California truck dealers received a lifeline of sorts Wednesday, when the state's Air Resources Board (CARB) released two sets of guidance documents for OEMs and their dealer partners regarding out-of-state equipment sales under its Omnibus regulation.
The first pair of documents offer clarification regarding the ability of truck dealers in the state of California to sell equipment to customers out of the state, and the legal implications California dealers could face if selling model year 2024 internal combustion engines (ICE) that are non-compliant under the Omnibus regulation in California into other states.
The Truck and Engine Manufacturers Association (EMA) wrote to CARB on Dec. 15 asking if California dealers would be punished for selling engines that do not meet Omnibus regulations to customers who will use, register or take delivery of the equipment in another state.
Under the Omnibus mandate, manufacturers have until March 31, 2024, to use legacy model year 2023 engines in their production lines (which CARB reported directly to Trucks, Parts, Service earlier Wednesday).* Once those units are sold, OEM and their dealer partners will be required to sell only compliant low-NOx ICEs or engines receiving compliance through credits earned by manufacturers to customers within California through 2026.
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The regulation has been a major sticking point for dealer operations, as OEMs have received certifications for Omnibus-compliant model year 2024 ICEs but have not yet put them into production, leaving dealers in the state without an avenue to sell new diesel equipment beginning in April.
As such, dealers throughout California had pushed their OEMs and regulators for guidance regarding out of state viability, as many dealers in California have customers who operate or are domiciled outside of the state and thus are not required to purchase Omnibus compliant ICEs in new 2024 trucks.
