July 23, 2018 / 4:58 PM / a month ago

U.S. to propose revoking Calif ability to set vehicle emissions rules, mandate EVs -- source

WASHINGTON, July 23 (Reuters) - The Trump administration is expected to propose revoking California's ability to set state vehicle emissions rules and mandate electric vehicles as early as later this week, a source briefed on the matter said.

The U.S. Transportation Department and Environmental Protection Agency are expected to unveil a proposed regulation that recommends freezing vehicle emissions requirements at 2020 levels through 2026. The proposal is sure to spark a massive fight with California and a dozen other states that have adopted the state emissions rules. Eliminating the mandate could hurt automakers like Tesla Inc and General Motors Co that are investing billions in EVs. (Reporting by David Shepardson Editing by Chizu Nomiyama )

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