State emissions waivers at risk as EPA ramps up for challenge

July 18th, 2018 by Dakota Software Staff

The emissions standards set by California and other states, which are significantly more strict in some ways than those developed on the federal level, will likely soon face a challenge from the EPA and President Donald Trump's administration. Andrew Wheeler, the acting head of the EPA, told reporters in late July that he wants to work toward a unified, countrywide standard for fuel efficiency, the Associated Press reported. That change would have a major impact on the way automakers develop vehicles, the industrial and consumer markets for them and the enforcement practices of state and federal authorities.

EPA, White House push for single set of standards

"The emissions standards challenge could lead to a protracted legal battle."

The Sacramento Bee reported on legal scholars' opinions that a legal challenge involving the White House and states holding environmental waivers could easily lead to a protracted battle that is ultimately decided by the U.S. Supreme Court. The lack of legal precedent related to the specifics of the case mean it could easily be moved through the federal court system through a series of appeals. That means a quick resolution, regardless of which side it favors, is very unlikely.

However, it's also possible that the Trump administration may not push the matter that far, at least initially. Jeff Holmstead, a former EPA assistant administrator and lawyer, told The Bee current rumors indicate the administration could put forth a number of approvals for public comment potentially including a revoke of the emissions waivers, and only formally presenting that specific idea later. The situation is currently in flux, and it's possible the White House or the EPA could take a different approach when the time comes to act.

The San Francisco Chronicle said the uncertainty the issue creates for automakers is a major consideration for that entire industry. While separate standards exist for states with emissions waivers and those without, those numbers are relatively stable and allow manufacturers to design and produce cars in the long term. The potential for major changes where a single standard exists across the nation is attractive in the sense that car companies wouldn't have to take multiple sets of regulations into account. Without a determination one way or the other, those businesses are stuck in a state of limbo.

Wheeler's time on the job has been less tumultuous than that of his predecessor, Scott Pruitt, who departed earlier in July following a variety of ethics investigations. Wheeler's agenda hasn't seemed to vary much from Pruitt's, however, and businesses shouldn't expect major policy changes with the new interim head of the agency now fully installed. Although progress on the current emissions landscape isn't likely to arrive anytime soon, it's entirely possible that major changes could eventually arise.