US Oil Industry Backs Rollback of Vehicle Climate Rules, Urges Caution on Power Plant Regulations

The American Petroleum Institute (API), the leading lobbying group for the US oil and gas industry, has thrown its support behind the Environmental Protection Agency’s proposal to repeal the legal foundation for greenhouse gas regulations on vehicles-but stopped short of endorsing a broader rollback that would affect power plants and other industrial facilities.

API President Mike Sommers said the group would not support repealing the “endangerment finding” as it applies to stationary sources, arguing that the EPA’s authority to regulate emissions from power plants and industrial facilities is well established. “We would not support repealing the endangerment finding for stationary sources,” Sommers said, adding that the regulatory case for those sectors is stronger and more durable.

The EPA is moving to finalize a proposal to repeal the 2009 scientific determination that greenhouse gas emissions endanger public health and welfare. Eliminating the finding would dismantle the legal basis for many of the federal government’s most significant climate regulations, particularly vehicle emissions standards, which environmental groups view as Washington’s most powerful tool for cutting emissions.

Environmental advocates warn that rolling back the finding ignores decades of science. Gretchen Goldman, president of the Union of Concerned Scientists, said the evidence linking greenhouse gas emissions to harm was clear in 2009 and “even more undeniable today.”

While backing the rollback for vehicles, API emphasized its support for maintaining regulations on stationary sources, including methane rules for the oil and gas sector. Sommers noted that the industry supports EPA authority to regulate methane, a potent greenhouse gas.

The EPA has already delayed implementation of methane rules introduced under former President Joe Biden. API officials say they are now working with regulators to shape “durable” and flexible standards that allow continued energy production while reducing emissions and encouraging innovation.

Industry-level lobbying dynamics shape which climate rules actually survive the political cycle, and they affect capex and disclosure planning across auto, oil and utility sectors simultaneously. Our sustainability-due-diligence and market-intelligence teams help clients build multi-scenario planning that stays robust across policy volatility.