Trump's EPA aims to take down EV mandates once and for all

The U.S. Environmental Protection Agency has released a proposal to rescind the 2009 Endangerment Finding, which has been used to justify regulations like the EV mandate. EPA Administrator Lee Zeldin announced the proposal on July 29 at an auto dealership in Indiana.

Zeldin said if finalized, this would "end sixteen years of uncertainty for automakers and American consumers," and "end $1 trillion or more in hidden taxes on American businesses and families.”

Revoking the 2009 finding will not be easy, however, and the EPA will still face a grueling rulemaking process and many challenges in court. But if successful, it will eliminate all greenhouse gas standards for vehicles and engines, completely altering the market for fleet vehicles and components.

EPA said it will soon publish the proposal in the Federal Register, initiating the public comment period.

What is the endangerment finding?

The 2009 endangerment finding is a landmark document that recognized public health dangers from the effects of global greenhouse gas pollution and laid the groundwork for GHG standards for trucks. The six gases deemed a threat to public health were carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. 

The finding is essential for all carbon dioxide regulations, including those affecting truck manufacturers and CARB’s waivers, but is not the basis for other industry emissions standards, like NOx or particulate matter, although the EPA is looking to revoke these as well.

Trucking industry reacts

Chris Spear, president and CEO of the American Trucking Associations, issued a statement supporting the revocation and discussing how the change could remove the latest GHG standards for heavy-duty vehicles.

“We thank the Trump Administration for returning us to a path of common sense, so that we can keep delivering for the American people as we continue to reduce our environmental impact.”

The Clean Freight Coalition, founded in opposition to new GHG standards for heavy-duty vehicles, supported the announcement with the same focus.

"The CFC members have consistently opposed the unattainable targets included in this rule that would cause tremendous harm to the trucking industry, jeopardize the supply chain, and result in higher prices for goods across our country."

The Specialty Equipment Market Association (SEMA) issued the following statement supporting the proposal:

"ICE vehicles remain the bedrock upon which the American people – families, small businesses, and automotive enthusiasts – rely to live their best, most prosperous lives, and to ban them is an affront to the American way of life. This announcement marks a significant policy shift that preserves vehicle choice and strikes a blow to the coordinated, nationwide efforts of unelected activist policymakers and environmental groups to dictate the kinds of vehicles Americans can drive."

Not all organizations rejoiced over the revocation. The California Air Resources Board, with many of its heavy-duty emissions regulations dependent on the endangerment finding, denounced the step. Craig Segall, former deputy executive officer and assistant chief counsel of CARB, said:

"Let's be clear, this move doesn't help the trucking industry. It hurts it, it penalizes fleets that have already committed to electric trucks and throws a wrench into long-term planning for businesses across the industry. It creates market instability just when we need certainty."

What happens next

The fate of the endangerment finding remains unclear for now, as EPA will issue its proposal in the Federal Register and undergo the lengthy rulemaking process to revoke the standards, while environmental and political groups will challenge the proposal through courts. The agency will also need to describe how the revocation will affect all related regulations and markets.

“The agency must consider and address adequately all significant comments to avoid the taint of arbitrariness. That is no small feat,” said law professor Harvey Reiter in The Regulatory Review. “A rule that alters a major agency policy, such as the endangerment finding, is likely to engender thousands of comments.”

If the revocation survives this gauntlet, the effects could be noticeable across all commercial vehicle fleets in the U.S. With this year's tariff and GHG3 uncertainties already disrupting U.S. commercial vehicle markets, revoking the endangerment finding could be a disruption many times larger.