Input Stories

The Senate has voted to nullify an EPA waiver that would allow California to set stricter vehicle emissions standards, “effectively killing the country’s biggest driver of EV investment” (The Wall Street Journal, subscription).

The state of play: The move, made in a 51–44 vote May 22, effectively kills a 2022 California measure later adopted by 11 other states banning the sale of gas-powered vehicles by 2035.

• Since the House has already passed the resolution, it will now go to President Trump for his signature.
• While most legislation requires 60 votes to advance in the Senate, Republicans determined the EPA waiver allowing California’s rule to move forward “is subject to the Congressional Review Act, which allows the Senate to overturn recent regulations by a simple majority vote.”

Why it matters: Vehicle manufacturers and dealers have said maintaining the waiver could hurt the industry by imposing unrealistic implementation timelines that will force consumers to buy cars they don’t want. Given the commitment of 11 other states to follow California’s lead, a significant share of the auto market would be controlled by these stricter standards.

The response: “California officials vowed to sue the Trump administration, calling the vote an attack on the state’s decadeslong effort to fight pollution and arguing that the tactic employed by Congress to overturn the waiver was unlawful.”

• The 1970 Clean Air Act allows California to obtain Environmental Protection Agency waivers that allow it to enact regulations that are stricter than federal limits.
• The state regulator that sets these mandates, the California Air Resource Board, said the regulations allow for enough flexibility for car makers to meet them.
• The stricter rules—opposed by car makers including Toyota and General Motors—were set to be implemented in phases starting next year.

Waning demand: U.S. consumers’ appetite for electric vehicles is decreasing.

• Sales of EVs, which make up about 7% of the American vehicle market, fell 5% in April—while the larger market grew 10%.

Related actions: The Senate passed two related measures aimed at limiting California’s ability to phase out heavy-duty diesel-powered trucks.

• “It voted 51 to 45 to stop the state from requiring the sale of a growing number of zero-emissions trucks each year.”
• It also passed a resolution to stop the state from forcing car makers to eliminate nitrogen-oxide emissions from new trucks.

The NAM’s take: “Manufacturers welcome [passage of this] important legislation which will rescind burdensome regulations that increase the cost of manufacturing vehicles due to overly aggressive targets and unrealistic implementation timelines,” NAM Managing Vice President of Policy Charles Crain said.