Executive Order No.

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

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.