A conservative pro-business group and Midwestern trucking operators say California regulators are illegally circumventing federal law by forcing a transition to electric trucks. [emphasis, links added]
The American Chamber of Free Enterprise (AmFree) and trucking operators claim in a new lawsuit California has reached a cartel agreement with the nation's largest heavy-duty truck companies to phase out internal combustion engines by 2036.
The plan reportedly involves the California Air Resources Board (CARB) and all major gas-fired heavy-duty truck manufacturers, which signed an agreement last year called the Clean Truck Partnership.
“This agreement feeds into a set of rules that California has been working on that would require the trucking industry to fully electrify in just over a decade.” said AmFee principal attorney Michael Buschbacher.
While most states are prohibited from setting their own motor vehicle emissions standards, California has exclusive permission to do so under the Clean Air Act of 1967 as long as its rules are approved by the Environmental Protection Agency.
But AmFree claims California is illegally trying to enforce emissions standards without EPA approval.
“You can't even try to enforce these regulations without getting permission from the EPA [kinds] standard. These are the emission standards for new motor vehicles. That is the purpose of this agreement. and [we argue] “This is illegal and it has to stop,” Buschbach said.
CARB did not immediately respond to a request for comment.
The complaint states California climate regulators have enacted “a series of mandatory and disruptive regulations” to achieve Democratic Gov. Gavin Newsom's goal of making all heavy-duty vehicles in the Golden State “zero emissions” by 2045.
But in July 2023, California provided temporary regulatory relief to major truck manufacturers in exchange for a commitment to adopt vehicle standards “that would require the sale and adoption of zero-emission technologies in the state regardless of whether any other entity challenges California's enactment More standard powers”. CARB said the federal Clean Air Act imposes strict emissions standards.
The agreement, which gives truck manufacturers a “reasonable lead time” to comply with California's emissions standards, is called the Clean Truck Partnership.
Manufacturers that are parties to the agreements and named in the lawsuit include Cummins Inc., Daimler Trucks North America, Ford, General Motors, Hino Motors Co., Ltd., Isuzu Technical Center America Inc., Navistar, Paccar, Stellantis NV, Volvo Group North America and the Truck and Engine Manufacturers Association, an industry trade group.
“However, in return for recognition of CARB suzerainty, Manufacturers have been given comfortable cartel arrangements that ensure them a steady stream of super-competitive profits, subsidies and tax credits. the lawsuit states.
“If you think grocery prices are bad now under the Biden-Harris administration, this is going to drive prices up even more.”
“Through the entire industry working in unison, This arrangement ensures that costs are not borne by the manufacturer but are passed on downstream to customers and then to the rest of the country.
Two trucking companies, Meiborg Brothers Inc. and TanTara Transport Corp., provided statements for AmFree's lawsuit, claiming California's actions caused harm.
These companies stated Some manufacturers are now requiring them to buy one electric truck for every seven or eight diesel trucks they buy or face higher prices.
In court documents, Industry players say they will lose nearly a quarter of their U.S. truck dealers once California and other states adopting California standards phase out diesel trucks.
they also think Electric trucks have higher upfront costs, as well as higher maintenance and resale costs, costs that cannot be fully passed on to consumers.
“The consequences here are They will raise costs and reduce consumer choice,” Buschbach said.
“If you thought grocery prices were bad now under the Biden-Harris administration, this is going to drive prices up even more. If you think renting a U-Haul to drive across town is too expensive, those costs will go up accordingly. he said.
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