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EPA Sets Up Potential Challenge to California Regulations

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The Environmental Protection Agency (EPA) recently submitted the agency’s waivers issued between 2022-2025 to California to Congress for review.

The waivers enabled California to preempt federal car and truck emissions standards. Among the state’s regulations issued because of the waivers is the Advanced Clean Trucks rule, which affects motorhome sales in the state.

At issue is whether the waivers are rules under the Congressional Review Act (CRA) standards. The CRA mandates federal regulators to submit rules to Congress before the rules can be finalized. The administration under President Joe Biden did not consider the waivers a rule under statutory terms and did not submit them to Congress before the EPA approved the waivers. Under current President Donald Trump, the EPA is treating the waivers as rules.

If there is a dispute about whether the waivers are rules and subject to congressional oversight, the Government Accountability Office (GAO) will issue a ruling determining the waivers’ status. If GAO determines the waivers are considered rules under the CRA’s statutory terms, the waivers must be submitted to Congress.

GAO previously issued an opinion that EPA waivers are an “adjudicatory order” and not a rule subject to the CRA. The decision, issued Nov. 30, 2023, involved a 2013 waiver for California’s ACC I regulations. The ruling was reinforced in a Congressional Research Service report from August 2024, which said, “California’s CAA federal preemption waivers cannot be reviewed under the Congressional Review Act (CRA) because the waiver granted by EPA is not a rule as that term is defined in the CRA. Rather, the waiver is considered an order not subject to the CRA.”

Although the ruling is in place, congressional members can submit items they believe are rules to GAO. The agency is headed by the Comptroller General of the United States, Gene Dodaro, who has served in his position since 2008. GAO is an independent, non-partisan agency that works for Congress.

Once submitted to Congress, the chambers can initiate legislation to nullify the rules under the CRA. The process requires a majority vote in each chamber and the president’s signature. Congress has 60 legislative days to pass a joint resolution of disapproval after a rule has been submitted for review.

EPA Administrator Lee Zeldin said, “The Biden administration failed to send rules on California’s waivers to Congress, preventing members of Congress from deciding on extremely consequential actions that have massive impacts and costs across the entire United States. The Trump EPA is transparently correcting this wrong and rightly following the rule of law.”

RVIA said legislation to overturn the waivers is expected to be introduced soon, assuming the waivers are either unchallenged as rules or the GAO determines the waivers are rules. Even if Congress decides to revoke the waivers, RVIA said, the waivers will likely be subject to lawsuits and court deliberations over the next several months.

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