OEMs win first round of CARB's Clean Truck lawsuit

This story was updated at 1:30 p.m., Nov. 3 with comment from Daimler Truck North America.

U.S. District Judge Dena Coggins Friday afternoon issued a preliminary injunction barring California from enforcing the terms of its Clean Truck Partnership.

Daimler Truck North America (DTNA), PACCAR, International Motors, and Volvo Group North America (VGNA) sought an injunction in a lawsuit filed in August, arguing that when President Donald Trump in June walked back Biden-era Environmental Protection Agency waivers relating to California's Advanced Clean Trucks (ACT) regulations and its Omnibus Low NOx (Omnibus) rule, it also voided the CTP.

The court ordered that while the litigation is pending, CARB is "enjoined from implementing, enforcing, attempting to enforce, or threatening to enforce the Clean Truck Partnership."

In a statement provided to CCJ Monday afternoon, DTNA noted the plaintiffs filed this lawsuit to get clarity on their legal obligations under federal law regarding the Clean Truck Partnership. While California directed industry to comply with the agreement, the United States instructed manufacturers to disregard it. "DTNA appreciates the Court’s prompt decision and is especially grateful for the Court’s attention to this matter during a time of limited judicial resources," the company added. 

CARB last week filed a lawsuit of its own against DTNA, PACCAR, International, and Volvo Group alleging breach of contract over their agreement with the state on the CTP. The order explicitly clarifies that this injunction bars CARB from pursuing its state court breach-of-contract lawsuit seeking specific performance of the agreement.

The OEMs were seeking preliminary injunctive relief based on three preemption claims: preemption of the Clean Truck Partnership; preemption of six CARB regulations—ACT, Omnibus, Advanced Clean Cars II, ACF, Phase 2 Greenhouse Gas, and Heavy-Duty On-Board Diagnostic; and preemption of the May MAC and Executive Order N-27-25) as well as a First Amendment free speech claim. Judge Coggins denied the latter claims.

Partner Insights

Information to advance your business from industry suppliers

View more »

Presented by Fusable

Let our deep industry knowledge become your data-driven insights

Presented by Fullbay

Fullbay's Guide on How to Boost Tech Efficiency

Presented by Volvo Trucks North America

The new Volvo Trucks configurator

View more »

CARB says it will seek to have portions of the manufacturers’ original lawsuit dismissed on Nov. 21.

Other signatories of CTP but not included directly in the lawsuits are Cummins, Ford Motor Company, General Motors Company, Hino Motors Limited, Isuzu Technical Center of America, PACCAR, Stellantis N.V., and the Truck and Engine Manufacturers Association (EMA).

Dollars and time at stake

Federal emissions standards currently scheduled to apply for model year 2027 are expected to drive up truck costs anywhere from $10,000 to $20,000, and CARB's state-specific regulations that exceed those enacted by the Environmental Protection Agency, the OEMs warned, were especially onerous. 

Attorneys representing DTNA Friday noted that the company spends "well over 10,000 manhours planning, preparing, and submitting the required certification paperwork to CARB," adding, "CARB’s annual certification requirements will conservatively cost [Daimler] at least $3.6 million for model year 2026 in internal expenses."

Attorneys for International noted that CARB’s annual certification process requires the company to invest "a significant amount of time and money to design, develop and test its vehicles and engines," work that costs "tens of millions of dollars and thousands of hours."

They further explained that if CARB were enjoined from enforcing its standards, "International could immediately seek to modify its current California certification applications to align with federal-based requirements. This would, for instance, allow International to suspend ongoing costly testing, including the aging of engines, that California requires above and beyond federal testing requirements."

Volvo Group called it "very burdensome" to comply with CARB’s emissions certification processes, adding that to receive a certification from CARB, "Volvo must conduct significant testing of Volvo’s [Medium- and Heavy-Duty Vehicles] and engines"—a process that "takes months of preparation, testing, and analysis."