Fuel efficiency guidelines and California's right to set its own vehicle emissions standards are in the crosshairs of the Trump administration again.
Bloomberg has learned from sources that the administration will be introducing a proposal later this week that revises key parts of the Obama-era standards. This includes capping federal fuel economy requirements at 2020 level of 35 mpg fleet wide, instead of the 50 mpg requirement by 2025. There is also a provision that would revoke the Clean Air Act waiver given to California that allows it to set its own emission regulations.
Sources go onto say that the proposal is in the final stages of a "broad interagency review" being done by the Office of Management and Budget.
These changes were first introduced back in April and got massive pushback from various environmental groups, along with the state of California. A month later, a coalition made up of California, Washington D.C. and sixteen other states filed suit against the rollback. Automakers who pushed for the rollback began to panic as this could result in two different emission regulations they would have to meet.