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Penske Truck Leasing Co. has taken legal action against the city of Sacramento, California, alleging that the city’s recently adopted environmental plan poses a threat to its sizable North Sacramento facility.

The lawsuit, filed in Sacramento Superior Court, contends that the 11-acre facility, utilized for truck rental, maintenance, and collision repair for over two decades, faces adverse consequences due to the city’s 2040 General Plan. Penske claims that the city violated provisions of the California Environmental Quality Act by failing to adequately inform the company about potential impacts on its property.

According to the lawsuit, the city did not provide Penske with proper notice regarding proposed changes that could affect its facility, as mandated by state law. This alleged lack of communication deprived Penske of the opportunity to participate in stakeholder meetings and voice its concerns.

In September 2023, Penske became aware of a City Council committee’s consideration of a truck usage ordinance just eight days before the meeting, as per the lawsuit. The proposed ordinance aimed to enable stricter review processes for new trucking businesses near neighborhoods, citing concerns about pollution and noise.

The lawsuit further claims that the 2040 General Plan would re-designate Penske’s facility to “Employment Mixed Use,” prohibiting manufacturing and industrial activities. Despite Penske’s requests for corrections to the general plan, the city approved it in February, prompting the legal challenge.

Penske asserts that the city’s actions violate state environmental laws, planning and zoning regulations, and even the U.S. Constitution’s Fifth Amendment regarding private property rights. The company alleges that instead of collaborating with industrial transportation firms to achieve emissions reduction goals, the city has opted to restrict and potentially eliminate transport-related activities.

In response to the lawsuit, city spokesman Tim Swanson stated that Sacramento is reviewing the complaint and determining the appropriate course of action.

Penske emphasizes its commitment to transitioning its facility to zero-emission operations in compliance with California’s carbon neutrality laws and executive orders.

As the legal dispute unfolds, the outcome could have significant implications for both Penske and the city of Sacramento, underscoring the complex intersection of environmental policy, economic interests, and property rights.