CARB Approves Another Regulation That Directly Impacts Brokers

June 26, 2020, the California Air Resources Board or CARB met recently and unanimously approved the Advanced Clean Trucks regulation. The regulation seeks to, “increase the market for on-road zero emissions vehicles and to reduce emissions of pollutants, toxic air containments and greenhouse gases from medium and heavy-duty on-road vehicles.” The regulation does have a broker provision in terms of reporting requirements, that TIA members that arrange transportation in the State of California need to be aware of, as there could be penalties assessed by CARB for not meeting certain reporting requirements. This rule starts with 2024 model year vehicles.

In the regulation a broker that falls under the scope and applicability of this rule would need to meet the following requirements:

Any broker or entity that dispatched more than 50 or more vehicles with a GVWR greater than 8,500 lbs. into or throughout California, and operated a facility in California, in the 2019 calendar year.

Additionally, CARB defines a broker as an entity or person who has broker authority from the Federal Motor Carrier Safety Administration (FMCSA) and for compensation, arranges or offers to arrange the transportation of property by an authorized motor carrier.

The reporting requirement includes:

1. the number of entities with whom the reporting entity had a contract to deliver items or perform work in California in 2019 or 2020 using vehicles over 8,500 pounds “to serve your customers while representing your entity’s brand”;
2. for entities with MC or broker authority and contracts with subhaulers:

                     a. the number of subhaulers contracted with in California;

                     b. the estimated number of vehicles operated by subhaulers on reporting entity’s behalf in California; and

                     c. estimated number of vehicles operated by subhaulers that operate under the reporting entity’s MC authority in California; and

                     d. the number of vehicles over 8,500 lbs. that the reporting entity owns and operates in California in either 2019 or 2020 that do not have a vehicle home base in California.  An additional reporting requirement applies to the vehicles’ home base and information about operating characteristics for vehicles with a home base in California.

According to CARB, this information would help identify future strategies to ensure that fleets purchase available zero-emission trucks and place them in service where suitable to meet their needs. 

This sustained overreach by CARB, continues to place brokers in a tough position to self-police the motor carriers that our members utilize that operate in the state of California. TIA has been working with the White House and Congress to rein in CARB and remove the federal waiver the state of California received from President Obama, that allows them to take this drastic measure that directly impact interstate commerce. TIA will ramp up our messaging and effort in defeating this ill-founded regulation.

If you have any questions, please contact TIA Advocacy (advocacy@tianet.org, 703.299.5700).