House Adjourns Without Debt Deal; Congressional Republicans Urge EPA to Rescind Proposal

You Auto Know 05/26/23

House Adjourns Without Debt Deal; Congressional Republicans Urge EPA to Rescind Proposal


Negotiations between President Joe Biden and House Speaker Kevin McCarthy continued this week, though no deal has yet been reached on raising the debt limit. The House adjourned yesterday but were reportedly told to be prepared to return to Washington on short notice to pass a debt limit bill. The urgency is reaching a fever pitch as the clock ticks toward June 1, the unofficial deadline at which point the U.S. may be unable to cover its debts without raising the debt ceiling.


This week 151 Republican members of the U.S. House of Representatives and 27 Republican Senators sent separate letters to Environmental Proteciton Agency (EPA) Administrator Michael Regan asking that the proposed emissions standards be withdrawn. The House letter and Senate letter are in response to the EPA’s announcement in April that it would require the “strongest ever” emissions standards that would effectively mandate that 67% of new vehicle sales to be electric by 2032.

Also this week, the California Air Resources Board sought EPA approval for it’s plan to ban sales of gas-powered vehicles by 2035. California approved the plan last year, but still needs a waiver from the EPA. If the waiver is approved, seventeen other states, which have tied their own emissions standards to California, will also have to decide whether to adopt the ban on the sale of ICE vehicles.  The Biden Administration has thus far shied away from setting a firm date for phasing out gas-only vehicles.


The U.S. and E.U. appear to have made progress on a trade agreement on critical minerals.  This week the E.U. asked for a mandate from its 27 member states, indicating it is planning for a binding agreement with the U.S.  A deal is expected to allow European minerals to qualify under the battery rules of the Clean Vehicle Tax Credit. The next meeting of the joint U.S./E.U. Trade and Technology Council is scheduled for next week.


Reps. Adrian Smith (R-NE) and Jim Himes (D-CT) introduced legislation this week that would force President Joe Biden to re-engage in trade agreement talks with the U.K, which began under President Trump but which President Biden has declined to continue. The UNITED Act is identical to a bill that Sens. Chris Coons (D-DE) and John Thune (R-SD) introduced in March.



Quotes of the Week

EVs have to be affordable, they have to be available, and they have to be chargeable….Dealers are investing $5.5 Billion in their own [EV] infrastructure, so we hope everybody else is going to do their part as well.”

-Cody Lusk, President & CEO, AIADA (CBT News)

Given that the recent EPA announcement was only a proposal, we strongly urge you to rescind this ill-considered effort. Americans want the ability to choose the vehicle that best meets their needs, that is reliable, and that they can afford -- not be forced into buying an EV.”

            -Letter from 151 Members of Congress to EPA Administrator Michael Regan






AIADA President & CEO Cody Lusk joined CBT News to discuss the intersection of politics in Washington and car dealers. Check it out! (paywall)

Friday Feel Good

Here are just a few recent examples of how dealers are doing good:

Annapolis Subaru in Maryland donated $50,000 to Hope For The Warriors, which supports veterans and their families.

Falcone Automotive in Indiana donated $23,000 to the Little Red Door Cancer Agency & $22,000 to The Parks Foundation of Hendricks County.

We want to hear more about how you are supporting your local community – tweet us at @AIADA_News and use the hashtag #DealersDoGood.