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Trucking companies are currently suing the state of California in federal court, trying to protect their ability to continue forcing poison into your lungs and the lungs of their employees because they don’t want to save themselves money by shifting to electric trucks.

The lawsuit is over California’s Advanced Clean Fleets rule, which was finalized by the California Air Resources Board earlier this year. Since then, it has been adopted by 10 other states, as often happens with California clean air regulations.

The ambitious, world-first proposal sets high requirements for commercial fleet electrification and bans new diesel truck sales by 2036, with earlier timelines for more narrow applications. For example, drayage trucks, which bring freight from ports to distribution centers and are largely responsible for poor air quality in California’s Inland Empire, need to switch to all-electric purchases by the end of this year.

It’s a complement to California’s Advanced Clean Trucks rule, which was finalized in 2020 and focused more on the production side, ensuring that manufacturers would produce enough electric trucks for fleets to purchase once the fleets rule was implemented.

And sure enough, as time came to finalize the fleets rule, progress had gone so well with ZEV truck availability that California felt confident setting high targets for the fleets rule.

wattev port of long beach electric truck charge depot
WattEV opened the US’ largest public truck charging depot earlier this year in CA

The result is a rule that will save Californians $26.5 billion in health costs and will save fleets $48 billion in operational costs due to lower fuel and maintenance expense. Those health savings come from thousands of avoided deaths, hospital admissions and ER visits from heart and lung illnesses.

And that doesn’t even include other environmental benefits, like reducing noise pollution and protecting California’s wildlife and wilderness areas, sources of biodiversity and tourism dollars and important pollinators for California’s huge agricultural industry.

While lifetime costs are significantly lower for electric trucks, upfront costs can be higher – currently, most electric commercial vehicles cost 2-3x as much upfront as their non-electric counterparts, though that is expected to ease significantly within the decade. Current prices can result in sticker shock for fleets, but huge incentives are available both on the state and federal level.

For example, Daimler’s new RIZON Class 4-5 truck just qualified for a $60,000 incentive from the state of California (which is available to other brands as well), on top of the $40,000 federal incentive as part of the Inflation Reduction Act. Then there are further incentives available for some classes of vehicle, for example school buses which are almost free to school districts.

Instead of improving the rule, CTA sues

But despite all of those savings, a trade group representing truck operators called the California Trucking Association has decided not to engage in making the rule better, but has instead sued in federal court to permanently stop the state from protecting the health and pocketbooks of its residents, and even of the trucking companies it represents.

We spoke with Guillermo Ortiz with the Natural Resources Defense Council, who pointed out that this fleets rule was in the works for several years, and stakeholders were heavily engaged during that process. Even after the rule’s finalization, some industry sat down at the table with the state to tweak the regulation and come to a compromise.

The Engine Manufacturer’s Association, a separate trade group representing truck manufacturers (including EV truck makers Volvo and Daimler) which has made plenty of anti-electric statements, originally opposed the rule. But it made a compromise with the state, which it calls the “Clean Trucks Partnership.” In exchange for some tweaks ensuring regulatory stability and a harmonization with federal low-NOx guidelines, the EMA now supports CARB.

daimler electric trucks lineup
Daimler has a wide range of electric trucks available and we drove them all

Ortiz also pointed out that compliance with the rule has come faster than expected. CARB says that ZEV truck availability is roughly double projected 2024 requirements, and sales are about two years ahead of schedule – indicating that the rule could have even been stronger than it was.

So the CTA is complaining about a rule which fleets are already finding it easy to comply with. And instead of going the more mature route that the EMA did – trying to sit down at the table and come up with a workable solution – CTA instead jumped straight to federal court.

The choice to file in federal court is notable. It shows that the CTA likely hopes that the environment-hostile U.S. “supreme” court might eventually get a chance to issue yet another ruling that is hostile to human life, and to established US law, and that flies in the face of the wishes of the public. But then, it is unsurprising that a group, more than half of whom were appointed or confirmed undemocratically to irreversible lifetime terms with the help of millions of dollars worth of bribes from the oil industry, would feel unassailable on their mission to aid the evil industry that bought them their seats.

In addition the move to file in federal court is probably also intended to have a chilling effect on EPA’s upcoming “phase 3” truck regulations, which build further on its first update to truck rules in 21 years, finalized late last year.

What’s worse, it’s hard to find out exactly which companies are members of CTA. The organization doesn’t publish a member list (the directory is private), so the only names the NRDC could find are from testimonials on its website.

