally underserved •Refine and utilize data and mapping to identify disproportionately impacted communities •Promote the integration of equity and health metrics in plans, programs and disbursement of funding •Target clean transportation investment and technical assistance in historically underserved and overburdened communities 25 What We Heard –Investment Needs Challenge Next Steps Resource Constraints •Align outreach and program design across state agencies when investing available clean transportation funding: o National Electric Vehicle Infrastructure (NEVI) program; Congestion Mitigation and Air Quality (CMAQ) program; Diesel Emission Reduction Grants (DERA) program •Identify and pursue additional funding opportunities to support clean transportation objectives (e.g.): o Low or No Emission Vehicle Program o Clean Heavy-Duty Vehicle Program o Clean School Bus Program o Grants for Charging + Fueling Infrastructure o GHG Reduction Program Ensuring Resources Support Community Needs •Ongoing community engagement to inform scope and implementation of clean transportation initiatives •Conduct local outreach and education on investment opportunities (e.g. commercial vehicle tax credits) •Provide technical support for local communities to secure grants and third-party funding to support clean transportation advancements •Develop policies + programs that ensure access and affordability 26 What We Heard –Infrastructure/Workforce Challenge Next Steps Infrastructure needs •Continued dialog with utilities will help plan for grid infrastructure needs (e.g. through implementation of NCCTP) •Communicate clean transportation priorities (e.g. charging infrastructure needs) to NC Building Code Council •Engage broad stakeholders in developing NCDOT's Charging and Fueling Infrastructure Needs Assessment pursuant to EO 271 •(See previous slide for infrastructure investment opportunities and priorities) Workforce needs •Integrate MHD ZEV considerations into clean energy workforce development initiatives (e.g. NC A&T’s STEPs4GROWTH program) •Connect employers with State workforce initiatives •Integrate work-based learning and apprenticeship opportunities into clean transportation initiatives. 27 Contact information 28 Randy Strait Planning Section Chief NC Division of Air Quality randy.strait@ncdenr.gov 919-707-8721 Robin Barrows Assistant to Director’s Office (rotation) NC Division of Air Quality robin.barrows@ncdenr.gov 919-707-8445 Shawn Taylor Public Information Officer NC Division of Air Quality shawn.taylor@ncdenr.gov 919-707-8446 Mike Abraczinskas, EIT, CPM Director NC Division of Air Quality Michael.abraczinskas@ncdenr.gov 919-707-8447 Questions about outreach/public information: Questions about rule development: Additional Contacts 29 Elizabeth Christenson, PhD NC Department of Environmental Quality Senior Policy Advisor elizabeth.christenson@ncdenr.gov 919-707-8753 DEQ Environmental Justice Team: Governor’s Office: Zach Pierce Senior Advisor for Climate Change Policy Office of Governor Roy Cooper zach.pierce@nc.gov 919-814-2044 Thank you 30 Additional Resources 31 Other State ACT information: California -https://ww2.arb.ca.gov/our-work/programs/advanced-clean-trucks Oregon -https://www.oregon.gov/deq/rulemaking/Pages/ctr2021.aspx Washington -https://ecology.wa.gov/Air-Climate/Air-quality/Vehicle-emissions/Clean-cars New York -https://newyorktruckstop.com/2022/01/10/new-yorks-advanced-clean-truck-rule/ New Jersey -https://dep.nj.gov/stopthesoot/advanced-clean-trucks-rule-fleet-reporting/ Massachusetts -https://www.mass.gov/regulations/310-CMR-700-air-pollution-control Vermont -https://dec.vermont.gov/air-quality/laws/recent-regs Acronym List 32 DEQ: Department of Environmental Quality DAQ: Division of Air Quality EPA:U.S. Environmental Protection Agency ACT: Advanced Clean Trucks MHD or MHDV: Medium-and Heavy-Duty Vehicles ZEV: Zero-Emission Vehicle EO: Executive Order EMC: Environmental Management Commission AQC: Air Quality Committee GHG: Greenhouse Gas NOx: Nitrogen Oxide PM/PM2.5: Particulate Matter NAAQS: National Ambient Air Quality Standards