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

September 20, 2019
Owning the Energy Transition More...
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The U.S. Environmental Protection Agency rescinded California's waiver to the Clean Air Act that allows it to set its own more rigorous state-level regulations governing fuel economy and issue mandates for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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