EPA reinstates Calif.'s authority to set vehicle emissions rules, ZEV mandates

The EPA is withdrawing its portion of the interpretation of the Clean Air Act that would prohibit other states from adopting California's greenhouse gas emission standards.

March 09, 2022 02:50 PM

WASHINGTON — The nation's largest auto market and the world's fifth-largest economy has regained the authority to set its own auto tailpipe rules and zero-emission vehicle mandates that are more stringent than federal standards.

The EPA on Wednesday reissued a waiver under the Clean Air Act allowing California to pursue its own tailpipe greenhouse gas emission standards and ZEV mandates and reversing a Trump-era rule that sought to block states from doing so.

"Today, we proudly reaffirm California's longstanding authority to lead in addressing pollution from cars and trucks," EPA Administrator Michael Regan said in a statement. "Our partnership with states to confront the climate crisis has never been more important."

"With today's action," he continued, "we reinstate an approach that for years has helped advance clean technologies and cut air pollution for people not just in California, but for the U.S. as a whole."

NHTSA in December withdrew its portions of the Trump administration's rule, known the Safer Affordable Fuel-Efficient, or SAFE, Vehicles Rule Part One.

With the EPA's action, the agency is withdrawing its portion of the interpretation of the Clean Air Act that would prohibit other states from adopting California's greenhouse gas emission standards.

"As a result, other states may choose to adopt and enforce California's ... standards in lieu of the federal standards, consistent with section 177 of the Clean Air Act," the EPA said.

The agencies' combined actions are driven by President Joe Biden's executive order from January 2021, which directed the U.S. Department of Transportation and the EPA to reconsider the Trump administration's 2019 decision to revoke California's authority.

The EPA granted California the waiver in 2013.

The EPA's move comes as the California Air Resources Board is developing regulations that would accelerate the transition to ZEVs and strengthen emission standards for new light-duty cars and trucks sold in the state.

The requirements would start with the 2026 model year and move to 100 percent sales of ZEVs starting in 2035, a spokesman told Automotive News in January.

Responses to Wednesday's EPA action

“Automakers are committed to working cooperatively and constructively with California and other states to ensure vehicles are efficient, clean and affordable for all. Collaboration between governments at all levels will be essential to achieving our shared goals for a cleaner transportation future that benefits all communities and enhances U.S. economic competitiveness.” — John Bozzella, CEO, Alliance for Automotive Innovation

“Ford is still proud to be the only full-line American automaker to have agreed to comply with California’s stricter emissions standards. It was the right thing to do for people and the planet before the last election, it’s the right thing to do now, and we’re committed to continuing to do the right thing going forward as we lead the electric vehicle revolution.” — Bob Holycross, vice president of vice president of sustainability, environment and safety engineering, Ford Motor Co.

“General Motors shares the administration and California’s greenhouse gas emission reduction goals and vision for an all-electric future. We are committed to working in collaboration with all parties and will review the details of the waiver. GM has laid out its plan to be carbon neutral by 2040 in global products and operations, and plans to eliminate tailpipe emissions from new light-duty vehicles by 2035. In support, GM is investing more than $35 billion in electric and autonomous vehicles through 2025 and will launch 30 EVs in that timeframe.” — General Motors Co.

“Stellantis is committed to carbon reduction, as evidenced by our $35-billion investment in vehicle software and electrification that will support President Biden's environmental targets. Similarly, we look forward to working with CARB as we deliver affordable solutions that contribute to sustainable mobility, while also preserving jobs.” — Stellantis

“President Biden’s strict auto emissions regulations are yet another example of this administration putting a radical rush-to-green regulatory regime ahead of restoring America’s energy dominance and leadership. This decision prioritizes stringency over safety and consumer affordability. Instead of unleashing energy here at home to help lower gas prices and help families pay for record-high inflation, President Biden is doubling down on more command and control over the cars and pickup trucks we drive, without any concern if families can afford the vehicles that meet his standard.” — Rep. Cathy McMorris Rodgers, R-Wash.

“California was the first state to set 2035 as the target by which all vehicles sold must be zero-emission. The restoration of California’s waiver will help make that goal a reality by enabling California to set even more ambitious pollution standards in the future.” — Sens. Dianne Feinstein and Alex Padilla, D-Calif.

“Reinstating California’s Clean Air Act waiver to adopt standards stronger than federal standards for new cars and light-duty trucks is vital to California and has a positive ripple effect on states across the country, driving forward climate progress and delivering cleaner air for millions of Americans.” — Sierra Club President Ramón Cruz

A December draft of California's clean cars rule shows the state aims to reach 61 percent ZEV sales by 2030, which is higher than Biden's goal of 50 percent ZEV sales nationwide by the end of the decade.

Biden's executive order last year also directed a review of fuel-efficiency standards for light vehicles.

The EPA in December finalized a tougher-than-expected rule on vehicle greenhouse gas emissions for the 2023 through 2026 model years that could act as a regulatory driver for speeding up the industry's electrification plans.

NHTSA is expected to issue its rule on fuel economy standards this month.

Legal battle

In a 2019 lawsuit, California and 23 other states and environmental groups challenged the Trump administration's decision that federal law prevents California from setting its own rules.

A group of automakers — including General Motors, Stellantis, Hyundai, Kia, Mazda, Mitsubishi, Subaru and Toyota — and the National Automobile Dealers Association intervened in the lawsuit, with the goal of supporting one national fuel economy and greenhouse gas program.

In November 2020, GM withdrew its support of the Trump administration in the suit. NADA and the remaining automakers withdrew in February 2021.

A handful of automakers — Ford Motor Co., BMW, Honda, Volkswagen and Volvo — sided with California in 2020 to meet stricter vehicle emissions standards through the 2026 model year.

During his confirmation hearing, Regan told U.S. senators he would work to ensure states can set their own standards.

In July, a group of 16 Republican attorneys general urged the EPA to not reinstate California's waiver. They argued that any attempt to restore the waiver would be "unconstitutional" because "a federal law giving one state special power to regulate a major national industry contradicts the notion of a union of sovereign states."

Sixteen other states and the District of Columbia have adopted California's stricter vehicle emissions standards, representing more than one-third of all light-vehicle sales in the U.S.