This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news for car manufacturers, parts suppliers, car dealers, rental companies, and importers/exporters in the automotive industry. Once a week, we break down the most important updates in this space in under five minutes.

Want to track the upstream and downstream forces affecting Automotive? Don’t miss this week’s updates in Manufacturing and Oil & Gas.

Dates: 2026-01-05 to 2026-01-16

📋 In This Week's Newsletter

• 🏛️ This Week's Congressional Calendar
• 🇺🇸 Federal Government News
• 📚 What We're Reading This Week

This Week's Congressional Calendar

• House Judiciary Oversight Hearing on Transportation System Security: The House Judiciary Subcommittee on Oversight convenes January 21, 2026, in Rayburn 2141 for a hearing titled “Embedded Threats: Foreign Ownership, Hidden Hardware, and Licensing Failures in America’s Transportation Systems.”

Federal Government News

Presidential Proclamation and Negotiations on Imports of Processed Critical Minerals

President Donald J. Trump issued a proclamation on January 14, 2026, following the Commerce Department’s Section 232 investigation, addressing national security concerns associated with imports of processed critical minerals and derivative products. The findings identified supply chain vulnerabilities, price volatility, and reduced domestic production capacity as risks to defense and infrastructure. The proclamation directs the Commerce Secretary and the U.S. Trade Representative to negotiate agreements with trading partners, potentially establishing price floors or tariffs if unresolved within 180 days. Ongoing monitoring and periodic reporting on supply and negotiations are mandated.

Sources: www.whitehouse.gov

NHTSA Extends Public Comment Period for SAFE Vehicles Rule III

The National Highway Traffic Safety Administration announced a 15-day extension to the comment period for the proposed Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule III for model years 2022–2031 passenger cars and light trucks. Originally due January 20, the new deadline for submission is February 4, 2026, affording 60 days for public feedback on both the rule and the Draft Supplemental Environmental Impact Statement. The decision comes after requests for additional time due to technical complexity and wide-ranging impacts. NHTSA has declined requests for further public hearings, noting that the virtual January 7, 2026, hearing allowed all participants to testify.

Sources: www.federalregister.gov

DOE Reinstates Petroleum-Equivalent Fuel Economy Calculation for Electric Vehicles

On January 8, 2026, the Department of Energy amended regulations governing the petroleum-equivalent fuel economy for electric vehicles, removing revisions adopted in March 2024. This action complies with the September 2025 Eighth Circuit decision vacating the 2024 final rule, particularly regarding the fuel content factor. As a result, prior methodology and values for Model Year 2027–2030 revert to earlier calculations, with the petroleum-equivalency factor returning to 82,049 Wh/gal for qualifying EVs. DOE will review and update the rule within five years and publish findings in the Federal Register.

Sources: www.federalregister.gov

USITC Initiates Investigation into Loader and Excavator Component Imports

The U.S. International Trade Commission instituted Investigation No. 337-TA-1473 on January 2, 2026, concerning certain skid-steer loaders, compact track loaders, excavators, wheel loaders, dozers, and related components. The investigation is based on a complaint filed by Doosan Bobcat North America alleging patent infringement against Caterpillar, Inc., referencing U.S. Patent Nos. 7,831,364, 8,047,760, 8,364,356, and 10,934,684. The Commission will determine if violations exist and may issue limited exclusion or cease and desist orders upon finding such violations.

Sources: www.federalregister.gov

EPA Proposes Revision to DC Title V Operating Permit Program Fees

The Environmental Protection Agency has proposed approval of the District of Columbia Department of Energy and Environment’s revision to its Title V operating permit program, amending the fee schedule for major sources. The revision intends to secure adequate funding for program implementation, adjusting application and annual fees based on emissions and incorporating Consumer Price Index-based increases. The public comment period is open until February 9, 2026. The fee update follows recommendations from EPA program evaluations and aims to ensure continued compliance with Clean Air Act requirements.

Sources: www.federalregister.gov

What We're Reading This Week

• Europe and China Take Step to Resolve Dispute on Electric Vehicles: Volkswagen welcomed progress as both sides seek to ease EV tariff tensions.
• 5 auto industry trends for 2026: Hybrids, software integration, and tariffs are expected to be key influences in the automotive sector this year.

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