This Week in Automotive — Washington (#26, 2026)
DOE proposes Process Rule changes for standards and test procedures; EPA review of California motor vehicle emissions budgets; ITC investigates vehicle component imports; trade actions on tires and parts.
July 05, 2026 to July 11, 2026
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. Also consider subscribing to our Automotive - Ottawa edition covering critical GR news north of the border.
📋 In This Week's Newsletter
• 🏛️ This Week's Congressional Calendar
• 🇺🇸 Federal Government News
• 📜 Legislative Updates
• 📚 What We're Reading This Week
This Week's Congressional Calendar
- Senate Commerce Committee: Markup of Aviation and Vehicle Technology Legislation: The Senate Commerce, Science, and Transportation Committee will hold a business meeting on July 15, 2026, to mark up multiple bills, including S.3885 related to type certification for new aviation technologies and S.4429, which would prohibit the import or sale of connected vehicles and related software associated with foreign adversaries. The session will also address nominations for various federal transportation and safety posts.
Federal Government News
DOE Proposes Revised Energy Conservation Standards Process Rule
The Department of Energy published a proposed rule to revise its Process Rule governing the procedures and criteria for setting energy conservation standards and test procedures for consumer products and commercial equipment. The proposal would reinstate significant energy savings thresholds, add new requirements for economic justification, and return to a 'walk up' approach to standard level selection. DOE also seeks comment on timelines between test procedure and standards rulemakings, adoption of industry-consensus test procedures, and consumer choice considerations. The proposed changes incorporate recent executive orders, judicial decisions, and stakeholder feedback submitted through an April 2025 RFI. Comments are due August 6, 2026.
Sources: www.federalregister.gov

EPA Proposes Approval of Revised Motor Vehicle Emissions Budgets for California’s San Joaquin Valley
The Environmental Protection Agency proposed approval of California’s updated motor vehicle emissions budgets for the San Joaquin Valley area as part of the state’s ozone air quality plan. The revised budgets, developed using the EMFAC2021 model and new adjustment factors, cover years 2026, 2029, and 2031. EPA analysis shows the proposed budgets are lower than existing approved budgets, and would apply to all subareas of San Joaquin Valley. If finalized, the new budgets would supersede prior budgets and become the basis for transportation conformity analysis conducted by regional planning agencies. The comment period closes August 10, 2026.
Sources: www.federalregister.gov
USITC Opens Investigation on Vehicle Space Guards
The U.S. International Trade Commission instituted an investigation under section 337 of the Tariff Act of 1930 regarding certain vehicle space guards alleged to infringe claims of U.S. Patent No. 7,527,314. The complaint, filed by an individual based in Florida, targets various U.S. companies including Drop Stop, The Container Store, Walmart, and others. The investigation will determine possible violations related to the importation, sale for importation, or sale after importation of the accused vehicle component products. Respondents must reply within 20 days, and failure to respond may result in exclusion or cease and desist orders.
Sources: www.federalregister.gov
Rivian Granted Petition for Inconsequential Noncompliance with Safety Label Requirements
The National Highway Traffic Safety Administration granted Rivian Automotive's petition for inconsequential noncompliance after it was determined that certain model year 2022 electric delivery vans did not fully comply with FMVSS No. 208 requirements for sun visor labeling. The vehicles in question included a clearance height label on the same side as the air bag warning label. After reviewing usage context and prior precedents, NHTSA concluded the noncompliance does not impact motor vehicle safety, and exempted Rivian from notification and remedy obligations.
Sources: www.federalregister.gov
USITC Finds Material Injury Likely to Continue from Revocation of Duties on Passenger Vehicle and Light Truck Tires from China
The U.S. International Trade Commission completed its second five-year review of antidumping and countervailing duty orders on passenger vehicle and light truck tires from China. The Commission determined that removing these orders would likely result in the continuation or recurrence of material injury to the domestic industry within a reasonably foreseeable time. The decision follows an expedited review process and is documented in USITC Publication 5760, issued July 2026.
Sources: www.federalregister.gov
Legislative Updates
BILL Drivers Act
Bill 9630, known as the BILL Drivers Act, was introduced and referred to the House Committee on Energy and Commerce. The bill awaits further legislative action.
Sources: www.congress.gov
DEF Act
Bill 9618, titled the DEF Act, has been referred to the House Committee on Energy and Commerce for review. No additional actions have occurred this week.
Sources: www.congress.gov
Improving Travel for American Families Act
Bill 8897, the Improving Travel for American Families Act, reached the Union Calendar as Calendar No. 639 and falls under the policy area of Transportation and Public Works.
Sources: www.congress.gov
EMRTAI Authorization Act of 2026
Bill 9616, the EMRTAI Authorization Act of 2026, has been referred to the House Committee on Energy and Commerce. Further consideration is pending.
Sources: www.congress.gov
SAFEGUARDS Act of 2026
Bill 8770, the SAFEGUARDS Act of 2026, addresses transportation and public works issues and has been placed on the Union Calendar as Calendar No. 641.
Sources: www.congress.gov

What We're Reading This Week
- Senate committee to vote on bill to tighten US ban on Chinese vehicles: A U.S. Senate committee is scheduled to consider legislation addressing a stricter ban on Chinese automobiles and related imports.
- What are the key issues in Volkswagen's restructuring efforts?: Volkswagen faces several operational and market hurdles as it pursues structural changes linked to performance in China.
- From factory to tech frontier: China becomes legacy automakers' innovation engine: Legacy automakers are accelerating their development of new technology in China, turning production bases into centers for innovation.
- Alternative-fuel vehicles hit record market share in June after Iran war: India's auto sales data show a notable surge in alternative-fuel vehicles, which reached record market share in June 2026.
- How Volkswagen’s Troubles Were Made in China: Volkswagen's shifting strategy in China has contributed to recent operational challenges and ongoing restructuring efforts.
- Carmakers broadly win first round in UK lawsuits over diesel emissions: Major automakers prevailed in the initial round of class-action litigation related to alleged diesel emissions misconduct in the UK.
- Russia's diesel export ban deepens global supply crunch: Russia's decision to continue restricting diesel exports is contributing to tightening diesel supply in international markets.