Four members of the Clean Truck Partnership, including Volvo, Daimler, Paccar, and International Motors, filed a lawsuit against California earlier this week, according to Freight Waves on 14/8. The lawsuit targets the California Air Resources Board (CARB) and Governor Gavin Newsom, citing their conflicting emissions policies.
California maintains stricter emissions standards than the federal government, operating under a waiver granted by the Biden administration. However, former President Trump previously revoked these waivers and attempted to nullify the state's stricter regulations.
The four manufacturers are asking the state to suspend enforcement of its emissions standards, which contradict federal policy. They argue this policy uncertainty creates insurmountable challenges, making production planning difficult as they grapple with unclear regulations about which vehicles can be sold.
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A Volvo model on display in Linden, New Jersey, USA, on 23/5/2022. Photo: Reuters |
A Volvo model on display in Linden, New Jersey, USA, on 23/5/2022. Photo: Reuters
The lawsuit aims to invalidate the "Clean Truck Partnership" agreement signed with CARB two years prior, amidst a Federal Trade Commission (FTC) investigation into potential antitrust violations.
Under the agreement, the manufacturers committed to adhering to California’s emissions standards and sales targets for zero-emission vehicles.
However, the federal government noted that Volvo, Daimler, Paccar, and International Motors control 99% of the heavy-duty truck market in the US. They argued that an agreement among competitors controlling nearly the entire market, under government oversight, could restrict production and inflate prices.
Following the lawsuit against CARB and the Governor, ESG Today reported that the federal government concluded its investigation. The FTC stated the companies pledged not to enforce the CARB agreement regarding greenhouse gas emission reductions.
"CARB’s regulatory overreach poses a significant threat to the US trucking industry," said Taylor Hoogendoorn, Deputy Director of the FTC’s Bureau of Competition.
California, a Democratic state, enforces stricter emissions standards than the federal government under a Clean Air Act waiver granted during the Biden administration. Former President Trump sought to limit the state's authority, while the Governor aimed to accelerate the transition to electric vehicles and combat climate change.
During the signing of several joint resolutions in June, Trump blocked California’s attempt to ban gasoline-powered cars by 2035. In response, California filed its own lawsuit to overturn Trump's policies.
Bao Bao (Freight Waves, Reuters, ESG Today)
