On March 12, 2025, the U.S. Environmental Protection Agency (EPA) announced a series of deregulatory actions to roll back stringent greenhouse gas emissions standards for heavy- and light-duty vehicles established by the Biden administration. The move aligns with President Donald Trump’s campaign pledge to dismantle regulations aimed at accelerating the transition to electric vehicles (EVs).
The EPA will reconsider more than 30 regulations, including the and Later Light-Duty and Medium-Duty Vehicles and the , both finalized in March 2024 and considered among the most stringent emissions regulations to date. The review also extends to Biden’s Clean Trucks Plan, which includes the 2022 Heavy-Duty Nitrous Oxide (NOx) Rule aimed at curbing NOx pollution from heavy-duty vehicles.
These actions follow the administration’s January 2025 decision to s for light-duty vehicles.
The rollback effort is expected to face significant legal opposition from environmental groups and state governments; the announcement does not grant the EPA immediate authority to implement the changes. Under the Administrative Procedure Act, federal agencies must undergo a formal rulemaking process, including a public comment period and supporting scientific and economic analyses, before any modifications can take effect. Lawsuits will likely delay or even block parts of the deregulation effort.
This shift presents both challenges and opportunities for the biofuels sector. Loosening emissions rules could slow the adoption of alternative fuels, reducing incentives for ethanol and biodiesel. However, rolling back EV-focused policies may renew interest in low-carbon liquid fuels as a transitional solution to lowering transportation emissions without an immediate shift to full electrification.
For more information about emission standards, please refer to SGS INSPIRE's report.