The Federal Trade Commission (FTC) has deemed the emissions agreements between California and four major truck manufacturers as “unenforceable.”
This conclusion follows an FTC investigation into whether these truck and engine manufacturers may have violated antitrust laws by engaging in practices related to the “Clean Truck Partnership” with the California Air Resources Commission.
In July 2023, the truck manufacturers had agreed to meet California’s emissions standards in exchange for certain compromises.
This includes the Advanced Clean Truck rule, which mandates that 7.5% of heavy-duty vehicles must have zero emissions by 2035. Additionally, the Omnibus regulations aim for a 90% reduction in nitrogen oxide emissions and updates to engine testing protocols.
On Monday, the FTC announced it has concluded its antitrust inquiry after securing commitments from four truck manufacturers: Daimler Truck, International Motors, Packer, and Volvo Group.
According to the FTC, “clean truck partnerships are unenforceable,” asserting that no manufacturer is attempting to enforce the terms of this partnership with others.
“Regulatory burdens pose a significant risk to American trucking and raise serious antitrust concerns,” stated Taylor Hoogendoorn, deputy director of the FTC’s Competition Bureau. He expressed satisfaction that the major heavy-duty truck manufacturers are adjusting their strategies, which he believes will help avoid future regulatory complications.
The FTC’s announcement followed litigation submitted by the same four truck manufacturers, arguing that California lacks the authority to enforce rigorous vehicle emissions regulations.
The lawsuit claims that the federal government rendered the stricter emissions standards “illegal” in June, a decision that came after President Trump signed legislative measures to overturn rules established by the Biden administration.
In addressing the concerns that led to the investigation, the FTC highlighted issues with the Clean Truck Partnership’s structure. The agency suggested that it could compel manufacturers to pursue “zero emissions” engines, even if the California regulations were subsequently reversed.
Furthermore, the FTC noted worries that the agreement might prevent competing truck manufacturers from implementing restrictions on one another.
The Hill has reached out to the California Air Resources Board for comment regarding the FTC’s decision.
