The trucking industry is undergoing significant regulatory changes.
Earlier in the year, the California Air Resources Board (CARB) retracted its requests for approval of the Advanced Clean Fleets (ACF) rule. The Trump Administration also recently annulled the EPA waivers that had allowed California and several other states to implement their Advanced Clean Trucks rule and enforce the Low NOx Omnibus rule. Additionally, the Big Beautiful Bill has ended EV incentives and infrastructure funding starting in 2026.
This abrupt shift has altered the regulatory framework that has influenced truck equipment development over the past four years.
Craig Segall, the former deputy executive officer at CARB, recently discussed the current regulatory hurdles and proposed a strategy to better align clean air objectives with business needs.
CARB’s Continuing Role
Segall emphasized that California’s regulatory influence is far from over.
“CARB’s mission continues — as does California’s — to ensure cleaner air, with trucks playing a significant role in that mission,” he stated. “The revocations do not prevent future California rules; they simply cannot be substantially similar.”
Moving forward, Segall anticipates that CARB will adopt a more comprehensive policy approach, integrating not only regulations but also funding options such as revolving loans, infrastructure assistance, and pricing transparency initiatives that enable fleets to adopt new technologies without facing overwhelming upfront costs.
The Push for Electrification Remains
Nonetheless, Segall is confident that the shift towards electrification is unavoidable — if not in the immediate future, then within the next decade.
“By around 2030, or possibly 2035, it will likely become more economical to operate an electric vehicle, even for Class 8 trucks,” he pointed out, referencing total cost of ownership projections that show electric trucks potentially offering lower long-term costs compared to diesel. “Fleets won’t want to bear fuel costs into 2035 or 2040.”
Segall foresees California continuing to pioneer innovations while the federal government looks to establish more expansive greenhouse gas and smog regulations. “It’s possible we could see a federal initiative combining EPA regulations with funding for fleets and charging infrastructure,” he noted. “But by 2029, the next administration will be focused on global competitiveness — and speed will be essential.”
For fleet operators, the key takeaway is evident: Electrification is here to stay. However, strategies for adoption must be strategic, thoughtful, and responsive to the recent policy changes.
“Now is the time to consider what is necessary to make this transition successful,” Segall advised. “If there’s one lesson to be learned, it’s that drastic policy shifts benefit no one — not communities, regulators, or fleets.”
Welcome to Fleet Equipment Unscripted, a video interview series connecting you with thought leaders in the heavy-duty trucking sector, sponsored by Hendrickson.
