Automakers Caught Between What Consumers Want And The PRC Wants

Pretty much because the People’s Republik of California doesn’t care what their people want

Automakers Caught Between What Trump Wants and California’s EV Demands

A legal battle between the Trump administration and the state of California over vehicle emissions policy is about to get hot-the consequences could reshape the U.S. auto market and the economics of electric vehicles.

At issue is California’s long-standing authority to set its own vehicle-emissions standards under a federal waiver granted by the Environmental Protection Agency. For decades, administrations of both parties have approved those waivers, allowing the state to impose stricter pollution rules than federal law requires. Eleven other states, representing roughly 29 percent of U.S. new-vehicle sales according to S&P Global Mobility, follow California’s framework.

Waivers can be rescinded

That arrangement is now under threat. Congressional Republicans moved to nullify California’s latest waiver using the Congressional Review Act, a mechanism typically used to overturn recently adopted federal regulations. President Donald Trump signed the measure in June. California filed suit the same day, arguing that Congress and the EPA improperly reclassified its waiver as a “rule” subject to reversal under the act.

So, not just Trump? It was a TDS headline?

According to Reuters, the case is scheduled for a hearing in federal court in Oakland, where the administration has moved to dismiss the lawsuit. California contends that a waiver is a case-specific determination, not a broad regulatory rule, and therefore falls outside the scope of the Congressional Review Act. The Government Accountability Office reached a similar conclusion last March, stating that such waivers are not rules because they do not represent a general application of policy. Congressional Republicans have countered that Congress retains authority to determine what qualifies as a rule under the statute.

State and federal policies are now moving in opposite directions. California has adopted regulations that would require all new passenger vehicles sold in the state to be zero-emission by 2035, with escalating targets beginning this year. The Trump administration has dismantled key elements of federal EV support.

Let’s consider that most of the regulations were passed by the unaccountable and not-elected California Air Resources Board. Sadly, not one reporter has asked the members of CARB if the themselves drive EVs. At least that I’ve ever seen. Nor have they asked Gavin Newsom or any of the elected Democrats who back this.

How about if we ask the citizens of California their thoughts? At least the ones who are staying, vs the ones who are getting the f*** out of the PRC.

If California wins, automakers could find themselves navigating two conflicting regulatory regimes within the same country. They would need to continue developing and selling increasing volumes of zero-emission vehicles in California and aligned states while operating under looser federal requirements elsewhere.

If the PRC wins once this ends up at the Supreme Court automakers can simply make a small number of EVs for California and sell them at their real cost, rather than losing oodles of money. What do the citizens of California and the follow on states actually want? How about asking them?