EPA Finalizes Repeal of Greenhouse Gas Endangerment Finding
In Short
The Situation: On February 12, 2026, the U.S. Environmental Protection Agency ("EPA") finalized the repeal of the 2009 Greenhouse Gas Endangerment Finding, which had served as the legal foundation for federal greenhouse gas regulations.
The Result: The final rule eliminates all federal greenhouse gas emission standards for motor vehicles and engines of model years 2012 to 2027 and beyond, along with associated compliance programs, credit provisions, and reporting obligations. The repeal immediately removes federal requirements to measure, report, certify, and comply with greenhouse gas emission standards for motor vehicles.
Looking Ahead: Environmental groups and states, including California, have announced plans to challenge the repeal in federal court, and states will continue to enforce their own greenhouse gas regulations, potentially creating a patchwork of requirements. Given the substantial likelihood of prolonged litigation, the regulatory landscape may remain uncertain for an extended period, so companies across all affected sectors should monitor developments closely.
On February 12, 2026, EPA finalized the repeal of the 2009 Greenhouse Gas Endangerment Finding, marking a significant shift in federal climate policy. The action eliminates the legal foundation that has supported virtually all federal greenhouse gas regulations since 2009 and repeals associated vehicle emission standards. As a major development in this space, there will undoubtedly be legal actions challenging the rule and further developments that will impact this regulatory landscape.
The 2009 Endangerment Finding was issued by EPA under Section 202(a) of the Clean Air Act following the U.S. Supreme Court's 2007 ruling in Massachusetts v. EPA, which established that greenhouse gases met the definition of pollutants under the Clean Air Act. Massachusetts v. EPA, 549 U.S. 497 (2007). The finding determined six greenhouse gases—including carbon dioxide—threaten the public health and welfare of current and future generations due to their effects on climate change. The Endangerment Finding served as the legal prerequisite for EPA regulation of greenhouse gas emissions at the federal level. It has been the legal foundation for nearly all federal actions to curb greenhouse gas emissions, including authority to regulate greenhouse gas emissions from vehicles, the oil and gas industry, and power plants.
In the new rule, EPA has now concluded that Section 202(a) of the Clean Air Act does not provide statutory authority for the agency to prescribe motor vehicle and engine emission standards for the purpose of addressing global climate change, and therefore there is no legal basis for the Endangerment Finding or resulting regulations. The agency has also determined that regulating greenhouse gas emissions is not necessary to fulfill its core mission of protecting human health and the environment.
The final rule eliminates all federal greenhouse gas emission standards for motor vehicles and engines of model years 2012 to 2027 and beyond. It also repeals associated compliance programs, credit provisions, off-cycle credits, and reporting obligations that existed to support the vehicle greenhouse gas regulatory regime.
The repeal has several immediate effects and will almost certainly generate significant legal activity. From a regulatory perspective, the final rule removes requirements to measure, report, certify, and comply with federal greenhouse gas emission standards for motor vehicles, in what EPA Administrator Lee Zeldin described as the "single largest deregulatory action in U.S. history." Environmental and public health organizations have announced they will challenge the repeal in federal court. California Governor Gavin Newsom has announced that the state will sue to challenge the repeal, and California and other states will continue to enforce their own greenhouse gas regulations, potentially creating a patchwork of state and federal requirements.
For those operating in the automotive and transportation sectors, this repeal eliminates federal greenhouse gas compliance requirements, including reporting and certification obligations. However, state-level regulations, particularly in California, may continue to impose separate requirements, and companies operating across multiple jurisdictions should carefully evaluate their ongoing obligations.
The energy industry may also see significant effects, as the Endangerment Finding has supported EPA's authority to regulate greenhouse gas emissions, including methane, from this sector. While the repeal action specifically addresses vehicle emissions standards, the Endangerment Finding has also served as the foundation for greenhouse gas regulations affecting pipelines, power plants, oil and gas production, petrochemicals, and other sectors, making it advisable for energy clients to track developments closely. Businesses operating in this industry should monitor for sector-specific regulatory guidance or rule changes as the implications of the repeal become clearer.
More broadly, given the substantial likelihood of prolonged litigation, the regulatory landscape may remain uncertain for an extended period. Companies across all affected sectors should factor in this uncertainty going forward and monitor this area as the situation continues to develop at the state and federal levels.
Four Key Takeaways
- EPA finalized its repeal of the 2009 Greenhouse Gas Endangerment Finding, removing all federal greenhouse gas emission standards for motor vehicles and engines, including compliance programs, credit provisions, off-cycle credits, and reporting obligations that supported the vehicle regulatory regime.
- While the repeal specifically addresses vehicle emission standards, the Endangerment Finding has also served as the foundation for almost all federal greenhouse gas regulations.
- State regulations remain in effect. California and other states will continue to enforce their own greenhouse gas regulations, creating a potential patchwork of state and federal requirements that companies operating across multiple jurisdictions must carefully navigate.
- Environmental and public health organizations, along with California and potentially other states, have announced legal challenges to the repeal, creating uncertainty in this regulatory space.
