US Appeals Court rules for ATA in lawsuit against ports

By on Mar 24, 2009

The US Court of Appeals for the Ninth Circuit has ruled in favour of the American Trucking Associations (ATA) in its lawsuit seeking an injunction against the Ports of Los Angeles & Long Beach Concession Plans

The three-judge panel ruled unanimously that the case be remanded to the US District Court, and indicated that the judge should grant the ATA an injunction against all or part of the Concession Plans

Last year, the Ports of LA and Long Beach filed their opposition in the US District Court in Los Angeles in response to a preliminary injunction motion from American Trucking Associations (ATA) that aimed to block the Clean Truck Program concession requirement that was to become effective in October 2008

While the ATA had not challenged the ports' Clean Truck Program, which bans older trucks and uses a container fee to subsidise the purchase of newer, cleaner trucks, the association argued that the cost of compliance with the concession requirement would force many independent truckers out of business The ports responded by saying that any potential financial injuries were more than outweighed by public health and security issues

The Court of Appeal's instructions to the District Court made clear that many elements of the Concession Plans must be enjoined, but leaves it to the District Court as to whether the entire Concession Plans should be halted The Court of Appeals indicated one aspect that must be enjoined is the Port of Los Angeles' ban on owner-operators "That requirement is dead," said Curtis Whalen, Executive Director of the Intermodal Motor Carrier Conference (IMCC) of the ATA

While the Port of Long Beach's Concession Plan did not ban owner-operators, the Port of LA's did "That requirement is dead," said Curtis Whalen, ATA's executive director of the Intermodal Motor Carrier Conference (IMCC)

Richard Steinke, executive director of the Port of Long Beach, responded to the Appeals Court ruling, saying that the decision does not change the legal status of the Port's Clean Truck Program or any other requirements currently in effect

Using Clean Truck Fee revenues, the Clean Trucks Program offers grants and leases that cover as much as 80% of the cost of a new truck However, Steinke conceded that since many truck owners finance their own vehicles, the Port is proposing to amend the Clean Trucks Program in terms of who has to pay the Clean Truck Fee and who doesn't:

  • The Port would eliminate the fee for containers hauled by all trucks bought without Port assistance Previously, there was a 50% fee for some of this cargo The scrapping of an old truck will no longer be required
  • The Port would also eliminate the fee for cargo hauled by LNG trucks purchased with Port assistance The scrapping of an old truck will no longer be required Cargo carried by privately purchased LNG trucks is already exempt
  • To encourage more truck owners to apply for Clean Trucks Program financial assistance in obtaining a new truck, the Port would give a 50% fee exemption for containers hauled by clean diesel trucks purchased with Port assistance These truck owners will still need to provide an old truck to be scrapped
  • Cargo hauled by the 500 truck owners who acquired a truck with the help of the Gateway Cities Program in recent years would be granted a 100% exemption from the fee