The Trump administration's EPA, or Environmental Protection Agency, has announced a proposal to overturn 2009's Endangerment Finding, which forms the basis of key climate action initiatives as well as curbs on carbon emissions.
What Happened: U.S. EPA Administrator Lee Zeldin announced the proposal from a dealership in Indiana on Tuesday. An official press release by the agency outlines that rescinding the finding would repeal all "resulting greenhouse gas emissions regulations for motor vehicles and engines."
The endangerment finding lists harmful pollutants, like methane and carbon dioxide, that pose a risk to the environment resulting from the burning of fossil fuels and provides remedies to regulate them under the Clean Air Act.
The EPA, however, said that it lacked the legal authority to regulate emissions because of the finding and added that rescinding the finding would make cars more affordable and bring down the cost of living.
"With this proposal, the Trump EPA is proposing to end sixteen years of uncertainty for automakers and American consumers," Zeldin said.
The agency says that the proposal, if finalized, will save Americans $54 billion annually by repealing all Greenhouse Gas emission standards. The proposal also aims to remove all emissions norms for the auto industry.
Why It Matters: The proposal is the latest in a series of pro-gasoline and oil decisions taken by the Trump administration, as President Donald Trump recently signed the Big Beautiful Bill into law, which repealed the federal $7,500 EV credit.
Trump had also signed a resolution to overturn California's EV mandate, which aimed to phase out gasoline vehicles by 2035 in favor of EVs and Hybrid vehicles in the state.
The bill also effectively makes ZEV credit sales redundant by relaxing CAFE or Corporate Average Fuel Economy norms, failure to comply with which costs automakers hefty fines, which the companies could offset by either bringing the fuel economy up or buying ZEV credits.
However, such a proposal would be a boost for legacy automakers like General Motors Co. (NYSE:GM), which recently announced a $888 million investment in a V-8 engine manufacturing plant in NY.
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