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Judge Rules Tesla Must Face False Ad Claims About Autopilot

(Drew Angerer/Bloomberg News)

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Tesla Inc. has failed to convince an administrative judge that it is not responsible for the claims made by a California regulator, who claimed the company had overstated the self-driving abilities of its vehicles. This is one of many ongoing regulatory investigations into the electric-car maker’s marketing.

The California Department of Motor Vehicles alleges that Tesla made false statements about the “Autopilot” and the “Full Self-Driving”, driver-assistance functions, leading customers to think they were more advanced than they actually are.

The ruling on June 10 comes less than one month after a San Francisco federal judge ruled that Tesla had to face a proposed lawsuit by consumers who made similar claims.

The advancing cases are a new setback for Elon Musk, whose CEO has staked his company’s future in autonomy.

Musk said in April that Tesla was “going balls to wall for autonomy”, while committing to a next generation self driving vehicle concept called robotaxi. The billionaire entrepreneur, who has been talking big about autonomy for more than a decade, has convinced customers to pay thousands of dollar for its Full Self-Driving feature, or FSD. FSD is a misnomer, as it requires constant supervision. It does not make vehicles autonomous. But Musk has predicted that the technology will soon live up to its branding.

The company is also facing federal probes to determine whether defects in the Autopilot driver-assistance system have contributed to fatal accidents. Federal prosecutors and the Securities and Exchange Commission are also investigating whether Tesla has made misleading statements about Autopilot.

In April, the National Highway Traffic Safety Administration began an investigation to determine if the EV maker’s recall more than 2,000,000 cars months earlier adequately addressed Autopilot’s safety risks.

Tesla and the California Department of Motor Vehicles did not immediately respond to comments.

Want to know more? Listen below to the daily briefing or click here for more information:

General Catalyst buys Venture Highway, Sebi approves Ola Electric IPO

General Catalyst, a Silicon Valley investor, has acquired Indian venture fund Venture Highway. ETtech Top 5 has more on this.

Also included in the letter:# How much is FAME-III going to cost?

# ETtech Done Deals

Binance fined Rs 18,82 crore

Silicon Valley VC fund General Catalyst acquires Venture Highway; will deploy $1 billion in India

Hemant Taneja, General Catalyst and Venture Highway’s Neeraj arora (L-R).

General Catalyst, a Silicon Valley-based venture investment firm, said

Venture Highway, an early-stage investor focused on India, will be acquired by the company

In an effort to strengthen its presence locally. The fund will invest up to $1 billion dollars in India.

Driving news: This marks General Catalyst’s formal entry into India, with a team in place. The fund has supported Indian startups like Cred, Spinny, and Uni.

Venture Highway will cease to exist after the deal. It will be replaced by General Catalyst India
The entity will be managed by Venture Highway founder Neeraj arora and general partner Priya mohan
The firm will operate on a single partnership, as opposed to the franchise model used by other global VCs in India.

India Opportunity

Hemant Taneja is the chief executive and managing Director at General Catalyst. He said, “We will invest between $500 million and one billion dollars in India. This is a substantial capital and far greater than we’ve done previously because now we have a dedicated team to take care of it.”

Telling ET in an Interview

.

Arora explained why the merger with General Catalyst was made. “We could have made seed investments with a smaller, more stable fund that is easier to return. “But the opportunity and ambition we have to participate in India’s venture ecosystem is much greater,” he said.

Big Picture:General Catalyst’s India entry comes as multiple global venture capitalist firms have either left India or slowed their pace over the last 12-18 months.

Sequoia Capital’s India partnership merged into Peak XV Partners in the past year, while Pierre Omidyar’s Omidyar Network shut down operations here.

Indian venture capitalists need to pivot to a new model of investing

Ola electric secures Sebi nod for IPO

India’s market regulator, the

The Securities and Exchange Board of India has officially approved

Ola Electric’s bid for a listing on the bourses.

ET was first reported on June 11,

The Bengaluru-based firm has won the award.

