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SEMA, NTEA file federal lawsuit against CARB to stop Advanced Clean Fleets EV truck mandates

The Specialty Equipment Market Association (SEMA) and NTEA – The Work Truck Association have filed suit in the US District Court’s Eastern District of California against the California Air Resources Board (CARB), seeking immediate declaratory and injunctive relief to stop electric vehicle mandates CARB intends to implement through its Advanced Clean Fleets (ACF) regulations.

The organizations contend that CARB’s actions far exceed California’s constitutional and state statutory authority and will have a dire effect on an industry that historically has led the way toward cleaner, safer vehicles through innovation and American ingenuity—particularly through alternative-fuel innovations, replacing older engine technologies with newer, cleaner versions, and converting older internal combustion engine (ICE) vehicles to new electric or hydrogen-powered vehicles.

CARB’s ACF regulation includes requirements that only zero-emission vehicles (ZEVs) may cross within California’s borders, regardless of which state the vehicle was purchased or registered. Vehicles covered by the regulation include everything from heavy-duty tractors with sleeper cabs to work trucks, pickup trucks, and light-duty package delivery vehicles. Interstate motor carriers and others who do not own CARB’s vehicle of choice would be barred from operating within the nation’s largest single-state economy for even a moment. This issue is currently under consideration by the US Environmental Protection Agency, whose waiver is necessary for the state to proceed.

SEMA and NTEA are filing the lawsuit on behalf of their members who own and operate fleets of vehicles regulated by the ACF regulations, or manufacture, market, and sell specialty vehicles, trucks, and automotive aftermarket products that may become obsolete in California and other markets if CARB is allowed to proceed in decreeing an end to internal combustion engine vehicles.

The overreach of California has forced the hand of the automotive industry, making this legal action necessary to protect the interests of the thousands of automotive aftermarket companies whose $337 billion annual economic impact helps drive our nation’s economy. The illegal means by which California has sought to tilt the board by siding with just one technology is to the great detriment of a giant swath of the nation’s small businesses and threatens a dangerous precedent upon the American people.

—SEMA President and CEO Mike Spagnola

Ultimately, work trucks must be available, capable, and affordable. It is important to reach this desired outcome using a sensible and cost-effective approach so our member businesses can continue to build and supply the vehicles that are essential for commerce. Left unchecked, the current suite of California regulations will severely curtail the ability of work truck users to obtain the vehicles they need to successfully and efficiently carry out their vital missions and support ongoing business operations.

—NTEA President & CEO Steve Carey

In seeking the court’s relief, the organizations establish standing on the basis of:

  • Ripeness, in that regulated entities (which include SEMA and NTEA members) must comply with the ACF regulations immediately, even though the EPA has not approved the state’s action. California is reserving the right to enforce ACF’s provisions retroactively—including by forcing fleets to remove vehicles newly added to their fleets—once the proceedings before the EPA conclude.

  • Preemption, in which vehicles purchased or sold outside of California are subject to the federal Clean Air Act and Federal Aviation Administration Authorization Act, both of which preempt the ACF regulations and California’s authority over interstate commerce.

  • State law prohibition, in which California’s own legislature more than 20 years ago prohibited CARB full-stop from setting the prohibitions contained in the ACF regulations when it declared for a similar regulation that CARB “shall not require … a ban on the sale of any vehicle category in the state.”

  • Dormant Commerce Clause and Equal Protection Clause violations, which are discriminatory in nature, because ACF regulations place burdens on federally regulated out-of-state organizations, solely because of their nationwide, non-California operations. This means that non-California organizations—even those whose operations are primarily out-of-state—face a larger compliance burden than their California-based counterparts.

  • Due process (vagueness), in which multiple ACF provisions render even the most fundamental requirements of the regulations unconstitutionally vague.

In bringing this action, SEMA and NTEA seek a declaration and injunction, and any other appropriate relief, to redress injuries and prevent further unlawful actions by the defendants in issuing and enforcing the ACF regulations.

SEMA and NTEA each assert that they are not anti-EV; rather, the organizations are steadfast in their shared belief that a technology-neutral approach is the best way to achieve lower vehicle emissions. By declaring one technology as the preferred solution of government, California is kneecapping other potential solutions, regardless of their promise for delivering the results the state seeks.

Separately, earlier in October, the Wall Stret Journal noted that new class 8 truck sales (ZEV and Diesel) in California were down 50% year-over-year in June 2024 because under under California’s rules, “dealers are restricted from selling a diesel truck unless they sell a ZEV truck.” Thus, truckers are driving older engines longer because they can’t buy newer diesel models—resulting in more pollution.

