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GM recognizes California's authority to set vehicle emissions rules

Published 01/09/2022, 04:46 PM
Updated 01/09/2022, 05:20 PM
© Reuters. FILE PHOTO: The new GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, U.S., March 16, 2021. REUTERS/Rebecca Cook

By David Shepardson

WASHINGTON (Reuters) -General Motors Co on Sunday said it had agreed to recognize California’s authority to set vehicle emission standards under the Clean Air Act.

The move will make the Detroit automaker eligible for government fleet purchases by the state of California, GM said.

The automaker made the commitment to recognize California's authority in a letter to California Governor Gavin Newsom. GM said in the letter it is "committed to complying with California's regulations."

Soon after Joe Biden was elected president, GM in November 2020 reversed itself and no longer backed an effort by the then-Trump administration to bar California from setting its own emissions rules.

"GM is joining California in our fight for clean air and emission reduction as part of the company's pursuit of a zero-emissions future," Newsom said. "This agreement will help accelerate California's nation-leading commitment to tackling the climate crisis."

GM announced in January plans to eliminate tailpipe emissions from new light-duty vehicles by 2035. In June, GM boosted global spending on electric and autonomous vehicles to $35 billion through 2025, 30% over its prior forecast.

"We are committed to working in collaboration with California to achieve an equitable transportation future," said GM's global public policy chief Omar Vargas.

In November 2019, California said it planned to halt all purchases of new vehicles for state government fleets from GM, Toyota and other automakers backing former President Donald Trump in the tailpipe emissions battle.

California said it purchased $58.6 million in General Motors (NYSE:GM) vehicles between 2016 and 2018.

In April, the Environmental Protection Agency (EPA) said it was moving to restore legal authority to California to set tough vehicle emission rules and zero-emission vehicle mandates.

In July, 16 Republican state attorneys general urged the EPA to reject reinstating California's authority. "The Golden State is not a golden child," they wrote.

GM previously backed overall emissions reductions in California's 2019 deal with rivals Ford Motor (NYSE:F), Volkswagen (DE:VOWG_p), Honda and others, but asked the Biden administration to give automakers more flexibility to hit carbon reduction targets.

© Reuters. FILE PHOTO: Morning traffic makes its way along a Los Angeles freeway in Los Angeles, California, U.S., September 19, 2019.    REUTERS/Mike Blake

California plans to ban the sale of new gasoline powered passenger vehicles starting in 2035, a step the Biden administration declines to endorse. Biden has called for 50% of new vehicles sold by 2030 to be electric or plug-in hybrid.

Last month, the EPA finalized https://www.reuters.com/business/environment/us-epa-finalizes-tougher-new-vehicle-emissions-requirements-2021-12-20 new vehicle emissions requirements through 2026 that reversed Trump's rollback of car pollution cuts and will speed a U.S. shift to more electric vehicles.

Latest comments

so Chad, becareful what you wish for..,.
California has the largest state economy in.the US. if it were a country it have the 5 largest economy in the world; if it left the united states the us markets would collapse and the revenue that it creates would not be there to prop-up most of the corrupt tax giveaway red states economies.
California needs to become its own country. The rest of the US wants nothing to do with them
Business is all about money. Govt is the biggest car buyer. U have to bend down on ur knees.
why would any business would subject their employees to Texass the state with gun toting crazies and a corrupt failed energy system. and a state were bigotry and rascism is the dominant force in the state's politics. then there's florida, the state slowly sinking into the sea. Florida, the state that jails anyone that tells the truth about the hospitalization rates and deaths by covid-19. a state governor that has blood on his hands.
Failed energy system?  I think the destructive powers of California's electrical energy system is well known.
without the hand outs from the blue states, most of the the dead beat, corrupt red state economies would go bankrupt, and that is a statistical fact.
Have fun living in fear you liberal government loving simp
Great move GM
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