Driving news: Sebi cleared the draft red herring prospectsus (DRHP), the country’s largest two-wheeler electric manufacturer, on June 10. The DRHP proposed a new issue of up to Rs 5,500 cr, along with an offer-for sale (OFS) component consisting of $95.2m shares. ET reported that sources said Ola Electric was aiming to raise $6 billion in the offering.

Getting into shape:

Ola Electric, which is also in the process to list on the stock exchange, is also trying cut costs and improve its profitability.

Over 600 employees are being laid off

Cost-cutting measures are being implemented across different verticals. Just over a year ago, Ola Cabs, a sister company also run by founder Bhavish Aggarwal had laid off employees.

Hemant Bakshi, the CEO of the company, had been able to see 200 employees.

Chief Financial Officer

Kartik Gupta leaves the firm

.

Public markets become attractive:The listing is the first by a startup in India to be an electric vehicle. It will likely join other firms such as ecommerce company FirstCry, and food delivery firm Swiggy who are also waiting for Sebi approvals before they can list publicly. The India unit of South Korean automaker Hyundai Motors filed draft listing documents on June 15 for what could be India’s largest-ever market debut. The India unit is valued at over $25 billion. Awfis, a company that rents out office space, and Ixigo, a travel agency recently went public.

Big payday At a valuation of $ 6 billion, Aggarwal would make around $78 millions, or Rs 650 crores, from the sale up to 47,4 million shares or around 1,3% stake. The total OFS component could fetch up to $156.7 million or more than Rs 1,300 crore. This may change depending on the final price at which Ola Electric sells their shares to investors.

Cost of FAME III: Meet local sourcing norms or face penalty

Automakers who apply for the third edition the Centre’s flagship incentive program for

Non-compliance with the new regulations will result in penalties for electric vehicles

Senior officials told ET that localisation standards have been laid down.

Requirements and Penalties: Under FAME III, companies that seek subsidies are required to undergo biannual audits of their technical and commercial aspects. These audits will ensure manufacturers adhere to the localisation guidelines mandated under the scheme. In the event of non-compliance the interest rate will be 3% above the Marginal Cost of Funds Based Lending Rate (MCLR).

Legal proceedings

Legal actions are being taken against companies like Hero Electric, Okinawa and Benling, for allegedly not refunding subsidies totaling Rs 300 crore that were claimed incorrectly under the former FAME scheme. The Ministry of Heavy Industries sent a total of Rs 469 crore in recovery notices to a half dozen companies last fiscal for violating localisation rules.

Quote: The objective of the scheme is to accelerate the adoption of electric cars by consumers and create a local eco-system to reduce their costs over time. He said that companies should source locally, as it would be against the scheme’s purpose.

Also Read: The release of FAME-III is likely to coincide with the budget day; a Rs 10,000-crore expenditure is expected

ETtech Done Deals

Swapnil Mishra (left) and Saurabh Mishra founder of OrbitShift

AI startup OrbitShift raised $7 million: Artificial Intelligence-powered sales intelligence startup OrbitShift raised $7 million as part of a seed funding round led by Peak XV Partners Surge scale-up program and Stellaris Venture Partners.

The proceeds will be used for increased investments to expand the presence of the company and its customer base in the US. OrbitShift plans to expand its product line by investing in its technology teams and product teams.

Unikon.ai raises $ 2 million: The company Unikon.ai allows users to monetise time and expertise by networking , has raised $2 million. Investors include Nikhil Kamath of Zerodha, Peyush Bansal of Lenskart, Vishesh Khurana of Shiprocket, and Gaurav Khtri of Noise.

Distil, a platform for specialty chemicals, raises $3.1M: Distil , a platform for specialty chemicals raised $3.1M as part of a seed round led by Jungle Ventures with participation from other investors. Distil will use this money to expand their teams in sales, R&D and other areas.