Dealers say trucks are piling up on their lots—electric models because truckers won’t buy them, and diesel rigs that dealers consequently aren’t allowed to sell. Dealers say they incur monthly interest penalties on unsold truck inventory that can amount to more than $99,000. “Without significant modifications, there is a very real likelihood that some dealers and their customers will start going out of business in the near future. This will hit small businesses the hardest,” the dealers write.

Comments

Jer

Well, I suppose with a rather dickish intention, I was interested in seeing how far the California ZEV/ CARB system would go in regulating and mandating enviro-political Ends rather than primarily using incentives, the free market, technology, and performance-based initiatives based on some kind of socio-economic modelling, per typical modern-society, pro-capitalist values. Part of me was hoping that CA would 'stick to their guns' as it were (not living there, of course), that there would then be a significant economic decline, a likely rush of people and businesses out of the state, a light infusion of pro-enviro-tech industry, and the the state would emerge from the ashes smaller, weaker, leaner, but with a new order intact - possibly economically sustainable. A cautionary tale? An example of the tough enviro-love needed to effect long-lasting system change? Or the more likely: that the current values of carbon emission reduction is such an absurdly alarmist mentality that it took this 'illustration' of reality to show how far more miserable and ineffective it is to be 'green and poor' than 'dirty and rich' -- that the path to moving away from fossil fuels, air pollution, toxins in the environment, etc., is a long hard path that can be effected by making things cleaner while still getting rich, fulfilled, and consumerist. Thank you CA for showing that extreme government oversight seldom works in a rich country.

Bernard

Jer, the logical problem with your argument is that CA has been leading the way on environmental regulations for 60 years now, and it's only made them richer. Every step they've taken (starting with EGR valves) was met with complaints about how it would drive everyone to bankruptcy (excuse the pun), but the opposite happened.
Can you explain how this time is different?

Jer

Because, Bernard, their comparable increase in wealth/ growth/ economic success, if any, has had nothing to do with taking an Industry, any Industry ever, and 'greening it up'. Which in turn has not lead any other State to implement any policy they had which then lead to 'greening up' of any Industry, which then necessarily lead to great wealth. Am I saying that 'any greening' almost always costs money, reduces productivity/margin / competitiveness, and leads to an inferior/ expensive/ diminished product/ service. No. Though it is likely true. Success foregone.
As I say: I am ' ... hoping that CA would 'stick to their guns' as it were...' and defeat these associations and consequently show the rich World that such regulations have minimal economic and societal (however you define that) side effects. Though, when CA does flounder and diminish, that they will persevere and show us the steps they took to overcome such adversity -- or not -- and simply wallow as a state full of overly rich people who care not for the costs of things - like Tesla X owners and continue to 'green virtue signal' until such time that the rest of the US takes the long hard path of economically productive environmentalism - hybrid vehicles, nuclear power, secondary hydrogen infrastructure, etc., etc. It's truly that simple - but I encourage CA to find their Bliss and not fret when the rest of the US turns up their nose.

Bernard

Jer, not to push the issue too much, but that's just your opinion. We know that California has been at this for years, and that their wealth and productivity is among the highest in the world. You don't think that the two are related.
It's up to the people of California to make the call. Maybe your dire predictions will come to pass, maybe they won't. These types of predictions haven't come true in the past, but that's not a failsafe indicator of future success.

GdB

I just want to breath clean air, not the toxic diesel exhaust, in the densely populated Southern California area were I live that also is nearby the heavy truck traffic that serves the port of LA bringing goods to much of the country. Ideally those profiting from diesel trucks and Jer would be required to breath the polluted highway air unfiltered so we could make fast progress like in the 1970s.

SJC

It's one thing to regulate 20 million cars in the state of California it's another when you start talking about trucks they have a point but sooner or later they're going to lose this case and they're going to have to do what's necessary

Carl

According to a paper published by CARB staff in 2015 (Propper et al., "Ambient and Emission Trends of Toxic Air Contaminants in California." Environ. Sci. Technol. 2015, 49, 11329−11339), ambient diesel particulate matter (DPM) concentration in the Southern California Air Basin (SoCAB) was <0.6 micrograms/M3 in 2012 (Figure 2) . According to EPA, the average PM2.5 concentration in 2012 in SoCAB was 15.6 micrograms/M3. That would result in DPM accounting for 3.8% of particulate matter at most (not all of DPM is PM2.5).

