As we have written about in our monthly newsletters, California Governor Gavin Newsom was not happy the US Congress passed a Congressional Review Act (CRA) rescinding the Environmental Protection Agency’s (EPA) previous waiver approval of California Air Resources Board’s (CARB) Advanced Clean Truck (ACT) rule.
Back in 2023, CARB struck a deal with the Clean Truck Partnership (CTP), a group of truck manufacturers. The agreement was intended to somewhat standardize competing federal and state regulations. In exchange, the CTP agreed to continue to comply with ACT even if it was overturned in litigation.
The ACT was overturned by Congress not litigation.
The CTP was sued by Nebraska and a host of other states for violating antitrust laws. The Federal Trade Commission (FTC) opened an antitrust investigation.
Given the CRA, the antitrust lawsuit and investigation, and the federal government standing firm on the unenforceability of the ACT regulation, the CTP dropped their compliance and disbanded.
Then members of CTP sued CARB citing federal rules preempt California’s emission standards and their agreement is null and void.
Last week, California sued the CTP for breach of contact.
Then on Friday, a US District Court judge ruled in favor of the CTP and issued a preliminary injunction prohibiting California from enforcing it.