FIU imposes Rs 18.82 crore penalty on crypto exchange Binance

Global cryptocurrency exchange

Binance was fined Rs 18.82 crore

The Financial Intelligence Unit of India, (FIU-IND), has imposed a fine of around $2.2 million (approximately $2.2 million) on a crypto entity for non-compliance to anti-money laundering laws.

Background In December 2023, Binance’s intelligence unit was responsible for overseeing the trading of virtual digital assets. The unit is also responsible for ensuring that Indian laws are followed.

ET reported the first in April, that Binance is set to return to India, after it was banned by the Indian government in January.

Market dominance Before it was banned, Binance, the largest cryptocurrency exchange in the world, held a significant place in India’s cryptoscape, accounting for almost 90% of the estimated $4 billion worth of crypto assets in the country.

According to CoinMarketCap it recorded a volume of $11 billion for the 24 hours prior (ending at 12pm IST on Thursday), this is 25% of global volume.

Today’s ETtech Top 5 Newsletter was curated by Riya Chowdhury in Bengaluru and Vaibhavi Knwalkar.

TravelTech Lab by HBX Group launches an investment vehicle that will foster innovation in travel industry

HBX Group is a leading player in the TravelTech B2B Ecosystem. Today, it announced the launch of a fund that will finance startups and scaleups who are developing innovative technological solutions for the travel industry, as well investing in corporate venture funds.

This investment fund builds on the success TravelTech Lab by HBX Group. It was created in 2023 with the goal of supporting and collaborating with startups and scaleups in the travel technology industry.

TravelTech Lab, a new investment vehicle created by HBX, will help the company to achieve its mission of technological innovation in travel. The fund will invest an initial 50 million euros over the next 10 year period. The specific investment for each startup will be determined on a case by case basis to ensure that the most promising technology receives the support it needs to thrive. This strategic initiative highlights HBX Group’s commitment to innovation. Innovation has been at its core since the company was founded in 2001.

TravelTech Lab, a division of New York University, has partnered with more than 300 startups in various markets including Spain, France and the United Kingdom. It also collaborates with organizations such as the Mastercard Tourism Innovation hub and the Jonathan M. Tisch Center of Hospitality at New York University. This collaborative effort has resulted in significant advancements for the travel industry, benefiting both travellers and the industry.

Travel is a constantly evolving industry, and only those companies who innovate will remain competitive. HBX Group’s goal is to solve unresolved problems through innovation and enhance the customer experience. TravelTech Lab was created in 2023 as a significant step towards this goal. Our investment fund will facilitate our access to the future technologies, but also promote a global ecosystem for startups and scaleups within the travel sector. We believe that supporting these innovative companies will help drive the next wave in the travel industry.

Nicolas Huss, CEO of HBX Group

Since its founding in 2000, HBX Group is a pioneer of the travel industry. It is dedicated to innovation and enhancing customer experience. HBX Group continues to be a leader in the travel industry through initiatives such as TravelTech Lab and its new investment fund.

About HBX Group

HBX Group, a leading B2B ecosystem in the TravelTech sector, connects and empowers businesses in an ever-changing world of travel. We help our clients and partners grow by removing friction in the travel process. Our cloud-based platforms provide fast and reliable access a unique range of travel products and services, while rich intelligence and data seamlessly connects supply and demand around the world. Over 3,000 experts are available worldwide, including those on the ground, who can provide insight and support in order to boost trading, especially for the hardest-to-reach segments. This unique combination of technology, data, and passionate people is a catalyst for businesses looking to unlock their full potential within the travel industry. Learn more about HBX at www.hbxgroup.com

A Superintelligent Startup…Perplexity’s Tricky Web Crawlers…Battery Ventures in the VC Directory

Ilya Sutskever. Photo by Glenn CHAPMAN / AFP.

The Main Item

Ilya Sutskever, the OpenAI co-founder and former chief scientist, is taking another swing at steering AI research in a way that prioritizes safety–and, as he told Bloomberg rather pointedly, “we mean safe like nuclear safety as opposed to safe as in ‘trust and safety.'” Last week he unveiled his new startup-slash-research lab, Safe Superintelligence, which has only one goal: to create artificial general intelligence that will help us and not hurt us.

