Automakers Could Gain Emission Relief Under Trump's EPA

The EPA’s Proposal to Rescind the Endangerment Finding

The Environmental Protection Agency (EPA) has released a proposal that could significantly impact the future of vehicle emissions regulations in the United States. This move seeks to rescind the Endangerment Finding, a key policy established during the Obama administration in 2009. The finding was based on the conclusion that human-created carbon dioxide emissions pose a threat to public health and welfare.

If finalized, this new ruling would remove the legal basis for many of the current emission standards that have been in place for years. Specifically, it would relieve the U.S. auto industry from obligations related to measuring, controlling, and reporting greenhouse gas emissions for highway engines and vehicles. This change could mark a major shift away from the federal government's push for electric vehicles (EVs).

Under the Biden administration, there were plans to have 30% to 56% of new light-duty vehicles be EVs by 2032. However, the proposed changes would eliminate these requirements. According to the EPA, this would mean that manufacturers would no longer have any future obligations for the measurement, control, and reporting of greenhouse gas emissions for any highway engine or vehicle, including those manufactured before the proposal was introduced.

While the greenhouse gas standard is being dropped, the EPA will continue to monitor and measure standards for criteria pollutants such as ozone, particulate matter, carbon monoxide, lead, sulfur dioxide, and nitrogen dioxide. Additionally, the EPA and the National Highway Traffic Safety Administration (NHTSA) will still conduct tests and label for Corporate Average Fuel Economy (CAFE) standards.

The EPA claims that this proposal could save more than $54 billion annually and undo the underpinning of $1 trillion in costly regulations. EPA Administrator Lee Zeldin previously referred to the Endangerment Finding as "the holy grail of the climate change religion."

Public Comments and Legal Challenges

As part of the federal rulemaking process, the EPA must allow for public comments after publishing the proposed rule in the Federal Register. Typically, this period lasts 30 to 60 days before a final decision is made. The Obama administration’s Endangerment Finding stemmed from a 2007 Supreme Court case, Massachusetts v. EPA, which ruled that the agency had violated the Clean Air Act by not considering the effects of greenhouse gases on climate change.

Environmental groups and individual states are expected to challenge the EPA’s proposal legally. The proposal itself is anticipated to be over 300 pages long. John Bozzella, CEO and president of the Alliance for Automotive Innovation, stated that the organization is reviewing the announcement to understand its implications for vehicle emissions in the future.

Bozzella also noted that the previous administration's vehicle emissions regulations may not be achievable and should be revised to reflect current market conditions. He emphasized the need for a single, stable standard that aligns with science and customer choice while promoting lower emissions and American manufacturing.

Industry Response and Market Realities

Ford expressed appreciation for the efforts of President Trump and Administrator Zeldin to address the imbalance between current emissions standards and customer choice. The automaker called for a “single, stable standard” that would support business planning and reduce carbon emissions over time.

This call for a single standard relates to a resolution signed by the president in June that removed the rights of 11 states, including California, to set their own higher emissions standards. A 2022 California Air Resources Board mandate aimed to require 100% EV new vehicle sales by 2035.

As pandemic-era EV growth slowed in 2023, the Biden administration proposed a rule mandating two-thirds of new light vehicles sold in 2032 to be zero-emissions vehicles. However, industry backlash led to a revised standard, reducing the target to 30%-56% EVs by 2032.

In 2022, Honda and Hyundai had the lowest corporate averages at 302 grams per mile, while Ford averaged 380 grams, General Motors at 388 grams, and Stellantis at 415 grams CO2 per mile.

Looking Ahead

With the EPA’s proposal to rescind the Endangerment Finding, the future of vehicle emissions regulation in the U.S. remains uncertain. As the public comment period begins, stakeholders across the automotive industry and environmental groups will closely monitor the developments. Should the EPA take greenhouse gases more seriously, it could reshape the landscape of vehicle emissions and the push for sustainable transportation.