How the rule helps everyone – including the CTA

And the CTA’s lawsuit is against the interest of these trucking companies themselves – those $48 billion in operational cost savings would go into their pockets, not the manufacturers’.

We hear so much grousing about gas prices – which, even at today’s rates, are artificially low due to trillions in global fossil fuel subsidies in the form of ignored external costs – raising the price of goods. Yet when there is an opportunity to save $48 billion on the cost of shipping those goods, we see companies sue not to save that money. If fuel costs matter, this lawsuit doesn’t make sense.

And there is high public support for this transition as well, and of course there is. It would reduce pollution and the costs of shipping. It would likely improve public perception if the industry electrified. This could (and will) be a huge win for the industry, if they’d only see it.

On another front, it would help their employees too. These workers would get to drive and work around cleaner vehicles with less exhaust and vibration from big diesel engines, meaning less health problems for employees, more productivity, and more happiness. We’ve already heard of some truckers delaying retirement because electric trucks are so much easier on their body – important in a time when the trucking industry is dealing with a long-term driver shortage.

The same health benefits apply particularly to the low-income communities in which many of these ports and distribution centers are located. The Port of Long Beach/Los Angeles is a pretty desolate place, choked with exhaust from moving 40% of the US’ containerized traffic from the coast to California’s Inland Empire, which has some of the worst air quality in the US.

CA’s Inland Empire is surrounded by mountains – often made invisible by smog. Photo by Ken Lund

This is why drayage trucks are being targeted first for electrification, because the environmental justice air quality gains are outsized when electrifying that specific application. In discussions over the Advanced Clean Fleets rule, a diverse coalition including labor representatives joined the usual suspects (scientists, public health, environmental justice organizations, etc) in supporting the rule.

Ortiz pointed out to us that if the higher-up business leaders making decisions in the CTA had to live in these communities, or had to explain themselves to these communities, maybe they’d have more trouble passing along their talking points so uncritically. That $26.5 billion in health costs isn’t just a number – that’s real misery, and it’s a burden that is mostly borne by the communities that can handle it the least.

Those communities aren’t just writing checks to get out of this cost, they’re being forced into early retirement and disability, saddled with weekly doctor’s appointments, and filling up ERs. Their children are getting asthma and having their mental development stunted by pollution. That’s the actual cost here if the trucking companies prevail in this idiotic lawsuit, not just their own dollars which they could save if they dropped it.

Why do business orgs oppose improvements?

So, if everyone else understands that this transition is a good thing – manufacturers, laborers, accountants, the public, scientists, people with lungs, and so on – then what is CTA’s problem? It’s just another example of a business reacting negatively to any sort of regulation, even if that regulation is beneficial for everyone.

We saw this happen before – in California no less – when in 2016 virtually all car companies begged the EPA’s new oil-funded boss to reverse President Obama’s historic national fuel efficiency standard which represented an alignment between federal and California standards for the first time.

With any foresight they might have known that asking idiots to destroy regulations would cause a difficult split market for them, but they fell victim to the big business compulsion to avoid science and the public interest at all costs. Only after the fact did they realize their mistake and instead started lobbying the EPA to close the “Pandora’s Box” which they themselves had originally opened.

Luckily, California eventually won that fight, as we predicted it would. And good regulations continued on, despite all the nonsense efforts to resist them.

Perhaps the CTA could learn something from the auto industry’s last boondoggle, and stop wasting time and money fighting against regulations that will save them money, and will save the lives of their employees and the public.

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Elon Musk Tapped to Lead New ‘DOGE’ Department—Despite the Government Already Having One for Efficiency

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Elon Musk Tapped to Lead New ‘DOGE’ Department—Despite the Government Already Having One for Efficiency

Tesla CEO Elon Musk is to officially join Trump’s administration as the co-head of the new US Department of Government Efficiency – a second federal department with the goal of making government spending more efficient.

You can’t get more ironic than that.

Throughout the elections, Musk, who is already CEO of Tesla, and SpaceX, a well as the defacto head of X, xAI, Neuralink, and the Boring Company, has been floating the idea to add to his workload by joining the Trump’s administration to lead a new department aimed at making the federal government more efficient.

He has been calling it the “Department of Government Efficiency”, which spells out ‘DOGE’, a meme that Musk appears to enjoy.

Well, now Trump appears to want to be going through with this idea.

He announced the new department and Musk as head, along with Vivek Ramaswamy, in a statement today:

I am pleased to announce that the Great Elon Musk, working in conjunction with American Patriot Vivek Ramaswamy, will lead the Department of Government Efficiency (“DOGE”). Together, these two wonderful Americans will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies – Essential to the “Save America” Movement. “This will send shockwaves through the system, and anyone involved in Government waste, which is a lot of people!” stated Mr. Musk.