Last fall, Sutskever famously voted with a majority of OpenAI’s non-profit board to remove Sam Altman. Altman was the head of OpenAI’s for-profit subsidiary and pursued an aggressive commercial strategy. However, the board had lost trust in him. Sutskever changed sides after a staff revolt, but felt OpenAI was not taking safety seriously.

Sutskever stated that the new venture would be “fully protected from outside pressures such as dealing with a large, complex product and being stuck in a competitive race.”

This pledge will be tested by the vast sums of cash that he is likely to need for building and educating AI models. Daniel Gross, an AI expert and investor who is well-respected, and Daniel Levy a former OpenAI colleague are his co-founders. However, no investors have yet been named.

OpenAI’s non-profit mission was all but abandoned due to the lack of cash, both to pay for computing and to pay expensive researches. Sutskever is asking for money to fulfill a promise that may never be fulfilled, but he also vows to never pivot.

It’s a thing he might be able, alone, to get away. One investor texted: “Ilya is a brilliant scientist of our generation and the Daniels…it’s the best team start you can get.”

According to another VC, it sounds like a return of OpenAI’s original objectives, which is a mixed bag from an investor perspective. “Is it cool?” Yah. AGI is definitely something that people want to create. Will it make investors money? This person said, “I’m not sure with him leading it and their current focus/values.”

The world is also very different from 2015, when OpenAI launched, as the most capitalized companies are now investing billions of dollars in every AI opportunity.

The first investor said: “I think that the vision is noble in theory, but in practice, I don’t believe that one group can be so far ahead and be able protect that technology,” “It would be like building a recycling plant and expecting global heating to disappear.”

Sutskever is to be commended for his commitment to principles, especially when he knows that he can walk through another door at any time and become a billionaire in an instant. At least give the effort to create a safe AGI a chance.

VC Directory

Venture Highway is acquired by General Catalyst, a Silicon Valley VC firm.

General Catalyst, a Silicon Valley-based venture-capital firm will acquire India’s early-stage investor Venture Highway. It plans to invest $500-$1 billion dollars in India as it looks to increase its presence.

Also Read: India’s deeptech startups have grown 2x in size since 2022 despite funding crunch

General Catalyst India will be the new entity that will focus on early and growth stage investments in India.

“The combined abilities of the two companies will allow us to become much more hands-on and effective moving forward in India.” Hemant Taneja is the chief executive of General Catalyst. He said, “I am particularly excited about bringing our cocreation capabilities to India.”

Venture Highway, founded by former WhatsAppbusiness director Neeraj Arora has unicorns such as Meesho and Moglix, in its portfolio. The VC raised $78.6 Million for its second fund, which will be in 2020.

Priya Mohan will lead General Catalyst’s India efforts along with Arora. She is Venture Highway’s general partnership.

General Catalyst manages assets totaling over $25 billion worldwide. It has backed startupssuch graphic design platform Canva and travel marketplace Airbnb. It has backed over a dozen startups in India, including CRED, a fintech company, and Spinny, a used-car marketplace.

In a blog post on its website, General Catalyst stated that India’s economic and political agency is growing in the world, supported by both macro and micro tailwinds.

The firm stated that “the country’s diverse cultures, consumer psychology, as well as its deep structural idiosyncrasies need a level understanding, which numbers often don’t do justice to.”

Also read Boosting digital adoption in India

In India, VCs like Accel and Nexus Venture Partners have raised up to $500 million each for India.

Are Incubators Like Y Combinator Embracing Unicorn Entrepreneurship?

Y-Com This is a

Here are four lessons

#1. Takeoff with less

Neither VC Even with VC 94% of billion It is important to

#2. Raising less at

The VC model Silicon Valley guru The model appears to Even among these 20,

The Unicorn- Michael Dell built the He hired executives to Mark Zuckerberg ( But he kept

#3. Raising smartly

Entrepreneurs can maintain Early-stage capital The financial cost of For example, This is a eBay is an exception About 1 venture out The rest either don

#4. You can improve your

If you get If you lose control

Why you should keep

Only Can you attract the best VC?

