California’s Electric Truck Fleet Mandate Also Applies to Out-of-State Companies, Prompting Lawsuit
2nd April 2024
Heavy equipment businesses have filed a suit against California over the state’s rule that truck and van fleets must electrify their vehicles—a mandate that will likely apply to almost as many out-of-state companies as in-state companies—alleging that it violates the U.S. Constitution’s protections for interstate commerce and other federal laws.
“The rule is extraterritorial, burdensome, and impractical. It is riddled with exemptions that allow [California’s air regulatory agency] to micro-manage fleets and play favorites, one vehicle at a time,” the lawsuit states.
The lawsuit, from Illinois-based trade association Associated Equipment Dealers and the American Free Enterprise Chamber of Commerce, a conservative group chaired by former Iowa governor Terry Branstad (R.), targets a state regulation stating that any company with 50 or more vehicles anywhere in the world, or $50 million in gross yearly revenues, must start replacing their vans, trucks, yard tractors, package delivery vehicles, and buses with electric models starting next year. Fleets must be fully electric within 10 to 18 years, depending on their category.