The proposal by the Trump administration to revoke U.S. climate regulations has been positioned as a cost-saving measure for industries. However, legal experts and trade organizations warn that this move could create uncertainty and litigation risks for automakers, utilities, and manufacturers.
President Donald Trump’s administration recently announced plans to revoke the long-standing determination that greenhouse gas emissions pose a threat to human health, thereby eliminating the legal basis for greenhouse gas regulations in the U.S. Environmental Protection Agency (EPA) Administrator Lee Zeldin stated that the proposal will undergo a 45-day public comment period before implementation. If successful, this action would remove restrictions on greenhouse gas emissions from vehicle exhausts, power plants, and other sources, potentially saving companies $52 billion in environmental compliance expenses.
Some companies, which have already made significant investments to reduce emissions to comply with government standards, are concerned that the proposal could lead to regulatory uncertainty and legal challenges. Meghan Greenfield, a partner at Jenner & Block law firm and former EPA counsel representing auto industry clients, emphasized the importance of regulatory stability for industries as a foundation.
The EPA’s 2009 endangerment finding, issued during the Obama administration, affirmed the agency’s authority to regulate greenhouse gas emissions under the Clean Air Act following a 2007 Supreme Court decision. Reversing this finding could raise questions about state jurisdictions to pursue legal action against companies for past greenhouse gas emissions, introducing additional uncertainty for businesses.
Industry sources have revealed that the EPA’s proposed repeal of vehicle efficiency standards extends beyond tailpipe regulations, encompassing air conditioning efficiency tests and battery monitoring requirements. This move comes at a time when clean car sales are increasing, driving growth in U.S. battery and vehicle manufacturing sectors.
While industry groups have offered guarded responses to the EPA’s announcement, emphasizing the need for clear and consistent regulatory policies, concerns remain about the potential impact on reliability and customer costs. The power industry, responsible for a significant portion of U.S. greenhouse gas emissions, has been transitioning to cleaner energy sources to reduce carbon output.
The Alliance for Automotive Innovation has welcomed the deregulation of tailpipe standards, while the American Petroleum Institute and the American Trucking Associations have expressed support for repealing vehicle emission rules. The U.S. Chamber of Commerce, previously opposed to the repeal, is reviewing the proposal to provide feedback to the agency.
In addition to the EPA’s proposal, the Trump administration has scaled back climate change monitoring efforts, prompting external entities to safeguard data. This includes restricting access to the National Climate Assessment and discontinuing the National Oceanic and Atmospheric Administration’s list of billion-dollar natural disasters.