The mandate to require all HD commercial trucks to be "zero emission" across-the-board is misguided anyway. Renewable diesel fuel results in lower GHG emissions. More than 50% of fuel used in California is renewable diesel.

https://www.greencarcongress.com/2023/08/20230824-lcfs.html

Moreover, electrification of HD commercial vehicles will result in MORE PM2.5 emissions in some applications, not fewer.

https://pubs.acs.org/doi/10.1021/acs.est.0c02931 (Figure 4)

SJC

The biggest contributor to clean air from diesel combustion was Clinton/Gore's low sulfur diesel. The truck drivers complained about 10 cents a gallon but the Arabs tacked on a dollar a gallon.

Bernard

Carl,

That graph is based on two assumptions.
The first is that coal represents 29% of electricity generation. That number was 3% in California in 2021, and it's 0% on this day (Oct 10 2024).
The second is that tire and brake wear is similar for BEV and ICE trucks.

The brake wear assumption is obviously invalid for applications with lots of start-stop, like refuse trucks and city delivery, because of regen braking.

The tire wear assumption is also wrong. You often read the over-simplification that "EVs are heavier therefore they wear tires more." This would be true if they used the same tires in the same way. In real life, EV-specific optimizations like higher tire pressures and different compounds compensate for the extra weight. Tire compounds are optimized for a given application, that's why long-haul transport trucks have tires that last for hundreds of thousands of miles. In other words, there is no reason to believe that BEV truck tires wear more than other truck tires.

Carl

Bernard,

True that the ACS paper used 2019 grid data, but according to the latest version of the GREET model (GREET_2023), WTW PM2.5 emissions from long-haul combination trucks are still higher for BEV than diesel ICEV (0.05 g/mi (BEV) vs. 0.04 g/mi (ICEV-d)), even in the current California grid (no coal!). GREET assumes the B&TW emissions are the same for ICEV and BEV.

Notice I said "some applications." Applications with frequent start-stops may be more amenable to BEV. But there are no exception to the mandate that all HD vehicles, regardless of application, be "zero emissions" by 2040, is there?

Bernard

Carl, can you provide a link? I couldn't find it on the DoE GREET site. I do see that they estimate that BEVs produce less than half the amount of GHGs compared to ICE today (with the dirty US grid) , and less than 25% in 2050, assuming quite substantial improvements in the grid and in ICE tech.

Carl

Bernard,

Here is the link - https://greet.anl.gov/

I use the R&D GREET Excel - both Fuel-Cycle and Vehicle-Cycle model.

Again, California has had success reducing GHG emissions from its LCFS regs, which encourage low-carbon fuels like renewable diesel. Why is California abandoning what seems like a rather successful program?

Where did you see the GHG comparisons?

Carl

By the way, R&D GREET_2023 has a module in the GREET2 model (Vehicle Cycle), which specifically address HD vehicles (right-most tab labeled "MHDV_TEC Results"). That tab includes emissions from the vehicle cycle. Note that the BEV trucks have FAR higher emissions across-the-board to manufacture the vehicle.

If you take the vehicle emissions into account, it would take about 2.5M miles to offset PM2.5 emissions from manufacturing the truck (long-haul sleeper cab), even if you charge the BEV with 100% electricity from solar 100% of the time, if my calculations are correct.

Roger Brown

The mandate to require all HD commercial trucks to be "zero emission" across-the-board is misguided anyway. Renewable diesel fuel results in lower GHG emissions. More than 50% of fuel used in California is renewable diesel.

In the long run it is global GHG emissions which count. The question is how much renewable diesel made from oil seed crops can we produce on a global scale without putting unacceptable pressure on bio-diversity and on human food production?

JamesDo88039200

The Supreme Court ended the chevron doctrine. Neither the EPA nor CARB have the authority for this any more thexports rightly should smack it down. Get Congress to pass specific legislation if you want to ban trucks. Good luck as that's economic suicide and also political suicide. I look forward to the Supreme Court smacking California down they have no right to force other states to adhere to their unelected bureaucrat nonsense. Commerce clause and federal supremacy clause both Trump California bureaucrats.

SJC

California and the LA basin are in a special category it's been established long ago that they can set their own rules don't just start making stuff up

Carl

Roger Brown,

The current feedstock for renewable diesel (seed and waste oils) is quite limited, I agree. However, according to a paper by DOE/NREL staff (https://www.nrel.gov/docs/fy14osti/58015.pdf, Tables 2 & 3), there's optimistically a POTENTIAL for as much as 546M dry tons/year of sustainable WASTE forest and agriculture biomass by 2030. Using the reported yield for the Fischer-Tropsch process (100 gallons/dry ton - https://www.greencarcongress.com/2018/05/20180504-velocys.html), that's a potential for as much as 55B gallons of renewable fuels. Of course, that would be only if ALL waste biomass was converted into FT diesel, but that's still a substantial feedstock for renewable diesel.

