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California Is Said to Ready Retaliation If Trump Cuts Auto Rules (Corrected)

March 27, 2018, 12:22 PMUpdated: March 27, 2018, 6:23 PM

As the Trump administration begins to dismantle Barack Obama’s ambitious auto efficiency regulations, California is said to be poised to retaliate by doing something that automakers have feared: de-coupling the state’s rules with those set in Washington.

The Environmental Protection Agency has concluded Obama rules to limit vehicle greenhouse-gas emissions are too aggressive and should be revised, according to people familiar with the determination. The agency is scheduled to make the decision public by April 1.

California intends to counter punch by revoking its so-called deemed to comply provision, two people familiar with the matter said. The obscure but important ...