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Trump Administration Poised to Pull California's Clean-Car Power

Trump Administration Poised to Pull California's Clean-Car Power

(Bloomberg) -- The Trump administration has decided to advance a plan to strip California of its power to regulate greenhouse gas emissions from automobiles on its own while federal regulators continue to finalize a plan to roll back fuel-efficiency standards set by the Obama administration, according to a person familiar with the matter.

The decision to separate the attack on California’s authority from the broader plan to ease emissions and fuel economy standards after 2020 was made Thursday during a meeting between President Donald Trump, Environmental Protection Agency Administrator Andrew Wheeler and Transportation Secretary Elaine Chao, the person said, who requested anonymity to discuss the deliberations.

Under the plan, the EPA would revoke the so-called waiver that has allowed the state to regulate tailpipe greenhouse gas emissions more stringently than federal rules, and underpinned the state’s requirement that companies sell electric cars in greater numbers each year.

The White House declined to comment. Emails to EPA, DOT and OMB seeking comment were not immediately returned after normal business hours Thursday.

In addition, the U.S. Transportation Department would assert that the California standards are preempted by federal fuel-economy regulations. The attack will leave intact California’s power to set tougher limits on smog-forming emissions from autos and other sources.

The procedural move allows the California attacks - an initiative championed by free-market and conservative groups - to proceed while the Trump administration continues to finalize new federal fuel economy and emissions regulations for new autos after the 2020 model year. The plans were initially proposed by the EPA and Transportation Department in August 2018.

The agencies intend to soon send a final rule formalizing the measures to the White House’s Office of Management and Budget for review before they can take effect.

To contact the reporter on this story: Ryan Beene in Washington at rbeene@bloomberg.net

To contact the editors responsible for this story: Jon Morgan at jmorgan97@bloomberg.net, John Harney

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