Connect with us

Published

on

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.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

Tesla Semi suffers more delays and ‘dramatic’ price increase

Published

on

By

Tesla Semi suffers more delays and 'dramatic' price increase

According to a Tesla Semi customer, the electric truck program is suffering more delays and a price increase that is described as “dramatic.”

Tesla Semi has seen many delays, more than any other vehicle program at Tesla.

It was initially unveiled in 2017, and CEO Elon Musk claimed that it would go into production in 2019.

In late 2022, Tesla held an event where it unveiled the “production version” of the Tesla Semi and delivered the first few units to a “customer-partner”: PepsiCo.

Advertisement – scroll for more content

Tesla Semi PepsiCo truck u/Tutrifor
Tesla Semi Image credit: u/Tutrifor

More than 3 years later, the vehicle never went into volume production. Instead, Tesla only ran a very low volume pilot production at a factory in Nevada and only delivered a few dozen trucks to customers as part of test programs.

But Tesla promised that things would finally happen for the Tesla Semi this year.

Tesla has been building a new high-volume production factory specifically for the Tesla Semi program in a new building next to Gigafactory Nevada.

The goal was to start production in 2025, start customer deliveries, and ramp up to 50,000 trucks yearly.

Now, Ryder, a large transportation company and early customer-partner in Tesla’s semi truck program, is talking about further delays. The company also refers to a significant price increase.

California’s Mobile Source Air Pollution Reduction Review Committee (MSRC) awarded Ryder funding for a project to deploy Tesla Semi trucks and Megachargers at two of its facilities in the state.

Ryder had previously asked for extensions amid the delays in the Tesla Semi program.

In a new letter sent to MSRC last week and obtained by Electrek, Ryder asked the agency for another 28-month delay. The letter references delays in “Tesla product design, vehicle production” and it mentions “dramatic changes to the Tesla product economics”:

This extension is needed due to delays in Tesla product design, vehicle production and dramatic changes to the Tesla product economics. These delays have caused us to reevaluate the current Ryder fleet in the area.

The logistics company now says it plans to “deploy 18 Tesla Semi vehicles by June 2026.”

The reference to “dramatic changes to the Tesla product economics” points to a significant price increase for the Tesla Semi, which further communication with MSRC confirms.

In the agenda of a meeting to discuss the extension and changes to the project yesterday, MSRC confirms that the project went from 42 to 18 Tesla Semi trucks while the project commitment is not changing:

Ryder has indicated that their electric tractor manufacturer partner, Tesla, has experienced continued delays in product design and production. There have also been dramatic changes to the product economics. Ryder requests to reduce the number of vehicles from 42 to 18, stating that this would maintain their $7.5 million private match commitment.

In addition to the electric trucks, the project originally involved installing two integrated power centers and four Tesla Megachargers, split between two locations. Ryder is also looking to now install 3 Megachargers per location for a total of 6 instead of 4.

Tesla Semi Megacharger hero

The project changes also mention that “Ryder states that Tesla now requires 600kW chargers rather than the 750kW units originally engineered.”

Tesla Semi Price

When originally unveiling the Tesla Semi in 2017, the automaker mentioned prices of $150,000 for a 300-mile range truck and $180,000 for the 500-mile version. Tesla also took orders for a “Founder’s Series Semi” at $200,000.

However, Tesla didn’t update the prices when launching the “production version” of the truck in late 2023. Price increases have been speculated, but the company has never confirmed them.

New diesel-powered Class 8 semi trucks in the US today often range between $150,000 and $220,000.

The combination of a reasonable purchase price and low operation costs, thanks to cheaper electric rates than diesel, made the Tesla Semi a potentially revolutionary product to reduce the overall costs of operation in trucking while reducing emissions.

However, Ryder now points to a “dramatic” price increase for the Tesla Semi.

What is the cost of a Tesla Semi electric truck now?

Electrek’s Take

As I have often stated, Tesla Semi is the vehicle program I am most excited about at Tesla right now.

If Tesla can produce class 8 trucks capable of moving cargo of similar weight as diesel trucks over 500 miles on a single charge in high volume at a reasonable price point, they have a revolutionary product on their hands.

But the reasonable price part is now being questioned.

