Northwest Arkansas Democrat-Gazette
U.S. investigates California vehicle emissions deal
— President Donald Trump’s administration on Friday launched an all-out assault on California over mileage rules, opening an antitrust investigation and telling state officials that they appear to be violating federal law in a deal with four automakers setting tougher automotive emissions standards.
The emissions fight grew out of an effort by Trump to relax nationwide mileage standards adopted during President Barack Obama’s administration. California’s congressionally granted authority to set its own, tougher emissions standards under the 1970 Clean Air Act has long prodded automakers to adopt more fuel-efficient passenger vehicles.
Ford and Honda confirmed receiving a letter from the U.S. Justice Department informing them of an antitrust inquiry into a July deal with California, in which the two automakers along with Volkswagen and BMW agreed to stricter emissions standards than preferred by Trump.
The Department of Transportation and the Environmental Protection Agency sent a letter to California saying the deal appears to violate the Clean Air Act and other laws.
“Congress has squarely vested the authority to set fuel economy standards for new motor vehicles, and nationwide standards for GHG [greenhouse gas] vehicle emissions, with the federal government, not with California or any other state,” the agencies wrote in a letter dated Friday to the California Air Resources Board, which oversees auto emissions in the state.
In one of the letters seen by Bloomberg News, the Justice Department wrote it was concerned that the California agreement may violate federal antitrust laws, noting that the department hadn’t reached any conclusions on the matter. The department proposed a meeting to gather additional information about the emissions agreement and communications between the companies about the pact.
California has emerged as a leader of state-level efforts to block Trump administration moves weakening environmental protections. As part of those efforts, dozens of lawsuits have been filed challenging administration rollbacks.
Trump long has made clear he wants to end California’s clout in setting mileage standards. Gov. Gavin Newsom remained defiant in the face of Friday’s administration actions.
“The Trump administration has been attempting and failing to bully car companies for months now,” Newsom said in a statement.
“We remain undeterred. California stands up to bullies and will keep fighting for stronger clean car protections that protect the health and safety of our children and families.”
The July deal bypassed the Trump administration’s
plan to freeze emissions and fuel economy standards adopted under the Obama administration at 2021 levels.
The four automakers agreed with the California agency to reduce emissions by 3.7% per year starting with the 2022 model year, through 2026.
That compares with 4.7% yearly reductions through 2025 under the Obama standards, according to California.
Emissions standards are closely linked with fuel economy requirements because vehicles pollute less if they burn fewer gallons of fuel.
The Justice Department gave no details of why it believed the deal could have violated federal law meant to prohibit anti-competitive behavior by companies. The EPA refused further comment.
Former EPA attorneys who had worked on the federal emissions standards questioned the administration’s legal arguments Friday.
Congress in the 1970s granted California authority, through a waiver in the Clean Air Act, to pursue tougher automobile emissions standards, in a nod to the state’s battles against the especially tenacious smog in central and Southern California.
Lawmakers also allowed for other states to follow California’s tougher standards.
The move over the decades
has at times led to two different pollution and related mileage standards, one set by California and the states that follow it, and a federal one.
The Trump administration is now challenging whether California has that legal authority under the Clean Air Act.
“It’s crystal clear that it’s very hard to deny California a waiver” from national automobile emissions standards, said John Hannon, a retired EPA lawyer with decades of experience involving emissions standards.
“Congress set it up to give incredible deference to California’s authority to protect the health and safety of its residents,” Hannon said, referring to the Clean Air Act.
Russ Vought, acting director of the White House’s Office of Management and Budget, defended the Trump administration’s proposed fuel economy standards, saying they would make cars safer and more affordable.
“Unfortunately, California is trying to impose its failed policies on the rest of the country,” Vought said in a statement.
“Even worse for Americans on the road, a handful of irresponsible auto makers are aiding California’s radical agenda that will hurt every one of us.”
The antitrust investigation has echoes of a 1969 case brought by the Justice Department against a U.S. automakers’ trade association
over claims the companies conspired to eliminate competition in the development of anti-pollution devices on cars.
Yet that case was about restraining innovation whereas the current conflict with California is about increasing innovation by improving fuel efficiency, said Harry First, who teaches antitrust law at New York University.
“Is there anything anticompetitive here or is it pro-competitive?” said First. “The timing makes me concerned that it’s the Justice Department responding to political pressures rather than a real antitrust problem.”