It should be noted that FT diesel is currently one of the least costly alternative diesel fuels, ~ $3.50/gallon, which is competitive with petroleum-based ULS diesel fuel, at sufficiently large annual production.

Algae is also a huge potential feedstock, but is currently not competitive cost-wise.

According to CARB's own data, FT diesel used as a replacement for ULSD would result in lifecycle emissions of GHGs of 295,000,000 g for a combination long-haul truck according to the GREET model. That's even less than current renewable diesel fuel. For comparison, ULSD would produce 1,593,000,000 g GHG, BEV using current California electricity mix would produce 844,000,000 g, in the same application, according to GREET (using its assumptions like a life time of 1,000,000 miles). Even using solar-generated electricity to charge the truck 100% of the time would result in life-time GHG emissions of 343,000,000 g according to GREET.

If the goal in California is to reduce GHG emissions to the greatest degree practicable, why aren't biomass-based diesel fuels being pursued more aggressively, or at all for that matter?

Throwaway10112024

Carl,

The goal is to reduce emissions from all sources to meet multiple goals, including criteria pollutants and greenhouse gasses. Oxides of Nitrogen seem to be largely ignored by this conversation, which are a major precursor to smog and have detrimental impacts on human health, including increased incidence of asthma, heart and lung problems, low birth weights, etc. The ACF regulation reduces PM, NOx, and GHGs. Explain how California can meet all of its goals, including federal mandates to meet ambient air quality standards, while allowing combustion vehicles to continue operation. Renewable diesel is great for GHGs on lifecycle analysis, but ultimately is still diesel combustion.

Roger Brown

Carl,

I am in favor of research and development efforts to develop ways of obtaining fuel from waste biomass, particularly if an effort is made to co-produce fuel and fertilizer. However, there are plenty of actors lining up for the output of bio-refineries: The aviation industry, asphalt producers, the plastics industry, and so forth. I think there is a genuine question about the scale of economic activity which can be supported by biomass sources.

Could you tell me something more about this $3.50 per gallon cost for FT diesel? I know that you can turn natural gas or coal into diesel fuel via FT. I did not know that there was an established cost number for diesel production from general ligno-celulosic biomass. Can you give me a reference?

Carl

Roger,

One is an older technical document from EPA called "Renewable Fuel Standard Program (RFS2) Regulatory Impact Analysis." Table 4.4-4 on page 810, which shows the cost of "Cellulosic diesel from BTL" is 252.4 ¢/gal in the "primary case (2007 $). That would be what, ~ $3.80 in current $? That includes distribution costs but not taxes.

Another is "Top 13 Blendstocks Derived from Biomass for Mixing-Controlled Compression-Ignition (Diesel) Engines" from the Department of Energy. Note on page 35, it notes that "MFSP for the diesel fraction was favorable and among the lower cost cluster of Co-Optima fuels at approximately $3.5/GGE." I believe that is a 2022 document.

There's also a peer-reviewed paper - https://pubs.acs.org/doi/10.1021/ef3001967 - although that is now a fairly old paper.

Roger Brown

Carl,

Thanks for the references.

Carl

Throwaway,

Yes, CAPs do need to be taken into account, and not just NOx.

According to the EPA, "Greenhouse Gas Emissions Standards
for Heavy-Duty Vehicles: Phase 3 Regulatory Impact Analysis", Table 4-31 on page 617, emissions of NOx will be reduced by 53K tons/year by 2055, but PM2.5 and SO2 will INCREASE as a result of the rule until at least 2048 (PM2.5 through foreseeable future). That's an increasing penetration of "zero emission vehicles" in an increasingly cleaner grid.

EPA didn't include modeling results in the HD reg, but it did for the LD regs ("Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles Regulatory Impact Analysis"). The "Net impacts on criteria pollutant emissions from the LMDV regulatory scenario," (page 7-15) shows a net decrease of almost 100K tons of NOx, but that results in an average of 0.09 ppb decrease in 2055. The NAAQS for ozone is 70 ppb (0.070 ppm). 0.009 ppb is barely a rounding error.

The maximum projected decrease in 8-hour ozone design value in 2055 is 1.2 ppb in Los Angeles, Riverside, and San Bernardino Counties, California. The 2021-2023 DV for LA county is 90 ppb. Reducing ozone in LA from 90 ppb to 89 ppb isn't really much help in that regard.

NOx reductions from HD regs are a little more than half the LD projection, so reductions in ozone would likely be even less.

Both NOx and SO2 produce secondary PM2.5. The higher SO2 emissions in the HD case offsets the decrease in NOx emissions in this regard.

Carl

You're welcome Roger.

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