As expected in the Trump Administration, the Environmental Protection Agency is reportedly considering rescinding the agency’s waiver to the California Air Resources Board for its Advanced Clean Trucks rule. In addition, the agency is expected to reopen the rulemaking on greenhouse gases for heavy duty trucks and engine emissions (the “GHG Phase 3 rule”). Also, the EPA is considering next steps on its NOx final rule, which presents several complicating issues.

On the legislative front, newly-elected Senator Bernie Moreno (R-OH) is working on standalone bill to direct reopening of GHG-Phase 3 rule, rescission of CARB ACT and NOx waivers, rescission of DOT/NHTSA CAFÉ standards, and elimination of Clean Air Act waiver authority to grant California waivers (which has been in the Act since the 1970s); the bill might possibly drop this week.

In the House of Representatives, Rep. Doug LaMalfa (R-CA) is working on a reconciliation package that would include reopening GHG-Phase 3 rule, rescinding the CARB ACT waiver, and eliminating Clean Air Act waiver authority. This could turn into a possible complementary bill to Moreno’s effort.

Addressing the final on NOx emissions is more challenging due to the issues involved, including the Clean Truck Partnership agreement among truck and engine manufacturers, which has been challenged in state court as an antitrust violation by the Nebraska Attorney General and other fuel groups. The concerns about reopening the EPA rule include:

1. Warranty requirements – this is a cost issue, and most seem to agree this is the biggest issue. There is a possibility that this could be addressed in an EPA technical amendment.

2. New emissions standard (.035gms/hph for MY27)– is not seen as much of an issue; most stakeholders seem to be able to live with this.

3. Cold start testing issue or “temperature” – there is a difference between the CARB and EPA rules, and this is one of the items covered in CTP agreement. It is unclear at this point how big of an issue this will be in reconsideration of the rule.