It’s forgiven if you don’t understand what’s happening with the recent reversal of the United States Environmental Protection Agency’s (EPA) ruling on greenhouse gases. It’s ok if the whole CAFE fines thing seems confusing. The about-face in electric vs gasoline, environmental protection vs environmental pollution, and sustainable vs uncertainty has given many experts a case of whiplash.
In 2009, the Greenhouse Gas Endangerment Finding set the standard for what we know about the natural and man-made chemicals that create our air. In 2024, the EPA set higher standards for reducing greenhouse gases. Now, in 2025, the EPA has proposed backtracking on those claims in the name of preserving the American economy.
But who really benefits? Are greenhouse gases actually good now? And what does this mean for the cars we need to get us where we’re going? Here’s a breakdown of what’s going on and how it might impact you.
What Are Greenhouse Gases?
Greenhouse gases are very common, very real gases that naturally exist on planet Earth. Carbon dioxide, methane, nitrous oxide, water vapor, and ozone were all here long before humans existed.
It is incredibly easy to create greenhouse gases, too. From burning natural fuels like coal and oil to grazing livestock and manure production, increases in these gases can happen naturally. Around 2% of the increase in greenhouse gases can be blamed on industrial output waste, which are unfortunate byproducts of manufacturing, refrigerants, and solvents. These fluorocarbon gases stay in the air for hundreds of thousands of years and are thousands of times more capable of trapping heat within the planet.
The problem is that just as the cabin of an airplane is filled with the smell of someone’s stinky sandwich for the entirety of the flight, the planet can’t get rid of the extra gases our human activity creates. These trapped gases increase the planet’s temperature, impact weather patterns, as well as disrupt plant growth and thus food supply.
The impact of atmospheric gases upon humans and vice versa has been studied since the 1800s. Experiments in the 1850s proved that carbon dioxide and water vapor are impressively effective at absorbing and even trapping heat. In 1896, Swedish scientist Svante Arrhenius’s evidence suggested that burning fossil fuels and natural fuel sources would increase atmospheric carbon dioxide and the overall temperature of the planet. Furthermore, farmers have known since medieval times that there are lethal consequences to sharing a closed room with livestock.
Over the centuries, public awareness has increased as science and technological advances help us discover the consequences of inadequate waste disposal, aerosol chemicals, manufacturing fumes, and the consumption of fossil fuels, with modern science focused on finding a way to slow down inevitable and irreversible changes in air quality and chemical properties.
How Does This Impact the Automotive Industry?
Since the release of the 2009 Greenhouse Gas Endangerment Finding, officials have been working to set standards for greenhouse gas emissions. The 2009 Finding showed that emissions from automobiles had the potential to raise greenhouse gas levels to dangerous levels, creating pollution in the form of smog and soot and impacting breathing air, climate, weather patterns, and overall population health. The resulting Clean Air Act allowed the EPA to regulate air pollution, including greenhouse gas emissions and carbon dioxide.
On March 20, 2024, the EPA finalized a new set of standards aimed at reducing automotive emissions in phases through 2032. The main goal of these standards was to reduce smog- and soot-forming pollution with the intention of improving public health. Climate pollution and reduced vehicular maintenance costs (no gasoline or oil changes) were secondary.
But there’s a bit more to it. While the EPA regulates vehicle emission standards, or how much pollution a vehicle can make, the Department of Transportation (DOT) regulates actual fuel economy, known as Corporate Average Fuel Economy, or CAFE standards, which are administered by the National Highway Traffic Safety Administration (NHTSA). The NHTSA has been pushing for higher and higher fuel economy, while the EPA has been setting standards to lower emissions. This has caused automotive manufacturers to look for creative, sustainable solutions, specifically hybrid and all-electric vehicles.
What Is Changing?
On July 29, 2025, the EPA made a proposal to rescind the 2009 Greenhouse Gas Endangerment Finding. Under Section 202 of the Clean Air Act, the EPA will not have appropriate authority to make recommendations regarding greenhouse gases and emissions.
“We heard loud and clear the concern that EPA’s GHG [greenhouse gas] emissions standards themselves, not carbon dioxide which the Finding never assessed independently, was the real threat to Americans’ livelihoods,” stated EPA Administrator Lee Zeldin in the agency’s announcement of the proposal. If carbon dioxide is not actually air pollution, then it cannot be regulated by the EPA.
Without the appropriate authority, anything the EPA might recommend regarding greenhouse gases would have no bearing on Federal laws. The EPA has noted that it will continue to maintain pollutant and air toxicity measurement and criteria; however, engine and vehicle manufacturers would not be required to measure, control, or otherwise consider greenhouse gas emissions.
If current CAFE standards are not met, manufacturers can be charged a fine. Should those standards be revoked, there would be no fine. The DOT will continue to review these standards and rules, as it is felt that trying to adhere to these measurements is increasing vehicle prices.
Currently, these costs are offset to manufacturers and drivers alike through separate tax credits. Along with rescinding the Greenhouse Gas Endangerment Finding, eliminating EPA measurement and control of greenhouse gases, and removing fines for manufacturers who produce vehicles with high emissions, these credits would also be discontinued, in effect making it expensive to manufacture or purchase an electric car.
What Does This Mean for Our Cars?
In Zeldin’s statement, he notes that maintaining low emissions standards is more challenging to the “livelihoods” of Americans than the actual impact of increasing greenhouse gases.
However, electric cars are currently a significant portion of Americans’ livelihoods. Nearly every auto manufacturer across the globe has dedicated itself to an all-electric platform, from Alfa-Romeo and Aston Martin to Volkswagen and Volvo, with the Environmental Defense Fund announcing over $150 billion invested in adapting existing plants or building new EV manufacturing plants.
Furthermore, GM, Ford, and Honda are among the notable companies that employ hundreds of thousands of Americans to build these electric cars and their components. Georgia, Tennessee, Michigan, South Carolina, and Kentucky were among the states with the highest numbers of proposed new jobs in EV engineering, battery production, manufacturing, and assembly.
Are Electric Cars Going Away?
The direct beneficiaries of changes to back away from EV production are obvious. Oil companies and biofuel manufacturers are thrilled by the proposed reversal, with the American Petroleum Institute celebrating it as “a critical step toward restoring consumer choice.”
But it’s also important to note that gasoline-powered vehicles are not currently illegal, and discussions about how gasoline-powered vehicles might fit into an all-electric future are ongoing. At the same time, it is not clear that electric vehicles would not be produced or supported should the EPA regulation be repealed—they simply would no longer qualify for Federal tax credits for manufacturers or consumers. Without this type of financial support, many feel the EV industry simply doesn’t have the cash flow or traction to continue.
It’s hard to say how auto manufacturers will react at this point, with Ford’s official statement on the matter echoing many manufacturers’ desire to put this issue to rest: “America needs a single, stable standard to foster business planning.” Did greenhouse gases suddenly become good? No. Are electric vehicles terrible and illegal? No. Is pollution going to increase? Possibly. And unfortunately, we’ll have no solid answers until things continue to unfold.
