By Nick Lung.      Photo：Markus Spiske

California has just passed a new environmental regulation, which has aroused great concern in the towing industry in California. People in the industry have said that this move is too radical, which will greatly affect the operation of towing companies and push up freight costs. California's CARB (California Air Resource Board) unanimously passed the ACF (Advanced Clean Fleets) regulation last Friday, which caused a stir.

ACF's new regulations cover a lot. Simply put, the ACF requires California’s fleets (whether private or government, such as the USPS) to transition to zero emissions starting in 2024. Drayage trucks must become zero-emission by 2035 due to their severe impact on surrounding residents. The ACF also stipulates that California will no longer allow the sale of internal combustion engine trucks by 2036. This is the first regulation in the world to propose such a clear and stringent timetable.

The most direct impact on the trailer industry in California is this: starting from January 1, 2024, all newly invested capacity must be zero-emission trucks. Currently, there are two options: Battery Electric (electric car) or Hydrogen Fuel Cell (hydrogen fuel cell) battery car). This refers specifically to the tow truck company’s newly purchased capacity, but what about the existing diesel locomotives? ACF allows existing locomotives to continue operating during their "useful life." The service life has two meanings: reaching 800,000 miles or 18 years after the model year. The model year is not the year the vehicle was produced, but the year the model was launched. Once the vehicle reaches the 18th year of the model year, the basic mileage has not reached 800,000 miles, and it cannot continue to operate, because CARB will not accept the registration of such operational vehicles.

So here comes the problem. How much does it cost to buy a new electric car or hydrogen fuel tractor in the United States? Very expensive. First of all, all-electric trailers in the United States have just begun and are not yet popular. Public information shows that the selling price is between 300,000 and 800,000 US dollars, which may also include maintenance provisions. The following is an estimate made by the research organization ICCT (International Council on Clean Transportation). In 2020, the price of electric cars is three times that of diesel cars, and that of hydrogen fuel cars is four times. By 2025, prices are expected to fall further to 2x and 2.5x. By 2030, the price of electric cars and hydrogen-fueled cars will be about 1.5 times that of diesel cars, that is, each unit will cost US$200,000 to US$250,000.

This is just the price of the front end of the car. There is no doubt that the cost is not a little higher than that of current diesel cars. Any tow truck company looking to acquire new capacity will have to pay significant costs. In addition to the high selling price, the industry also pointed out more problems: Problems with charging stations: Whether running short or long distances, trams need to be charged. The trailer industry has long complained that the current number of electric piles is too few, and it is almost impossible to build charging stations near docks where land is at a premium. In addition to the scarcity of land, the long construction process and delays from power companies are also worrying the industry.

Delays in tram delivery: It is said that the tram trailers currently on the road were ordered six years ago. I have not carefully studied the production capacity of all-electric tractors in the United States. According to previous exchanges with the industry, delivery is indeed a problem. As time goes on, vehicles that have reached the end of their service life are forced to withdraw from operation. All-electric vehicles are either too expensive to afford, or the delivery time is seriously delayed. This will lead to a decrease in the number of operating vehicles in the market year by year, especially at the beginning. The production capacity of all-electric locomotives has not yet kept pace with market demand. In addition, if you cannot afford a brand new zero-emission engine, will the price of a second-hand diesel engine that is still within its useful life increase?

The passage of the ACF regulation means that the cost of new trailer capacity in California will increase significantly in the short term. In the next twelve years (to 2036), there are still many unknowns in the market launch of zero-emission vehicles and the construction of charging stations. Operating a towing company presents great challenges.

California's environmental protection laws are notoriously strict, and logistics costs in the United States are getting higher and higher. However, other states are said to be following suit. The states currently rumored to follow California's ACF regulations include New York, New Jersey, Oregon, Massachusetts, Washington and Vermont.

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