Only 15 of these ventures are considered to be successful. Will you be among them?

* VCs will likely fire you. Is this what you want to do?

Truth about VC: VC avoiders retained 7 times more wealth than those who received early-VC. Are you starting your venture in order to make yourself wealthy or others wealthy?

MY TAKE: Will business schools follow Y-Combinator’s lead, or will they continue to teach the VC-based model?

Study finds that women are discouraged from driving because of their image.

The trucking industry will need to work hard to attract more female drivers. According to a new study from the American Transportation Research Institute (ATRI), the negative image of the industry is the number one challenge trucking faces when it comes to onboarding more women drivers.

The number of women truck drivers dropped to its lowest level since before the pandemic in 2019.

According to a survey conducted by Trucking Moves America Forward in 2022, the public has a positive view of trucking. ATRI’s research indicates that the barrier is not the public’s view of trucking, but trucking’s view of women.

ATRI’s 2022 update to its Predicting truck crash involvement showed that female drivers were safer in every statistically significant area than their male counterparts. Yet, more than 31% responses to ATRI’s most recent question were about attitudes of other drivers, motor carrier, shippers, and the general public towards women drivers.

ATRI’s research involved input from thousands truck drivers, motor carrier and truck driver training school through surveys, interviews, and a focus group of women drivers to identify the underlying challenges and strategies to navigate and overcome these barriers to success. The research revealed that women are attracted to driving careers because of the income potential. This highlights the fact that there is more pay parity between men and women in the trucking sector than in other fields.

ATRI’s analysis revealed that carriers who implement women-specific recruitment and retention initiatives have higher percentages of women drivers (8.1%) than those that do not (5.0%). The report also outlines how fleets can implement such initiatives.

A lack of respect was ranked as two of ATRI’s six worst traits. The No. 1 spot was taken by a motor carrier’s company culture. The second most important factor was the lack of clear and consistent communication with drivers and the absence of appreciation and recognition initiatives.

Overall, women ranked the lack of respect (by a large margin) higher than personal safety (12.6%), bathroom access (12.2%), or their physical ability to do their job (11.6%).

Jason Cannon is the Chief Editor at Commercial Carrier Journal. He has been writing about trucking for more than 10 years. Jason Cannon is a Class A CDL holder and has a purple belt Brazilian jiu-jitsu. He also graduated from the Porsche Sport Driving School. You can reach him at [email protected].

Cybersecurity: The Good, Bad and Ugly

Dark Marketplace Operators Face Life Sentences for $430 Million in Illicit Transactions

This week, two operators of Empire Market were officially charged. Empire Market is a dark market that generated over $430,000,000 in illicit profits. Thomas Pavey, aka “Dopenugget”, and Raheim Hamilton, aka “Sydney” and “Zero Angel”, allegedly ran the marketplace between February 2018 and August 2020. They facilitated more than 4 million transactions involving malicious software and stolen data. Hard drugs and counterfeit money were also involved.

Before Empire Market went offline in 2020, thousands used it to hide their illegal transactions using a combination cryptocurrency and tumbling service in order to avoid law enforcement. Pavey, Hamilton and their moderators profited from the cryptocurrency transaction by keeping a portion of it. The DoJ’s indictment revealed Pavey and Hamilton were involved in selling counterfeit currencies on another dark market called AlphaBay before operating Empire Market.

The men now face five charges : conspiracy to sell fake currency on AlphaBay; conspiracy to distribute controlled drugs via Empire Market; conspiracy to possess unauthorised access devices; conspiracy to sell false currency on Empire Market and conspiracy laundering money to conceal proceeds of illegal activities. The two operators could face life imprisonment if convicted on all counts, due to the severe penalties associated with drug trafficking.

Stolen data on dark marketplaces could lead to cyberattacks and other fraudulent activities. A comprehensive security solution that focuses on machine-speed detection of threats and advanced analytics will help prevent sensitive information and digital identities from being sold online.

