Nebraska AG Challenges Electric Truck Rules on Antitrust and Choice Grounds

Nebraska’s Attorney General Mike Hilgers takes on major truck manufacturers and regulators in a groundbreaking antitrust lawsuit over electric vehicle mandates.

At a Glance

Nebraska AG Mike Hilgers files antitrust lawsuit against four major semi-truck manufacturers.
Lawsuit challenges national contract aimed at increasing electric vehicles and complying with California emissions rules.
Hilgers argues the Clean Truck Partnership could harm Nebraska’s livestock and grain industries.
The suit seeks to nullify the partnership in Nebraska and nationwide.
Concerns raised about the feasibility and cost of transitioning to electric trucks.

Challenging the Electric Truck Mandate

In a bold move against what he perceives as an unfair push towards electric trucks, Nebraska Attorney General Mike Hilgers has filed an antitrust lawsuit against four major semi-truck manufacturers and the Truck and Engine Manufacturers Association. The lawsuit, filed in Lincoln County District Court, Nebraska, targets Daimler Truck North America, International Motors Inc., PACCAR Inc., and Volvo Group North America, who collectively control 99.9% of the Class 8 truck market.

The legal action challenges a national contract known as the Clean Truck Partnership, which aims to increase electric vehicle adoption and comply with California’s stringent emissions regulations. Hilgers argues that this agreement could significantly harm Nebraska, particularly its vital livestock and grain industries, due to the state’s lack of adequate charging infrastructure for electric trucks.

We are leading multi-state coalitions in two lawsuits to stop both the Biden Administration & the State of California from imposing electric-vehicle mandates on truck owners & operators throughout the country @TeamPillen @nebraskatrucker More: https://t.co/uSQtFbevfr pic.twitter.com/iriegVgc4z

— Nebraska Attorney General Mike Hilgers (@NEAttorneyGen) May 13, 2024

Antitrust Concerns and Market Implications

At the heart of Hilgers’ lawsuit is the claim that the manufacturers are engaging in an antitrust conspiracy to eliminate gas-based vehicles in favor of electric ones. The Attorney General views the Clean Truck Partnership, formed in July 2023 between the California Air Resources Board (CARB) and truck manufacturers, as collusion to phase out gas-powered vehicles without proper public or congressional input.

“This isn’t about cars. 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.” – Kent Grisham

The lawsuit seeks to nullify the Clean Truck Partnership both in Nebraska and nationwide, emphasizing the need for a free market approach to determine the future of the trucking industry. Hilgers argues that such significant changes to national logistics policy should be decided by elected representatives rather than through private agreements between manufacturers and regulators.

Broader Implications and Industry Concerns

The legal challenge comes amid growing concerns from the trucking industry about the practicality and cost of transitioning to electric vehicles. The Nebraska Trucking Association has expressed apprehension about the feasibility of such a rapid shift, particularly given the current limitations in charging infrastructure and the potential impact on operational costs.

“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.” – Mike Hilgers

This lawsuit is part of a larger legal battle against California’s environmental regulations. Nebraska, along with 16 other states, has previously sued CARB over its clean fleets rule. The U.S. Environmental Protection Agency’s approval of California’s zero-emission truck plans has further intensified the conflict between states advocating for traditional diesel engines and those pushing for a rapid transition to electric vehicles.

As the legal proceedings unfold, the outcome of this case could have far-reaching implications for the future of the trucking industry, environmental regulations, and the balance between state and federal authority in shaping America’s transportation landscape.