OOIDA sues EPA over zero-carbon regulation

Owner-operator group banks on court challenge against rule it claims would ‘devastate’ supply chain

The Biden administration's climate policy is too costly for truckers, OOIDA says. (Photo: Jim Allen/FreightWaves)

WASHINGTON — Small-business truck owners have sued the Biden administration over its new zero-emissions heavy-duty vehicle standards, claiming the cost to comply would put them out of business.

The Owner-Operator Independent Drivers Association joined with the American Petroleum Institute (API) in a petition filed Tuesday with the U.S. Court of Appeals for the District of Columbia Circuit challenging a final rule issued by the Environmental Protection Agency in April

API and OOIDA, along with the National Corn Growers Association and the American Farm Bureau Federation, are asking the court to vacate EPA’s rule because it “exceeds the agency’s statutory authority and is otherwise arbitrary, capricious, an abuse of discretion, and not in accordance with law,” according to the petition.

“Small business truckers make up 96% of trucking and could be regulated out of existence if the EPA’s unworkable heavy-duty rule comes into effect,” said OOIDA President Todd Spencer, commenting on the court challenge.

“This rule would devastate the reliability of America’s supply chain and ultimately increase costs for consumers. Mom and pop trucking businesses would be suffocated by the sheer cost and operational challenges of effectively mandating zero emission trucks.”

EPA’s “Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles – Phase 3” rule affects truck model years 2027 through 2032 and applies to a range of truck sizes, from delivery trucks and dump trucks to freight-hauling day-cab and long-haul sleeper-cab trucks. For long-haul tractors, for example, 25% of the fleet would be required to be zero-emission by model year 2032.

While the rule does not require a specific technology to meet the model-year requirements, much of the trucking industry see the rule as a de facto electric truck mandate, given the outlook for technology that will be available for those model years.

A new Class 8 diesel truck costs roughly $180,000 compared with up to $400,000 for a battery-electric truck, according to estimates. The administration has asserted that federal subsidies will bring down the cost and help the industry adjust to the new mandates.

In addition to a court challenge, those opposing the new rule have until Friday — when the rule is scheduled to go into effect — to file a petition for reconsideration directly with EPA.

Last month, congressional Republicans initiated an attempt to roll back the rule by introducing in the House and the Senate a joint resolution against it. The legislation has yet to be considered by the relevant committees.

Aside from court challenges, reconsideration petitions and political maneuvers, the likely best chance of keeping EPA’s rule from affecting the trucking industry may be a change in administrations.

Speaking at a private event in Washington last week, former President Donald Trump vowed to reverse Biden’s electric-vehicle climate policies if he is elected in November, according to Bloomberg.

Click for more FreightWaves articles by John Gallagher.

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4 Comments

  1. Stephen Webster

    It should exempt those with under 7 power units. It It should be 10% for those companies with 7 to 100 power units and 20% for only the portion over 100 power units. This what we are trying to get in Canada and it would be a great idea across Mexico and Canada and the United States
    Polution is a very real problem in big cities
    But the current model will not work for farmers and small businesses in my opinion

  2. Glenn Lamberth

    The Democrats won’t be happy till they destroy America. I can’t believe the people are letting it happen. Mad Max days are coming . They are going to make a loaf of bread cost $ 10 dollars food will be out of sight and are everyday products will be so expensive you can’t afford them

  3. Patrick (G)

    Huh, so the American Petroleum Institute found a patsy to join them in defending and extending the life of outdated, inefficient and highly polluting tech for the greater profit of their oil industry patrons.

    Given the context, I won’t wish then well, but I hope they realize that they’re being used as useful idiots.

  4. Matt dow

    Communist democrats at there finest. All democrats should be in prison for crimes against the American people mandate this mandate that,when does there European ways end were not Europe. Another reason to end the NWO.demoncrats are profiting off all of these mandates by simply calling it climate change. OPEN YOUR EYES AMERICA

Comments are closed.

John Gallagher

Based in Washington, D.C., John specializes in regulation and legislation affecting all sectors of freight transportation. He has covered rail, trucking and maritime issues since 1993 for a variety of publications based in the U.S. and the U.K. John began business reporting in 1993 at Broadcasting & Cable Magazine. He graduated from Florida State University majoring in English and business.