On February 14, 2025, newly appointed U.S. Environmental Protection Agency Administrator Lee Zeldin announced in the Oval Office, alongside President Donald Trump, that the EPA would transmit to Congress requests to repeal of the Biden Administration’s electric vehicle mandates that granted waivers to California. These waivers enabled California to enforce air emission standards stricter than federal regulations for cars and trucks, effectively requiring new passenger car sales for model year 2026 to be 35% zero emission and eliminating the sale of gasoline vehicles by 2035.

The transmission of the requests to repeal these waivers granted to California marks a significant step in what could be a major nationwide regulatory rollback under the new administration; that is, this will impact the motor vehicles sold in all 50 states.

The Electric Vehicle Mandate

The EPA rules in question granted California waivers to preempt federal laws, encompassing the Advanced Clean Cars II, Advanced Clean Trucks, and Omnibus NOx rules. The totality of these three agency waivers not only targeted passenger vehicles but also commercial trucks, increasing vehicle costs and potentially affecting the broader economy through higher transportation costs.

Critics argue that such policies lead to increased costs for goods transported by truck and an overall higher cost of living for American families. The California standards have unintended consequences including halting the sale of many recreational vehicles including motorhomes.

President Trump campaigned against what he labeled the “electric vehicle mandate,” and the repeal became the subject of one of his administration’s day one executive orders. The transmission of the request to repeal these waivers to Congress is expected to have been only the first step in a broader effort to step back from greenhouse gas emissions regulations nationwide.

The Waiver Process Under the Clean Air Act

The 1970s amendments to the Clean Air Act grant California the ability to seek waivers from federal preemption, allowing the state to impose its own stricter air pollution emissions standards in response to 1970s smog. However, the EPA must approve the waiver request and did so in the final month of the Biden administration despite that smog is no longer a significant issue in California and for that matter, greenhouse gases are not a major contributor to smog formation.

Under Section 177 of the CAA, other states can adopt California’s emission standards if they are identical to those granted a waiver. Currently, 11 states, including Maryland and Washington, D.C., have adopted California’s vehicle emissions rules, accounting for nearly 30% of all cars sold in the United States, but affecting the marketplace nationwide with what critics term the Californication of the U.S. market (for example, without the repeal you will not be able to buy a motorhome in Maryland).

Related but different, the U.S. Department of Transportation has halted new funds to the National Electric Vehicle Infrastructure program and is seeking to claw back money from the states for EV chargers, again a target of Candidate Trump.

Separately but also significantly, Transportation is moving to undo fuel economy rules adopted by the Biden administration.

Congressional Review Act: A Path to Repeal

The Congressional Review Act, enacted in 1996, allows Congress to overturn federal agency rules. Agencies must report rulemaking activities to Congress, which then has a specified deadline to review and potentially nullify them. If a joint resolution of disapproval is introduced, passed by Congress, and signed by the President, the rule is retroactively negated as if it never existed.

One of the key provisions of the CRA is that if a rule is repealed, an agency cannot issue a substantially similar rule in the future unless explicitly authorized by Congress. This provision could prevent future administrations from reinstating California’s stricter emissions standards; such could be dramatic.

Despite its potential power, the CRA has historically been used sparingly, overturning only 20 rules since its enactment. However, given not only the new administration’s priorities but also the pendulum swing in sentiment for greenhouse gas regulation, most agree there is a strong likelihood of the successful challenge to California’s waivers.

No Judicial Review but Supreme Court Involvement

The issue of California’s emissions waivers has already sparked legal battles. The U.S. Supreme Court recently denied the federal government’s request to delay litigation brought by oil and gas companies seeking to overturn the EPA waiver on the Advanced Clean Cars rule, which applies to model years through 2025.

Opponents have already suggested a gray area exists regarding whether this waiver granted under the Clean Air Act constitutes a “rule” (versus a waiver) that can be overturned via the CRA. But significantly and dispositively the CRA bars judicial review of resolutions. Not to mention a Congressional resolution is quicker than administratively reversing the rule.

What Happens Next?

All Biden administration rules published in the Federal Register after August 15, 2024, are eligible for congressional review and potential repeal under the CRA. Given that Congress has 60 working days to act on an agency rule, the deadline extends into early May 2025. There were 49 repeal resolutions pending, 14 of which target EPA rules. And as of last Wednesday, three additional resolutions specifically seek to revoke California’s federal car and truck standards waivers.

When Congress overturns these vehicle emission waivers the impact will be far greater than only motor vehicles sold in the future in California and even in the 11 other states that have coopted these regulations. This move by Congress would mark a significant course correction in U.S. environmental and energy policy and will profoundly impact the nation.

We have already been working with businesses who are the fastest adapters to assist them with innovative solutions to the opportunities presented, not just in California but even in places like Maryland, where at the same time as these announced federal changes, the Governor is this week pursuing legislation to ration electricity for residences and businesses to have enough electricity in the grid for all electric buildings and electric vehicles.

There will likely be much media attention on this subject in the coming days, however, there is little doubt California will not be permitted to pull the nation around by the nose, and the waiver to exceed Congressionally approved national environmental standards will be quashed.