Network Security Zero-Day Flaws Targeted by China-Nexus APT for Cyber Espionage Campaigns

A Chinese-linked threat agent tracked as UNC3886 has been leveraging a combination zero day vulnerabilities found in Fortinet Ivanti and VMware devices to gain access and maintain control over compromised systems. cyber researchers have released new findings that show how this espionage actor uses multiple persistence mechanisms to maintain access to compromised systems, even after initial compromises are detected.

UNC3886 hackers use Linux rootkits to hide on VMware ESXi VMs https://t.co/XkjQA1o3ng

— Nicolas Krassas June 20, 2020 HTML0

UNC3886 has been described as sophisticated and evasive. It leverages zero-day vulnerabilities such as CVE-2022-41328(Fortinet FortiOS), CVE-2022-22948(VMware vCenter), CVE-2023-2086(VMware Tools) in order to secure deeper access credentials and deploy backdoors. They also exploited CVE-2022-42475in Fortinet FortiGate soon after its disclosure.

This series of attacks has so far targeted entities in North America, Southeast Asia and Oceania as well as Europe, Africa and parts of Asia. They have focused on critical sectors such government, telecommunications and technology, aerospace and defence, and energy. The key strategy is to use rootkits that are publicly available, such as “Reptile”, and “Medusa”, in order to remain undetected. Medusa is deployed by the SEAELF installer and logs user credentials. This helps in lateral movement.

UNC3886 uses custom backdoors called MOPSLED and RIFLESPINE to exploit services such as GitHub and Google Drive in order to perform command-and-control (C2) operations. The first is an evolution of Crosswalk, communicating via HTTP with a C2 server at GitHub, while the second operates across platforms by using Google Drive to transfer files and execute commands.

Due to the evolving nature of the threats, it is important that organizations follow the security advisories issued by Fortinet or VMware in order to patch any vulnerabilities. Double-down on deep visibility, persistent tracking, and real-time analytics can help organizations protect themselves from advanced threats.

Suspected Ransomware Attack Shuts Down Thousands of Auto Dealerships Across the U.S.

Fifteen thousand car dealerships across the U.S. were taken out of commission this week due to back-to-back cyberattacks on CDK Global, their SaaS (software-as-a-service) platform. Dealerships rely on CDK Global to handle CRM, payroll, inventory, support and administrative functions.

CDK Global was forced to take down its two data centers after the first attack to prevent it from spreading. This led to widespread outages that affected dealerships’ abilities to track and order parts, conduct sales and offer financing, as well as carry out vehicle repairs. Many employees reported that they were unable to work and had to resort to manual methods, or were sent home. The second breach occurred as the company was restoring systems that were shut down by the first attack.

The latest status report from CDK confirms that the outage is likely to continue for several days. IT firms working with affected dealerships note the cyberattack led CDK advise them to disconnect their always-on VPN in order to prevent potential threats pivoting into dealership network.

The long-lasting disruptions raise questions about whether these attacks were the work of Ransomware operators, who may have impacted CDK backups. Ransomware attacks are typically carried out by threat actors who steal data and encrypt systems. They then demand a ransom to decrypt the system and avoid public data leaks. If confirmed, it could take several weeks to resolve the issue.

The automotive industry continues to be a target for threat actors who are looking to exploit its complex supply-chain-based operations, as well as its role in the economy to gain access to high-value information from millions of customers and employees.

Industrial Decarbonization Startup Molten Industries Raises $25 Million

Cleantech startup Molten Industries has announced that it raised $25 million as part of a Series A funding round. The proceeds will be used to scale up capacity as a manufacturer of graphite for Li-ion Batteries and clean hydrogen in order to decarbonize chemical and steel industries.

