David Shepardson and Clark Mindock
WASHINGTON (Reuters) – A U.S. appeals court on Tuesday upheld the Environmental Protection Agency’s decision to grant California a waiver from setting its own tailpipe emissions limits and requirements for electric vehicles.
A three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit rejected a lawsuit by 17 Republican-led states and organizations that sell or produce liquid fuels. In March 2022, the Environmental Protection Agency under President Joe Biden restored California’s ability to set its own zero-emission vehicle sales mandate and tailpipe emissions limits through 2025, reversing a 2019 decision made by then-President Donald Trump.
California Governor Gavin Newsom said “the court sided with common sense and public health against the fossil fuel industry and Republican-led states. This decision affirms California’s long-standing right to combat pollution from cars and trucks.”
Republicans argued that the rules gave California unconstitutional regulatory powers denied to other states.
The court rejected that argument and said reversing the EPA’s decision would resolve the state’s claims if automakers responded by selling fewer electric vehicles or cutting prices on gasoline-powered models, and said there was no evidence to support that conclusion.
In 1993, the Environmental Protection Agency approved the repeal of California’s first zero-emission vehicle standard.
In 2022, the Environmental Protection Agency restored California’s waiver authority under the Clean Air Act, which was previously granted in 2013. The Environmental Protection Agency also rejected a Trump-era decision to block other states from adopting California’s tailpipe emissions standards.
The California Air Resources Board (CARB) in August 2022 approved a landmark plan to end the sale of gasoline-only vehicles in the state by 2035 and set annual increases in requirements for zero-emission vehicles starting in 2026.
In May 2023, CARB asked the Environmental Protection Agency to approve a new waiver for new EV regulations under the Clean Air Act starting in 2026.
The Alliance for Automotive Innovation, which represents the interests of most major automakers, including General Motors (NYSE:), Volkswagen (ETR:), Toyota Motor (NYSE:) and others in February questioned California’s requirements for electric vehicles.
Last month, the Environmental Protection Agency approved stricter tailpipe emissions limits through 2032 that are looser than originally proposed in early 2023. Automakers will need to sell at least 50% of plug-in and electric vehicles by 2030 to meet regulatory targets. According to the original proposal, they needed to sell 60% of electric vehicles by 2030 and 68% by 2032.
Trump, who is seeking a return to the White House, has vowed to roll back electric vehicle regulations.