Zach Wendling
LINCOLN — Nebraska is seeking to “tear up” a national legal contract among four major manufacturers of semitrucks that seeks to increase electric vehicles and comply with California emissions rules.
Nebraska Attorney General Mike Hilgers announced the state-level antitrust lawsuit Tuesday against Daimler Truck North America, International Motors Inc. (formerly Navistar Inc.), PACCAR Inc., and Volvo Group North America, as well as the Truck and Engine Manufacturers Association. The lawsuit was filed in Lincoln County District Court, in North Platte, which Hilgers described as “the epicenter for transportation” in Nebraska.
The Energy Markets of America and Renewable Fuels Nebraska joined Hilgers in the challenge.
“This isn’t about cars,” Kent Grisham, president and CEO of the Nebraska Trucking Association, said Tuesday. “This is about a political agenda. This is about a movement that has developed a following and has backed companies into a corner that we simply cannot allow to be sustained.”
Ford Motor Company and Cummins Inc. also joined the July 2023 “Clean Truck Partnership,” which Liane Randolph, chair of the California Air Resources Board, described as an “unprecedented collaboration” that “marks a new era in our zero-emission future.”
“This agreement makes it clear that we have shared goals to tackle pollution and climate change and to ensure the success of the truck owners and operators who provide critical services to California’s economy,” Randolph said in a July 6, 2023, statement.
Jed Mandel, president of the Truck and Engine Manufacturers Association, said at the time that the partnership reaffirmed a longstanding commitment to reduce emissions and move to a “zero-emissions commercial vehicle future,” with necessary lead time for manufacturers.
The challenged manufacturers are all organized in Delaware, with their principal places of business in Portland, Oregon; Lisle, Illinois; Bellevue, Washington; and Greensboro, North Carolina. The trade association, which negotiated the agreement, is based in Chicago.
‘This isn’t about cars’
Hilgers argued the partnership is unlawful because the four semitruck manufacturers have an “oligopoly” on manufacturing Class 8 trucks (defined as trucks over 33,001 pounds), including:
- Cement mixers.
- Dump trucks.
- Fire trucks.
- Fuel trucks.
- Heavy semi-tractors.
- Refrigerated vans.
- Semi sleepers.
- Tour buses.
Together, the four manufacturers produce 99.9% of the market share for Class 8 trucks, so a move to electric vehicles could increase the cost of internal combustion engine vehicles, the lawsuit argues.
The partnership spurred from regulations under the California Air Resources Board, which Hilgers also sued in federal court in May. At that time, Hilgers also sued the Environmental Protection Agency under President Joe Biden for electric vehicle mandates and regulations.
Both of those cases are pending.
“Unfortunately, it’s not just states and it’s not just the Biden administration,” Hilgers said Tuesday. “It is also companies, like these four defendants, who are working together to try to dictate national policies for Nebraskans and Americans.”
Livestock and grain industries
The newest lawsuit alleges that the manufacturing partnership would be harmful to Nebraska, as 10 states other than California have adopted an “Advanced Clean Trucks” rule to reduce emissions and increase electric vehicles. The manufacturers agreed to comply with the standards in those states and any that will adopt the standards, regardless of legal challenges.
As part of the California standards, the manufacturers agreed in summer 2023 to reduce heavy-duty vehicle emissions and sell as many zero-emission trucks “as reasonably possible,” annually increasing sales as a percentage of overall medium- and heavy-duty vehicles.
“The foregoing requirements make it likely that Defendants will treat Nebraska as a state that ‘will adopt’ or ‘may choose to’ adopt the [Advanced Clean Trucks] rule,” Hilgers’ office wrote.
The lawsuit points to two examples important to Nebraska: the livestock and grain industries.
As Nebraska is the nation’s top beef exporter, and second in the nation for number of cattle, at 6.25 million head, it would be dangerous to utilize electric trucks, according to the lawsuit. That’s in part because the state doesn’t have a charging infrastructure, and charging takes more time than refueling.
Many cattle are transported from the Nebraska Sandhills or South Dakota to feedlots in southeast Nebraska, well over 500 miles.
“Cattle feeders could never utilize Class 8 ZEV [zero-emission vehicle] trucks to transport these animals, as the livestock would be stranded at a station in excessive heat or freezing temperatures waiting for the truck to charge its batteries, leading to untold death and injury,” the lawsuit states.
Grain producers also already work 12-16 hours per day using Class 8 internal combustion engine vehicles to haul products to market. Should they need to charge their trucks, twice per day at 3-5 hours each, that would be impractical or lead to increased costs for current trucks.
Grisham said that charging a single Class 8 truck requires the same amount of electricity as what the Empire State Building uses in an entire day. Hilgers added that could be more than a small Nebraska community.
‘Ground zero’ of EV infrastructure
Grisham said the “tsunami effect” will mean Nebraska truckers have “no choice” but to accept the status quo if the brakes aren’t put on the mandates.
No charging stations for Class 8 trucks currently exist in Nebraska, Grisham said, and he’s unaware of any electric Class 8 truck moving through Nebraska, particularly as there are no charging stations along Interstate 80 or other major corridors.
“We’re still at ground zero,” Grisham said.
Grisham estimated it would cost $624 billion to install charging stations nationwide and about $370 billion to improve the national distribution of electrical power. It would cost about $9 billion to improve Nebraska’s distribution network.
Those figures don’t include billions more in operational costs, the costs of the trucks or changes to labor, such as more frequent stops for recharging, Grisham said, and there remain major concerns over whether the nation can produce enough power for the new demand.
He added that the Nebraska Trucking Association isn’t against battery-powered vehicles, which can help reduce emissions, Grisham said, but so can technological advancements leading to fewer emissions for new fleets.
“We want an ‘everything’s on the table’ approach so that we can continue to make the great progress that we have in controlling emissions,” Grisham said.
‘Tear up this agreement’
Hilgers’ office is seeking the following action:
- Make the partnership null and void in Nebraska.
- Permanently enjoin the manufacturers and trade association from:Reducing the output of Class 8 internal combustion engine vehicles in Nebraska, pursuant to the partnership.Raising prices for Class 8 internal combustion engine vehicles in Nebraska as a result of the partnership.Coordinating activity or taking any action under the partnership in any way in Nebraska.
- Reducing the output of Class 8 internal combustion engine vehicles in Nebraska, pursuant to the partnership.
- Raising prices for Class 8 internal combustion engine vehicles in Nebraska as a result of the partnership.
- Coordinating activity or taking any action under the partnership in any way in Nebraska.
- Declare the partnership null and void nationwide.
“At the end of the day, what we’re trying to do is tear up this agreement and allow the free market and the nation’s elected representatives to determine the pace and scope of any change in our national logistics policy,” Hilgers said.