What’s most ironic is that there’s already a federal department with the goal of cutting government waste and ensuring efficiency: the Government Accountability Office (GAO).

The GAO’s main objectives are:

  • auditing agency operations to determine whether federal funds are being spent efficiently and effectively;
  • investigating allegations of illegal and improper activities;
  • reporting on how well government programs and policies are meeting their objectives;
  • performing policy analyses and outlining options for congressional consideration;
  • issuing legal decisions and opinions;
  • advising Congress and the heads of executive agencies about ways to make government more efficient and effective

It sounds similar to what Musk described when talking about his DOGE, but Trump hasn’t gone into many details other than it will “cut waste.”

He also has a confusing message as he compares the initiative, which is supposed to cut government spending, to “The Manhattan project”, a massive and expensive government project.

Trump said that DOGE will help the government “drive large scale structural reform”:

It will become, potentially, “The Manhattan Project” of our time. Republican politicians have dreamed about the objectives of “DOGE” for a very long time. To drive this kind of drastic change, the Department of Government Efficiency will provide advice and guidance from outside of Government, and will partner with the White House and Office of Management & Budget to drive large scale structural reform, and create an entrepreneurial approach to Government never seen before.

The statement also noted that DOGE will only operate until July 4, 2026.

Musk has previously claimed that he could cut at least $2 trillion dollars of the $6.5 trillion dollar US federal budget.

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Oil could plunge to $40 in 2025 if OPEC unwinds voluntary production cuts, analysts say

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Oil could plunge to  in 2025 if OPEC unwinds voluntary production cuts, analysts say

A pump jack in Midland, Texas, US, on Thursday, Oct. 3, 2024. 

Anthony Prieto | Bloomberg | Getty Images

Oil prices may see a drastic fall in the event that oil alliance OPEC+ unwinds its existing output cuts, said market watchers who are predicting a bearish year ahead for crude.

“There is more fear about 2025’s oil prices than there has been since years — any year I can remember, since the Arab Spring,” said Tom Kloza, global head of energy analysis at OPIS, an oil price reporting agency.

“You could get down to $30 or $40 a barrel if OPEC unwound and didn’t have any kind of real agreement to rein in production. They’ve seen their market share really dwindle through the years,” Kloza added.

A decline to $40 a barrel would mean around a 40% erasure of current crude prices. Global benchmark Brent is currently trading at $72 a barrel, while U.S. West Texas Intermediate futures are around $68 per barrel.

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Oil prices year-to-date

Given that oil demand growth next year probably won’t be much more than 1 million barrels a day, a full unwinding of OPEC+ supply cuts in 2025 would “undoubtedly see a very steep slide in crude prices, possibly toward $40 a barrel,” Henning Gloystein, head of energy, climate and resources at Eurasia Group, told CNBC. 

Similarly, MST Marquee’s senior energy analyst Saul Kavonic posited that should OPEC+ unwind cuts without regard to demand, it would “effectively amount to a price war over market share that could send oil to lows not seen since Covid.”

However, the alliance is more likely to opt for a gradual unwinding early next year, compared to a full scale and immediate one, the analysts said.

Should the producers group proceed with their production plan, the market surplus could nearly double.

Martoccia Francesco

Energy strategist at Citi

The oil cartel has been exercising discipline in maintaining its voluntary output cuts, to the point of extending them.

In September, OPEC+ postponed plans to begin gradually rolling back on the 2.2 million barrels per day of voluntary cuts by two months in an effort to stem the slide of oil prices. The 2.2 million bpd cut, which was implemented over the second and third quarters, had been due to expire at the end of September. 

At the start of this month, the oil cartel again decided to delay the planned oil output increase by another month to the end of December.

Oil prices have been weighed by a sluggish post-Covid recovery in demand from China, the world’s second-largest economy and leading crude oil importer. In its monthly report released Tuesday, OPEC lowered its 2025 global oil demand growth forecast from 1.6 million barrels per day to 1.5 million barrels per day.

The pressured prices were also conflagrated by a perceivably oversupplied market, especially as key oil producers outside the OPEC alliance like the U.S., Canada, Guyana and Brazil are also planning to add supply, Gloystein highlighted.

Bearish year ahead for oil

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Have you had a ride in a driverless vehicle?

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Have you had a ride in a driverless vehicle?

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