S 711 — Transportation Freedom Act

Summary

Transportation Freedom ActThis bill reduces taxes on auto companies and repeals specified environmental regulations on cars and trucks.The bill establishes a new tax deduction equal to 200% of eligible wages paid or incurred by domestic producers of automobiles or automobile components, subject to limitations. It also allows an entity to reduce (and adjust) its financial statement income (for purposes of calculating liability for the alternative minimum tax) by the amount of eligible wages it elects to deduct.The bill nullifies the 2024 rules of the Environmental Protection Agency (EPA) regarding (1) the finalization of specified greenhouse gas (GHG) programs and the reduction of emissions from certain light-duty and medium-duty vehicles (e.g., cars and trucks that are under a certain weight) starting with model year 2027, and (2) phase three of GHG emission standards for heavy-duty vehicles (e.g., school buses and tractor-trailer trucks).It also repeals the 2024 rules of the National Highway Traffic Safety Administration (NHTSA) regarding corporate average fuel economy (CAFE) standards for certain cars, trucks, and vans. Additionally, the bill eliminates (1) the option given to California to set standards for car emissions that are more stringent than those set under the Clean Air Act, and (2) the option for other states to adopt California's standards. NHTSA and the EPA must establish new CAFE and GHG standards, respectively, for vehicles that are economically practicable and technologically feasible. The GHG standards may not require the production or sale of electric vehicles.

Bill Text

• Introduced Introduced in Senate Current html February 25, 2025

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill amends existing law to eliminate vehicle emissions waivers and repeals certain emissions standards.

• 42 U.S.C. 7543(b)

  "(4) No further waivers.--Notwithstanding any other provision of this section, beginning on the date of enactment of this paragraph, the Administrator shall not grant a waiver under paragraph (1) to enforce a standard for the control of emissions from new motor vehicles or new motor vehicle engines that differs from a standard established under this Act by the Administrator."

  This change prohibits the granting of waivers for emissions standards, strengthening federal control over vehicle emissions.

• 42 U.S.C. 7543

  The Administrator shall, after notice and opportunity for public hearing, waive application of this section to any State which has adopted standards (other than crankcase emission standards) for the control of emissions from new motor vehicles or new motor vehicle engines prior to March 30, 1966, if the State determines that the State standards will be, in the aggregate, at least as protective of public health and welfare as applicable Federal standards.

  This repeal removes the ability of states to receive waivers for their emissions standards, limiting state authority.

• 42 U.S.C. 7543

  If each State standard is at least as stringent as the comparable applicable Federal standard, such State standard shall be deemed to be at least as protective of health and welfare as such Federal standards for purposes of paragraph (1).

  This repeal removes the provision that allows state standards to be deemed sufficient if they are as stringent as federal standards.

• 42 U.S.C. 7543

  No such waiver shall be granted if the Administrator finds that—(A) the determination of the State is arbitrary and capricious,(B) such State does not need such State standards to meet compelling and extraordinary conditions, or(C) such State standards and accompanying enforcement procedures are not consistent with section 7521(a) of this title.

  This repeal eliminates specific criteria that once governed the issuance of waivers, further tightening federal emissions control.

• 42 U.S.C. 7543

  Nothing in this part shall preclude or deny to any State or political subdivision thereof the right otherwise to control, regulate, or restrict the use, operation, or movement of registered or licensed motor vehicles.

  This removal limits the states' ability to control or regulate motor vehicle operations in relation to emissions.

• 42 U.S.C. 7543

  "No State shall adopt or attempt to enforce any standard or other requirement relating to the control of emissions from either of the following new motor vehicles or nonroad vehicles..."

  This addition reinforces the prohibition on states adopting emissions standards for specific types of vehicles.

• 42 U.S.C. 7543

  with respect to any motor vehicle part or motor vehicle engine part is in effect under section 7541(a)(2) of this title, no State or political subdivision thereof shall adopt or attempt to enforce any standard or any requirement of certification, inspection, or approval which relates to motor vehicle emissions and is applicable to the same aspect of such part.

  This change eliminates the conditions under which states could enforce their own standards on certain vehicle parts.

Action History

1. February 25, 2025

   Introduced in Senate

2. February 25, 2025

   Read twice and referred to the Committee on Finance.

Sponsors

• Bernie Moreno · Primary
• Tim Sheehy · Cosponsor
• Jim Banks · Cosponsor
• James C. Justice · Cosponsor

Subjects