Molten Industries, a California-based company founded in 2021 by Dr. Caleb Boyd, Dr. Kevin Bush and with a mission of decarbonizing the world’s heavy industry, develops methane technology to convert natural gases into clean hydrogen gas, graphite and graphite. The solution uses renewable energy to crack methane into hydrogen and graphite at high temperature. Graphite, a key component in lithium-ion battery technology, is also a key ingredient for green hydrogen, a clean energy source that can be used to decarbonize industries where renewable energy sources such as solar or wind are not practical.

The methane comes from low-emissions sources, such as waste streams and dairy farms.

According to Molten’s process, the company uses significantly less energy to produce clean hydrogen than current solutions, such as water electrolysis. It also addresses the environmental impact graphite production which is a typical energy intensive process.

Boyd said:

“Clean liquids, ammonia as a fertilizer, plastics and green steel require a hydrogen source that can compete in cost with petroleum-based materials. The chemical, steel and transportation industries are in a dire need of a clean, economical source of hydrogen to feed their products. Molten’s methane-pyrolysis technology resolves this problem.”

Molten announced that the new capital would be used to build their first modular commercial reactor at Oakland, California. The company aims to build its first commercial plant, which will produce 5,000 tonnes per year of hydrogen and 15,000 tons of graphite, in a chemical or a steel plant. It will consist of approximately 20 modular commercial reactors.

Breakthrough Energy Ventures led the capital raise, with participation by new investors such as Sozo Ventures and Mark Heising. Existing investors Union Square Ventures and 50 Years also participated, as did J4 Ventures and Moai Capital.

Carmichael Roberts, Breakthrough Energy Ventures, said:

“Establishing reliable sources of critical material like graphite is crucial to support the transition to EVs on a large scale. Molten has developed a method that allows domestic production of graphite at a lower price, while also creating a highly valued hydrogen co-product.

OOIDA and oil industry join a wave of lawsuits against EPA regarding Phase 3 regulations

Trucking News and Briefs for Tuesday, 18 June 2024:

A new suit targets the EPA for’misguided’ environmental mandates in The Phase 3 GHG regulations

The Owner-Operator Independent Drivers Association, along with other groups, filed a lawsuit Tuesday in the U.S. Court of Appeals of the District of Columbia against Environmental Protection Agency regarding its phase 3 Greenhouse Gas Regulations for Heavy-Duty Trucks.

The lawsuit was filed by the American Petroleum Institute in Washington D.C., which represents oil and gas companies, along with co-petitioners OOIDA and the American Farm Bureau Federation, and the National Corn Growers Association. The lawsuit is the latest in a long list of lawsuits filed against the EPA’s Phase 3 greenhouse gas emissions regulations, which will mandate a dramatic decrease in CO2 emissions in the coming years.

The rule has been challenged by the Arizona Trucking Association, the Western States Trucking Association and the group consisting of 24 state attorneys general.

API Senior Vice President & General Counsel Ryan Meyers said: “Today we stand up for consumers who depend on trucks to deliver goods they use every day.” “The EPA is attempting to force a switch that does not exist today for these types of vehicles. Even if this technology were available someday, it would almost certainly have negative consequences for the average American.” This is yet another example of the administration pushing unpopular policies that lack statutory authority. We look forward to holding this administration accountable in court.

Todd Spencer, OOIDA president, called EPA’s regulation unworkable. He added that the Phase 3 rule would “devastate the reliability and cost of America’s supply chains.” The sheer cost and operational challenges would kill mom and pop trucking companies, but the administration is determined to push through its deluge misguided environmental regulations.

API’s lawsuit claims that EPA’s rule is “arbitrary, capricious and an abuse of discretion.” It also says it’s not in compliance with the law.

The groups want the court to declare EPA’s regulation unconstitutional and invalidate it.

Tennessee trucking firm owner charged with a variety of fraud violations

Police in Franklin, Tennessee are looking for more information on a trucking business owner who has been recently indicted. The charges stem from the alleged theft of a former employee’s identity and use of it to make financial arrangements.

