Volkswagen, other carmakers defend proposed emissions limits
Ford Motor Co. and the U.S. branches of Volkswagen AG, BMW AG, Honda Motor Co. and Volvo Cars Ltd. are asking to intervene in a federal lawsuit to defend California’s power under the Clean Air Act to set its own stringent emissions standards.
It marks the re-entry of major automakers into a fight that divided the industry under former President Donald Trump, who revoked California’s waiver allowing it to set its own emissions standards, which are generally more stringent than the federal government and have wide-ranging impact on the U.S. auto industry.
When President Joe Biden came into office, he directed the administration to reverse the decision and in March, the Environmental Protection Agency restored the waiver.
In mid-May, Republican attorneys general in 17 states challenged that decision in court. Led by Ohio, the suit argued the waiver violates the U.S. Constitution’s “equal sovereignty” principle. California and 19 other states also joined the suit defending the waiver powers.
In the motion filed Tuesday, the automakers listed their multi-billion dollar commitments to electrifying their fleets. California’s emissions regulations have “helped to maintain a level playing field” as the industry builds lower-emitting technology, they wrote.
“Now, electrification is the innovation that will eliminate emissions from vehicles while also providing drivers with performance, power, and digital integration that was never possible before,” the companies wrote. “Confirming the validity of the Waiver Decision will promote stability and regulatory certainty while the industry goes electric.”
Ford General Counsel and Chief Policy Officer Steven Croley and Bob Holycross, the company’s vice president for sustainability, environment and safety engineering, reiterated that automakers work on lengthy timelines to ensure vehicles can comply with emission standards.
“This is the right thing to do for people and for the planet. But it’s also important in the industry for its success moving forward,” Croley said Tuesday. “This step moves us closer to a zero emissions transportation future. It also creates regulatory stability … for the industry.”
Regulatory stability and predictability have long been central to the debate over whether California should retain its power to set standards. Trump announced his administration would revoke the rule in 2019, arguing that unified national standards would sell more cars and create more jobs.
It kicked off a legal battle that cleaved the U.S. auto industry into two camps: One siding with an environmental group in a lawsuit challenging Trump’s policy, and one siding with the administration.
California is the most populous state in the U.S. and accounts for around 11% of all new-car sales in the U.S., according to the National Automobile Dealers Association.
It’s a large market with a penchant for stricter environmental rules, which more than a dozen states have chosen to follow. That means the state wields immense influence over the U.S. auto industry, which often designs vehicles sold nationwide to fit California standards in an effort to streamline production.