Controversy Escalates Between Automakers and Environmental Advocates Over Clean Truck Partnership's Future Direction
The Clean Truck Partnership (CTP), a collaboration between California's Air Resources Board (CARB) and major truck and engine manufacturers, faces significant legal and regulatory hurdles following the federal repeal of California’s waiver under the Clean Air Act.
Signed in July 2023, the partnership committed manufacturers to meet California’s Advanced Clean Trucks (ACT) zero-emission vehicle sales targets, despite legal and political challenges. However, the EPA’s waiver repeal, enacted through federal legislative action, has raised questions about the enforceability of the CTP, as manufacturers argue this revokes California’s authority underlying the partnership.
CARB continues to support the ACT regulations, providing manufacturers with some flexibility to accommodate stakeholder feedback. This support is evident in the amendments made to the ACT regulations, which reinforce CARB’s position on the partnership and its goals amid federal opposition.
However, opposition to the CTP comes from groups like the Western States Trucking Association, which has filed legal petitions challenging the CTP, and an antitrust lawsuit filed by Nebraska’s Attorney General against the manufacturers over the agreement. Other trucking groups have accused CARB of enforcing emissions rules via an "underground" deal through the CTP.
Environmental and public health groups, on the other hand, stress the CTP’s durability and importance. A recent letter from 17 such groups urged truck and engine manufacturers to uphold their commitments under the CTP despite the waiver revocation and related regulatory challenges, emphasizing the importance of continued zero-emission technology adoption.
The Environmentalists' Movement Association (EMA) has also expressed growing skepticism with the CTP. In a letter to CARB, the EMA argues that none of the opt-in states has the authority to adopt or enforce the ACT regulations, making the proposed credit-pooling option moot and legally inoperative. The EMA calls for direct discussions with CARB to address the lack of viability of the ACT regulations as a whole.
Despite these challenges, the demand for zero-emission trucks remains minimal, with ZEVs accounting for only 4% of Class 4-8 trucks, less than half of the ACT mandate of 9%. The EMA notes that its member companies producing heavy-duty on-highway vehicles have made significant investments in electrified vehicle technology and diesel vehicles.
However, the impacts on the sales of conventional trucks have been significant, with a 30% decrease in new tractor registrations in 2024 compared to prior years and a 66% reduction in the registration of new current model year Class 4-8 trucks in 2024 compared to 2023.
The EMA, which includes companies like Cummins, Daimler Truck North America, Ford Motor, General Motors, Hino Motors, Isuzu Technical Center of America, Navistar, PACCAR, Stellantis N.V., and Volvo Group North America, signed a deal with California in July 2023, pledging to abide by the provisions of the California Advanced Clean Truck (ACT) rule in exchange for relaxed NOx emissions regulations.
The ongoing legal and regulatory challenges for the CTP are significant, with the partnership existing amid ongoing litigation and political dispute. The future of the CTP and the adoption of zero-emission trucks in California and the 16 opt-in states remains uncertain.
- Despite the federal repeal of California's waiver under the Clean Air Act, financial institutions are closely monitoring the Clean Truck Partnership (CTP) to gauge its long-term impact on the truck manufacturing industry.
- Recognizing the importance of environmental science, political groups have called for the defense of the CTP, advocating for the reinforcement of California’s Advanced Clean Trucks (ACT) regulations to combat climate change and promote a cleaner environment.
- In the face of legal challenges from industry groups and antitrust concerns, the significance of the General News surrounding the Clean Truck Partnership lies in its potential to inspire collaboration between the environmental-science community, finance sector, and government, driving innovation and progress towards a sustainable future.
