U.S. Senate vote shakes market certainty in transportation sector

The vote today by the U.S. Senate to apply the Congressional Review Act (CRA) to three waivers issued to California under the Clean Air Act will make it more difficult for companies to acquire the cost-saving and cutting-edge vehicles they increasingly seek, Ceres said in a statement. 

“Businesses — both manufacturers and fleet operators — need policy certainty as they plan to build and adopt cutting edge, cost-saving vehicles,” said Michael Kodransky, senior director of transportation, Ceres. “California’s vehicle standards provide automakers and customers with a predictable and achievable onramp, helping to drive innovation in the auto sector. Undermining these policies will result in confusion across the transportation industry, hurting America’s ability to compete in a rapidly changing global auto market. In this period of uncertainty, businesses that have committed to transitioning to clean fleets must redouble their efforts to ensure they can access these innovative vehicles.” 

Businesses have long supported California’s clean vehicle standards because the provide the certainty fleets need to make informed plans and investment decisions as they transition to zero-emission vehicles that reduce costs for fuel and maintenance. In 2021, dozens of companies signed a statement calling on state lawmakers across the country to adopt policies that grow the market for clean medium- and heavy-duty vehicles, such as the Advanced Clean Trucks (ACT) rule, and have more recently called for its prompt implementation. 

The ACT rule and the light-duty Advanced Clean Cars II (ACC II) rule have since been adopted by several states, setting benchmarks for clean vehicle sales that increase over time. The policies have helped businesses and consumers access the vehicles that are in growing demand while providing a clear policy signal to manufacturers, charging installers, and utilities. 

The Congressional Review Act vote – already approved by the House – will upend the clean vehicle market in those states and make it more difficult for businesses to plan by repealing the waivers given to California to implement the rules. It is unclear whether such a waiver can be legally repealed under the CRA; both the Senate Parliamentarian and the U.S. Government Accountability Office have ruled this was not an allowable use of the CRA. 

Private-sector support for the rules continued as the CRA vote neared. This week, 30 businesses and investors wrote to the Senate ahead of today’s CRA vote calling for lawmakers to oppose the effort. Mindy Lubber, president and CEO of Ceres, which has supported companies in their advocacy for the California standards, also signed a letter to House leadership prior to its vote on the matter emphasizing the unprecedented nature and potential unforeseen consequences of using the CRA for a non-regulatory measure. 

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About Ceres

Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and resilient economy. With data-driven research and expert analysis, we inspire investors and companies to act on the world's sustainability challenges and advocate for market and policy solutions. Together, our efforts transform industries, unlock new business opportunities, and foster innovation and job growth – proving that sustainability is the bottom line. For more information, visit ceres.org.