Emboldened by President-elect Trump’s victory, the American Petroleum Institute unveiled a policy agenda that includes stamping out a California regulation that aims to phase out new gas-powered vehicle sales by 2035.
“Looking at the results of last week’s election, it is clear that energy was on the ballot,” API President and CEO Mike Sommers said Tuesday on a call with reporters. “Voters across the country and on both sides of the aisle sent a clear message to policymakers that they want an all-of-the-above approach to energy, not government mandates and restrictions.”
The California Air Resources Board, which regulates the state’s air quality, passed a rule in 2022 known as Advanced Clean Cars II. At least 12 other states have since adopted the rule.
Under the federal Clean Air Act, California is permitted to enact regulations that are stricter than federal rules if it receives a waiver from the U.S. Environmental Protection Agency. The state has seven other waivers pending beyond the clean car rule.
On the call, Sommers detailed API’s policy roadmap, which he said was sent to the incoming Trump administration with a letter “highlighting concrete steps the incoming administration and new Congress can take to secure American energy leadership and help reduce inflation.” It includes rescinding the EPA’s waiver of the California rule, a move the group says would help preserve consumer choice to buy whatever vehicles they want.
“Our position is that we do not support the California ACC II rule, and we would like it to be repealed and that waiver to be denied,” Sommers said.
API is the only national trade association representing all aspects of the nation’s oil and natural gas industry. The group also wants to repeal the federal fuel efficiency standards that were drafted by the Biden administration. Sommers said those standards, known as the Corporate Average Fuel Economy, are too stringent and are biased in favor of a fast transition to electric vehicles.
“We understand that EVs are going to continue to play a key role in our transportation future, and we’re not opposed to them,” Sommers said. “They make sense for a lot of consumers, but they don’t make sense for all consumers. And what the EPA had envisioned under the Biden rules was that two-thirds of the vehicles sold in this country in 2032 would be EVs. That just does not make sense for American consumers.”
API also called for repealing EPA’s tailpipe emission standards, easing offshore and onshore exploration regulations, and protecting tax subsidies.
But California is taking steps to try to hold on to its climate and other policies that conflict with Trump’s conservative outlook. Gov. Gavin Newsom (D) has called a special session that, among other things, is expected to compile a war chest to fight the administration in court.
Newsom is also meeting with Biden administration officials this week to discuss the EPA waivers. Biden has until Jan. 19 to approve them. The waivers are not considered rules and so are not subject to the Congressional Review Act, a tool that gives Congress a window to review and repeal White House rules.
The state, which has the fifth largest economy in the world, also has the advantage of having its car regulation in place for two years. In that time, along with other states following suit, the auto industry has also shifted toward manufacturing more electric vehicles.
Asked about possible pushback from the automobile industry, Sommers demurred and stressed that consumers want choice.
“I can’t speak to where the auto industry is, but I can speak to where American consumers are,” Sommers said. “Americans deserve choices in the kind of car that suits their needs, and unfortunately, these heavy handed regulations from the federal government don’t meet the needs of most American consumers.”