Trump Administration and California Are on Collision Course over Vehicle Emissions Rules

The Trump administration on Aug. 2 formally announced a proposal to freeze fuel economy standards and tailpipe emission standards for new cars.  In addition, it is proposing to revoke California’s authority to set more stringent rules.

This move by the Environmental Protection Agency and the National Highway Traffic Safety Administration, while expected for months, is the most significant action yet in rolling back efforts by the Obama administration and California to cut greenhouse gas emissions that contribute to climate change.  It also sets up an unprecedented legal battle between California and the federal government while breaking with decades of practice on regulating tailpipe pollution.

In fact, only hours after the announcement, California Attorney General Xavier Becerra has indicated he intends to file a lawsuit in conjunction with 19 other state attorneys general to challenge the proposal.

Taking aim at California’s waiver
Under current regulations put in place by the EPA and NHTSA under Obama in 2012, auto manufacturers must make continuing improvements in fuel economy and tailpipe carbon emissions through 2025, up to an average of 54 miles per gallon and 163 grams of CO2 per mile.  Built into the Obama-era regulations was a review process to assess manufacturers’ ability to meet those standards.  The Obama administration conducted its own midterm review in January 2017, concluding the planned increases in fuel economy and more stringent tailpipe standards should remain in place.

In April 2018 the agencies under the Trump administration reversed their earlier position, finding the standards were not feasible.  Now, the agencies have finished their review and seek public comment on a proposal to freeze both sets of standards at 2020 levels.

But the EPA and NHTSA’s proposal doesn’t stop at the national standards.  The agencies are also attacking California’s ability to set its own, more stringent standards.  Because 13 other states and the District of Columbia have chosen to adopt California’s standards, 35 percent of the U.S. population would be impacted by any change.

What legal questions does this showdown between California and the federal government raise?  In general, the Supremacy Clause of the United States Constitution provides that federal laws pre-empt, or supersede, conflicting state laws.  Some federal laws also contain “express pre-emption clauses” that lay out the exact kinds of state laws Congress intends to pre-empt.  The Clean Air Act’s express pre-emption clause generally bars states from setting their own laws relating to motor vehicle emissions.

But California has the unique authority to set its own motor vehicle emission standards due to the state’s notoriously poor air quality and its history of regulation predating congressional action on vehicle emissions.  This authority dating back to 1967 is enshrined in a Clean Air Act provision, allowing California to seek a pre-emption “waiver” from the EPA.  Other states can then opt in to California’s standards.  California has received numerous waivers from the EPA over the years for each new iteration of the state’s vehicle regulations.

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