Adam Brock
Adam Brock, 38 years old, was the owner/operator of several trucking companies and transportation firms in middle Tennessee. One of these, Reliable Transportation LLC, is listed in FMCSA Safer as an out-of service 15-truck carrier. The company’s authority was revoked involuntarily as of April 22, 2020, and then became effective last month.

The Franklin Police Department reported that Brock operated another company in Franklin called Active Transport LLC. He was also allegedly affiliated with other businesses in middle Tennessee including Star Express LLC. Tennessee Logistics LLC. Pat’s Transportation LLC. Brock Transport LLC. and Broadway Limousine LLC.

Brock was indicted for the following charges

Forgery of over $10,000
Three counts of identity theft
Computer crimes exceeding $10,000
Theft of over $10,000
Forgery of over $60,000
Computer crimes exceeding $60,000
Theft of over $60,000

On June 10, he was indicted. After his arrest, he posted $50,000 bond.

Detective Matthew Thompson of the Franklin Police Department stated that Brock is accused of stealing “one his now former employee’s identity and using that identity to enter several financial agreements without consent.” Franklin PD made this case public because, according to Thompson, he realized that “there may be more fraudulent activities yet to be discovered” and wanted to reach out people who worked with Brock to bring other frauds to light.

Franklin PD stated that it’s possible that Brock’s former co-workers or partners may have knowledge about this case or related cases.

Anyone with information about this investigation should contact Detective Matthew Thompson by email at [email protected].

FMCSA renews the under-21 exemption for U.S. Custom Harvesters

The Federal Motor Carrier Safety Administration renewed an exemption that removed U.S. Custom Harvesters Inc., (USCHI), is exempt from the intrastate restriction on drivers under 21.

The FMCSA regulations currently allow drivers of commercial motor vehicle engaged in custom harvesting in interstate commerce to be exempt from the minimum age requirement. Under the CDL regulations of the agency, states may impose a restriction (or “K”) that only applies to drivers who are driving within their state.

On Oct. 11,2023, FMCSA announced that it would provisionally renew USCHI’s exemption for two-years, pending an evaluation of any comments received as a response to this notice. After reviewing the four comments that were submitted to the docket FMCSA stated that it believes drivers who qualify for this exemption will achieve a safety level that is equal to, or even greater than the safety level that would be achieved if they adhered to the “K” restriction.

The exemption was granted originally in October 2018. FMCSA noted that “no special action or processing is required” by the states, who will continue to place the restriction “K” when requested. Enforcement officers would ignore it when drivers can prove eligibility for the custom-harvester exemption.

USCHI stated that it employs many drivers under 21 years of age who have CDLs with a “K” restriction. It also said that despite the exemption they are “frequently cited at roadside inspections due to the presence of the “K’ restriction on the license.” USCHI claims that this issue negatively affects the safety records of both drivers and employers.

The waiver will remain in effect until Oct. 3, 2025. Custom harvester drivers who are under 21 years old can display the exemption notice to “help explain that they may operate outside of the state that issued their CDL, even though the CDL has an ‘K’ restriction (interstate only).

To verify that drivers are operating legally as custom harvesters, they must provide three of the methods for verification found here.

Alaska requests renewal of waiver on entry-level training relief

The state of Alaska has requested the extension of a waiver which allows the state to waive certain portions of the CDL skill test for drivers who live in 14 geographical areas defined that lack the infrastructure to complete the full skills tests. The state has an exemption that lasts until Dec. 30, 2024.

Alaska originally requested an exemption from the entry-level driver training (ELDT) curriculum, which requires applicants to demonstrate proficiency with proper techniques for initiating a vehicle movement, executing right and left turns, changing lanes at speed, navigating curves while driving at high speeds, entering and exiting on the interstate highway or controlled-access highway and stopping the car in a controlled way. The state claimed that complying with this requirement would have “devastating impacts on rural Alaskans’ movement of produce, prescriptions and people.”

Drivers who are granted a restricted CDL in accordance with the provisions of this exemption cannot operate outside the 14 geographical areas defined.

FMCSA is seeking comments on the renewal request. Comments can be submitted here until July 18.