b'Marketer Member News FUELING A REGULATORY RESET The Three Branches Move to Rein in EV Mandatesreasserts federal authority over nationwide vehicle standards andAccording to the new rule, it is impermissible for NHTSA to restores some uniformity to what was fast becoming a fragment- consider the fuel economy of dedicated automobilesi.e., EVs ed emissions landscape.when setting standards. This is a pivotal distinction, as Biden-The Energy Marketers of America (EMA) attended the Whiteera CAFE rules projected light-duty vehicle fleets would average House signing ceremony, and EMA President Underwood50 mpg by 2031, a target largely achievable only with widespread welcomed the action as a necessary corrective to policies thatEV penetration. Such an approach positioned the CAFE program threatened to reduce consumer choice, raise vehicle costs, andas a de facto EV mandate. undermine the liquid fuels supply chain. Meanwhile, severalBased on this legal position, NHTSA is working on forthcoming statesincluding California, Washington, Oregon, and NewCAFE standards that will go through a full rulemaking process, Mexicofiled a lawsuit against EPA and the Trump Administra- including public comment. Legal challenges are also likely to tion to undo the CRA resolutions claiming that the CRA cannotfollow, and courts may ultimately weigh in on whether NHTSAs be applied to overturn regulatory waivers.interpretation aligns with congressional intent and the limits of agency discretion under federal energy statutes. If NHTSA prevails on its interpretation, the fleet-wide CAFE standards are SCOTUS Allows Fuel likely to contain a materially-reduced miles per-gallon threshold Marketers to Challenge EV Mandates for compliance.SCOTUS ruled 7-2 in favor of EMA and other fuel stakeholders challenging EPAs waiver that authorized Californias AdvancedTakeawaysClean Cars I (ACC I) rule. The decision grants energy marketersThe recent actions by Congress, the Executive, and the Supreme legal standing to challenge Californias stringent vehicle emis- Court do not mark an end to vehicle emissions regulation sions standards, remanding the case to the D.C. Circuit Court ofbut they do signal a critical course correction. The future of Appeals for further review on its merits. transportation energy must balance environmental progress with Californias ACC I rule imposed a statewide transition to EVsconsumer choice, economic feasibility, and energy security.through model year 2025, with major implications beyond theFor fuel marketers in the West and nationwide, this is a moment states borders, placing downward demand pressure on fuelof opportunityone that affirms the vital role of liquid fuels markets. The highest court emphasized that fuel marketersin the broader energy mix and sets the stage for more practical, claims are redressable, rejecting the D.C. Circuits reasoning thattechnology-neutral policies in the years ahead. That said, WPMA assumed the waivers effects were limited to model year 2025,members should remain vigilant, as states are likely to pursue when, in fact, its impact could extend indefinitely. creative regulatory strategies to limit emissions without relying on EPA waivers or EV-oriented efficiency policy. NHTSA Signals Shift Awayfrom EVs in Fuel Economy PolicyOn June 11, 2025, NHTSA issued an interpretive rule revisiting the legal framework underpinning current CAFE standards for passenger vehicles and fuel efficiency rules for medium- and heavy-duty trucks. While not rescinding current standards, the rule clarifies that prior regulations unlawfully relied on the inclusion of EVs in calculating average fuel economy under the Energy Policy and Conservation Act. SWPMA News / Summer 202521'