In an aerial view, cars travel along Interstate 80 in Berkeley, Calif., on January 16, 2024. The regulations that require automakers to build more efficient, cleaner vehicles are being loosened under the Trump administration.
Justin Sullivan/Getty Images North America
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Justin Sullivan/Getty Images North America
The Environmental Protection Agency is proposing to ditch rules that require automakers to build more efficient, cleaner vehicles. These changes aim to dismantle regulations that have pushed the industry towards reducing greenhouse gas emissions.
The EPA made an “endangerment finding” in 2009, declaring that carbon dioxide and other greenhouse gases are a form of air pollution that the agency can regulate. This determination underpins major regulations, including strict tailpipe standards designed to have at least half of new U.S. car sales be electric or plug-in hybrids by 2030. The transportation sector is the largest source of direct greenhouse gas emissions in the United States.
President Trump had pledged to roll back such rules, campaigning against “electric vehicle mandates.” His administration and Congress have already eliminated or weakened two sets of regulations aimed at reducing gasoline consumption.
Now, the EPA has published its proposal to revoke the “endangerment finding” and rewrite its tailpipe standards, effectively dismantling the third set of rules.
EPA Administrator Lee Zeldin announced the proposal on Tuesday, stating, “We heard loud and clear the concern that EPA’s GHG [greenhouse gas] emissions standards themselves, not carbon dioxide which the Finding never assessed independently, was the real threat to Americans’ livelihoods.”
The proposal must undergo a public comment period before becoming final, and legal challenges are expected. Automakers cannot instantly change their vehicle lineups.
This move is a win for oil and biofuel industries. It fulfills a campaign promise for President Trump, who has criticized the regulations as costly and limiting consumer choice.
Environmental advocates, however, are alarmed. Fred Krupp of the Environmental Defense Fund warned that “if there are no enforced limits on pollution, you get more of it, making life more expensive and even more dangerous.” Moms Clean Air Force called the rollback “a shameful, reckless, and immoral move.”
Three clean car standards – all being reversed
Vehicles in the U.S. have long been subject to three sets of efficiency and pollution rules.
The EPA sets tailpipe standards that regulate how much pollution a vehicle can release during operation.
The Department of Transportation, through the National Highway Traffic Safety Administration (NHTSA), manages fuel economy standards, known as CAFE (Corporate Average Fuel Economy). These require manufacturers to meet progressively higher average fuel efficiency targets for their new vehicle fleets.
California has historically set stricter pollution standards than federal regulations, including a mandate for zero-emission vehicle sales. Other states can adopt California’s stricter rules, influencing the broader auto market.
Combined, these regulations have driven automakers to produce more fuel-efficient and less polluting vehicles over decades.
The Trump administration has made significant efforts to reverse all three.
In May, Congress revoked the EPA waiver that allowed California to set its own zero-emission vehicle mandate. This was an unprecedented action.
The federal CAFE standards are currently under review. The Department of Transportation stated that compliance is too costly for automakers and drives up prices. Transportation Secretary Sean Duffy wrote in June that rewriting the rules “will lower vehicle costs and ensure the American people can purchase the cars they want.” However, consumer groups maintain that these regulations save drivers more in fuel costs over time than they add in upfront expenses.
Furthermore, Congress has removed fines for automakers failing to meet CAFE standards. This change, part of a recent tax and spending bill signed into law, could save major automakers hundreds of millions. It also removes the incentive for compliance, as there are no penalties for non-adherence.
Public comments and lawsuits
While the California waiver rollback and CAFE fines elimination are law, the EPA’s tailpipe standard changes are still a proposal. A public comment period will allow stakeholders to voice their opinions before finalization.
Legal challenges are already underway and are expected to continue. California has sued over the revocation of its EPA waiver. States and environmental groups have also challenged NHTSA’s CAFE standard changes in federal court.
Vickie Patton, chief counsel for the Environmental Defense Fund, expressed concern, stating, “This would be one of the most damaging actions, really, ever taken in the history of the Environmental Protection Agency.” She highlighted the link between climate change and issues like heat waves and fires, in addition to smog and soot from vehicles.
The oil and biofuels industries have long sought to roll back vehicle standards. The American Petroleum Institute called the standards an “intrusive government mandate.” The American Farm Bureau stated it would “pull the rug out from underneath farmers” growing crops for renewable fuels.
Automakers have expressed a desire for a single set of regulations rather than three overlapping ones. However, the recent elimination of consumer EV tax credits has compounded concerns about already slowing EV demand.
John Bozzella, president of the Alliance for Automotive Innovation, stated that the finalized regulations from the previous administration “aren’t achievable and should be revised to reflect current market conditions.” While some automakers may welcome relaxed rules, the back-and-forth between administrations and ongoing lawsuits create significant uncertainty for long-term planning.
Economist Beia Spiller notes that consumers generally prefer more efficient cars because they cost less to operate. However, buyers often prioritize upfront costs over future fuel savings. This dynamic suggests that regulations are crucial for driving faster adoption of cleaner vehicles.
The rollback is expected to increase emissions and long-term fuel costs for drivers. Automakers have invested heavily in cleaner technologies, and while some investments might be re-evaluated, hybrids are likely to remain popular.
