Heavy-duty truck manufacturers are suing California over the state’s zero-emissions vehicle policy. The lawsuit comes after the Federal Trade Commission concluded that an agreement between truck companies and California’s Air Resources Board raised “antitrust concerns.”
The legal challenge involves Daimler Truck, International Motors, PACCAR and Volvo Group — companies that control up to 99% of the heavy-duty truck market in the United States, according to the FTC. The dispute centers on California’s Advanced Clean Trucks rule, which would have required about half to three-quarters of trucks sold in the state to be emissions-free by 2035.
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As the Trump administration moves to reverse environmental regulations and cut government support for renewable energy, blue states are increasingly clashing with the federal government. Now, truck manufacturers are caught between conflicting mandates from Washington and Sacramento. California has used voluntary industry agreements as a backstop against federal policy reversals, but the truck manufacturing lawsuit and FTC investigation are testing the effectiveness of state policy.
What are California’s zero-emissions policies for trucks?
The Advanced Clean Trucks rule aimed to accelerate the transition to zero-emission commercial vehicles, while another regulation targeted a 90% reduction in nitrogen oxide emissions from heavy-duty engines, according to reporting in The Hill.
In July 2023, the California Air Resources Board signed the Clean Truck Partnership with nine manufacturers, securing commitments to meet state emissions targets. The agreement was designed to provide regulatory certainty for the industry while advancing California’s climate goals.
President Trump revoked the Environmental Protection Agency’s authorization for these California standards in June through congressional resolutions, according to Reuters. The action eliminated California’s special authority under the Clean Air Act to set stricter vehicle emissions rules than federal requirements.
Why are the truck manufacturers suing California?
In a federal court filing in Sacramento, the companies contend that Trump’s June action legally preempted California’s enforcement of emissions standards. The truck manufacturers claim that they are “caught in the crossfire,” stating, “the situation is not tenable.”
According to the lawsuit, the Justice Department sent letters to manufacturers, ordering them to “immediately cease and desist compliance with California’s preempted and unlawful mandates.”
Meanwhile, California continues to demand compliance with standards that the federal government has declared illegal.
The companies say this regulatory uncertainty prevents them from planning production schedules because they cannot determine which vehicles will be permitted for sale. They describe the situation as causing “irreparable harm” to their operations and creating an “unstable” manufacturing environment.
The manufacturers’ legal strategy has drawn criticism. Craig Segall, former deputy executive officer of the California Air Resources Board, questioned whether the companies “have any idea how to sell their products,” arguing in a quote to Politico that the truck manufacturers were abandoning a profitable agreement.
