Congress Takes ACTION – State Rights DISPUTE!

Congress has escalated the battle between federal authority and state’s rights by passing resolutions to overturn California’s special environmental waivers that have allowed the state to enforce stricter vehicle emissions standards for decades.

At a Glance

  • The U.S. House passed bipartisan resolutions to rescind three EPA waivers that permit California to set stricter emissions standards for vehicles
  • California has historically received over 100 waivers under the Clean Air Act, allowing it to address its unique air quality issues
  • At stake is California’s mandate requiring 35% of cars sold to be electric by 2035, eventually phasing out gas-powered vehicles
  • If approved by the Senate and President, the resolutions would prevent California from enforcing these regulations and impact 17 other states that follow California’s standards
  • California officials plan legal challenges, arguing Congressional Review Act doesn’t apply to state laws

California’s Special Status Under the Clean Air Act

California holds a unique position under the federal Clean Air Act (CAA) that allows it to request waivers from the Environmental Protection Agency to enforce more stringent vehicle emissions standards than federal requirements. This special arrangement, established due to California’s persistent air quality challenges, has resulted in the state receiving over 100 waivers since the CAA was enacted. The EPA must grant these waivers unless it determines that California does not need its standards to meet “compelling and extraordinary conditions.”

What makes these waivers particularly significant is that they influence national markets, as the CAA’s Section 177 permits other states to adopt California’s stricter standards. Currently, 17 states follow some or all of California’s vehicle emissions regulations, effectively creating a dual regulatory system in the United States for vehicle manufacturers to navigate.

Congressional Challenge to California’s Authority

In a significant development, a bipartisan coalition in the U.S. House of Representatives passed resolutions under the Congressional Review Act (CRA) to rescind three EPA permits that allow California to regulate emission standards for diesel trucks and set electric vehicle sales requirements. The CRA gives Congress the authority to review and potentially revoke federal agency rules within a certain timeframe after they are issued. This legislative tool has been invoked 20 times historically, with most occurrences happening during the Trump Administration. 

“By passing these resolutions, the House made it clear that we won’t let one state’s radical agenda dictate what Americans can drive,” testified Rep. Doug LeMalfa (R-CA), who represents the area north of Sacramento to the border with Oregon. “People deserve the freedom to choose the vehicles that works best for them—not to be forced into unaffordable electric vehicles that may not work for them.” 

The most controversial waiver requires that 35% of cars sold in California be electric by 2035, eventually mandating a complete phase-out of gasoline-powered vehicles. Two additional waivers pertain to freight trucks, requiring zero-emission operations by 2045 and the implementation of low-carbon diesel fuel requirements. All three waivers were approved or re-approved during the Biden Administration, making them targets for Republican lawmakers seeking to reverse these decisions. 

Legal and Political Implications

California officials aren’t taking this challenge lightly. If the Senate passes the resolutions and they receive presidential approval, California plans to pursue legal action. The state’s Attorney General Rob Bonta argues that EPA waivers granted to states are not subject to the Congressional Review Act, which he maintains was designed for federal rules, not state laws. This sets the stage for a potentially lengthy court battle over federalism and environmental policy. 

“For more than fifty years, California has exercised its rights under the Clean Air Act to pursue solutions to address the persistent air pollution challenges our state faces,” wrote California Attorney General Rob Bonta. “The Congressional Review Act was designed to provide a mechanism for congressional oversight of new rules by federal agencies – not for partisan attacks on duly-adopted state laws.”

Republicans view the CRA strategy as particularly powerful because if successful, it would prevent future administrations from issuing substantially similar rules. This means that even if Democrats regain the presidency, reversing this decision would be extremely difficult. The regulatory uncertainty has significant implications for manufacturers and fleet operators, many of whom have already invested heavily in complying with California’s standards. 

Industry Impact and Market Considerations

Automobile manufacturers find themselves caught in the middle of this federal-state power struggle. Some have claimed that meeting California’s 35% electric vehicle sales target by 2035 is challenging due to insufficient charging infrastructure. However, many have also made substantial investments to meet these goals, creating a complicated business landscape if the rules suddenly change. Private agreements like the Clean Truck Partnership may continue to advance emissions reduction objectives even if the government withdraws formal waivers.

The automotive industry faces significant uncertainty as they await the Senate’s decision and the potential legal challenges that would follow. For consumers, particularly those in California and the 17 states that follow its lead, the outcome could determine what vehicles will be available for purchase in coming years and potentially impact vehicle prices as manufacturers adjust to changing regulatory landscapes. 

“Heavy duty truck emissions create air quality issues that impact the health of my constituents and contribute to climate change,” pleaded Rep. Doris Matsui (D-CA) before the vote. “California’s emission standards are a matter of life and death—that’s why I’ve spent my career in Congress fighting for these standards.”