California’s Zero-Emission Mandate Reversed and What It Means for Commercial Fleets

California's now-repealed zero-emission vehicle mandate, which aimed to eliminate sales of new internal combustion vehicles by 2035, was ambitious, but for many commercial transportation companies, it wasn't realistic. With the federal rollback, the focus is shifting toward achievable goals that reflect current infrastructure and vehicle technology.

Why the Mandate Was Problematic for Fleets

Commercial operators weren’t just pushing back to protect the status quo. The concerns were based on real, measurable limitations:

1. Lack of Charging Infrastructure

• Most public charging networks are built with passenger vehicles in mind.
• Few facilities support high-voltage charging, especially in rural or industrial areas.
• Electric grid limitations could prevent multiple units from charging simultaneously, particularly overnight at depots.

2. Longer Dwell Times and Fewer Miles per Day

• A diesel truck can refuel in under 10 minutes, while EV trucks may require hours to reach a full charge.
• Charging downtime affects delivery windows, driver utilization, and freight schedules.
• Carriers operating under strict delivery timeframes (like food distribution or retail logistics) would need to rework route planning and possibly expand fleet size to compensate.

3. New Fire Risks for Battery-Powered Vehicles

• Lithium-ion battery fires are rare but serious and difficult to extinguish.
• Insurance carriers are beginning to treat battery risk as a distinct exposure, with evolving loss control expectations.
• Safety protocols for maintenance, storage, and charging must be reviewed and updated as fleets transition to new vehicles.

Diesel Isn't Going Away Anytime Soon

Modern diesel trucks already meet strict EPA emissions standards. Today's clean-diesel engines emit roughly 99% less nitrogen oxide and particulate matter compared to those built before 2007.

Many fleets have invested millions in upgrading to near-zero-emission units, and they're not eager to write off that investment before its useful life ends.

What Fleets Should Do Next

Use this regulatory reset as an opportunity for planning. Begin laying the groundwork for future requirements but avoid rushing into major capital expenditures without a clear roadmap. Consider:

• Infrastructure Assessments: What upgrades would your terminals need to support EVs? Who owns the property, and how cooperative is the utility?
• Grants and Incentives: Federal and state programs may offer rebates for chargers, EV truck purchases, or solar integration.
• Fleet Segmentation: Not all routes need to go electric. Short-haul, local delivery, and port drayage are more viable for electrification than long-haul or refrigerated operations.
• Insurance Impact: Talk to your broker about how EV integration affects your auto liability, inland marine, and property schedules. Battery damage, charger malfunctions, and thermal events require new risk profiles.

At AssuredPartners, we understand that policy changes like this don’t eliminate uncertainty; they just change its shape. Whether you're exploring partial fleet electrification, planning for infrastructure upgrades, or evaluating the insurance implications of new vehicle technologies, our Transportation team is here to help.