The Environmental Protection Agency (EPA) has announced its most aggressive move to date aimed at rolling back climate regulations tied to fossil fuels.
The details: According to various reports, the EPA has submitted a proposed rule to rescind the Clean Air Act’s “endangerment finding” clause, a measure that enables the U.S. government to regulate greenhouse gases due to carbon monoxide concerns.
The agency made the submission over the weekend, requesting that the Office of Management and Budget revoke the scientific finding.
The EPA initially called for cutting the measure in July of last year, as part of President Trump’s efforts to expand oil, natural gas, and coal production.
What they’re saying: “This week at the White House, President Trump will be taking the most significant deregulatory actions in history to further unleash American energy dominance and drive down costs,” White House spokeswoman Karoline Leavitt said in an email to CNBC.
EPA administrator Lee Zeldin will join President Trump at the White House to formalize the decision on Thursday, she added.
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Translation: The EPA's regulations on vehicle greenhouse gas output have played a key role in the agency's multi-year effort to push American automakers toward cleaner cars and trucks.
Under President Biden, these requirements became more stringent than they had ever been, and now, President Trump is pivoting 180°.
The Trump administration and Congress have also scrapped the consumer tax break for EV purchases, and have obstructed or modified federal funding for EV charging networks.
And so far, the auto industry has been broadly (but not entirely) enthusiastic about his plans.
The catch: Constant regulatory seesawing makes vehicle development and product planning (usually done years in advance) a colossal ordeal to keep up with.
Between the lines: The move is sure to spark legal challenges, with the endangerment finding being upheld in a 2007 Supreme Court decision and the higher court declining to hear an appeal challenging the measure as recently as 2023.
Bottom line: By targeting the foundational legal mechanism that has enabled federal climate regulation for nearly two decades, the Trump administration is attempting its most far-reaching reversal of environmental policy yet.
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