EPA to eliminate all greenhouse gas regulations

The U.S. Environmental Protection Agency is eliminating its authority to regulate greenhouse gases: EPA Administrator Lee Zeldin announced the agency’s proposal to rescind the 2009 endangerment finding.

Revoking the endangerment finding will not be easy. EPA will still face a grueling rulemaking process and many challenges in court.

If EPA successfully revokes the endangerment finding, it will dethrone all greenhouse gas standards for vehicles and engines, completely altering the market for fleet vehicles and components.

“With this proposal, the Trump EPA is proposing to end sixteen years of uncertainty for automakers and American consumers,” Zeldin said. “If finalized, rescinding the Endangerment Finding and resulting regulations would end $1 trillion or more in hidden taxes on American businesses and families.”

EPA said it will soon publish the proposal in the Federal Register, initiating the public comment period.

See also: Traton CEO on possible EPA27 delay: 'This is not making any sense'

What is the endangerment finding?

The 2009 endangerment finding is a landmark document that recognized public health dangers from the effects of global greenhouse gas pollution. The finding laid the groundwork for GHG standards for trucks. The agency deemed six gases a threat to public health: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. Notably, the EPA issued the finding after the Supreme Court ruled in 2007 that the EPA can—and must—regulate greenhouse gases under the Clean Air Act.

The finding is essential for all carbon dioxide regulations, including those affecting truck manufacturers and CARB’s waivers. The finding is not essential for other industry emissions standards, such as NOx or fuel efficiency requirements. However, EPA is also working to revoke many other recent emissions standards, including the latest NOx reduction standard.

Zeldin announced his plans to revise the finding in March, when he called the document “the ‘holy grail’ of the climate change religion” and said EPA would reevaluate all regulations that rely on the finding. According to E&E News, a draft revision to the document entered White House review in late June.

Trucking industry responds

The American Trucking Associations quickly issued a statement supporting the revocation, focusing on how the change could remove the latest GHG standards for heavy-duty vehicles.

“We commend President Trump and EPA Administrator Zeldin for taking decisive action to rescind the disastrous GHG Phase 3 rule,” said Chris Spear, ATA president and CEO. “We thank the Trump Administration for returning us to a path of common sense, so that we can keep delivering for the American people as we continue to reduce our environmental impact.”

The Clean Freight Coalition, founded in opposition to new GHG standards for heavy-duty vehicles, supported the announcement with the same focus.

"We appreciate President Trump and Administrator Zeldin for taking this critical step to rescind the Heavy-Duty Greenhouse Gas Phase 3 rule. The CFC members have consistently opposed the unnattainable targets including in this rule that would cause tremendous harm to the trucking industry, jeopardize the supply chain, and result in higher prices for goods across our country."

Not all organizations rejoiced over the revocation. The California Air Resources Board, with many of its heavy-duty emissions regulations dependent on the endangerment finding, denounced the step.

"Let's be clear, this move doesn't help the trucking industry. It hurts it, it penalizes fleets that have already committed to electric trucks, and throws a wrench into long-term planning for bussinesses across the industry," Craig Segall, former deputy executive officer and assistant chief counsel of CARB, said. "It creates market instability just when we need certainty."

What happens next

EPA will issue its proposal in the Federal Register and undergo a lengthy rulemaking process to revoke the standards. Environmental and political groups will challenge the proposal as much as possible through courts, leaving the ultimate fate of the endangerment finding unclear for now.

Revoking the endangerment finding is no small feat. Regulatory procedures require EPA to follow a notice-and-comment procedure, which, as law professor Harvey Reiter wrote in The Regulatory Review, can be a lengthy process. EPA will also need to describe how the revocation will affect all related regulations and markets.

“The agency must consider and address adequately all significant comments to avoid the taint of arbitrariness. That is no small feat,” Reiter said. “A rule that alters a major agency policy, such as the endangerment finding, is likely to engender thousands of comments.”

In addition, the move will face harsh challenges in court. Reviewing courts may require EPA to provide substantial evidence that greenhouse gases pose no likely threat to public health—a tough challenge considering the overwhelming scientific consensus on climate change.

If the revocation survives this guantlet, the repurcussions could be noticeable across all commercial vehicle fleets in the U.S. Emissions regulations are a massive component of vehicle markets and pricing. This year's tariff and GHG3 uncertainties are already disrupting U.S. commercial vehicle markets; revoking the endangerment finding could be a disruption many times larger.