NADA DIRECTOR’S MESSAGE BY RICK DeSILVA, JR., DIRECTOR, NADA Major Issues Addressed by NADA NADA continues to advocate aggressively on issues critical to the retail automotive industry. The following is an update on key developments. Please feel free to contact me at rdesilva@libertycarsnj.com with any questions. CONGRESS VOTES TO REVOKE CARB ZEV MANDATES In a major victory for auto dealers and consumers, Congress passed joint resolution H.J.Res.88, under the Congressional Review Act (CRA), to revoke the California Air Resources Board (CARB) waiver for its Advanced Clean Cars II rule (ACCII), which would have banned sales of both gas-powered and hybrid vehicles. Reflecting on the House’s bipartisan passage of the resolution, NADA emphasized the consumer impact: “NADA lauds the House of Representatives’ bipartisan passage of H.J. Res.88, which would revoke California’s rule to ban gas and hybrid vehicles in 12 states. Because California’s mandate forces automakers to deliver EVs for sale irrespective of consumer demand, … the rationing of new gas cars will leave consumers with far fewer vehicle choices and will force consumers throughout the country to pay more for new and used cars.”1 Following the Senate vote, NADA continued its support, focusing on the broader implications: “NADA applauds the Senate for its passage of legislation which stops California regulators from banning gas and hybrid vehicles in twelve states. This unrealistic mandate, coupled with an insufficient and unreliable charging infrastructure, would have drastically reduced consumer choice and raised prices for new and used cars and trucks for all Americans.”2 NADA and ATD also supported heavy-duty resolutions H.J.Res.87 and H.J.Res.89, which also passed. These respectively revoke California’s waivers to ban new heavy-duty diesel trucks and impose stricter NOx limits than federal standards. On June 12, 2025, President Trump signed these resolutions into law, so these CRAs will now block the EPA from granting similar waivers without Congressional approval. IMPACT OF TARIFFS On April 29, President Trump announced an Executive Order exempting automobiles and auto parts from steel and aluminum tariffs. Under the order, auto parts will be subject only to the auto tariff, and automobiles in noncompliance with the United States-Mexico-Canada-Agreement (USMCA) and parts from Mexico and Canada will no longer face both the 25% “fentanyl” tariff and the 25% auto tariff. OEMs will also receive a credit toward tariffs on imported parts (including those payable by suppliers), applicable to vehicles assembled in the United States between April 3, 2025, and April 30, 2026. NADA has been outspoken with the Administration, Congress, and regulators on the negative impact tariffs have on vehicle affordability, sales, and dealership viability. EPA RECONSIDERS UNREALISTIC ZEV MANDATE Current EPA Multi-Pollutant Emissions Standards for light- and medium-duty vehicles, and Greenhouse Gas (GHG) Emissions Standards for heavy-duty vehicles require the increase of ZEV sales volumes beginning by model year 2027, which must reach 56% by 2032. However, the EPA announced in March that it will be reviewing those standards along with the heavy-duty low NOx regulation, setting more stringent diesel tailpipe standards for heavy-duty trucks. In February, the Transportation Freedom Act (S.711) was introduced, which would repeal the EPA’s overly aggressive emissions rules for light- and heavy-duty vehicles, repeal NHTSA’s CAFE standards, and revoke California’s ability to regulate vehicle emissions. A House companion bill (H.R.2814) was introduced as well, and in support of this legislation, NADA is urging members of Congress to co-sponsor S.711/H.R.2814. NADA and ATD will continue to work with the current administration to push for more realistic emissions regulations. 1. https://www.nada.org/nada/press-releases/nada-lauds-house-passage-legislation-stopping-californias-ban-new-gas-cars 2. https://www.nada.org/nada/press-releases/nada-applauds-senate-passage-legislation-stop-california-banning-gas-cars 10 NEW JERSEY auto retailer
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