After reading the communications between Ryder and MSRC, while not clear, it looks like the program could be interpreted as MSRC covering the costs of installing the charging stations while Ryder committed $7.5 million to buying the trucks.

The math makes sense for the original funding request since $7.5 million divided by 42 trucks results in around $180,000 per truck — what Tesla first quoted for the 500-mile Tesla Semi truck.

Now, with just 18 trucks, it would point to a price of $415,000 per Tesla Semi truck. It’s possible that some of Ryder’s commitment could also go to an increase in Megacharger prices – either per charger or due to the two additional chargers. MSRC said that they don’t give more money when prices go up after an extension.

I wouldn’t be surprised if the 500-mile Tesla Semi ends up costing $350,000 to $400,000.

If that’s the case, Tesla Semi is impressive, but it won’t be the revolutionary product that will change the trucking industry.

It will need to be closer to $250,000-$300,000 to have a significant impact, which is not impossible with higher-volume production but would be difficult.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

BP chair Helge Lund to step down after oil major pledges strategic reset

Published

on

By

BP chair Helge Lund to step down after oil major pledges strategic reset

British oil and gasoline company BP (British Petroleum) signage is being pictured in Warsaw, Poland, on July 29, 2024.

Nurphoto | Nurphoto | Getty Images

British oil major BP on Friday said its chair Helge Lund will soon step down, kickstarting a succession process shortly after the company launched a fundamental strategic reset.

“Having fundamentally reset our strategy, bp’s focus now is on delivering the strategy at pace, improving performance and growing shareholder value,” Lund said in a statement.

“Now is the right time to start the process to find my successor and enable an orderly and seamless handover,” he added.

Lund is expected to step down in 2026. BP said the succession process will be led by Amanda Blanc in her capacity as senior independent director.

Shares of BP traded 2.2% lower on Friday morning. The London-listed firm has lagged its industry rivals in recent years.

BP announced in February that it plans to ramp up annual oil and gas investment to $10 billion through 2027 and slash spending on renewables as part of its new strategic direction.

Analysts have broadly welcomed BP’s renewed focus on hydrocarbons, although the beleaguered energy giant remains under significant pressure from activist investors.

U.S. hedge fund Elliott Management has built a stake of around 5% to become one of BP’s largest shareholders, according to Reuters.

Activist investor Follow This, meanwhile, recently pushed for investors to vote against Lund’s reappointment as chair at BP’s April 17 shareholder meeting in protest over the firm’s recent strategy U-turn.

Lund had previously backed BP’s 2020 strategy, when Bernard Looney was CEO, to boost investment in renewables and cut production of oil and gas by 40% by 2030.

BP CEO Murray Auchincloss, who took the helm on a permanent basis in January last year, is under significant pressure to reassure investors that the company is on the right track to improve its financial performance.

‘A more clearly defined break’

“Elliott continues to press BP for a sharper, more clearly defined break with the strategy to pivot more quickly toward renewables, that was outlined by Bernard Looney when he was CEO,” Russ Mould, AJ Bell’s investment director, told CNBC via email on Friday.

“Mr Lund was chair then and so he is firmly associated with that plan, which current boss Murray Auchincloss is refining,” he added.

Mould said activist campaigns tend to have “fairly classic thrusts,” such as a change in management or governance, higher shareholder distributions, an overhaul of corporate structure and operational improvements.

“In BP’s case, we now have a shift in capital allocation and a change in management, so it will be interesting to see if this appeases Elliott, though it would be no surprise if it feels more can and should be done,” Mould said.

Continue Reading

Environment

Quick Charge | hydrogen hype falls flat amid very public failures

Published

on

By

Quick Charge | hydrogen hype falls flat amid very public failures

On today’s hyped up hydrogen episode of Quick Charge, we look at some of the fuel’s recent failures and billion dollar bungles as the fuel cell crowd continues to lose the credibility race against a rapidly evolving battery electric market.

We’re taking a look at some of the recent hydrogen failures of 2025 – including nine-figure product cancellations in the US and Korea, a series of simultaneous bus failures in Poland, and European executives, experts, and economists calling for EU governments to ditch hydrogen and focus on the deployment of a more widespread electric trucking infrastructure.

Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple PodcastsSpotifyTuneIn, and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.

Advertisement – scroll for more content

Got news? Let us know!
Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Trending