Truck Manufacturers Sue California Over Clean Trucks Mandate

News Summary

Daimler, PACCAR, Volvo Group North America, and International Motors have filed a lawsuit against California to halt the Advanced Clean Trucks mandate. The manufacturers argue that conflicting state and federal regulations create an unmanageable compliance situation. This legal action is part of a larger conflict between California’s stringent environmental standards and recent federal regulatory rollbacks. The lawsuit also seeks to clarify the obligations of manufacturers under a Clean Truck Partnership with California while questioning the constitutionality of certain regulatory provisions.

California – Truck manufacturers Daimler, PACCAR, Volvo Group North America, and International Motors have initiated legal action against the state of California in the U.S District Court for the Eastern District of California. The lawsuit aims to halt the enforcement of the California Advanced Clean Trucks (ACT) mandate, which has been described by the manufacturers as putting them in an “impossible” situation amid conflicting state and federal regulations.

The lawsuit aligns with recent challenges posed by federal actions, including Congressional approval and Presidential directives that nullified the waiver from the Environmental Protection Agency (EPA) that previously enabled the California Air Resources Board (CARB) to implement its stringent regulations. This legal move underscores the manufacturers’ struggle against regulations they argue are not only conflicting but also unworkable due to the changing federal landscape.

In 2023, the Engine Manufacturers Association (EMA), which represents the truck manufacturers in this lawsuit, entered into a Clean Truck Partnership (CTP) with California. This partnership was intended to facilitate compliance with the ACT while ensuring that California’s standards matched federal EPA regulations. However, California maintains that the federal actions to overturn the waivers are unlawful and insists that truck manufacturers should adhere to the commitments outlined in the CTP.

In response, CARB has filed its own lawsuit against the federal government, asserting that the EPA waivers are not governed by the Congressional Review Act. The manufacturers’ lawsuit references a letter from the Department of Justice (DOJ) sent on August 7, which instructed Daimler to stop compliance with CTP and California’s vehicle emissions regulations. This has prompted the manufacturers to seek clarity from CARB regarding their responsibilities under the CTP, as they claim that its requirements have been rendered invalid by federal preemption.

Additionally, a Manufacturers Advisory Correspondence from CARB released on May 23 required engine manufacturers to adhere to CARB’s preempted standards for lawful sales within the state. California Governor Gavin Newsom’s executive order further complicates matters by threatening manufacturers with unfavorable regulatory treatment if they fail to comply with the ACT mandates.

Despite adjustments made by CARB to the ACT aimed at providing flexibility, the agency continues to emphasize the commitments made within the Clean Truck Partnership. The EMA has previously expressed dissatisfaction with the ACT’s requirements, and the current lawsuit highlights the increasing challenges manufacturers face against conflicting federal and state regulations.

The lawsuit criticizes California’s handling of the Congressional waiver disapproval resolutions, describing the state’s stance as “reckless.” It also highlights that the elimination of the related Advanced Clean Fleets rule—which mandated that fleets purchase a corresponding percentage of zero-emission vehicles—has made compliance with the ACT significantly more challenging for manufacturers.

The truck manufacturers are seeking urgent clarity on emissions laws and standards for model year 2026, which directly impacts their production planning. The lawsuit raises several legal claims, including allegations that California has violated the Clean Air Act’s preemption provisions and challenging the constitutionality of a CTP provision that prohibits manufacturers from contesting CARB’s actions. The manufacturers seek injunctive relief to prevent CARB from enforcing the ACT and associated regulations.

As the legal proceedings unfold, CARB has chosen not to comment on the ongoing litigation. Meanwhile, the Clean Freight Coalition has voiced support for the truck manufacturers, deeming the lawsuit against CARB as a necessary action in light of escalating regulatory conflicts.

Critics from environmentalist circles contend that the manufacturers’ arguments don’t align with the initial objectives of the Clean Truck Partnership, which aimed to facilitate regulatory compliance during periods of change. The lawsuit exemplifies the overarching conflict between California’s aggressive climate initiatives and recent federal regulatory rollbacks, placing truck manufacturers in a precarious position as they navigate an increasingly complex regulatory landscape.

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