BrightOrder: Maintenance, Management & Telematics
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BrightOrder: Maintenance, Management & Telematics

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Introduction

As we enter 2024, fleet managers face an evolving landscape of regulations that impact their operations. 

Staying informed about these changes is imperative for maintaining compliance and optimizing fleet performance. 

Here’s a comprehensive guide to the current regulations fleet managers need to be aware of:

Table of Contents

Emissions and Environmental Regulations

a truck driving through a mountainous highway
Staying informed about new regulations is essential for compliance and optimizing fleet performance.
The California Air Resources Board (CARB) has implemented the Advanced Clean Fleets (ACF) Regulation, which took effect on January 1, 2024.  This regulation impacts several fleet categories:
  • Drayage fleets can only add zero-emissions vehicles to their fleets and must register with a CARB database to operate in California.
  • High-priority and federal fleets (entities with $50 million or more in annual revenue or operating 50+ vehicles) must choose between two compliance paths: the “Model Year Schedule” or the “ZEV Milestones Option.”
  • State and local agency fleets have new requirements for purchasing zero-emission vehicles (ZEVs) or near-zero emission vehicles (NZEVs).
While these regulations are specific to California, they often set precedents that other states follow.  Additionally, fleets outside of California that operate within the state are also impacted. Fleet managers nationwide should prepare for similar sustainability measures in their regions.

Corporate Transparency Act (CTA)

The CTA, which took effect on January 1, 2024, requires many fleet organizations, especially fleet owners and owner-operators, to register with a “beneficial ownership information” (BOI) database maintained by the Financial Crimes Enforcement Network (FinCEN). This regulation aims to combat financial crimes and requires disclosure of ownership information. Non-compliance can result in significant fines and penalties.

Electronic Driver History Records

a truck driver at garage shop - fleet management software The Department of Transportation (DOT) is set to publish a final rule requiring state driver licensing agencies to implement an electronic system for exchanging driver history record information through the Commercial Driver’s License Information System. States must be in substantial compliance with this rule by August 22, 2024.

Fleet Electrification

Fleet Electrification is gaining momentum, supported by substantial government funding and financial incentives to accelerate the transition to electric vehicles (EVs).  In the United States, the Inflation Reduction Act of 2022 has allocated significant resources to make EV technology more accessible and affordable.  The National Electric Vehicle Infrastructure Formula Program (NEVI Formula) provides $5 billion to states for building and expanding publicly-available EV charging networks. For businesses and fleet managers considering the switch to EVs, there are several financial incentives available:
  1. The Alternative Fuel Infrastructure Tax Credit offers businesses a 30% tax credit on the cost of EV charging infrastructure, up to $100,000 per location.
  2. The U.S. federal government provides tax credits, rebates, and grants for states, local governments, and private businesses looking to expand their EV capabilities.
  3. Private companies can receive up to 30% back in tax credits for EV-related investments.
In Canada, the Zero Emission Vehicle Infrastructure Program (ZEVIP) offers funding to help build EV charging infrastructure.  Additionally, individual Canadian provinces provide various rebates and incentives to support businesses transitioning to EVs. Fleet managers should also consider the long-term cost savings associated with EVs. While initial costs may be higher, operating expenses for EVs are typically 40-60% lower compared to internal combustion engine vehicles. Many subsidies are available from federal, state, and local governments, as well as utilities and non-governmental organizations, which can often be “stacked” to maximize savings. To assist in the decision-making process, tools like the Dashboard for Rapid Vehicle Electrification (DRVE Tool) allow fleet managers to conduct rapid analysis for EV adoption, providing customized data on cost savings and emissions reductions. Additionally, programs like the Climate Mayors EV Purchasing Collaborative offer turnkey, one-stop online procurement portals for municipalities to access competitively bid electric vehicles and infrastructure. Given the current availability of funding and incentives, fleet managers are encouraged to start planning for electrification soon. However, it’s advisable to transition gradually, as fleet managers can learn valuable lessons from operating their first EVs, and technology is rapidly evolving.

State-Specific Mandates

san francisco bridge
From 2024-2026, 50% of California state and local government fleet purchases must be ZEVs or NZEVs.
Fleet managers must also be aware of state-specific regulations.  For example, in California:
  • From 2024-2026, 50% of state and local government fleet vehicle purchases must be ZEVs or NZEVs.
  • Starting January 1, 2027, all state and local government fleet purchases must be ZEVs or NZEVs.
  • Beginning in 2026, 50% of large and 25% of small transit agency new bus purchases must be zero-emission buses.
To navigate these complex regulations, fleet managers should consider utilizing fleet management software and services that can help track compliance, manage vehicle data, and optimize operations.  Staying informed about these regulations and preparing for future changes will be key for fleet managers throughout 2024 and onward.

Potential Emerging Regulations for Commercial Fleets

a fleet of commercial trucks
Fleet managers should prepare for potential regulations on speed limiters, electronic truck IDs, and data privacy requirements.

Speed Limiters

The Federal Motor Carrier Safety Administration (FMCSA) has indicated plans to propose a rule requiring commercial vehicles over 26,001 lb. to be equipped with electronic engine control units to govern speed limits.  While many major carriers already impose speed limits on their trucks, this regulation could standardize the practice across the industry. Fleet managers should anticipate a notice of proposed rulemaking in the near future.

Electronic Truck IDs

The Commercial Vehicle Safety Alliance has proposed requiring motor carriers to install electronic identification on commercial vehicles. This system would allow one-way wireless communication from vehicles to commercial vehicle inspectors, potentially streamlining the inspection process and encouraging safety compliance. 

Emissions Regulations

While the EPA has already mandated stricter emissions standards for model year 2027 vehicles, there’s ongoing discussion about further reductions in emissions.  Fleet managers should stay informed about potential updates or extensions to these regulations.

Electrification Mandates

California’s Advanced Clean Fleets (ACF) regulation is likely to influence other states due to California’s environmental leadership, economic impact, and the regulation’s potential to set industry standards.  The state’s large economy and significant market share in the trucking industry mean that manufacturers and fleet operators often adapt their practices to meet California’s standards, making it easier for other states to follow suit.  The regulation’s focus on reducing emissions aligns with broader climate change mitigation efforts and federal clean energy initiatives. As zero-emission vehicle technology improves and becomes more cost-effective, other states may find it increasingly feasible to implement similar mandates.  Already, 11 states are considering adopting ACF or similar regulations, indicating a growing trend toward fleet electrification mandates across the country. 

Data Privacy and Cybersecurity

As fleets increasingly rely on telematics and connected vehicle technologies, regulations around data privacy and cybersecurity in the transportation sector are likely to evolve. Fleet managers should anticipate potential new requirements in this area.

Conclusion

In 2024, fleet managers face a rapidly changing industry, marked by stricter emissions standards, new transparency requirements, and a strong push towards electrification.  This environment demands a proactive approach, requiring managers to comply with current regulations and anticipate future changes. Bottom line: Stay informed, use the tech tools at your disposal, and don’t be afraid to innovate. If we play our cards right, we can turn these challenges into advantages. It’s all about keeping our fleets efficient, compliant, and ready for whatever comes next. The fleet managers who adapt now are the ones who’ll be leading the pack in the years to come.
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About the Author

Madeleine Amestoy

Madeleine is a Marketing Automation Specialist at BrightOrder with experience in project management, truck fleet management, and media production.

She lives in Toronto with her cat and enjoys a good movie on the weekends, especially movies with awesome truck scenes!

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