ATA Files Suit to Block LA and LB Ports Clean Truck Concession Plans
On July 28, 2008, the American Trucking Associations (ATA)1, with the support of its Intermodal Motor Carriers Conference (IMCC)2, filed suit in the U.S. District Court in California challenging the Los Angeles and Long Beach ports' Clean Trucks "Concession Plans" as approved by the cities and their harbor commissions.
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ATA Says Plans Will Limit Access to the Ports
ATA states that the plans will limit access to the ports to only those trucking companies that have entered into concession contracts approved by the port program administrator.
ATA adds that the concession plans impose a broad range of operational requirements that create a regulatory environment very similar to state level intrastate economic regulation. According to ATA, the ports have acknowledged that these intrusive regulatory systems will result in far fewer trucking companies being able to service the ports, reducing competition.
ATA is Particularly Concerned with LA's Ban on Independent Drivers
ATA President and CEO Bill Graves states that ATA firmly believes that these concession programs unlawfully re-regulate the port trucking industry to the detriment of motor carriers, shippers, and the businesses and consumers that depend on the products that are handled at those ports.
He added that ATA is particularly concerned with the Port of Los Angeles' concession requirement that will lead to a complete ban of the use of independent contractor/owner operator drivers in servicing that port's operations within five years. That requirement, which Graves stated has nothing to do with the clean air goals of the ports' Clean Truck Program, threatens a well-established trucking industry operational practice that provides efficiencies and the flexibility needed for the trucking industry to effectively serve its customers.
ATA is Not Challenging Clean Air Efforts, Only Regulatory Structure
Graves emphasized that the litigation is not aimed at and should not interfere with the ports' clean air efforts. Graves noted that despite the additional costs that the trucking industry will incur, ATA strongly supports the ports' efforts to reduce truck emissions, and its lawsuit does not challenge any aspect of those efforts.
IMCC Executive Director Curtis Whalen stated that ATA is challenging only the intrusive and unnecessary regulatory structure being created under the Concession Plans.
ATA Asserts that Ports' Actions Violate Federal Statutory Provision
In its filing, ATA specifically asserts that the ports' actions violate the federal statutory provision (49 USC 14501) which prohibits states or their political subdivisions from enacting or enforcing a legal requirement that is "related to a price, route, or service of any motor carrier." The filing points to a host of regulatory requirements (e.g. submission of truck-maintenance, safety and parking plans; equipment marking and tracking; financial oversight; routing mandates; and periodic reviews and audits) that will dramatically affect a motor carrier's operations at the ports in terms of price, routes, and services.
The filing also relies heavily on the U.S. Supreme Court's recent unanimous ruling interpreting that federal preemption provision.(Rowe v. New Hampshire Motor Transport Ass'n, 128 S.Ct. 989, 995 (2008).) Citing language in that case, the trucking industry papers argue that laws like the Concession Plans that substitute "governmental commands for 'competitive market forces' in determining the services that a motor carrier will provide" are preempted.
1ATA, the national trade association for the trucking industry, is a federation of affiliated state trucking associations, conferences and organizations that includes more than 37,000 motor carrier members representing every type and class of motor carrier in the country.
2IMCC is an affiliated conference within ATA and is open to ATA member companies engaged in intermodal truck transportation or businesses and services supporting intermodal transportation.
(See ITT's Online Archives or 05/23/08 news, 08052315, for BP summary of LA approving its Clean Truck Accession Agreement.
See ITT's Online Archives or 06/09/08 news, 08060915, for BP summary of LB approving its Clean Truck Concession Agreement.)
ATA press release on filing suit (dated 07/28/08) available at http://www.truckline.com/NR/exeres/D25BE961-E681-4AA1-BB37-9BCA95FE180B.htm
ATA's full complaint (filed 07/28/08) available at http://www.truckline.com/NR/rdonlyres/5C568C84-4DD8-4CCB-80FC-3EC1445F38B3/0/ComplaintLAandLongBeachPorts.pdf