Vermont § 50 - Executive Order No. 10-50 (No. 04-25) [Advanced Clean Trucks, Advanced Clean Cars II, and Heavy-Duty Engine

§ 50. Executive Order No. 10-50 (No. 04-25) [Advanced Clean Trucks, Advanced Clean Cars II, and Heavy-Duty Engine

• and Vehicle Omnibus] WHEREAS, in December of 2022, Vermont adopted the Advanced Clean Cars II (ACC II),
  Advanced Clean Trucks (ACT), and Heavy-Duty Engine and Vehicle Omnibus (HD Omnibus)
  rules, pursuant to Section 177 of the federal Clean Air Act; and WHEREAS, the ACC II and ACT rules require original equipment manufacturers (OEMs or
  manufacturers) of passenger cars and light-duty trucks and on-road medium- and heavy-duty
  vehicles to produce and deliver for sale an increasing percentage of zero emission
  vehicles (ZEVs) starting in Model Year 2026; and WHEREAS, the framework for the ACC II and ACT rules are intended to accelerate the
  transition to ZEVs, give Vermonters and Vermont businesses more options, protect public
  health and air quality, and reduce greenhouse gas emissions; and WHEREAS, the HD Omnibus rule is intended to protect public health and air quality
  and requires manufacturers of on-road heavy-duty vehicles with gross vehicle weight
  ratings (GVWR) greater than 10,000 pounds to meet more stringent emission standards
  for nitrogen oxides (NOx) and particulate matter (PM) and to enhance warranty periods,
  useful life, and durability of applicable engines starting in Model Year 2026; and WHEREAS, it has become clear that there is insufficient charging infrastructure for
  passenger cars and insufficient technological advances in heavy-duty vehicles for
  these regulatory requirements to meet current goals; and WHEREAS, tariffs and other federal disruptions are increasing costs and causing supply
  chain uncertainty; and WHEREAS, some manufacturers are shifting the burden of the ACC II and ACT rules to
  local auto dealers by requiring ZEV sales before allowing internal combustion engine
  car and truck sales (hereinafter referred to as “ZEV sales ratios”), which reduces
  the number and type of internal combustion engine cars and trucks available to Vermont
  dealerships and customers; and WHEREAS, some manufacturers are requiring ZEV sales before allowing internal combustion
  engine truck sales to generate nitrogen oxide credits in lieu of HD Omnibus-compliant
  engine sales to meet HD Omnibus requirements, again resulting in reduced availability
  of internal combustion engine trucks to Vermont dealerships and customers; and WHEREAS, my Administration remains committed to achieving emissions reductions, including
  vehicle emissions, I have determined compliance flexibility and enforcement discretion
  are needed to ensure Vermonters will continue to be able to acquire the full range
  of passenger cars and light-duty trucks and on-road medium- and heavy-duty vehicles
  in sufficient numbers to satisfy demand and avoid counterproductive impacts. NOW THEREFORE, pursuant to the authority vested in me as Governor of the State of
  Vermont by the Constitution of the State of Vermont, Chapter II, Section 3 and Section
  20, 10 V.S.A. § 554, and 10 V.S.A. § 551, I HEREBY ORDER the Vermont Department of Environmental Conservation (Department)
  shall use its enforcement discretion as necessary to ease compliance with ACC II and
  ACT standards, including but not limited to, the following: (a) For the ACT and HD Omnibus sales requirements, provided that manufacturers do not
  impose ZEV sales ratios on dealerships in Vermont and provided that manufacturers
  supply internal combustion engine on-road medium- and heavy-duty vehicles to dealerships
  seeking those vehicles, the Secretary of the Agency of Natural Resources (ANR), shall
  utilize compliance flexibility and exercise enforcement discretion by not taking action
  against manufacturers that do not meet their sales obligations for the duration of
  this order. ANR shall establish an email box dedicated to receiving complaints from those who
  believe manufacturers are imposing ZEV sales ratios on dealerships in Vermont. ANR
  and the Department shall post this contact information prominently on their websites,
  together with instructions on required information, including make, model, model year
  and number of vehicles. ANR shall evaluate the information provided to determine if a manufacturer remains
  eligible for the compliance relief provided by this order; and (b) For the ACC II ZEV sales requirements, the Secretary of ANR shall exercise compliance
  flexibility and enforcement discretion by declining to pursue penalties associated
  with any ZEV delivery shortfalls for the duration of this order. To be eligible for
  compliance relief, manufacturers must not impose ZEV sales ratios on dealerships in
  Vermont and must fulfill in a timely manner all requests for vehicles to dealerships
  seeking those vehicles. ANR shall require each manufacturer to provide to the Secretary, by July 1, 2025 and
  July 1, 2026, reports detailing efforts to promote and market ZEVs such as increasing
  deployment of charging infrastructure including investments in fast charging, level
  2 charging and home charging options; educating and training dealerships including
  sales and service staff on ZEVs; and providing ZEVs for ride and drive events. Nothing in this Executive Order is intended to conflict with applicable State or federal
  law. This Executive Order 04-25 shall take effect upon signing and shall continue in full
  force and effect until December 31, 2026, or until the Governor, in consultation with
  the Secretary of ANR, determines whether to amend or rescind this Order. Dated May 13, 2025.