NEWS COMMENTARY

U.S. Environmental Protection Agency revokes the state of California's right to regulate fuel economy standards

Published:
September 20, 2019
Coverage:
Owning the Energy Transition More...
Activities:
Policy
by Tim Grejtak
Average importance

The U.S. Environmental Protection Agency rescinded California's waiver to the Clean Air Act that allows it to set its own more rigorous state-level regulations governing fuel economy and issue mandates for zero-emissions vehicles (ZEVs); this is ahead of a proposed federal law that would relax previous fuel efficiency standards. The California Air Resources Board, state attorney general, and governor responded by starting a legal challenge against the U.S. government. Clients should expect a drawn-out legal proceeding over states' rights to regulate fuel economy; market stability afforded through cooperation among automakers depends on how aggressively the Trump administration Department of Justice pursues antitrust investigations

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