Crippled by the CRA? Lawful Pathways to California's Electric Vehicle Transition

September 2025
Citation:
55
Issue
5
Author
John D. Graham

Through a novel yet controversial application of the Congressional Review Act (CRA), in June the federal government disapproved the Environmental Protection Agency’s (EPA’s) waiver for California’s 2022 zero emission vehicle mandate. The state sued to overturn that disapproval, arguing that the federal government abused its authority under the CRA. This Article argues that California is likely to lose the statutory aspects of its litigation due to judicial rulings in 2007, when California’s original 2004 climate rule was upheld. It then argues that the loss will not be crippling because California has other tools at its disposal to accelerate the transition to electric vehicles. The state can issue a revised rule that is not substantially the same as the one disapproved by the U.S. Congress, which likely would require the state to win a subsequent lawsuit against the Trump EPA. A more promising strategy for California is new demand side policies, such as feebates and mileage fees with adjustments for fuel efficiency. The Article explains how the state can adopt targeted tax reforms with only a remote risk of preemption under federal law.

John D. Graham is Professor of Risk and Policy Analysis at the Indiana University School of Public and Environmental Affairs.