Biden Administration Protects California Vehicle Emission Rules
The Biden administration has reversed a rule issued under U.S. President Donald Trump that sought to quash California's vehicle emissions regulations.

Creative Commons
The Biden administration has reversed a rule issued under U.S. President Donald Trump that sought to quash California's vehicle emissions regulations.
The Department of Transportation told Reuters it is issuing final rules rescinding Trump’s action to bar California from setting vehicle rules that conflict with the federal government's authority to set Corporate Average Fuel Economy (CAFE) requirements.
California’s program, in place since 1975, sets vehicle fuel efficiency requirements.
"States can now pursue solutions to address the climate crisis and environmental challenges in their communities," Transportation Secretary Pete Buttigieg said in a statement.
The ruling comes after approximately two dozen U.S. states sued to block a pair of Trump actions that would have removed California from vehicle emissions regulations, while major automakers had backed the effort. After Biden become president in January, General Motors Co. switched gears and refused to block the Trump Administration’s efforts.
The U.S. Environmental Protection Agency (EPA) also has moved to reverse the Trump Administration's 2019 decision to withdraw California's authority to set vehicle emissions rules and set zero-emission vehicle mandates.
The EPA in 2013 granted California a waiver for its tailpipe greenhouse gas emissions and zero-emission vehicle regulations. Fourteen states have since adopted California's vehicle-emission rules and 11 have adopted its zero-emission vehicle mandates.
The EPA has finalized new vehicle emissions requirements through 2026 that reverse Trump's rollback of emission cuts and will propel the U.S. shift to electric vehicles (EVs). These mandates will reduce U.S. gasoline consumption by 15% through 2050, according to the EPA.
The EPA rules will mean the average new car or truck will achieve 40 miles per gallon by 2026, versus 38 mpg under the August proposal and 32 mpg under the Trump rules.
Biden is pushing that 50% of all new vehicles sold in 2030 be EV or plug-in hybrid models. He has not endorsed California's plan to phase out new gasoline-powered light-duty vehicles by 2035.
The Transportation Department is expected to complete its rewrite of CAFE standards in 2022.
More Dealer Ops

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
IA American Appoints Two Execs
Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.
Read More →
Cox Automotive Acquires Inspection Firm
Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities
Read More →
Assurant Expands Partnership With Holman
Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships
Read More →
Franchises, Throughput Down in First Half
A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.
Read More →