Federal Rollback of EPA Waivers Curtails California’s Emissions Authority and Fleet Electrification Mandates
On June 12, President Donald Trump signed three Congressional Review Act resolutions that revoke EPA waivers previously granted to California, effectively blocking the enforcement of the state’s Advanced Clean Cars II (ACC II), Advanced Clean Trucks (ACT), and Omnibus Low NOx regulations.
These waivers had allowed California—and 12 other states that adopted its standards—to implement stricter emissions rules and push for electric vehicle adoption.
The rollback affects about 100 million Americans, or 35% of the U.S. vehicle market.
In response, California officials filed a lawsuit challenging the move, arguing the waivers fall under the Clean Air Act and are not subject to congressional repeal.
While CARB retains authority over in-use emissions and some state-level rules, its Advanced Clean Fleets (ACF) regulation has been significantly narrowed: mandates for state and local government fleets remain, but those for private and commercial fleets are no longer enforceable.
Used-Vehicle Market Holds Steady as Inventory and Affordability Challenges Persist
At the start of June, used-vehicle inventory in the U.S. declined slightly from May but remained nearly unchanged year over year at 2.21 million units, according to Cox Automotive.
Canadian Auto Sales Rise in May, But Trade Tensions Loom
In May 2025, Canadian new light vehicle sales rose 7.9% year-over-year, with 187,000 units sold. Year-to-date sales are up 5.6%.