July 12, 2026 to July 18, 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

• House Subcommittee Hearing: Legislative Proposals to Strengthen Consumer Protection in a Changing Marketplace: The House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade will hold a hearing titled 'Legislative Proposals to Strengthen Consumer Protection in a Changing Marketplace' on July 22, 2026, at 2:15 pm in Rayburn House Office Building, Room 2123.
• Senate Commerce Committee Markup on Transportation, Aviation, and Connected Vehicles Legislation: The Senate Commerce, Science, and Transportation Committee is scheduled for an open business meeting on July 22, 2026, at 2:30 pm in Russell Senate Office Building, Room 253 to consider aviation safety, connected vehicle, and communications bills, as well as key transportation nominations.

Federal Government News

EPA Proposes Amendments and Nonconformance Penalties for Model Year 2027 and Later Heavy-Duty Highway Engines

The Environmental Protection Agency has issued a proposed rule amending compliance and test procedures for model year 2027 and later heavy-duty highway engines. The proposal would postpone the extension of regulatory useful life periods and revert emission-related warranty periods to MY 2026 levels until MY 2030, citing stakeholder concerns on costs and in-use compliance risks. The EPA is also moving to make nonconformance penalties available for medium and heavy heavy-duty engines, adjust requirements for selective catalytic reduction system inducement provisions, and modernize NCP regulations within a proposed new 40 CFR part 1071. Public hearings are scheduled for late July, with written comments due by August 29, 2026. The agency outlines that these actions aim to balance regulatory targets and implementation challenges in the heavy-duty vehicle sector.

Sources: www.federalregister.gov

NHTSA Denies Tesla’s Petition for Inconsequential Noncompliance on Headlamp Issue

The National Highway Traffic Safety Administration denied Tesla, Inc.'s petition seeking exemption from recall and remedy requirements over noncompliant headlamps installed in nearly 20,000 Model 3 and Model Y vehicles manufactured between 2017 and 2023. Tesla contended that headlamp photometric intensity exceeding prescribed levels by up to 105.1 candela was inconsequential to safety, citing compensation algorithms and lack of consumer complaints. NHTSA found that Tesla did not sufficiently address concerns of veiling glare in adverse weather, nor did their additional adaptive driving beam testing adequately demonstrate safety. Tesla is required to notify customers and provide a remedy for this noncompliance as outlined under 49 U.S.C. 30118 and 30120.

Sources: www.federalregister.gov

US Continues Antidumping and Countervailing Duties on Chinese Passenger Vehicle and Light Truck Tires

The Department of Commerce and International Trade Commission announced the continuation of antidumping and countervailing duty orders on certain passenger vehicle and light truck tires from China, effective July 7, 2026. The notice affirms that revocation of such orders would likely lead to renewed dumping, subsidization, and injury to US industries. The scope encompasses most new pneumatic tires for passenger and light truck applications, with sustained collection of AD and CVD cash deposits by US Customs and Border Protection. The next five-year review is scheduled prior to the ITC’s next anniversary determination.

Sources: www.federalregister.gov

Final Results of Antidumping Duty Review: Passenger Vehicle and Light Truck Tires From the Republic of Korea

The Commerce Department’s International Trade Administration published final results for the 2023–2024 antidumping duty administrative review of Korean passenger vehicle and light truck tires. Hankook Tire & Technology Co. Ltd. and Nexen Tire Corporation were found to have sold products below normal value, incurring weighted-average dumping margins of 13.03% and 8.02%, respectively. Kumho Tire Co., Inc., as a non-examined firm, was assigned a rate of 10.53%. Cash deposit requirements reflecting the new margins are in effect as of July 13, 2026; assessment instructions will be issued to US Customs and Border Protection accordingly.

Sources: www.federalregister.gov

FMCSA Requests Public Comment on Exemption for HOS Logging by CCS Transportation, Inc.

The Federal Motor Carrier Safety Administration is soliciting public input on CCS Transportation, Inc.'s application for a five-year exemption from standard hours-of-service (HOS) logging requirements. CCS requests permission to record short low-speed vehicle movements (under 25 mph) between its two Conway, Arkansas locations as 'yard moves' (on-duty, not driving) on electronic logging devices. The current regulations require such movement on public roadways to be logged as 'driving' time. Public comments are due by August 17, 2026, with the agency to determine whether the requested change supports an equivalent or greater level of safety.

Sources: www.federalregister.gov

Legislative Updates

Diesel Emissions Reduction Act of 2025 (H.R. 2140)

The Diesel Emissions Reduction Act of 2025 was forwarded by subcommittee to full committee by voice vote. The bill addresses environmental protection through diesel emissions controls.

Sources: www.congress.gov

BUSES Act (H.R. 9317)

The BUSES Act was forwarded by subcommittee to full committee by voice vote. The proposed legislation deals with environmental protections and could relate to transit emissions.

Sources: www.congress.gov

DEF Act (H.R. 9618)

The DEF Act was advanced by subcommittee to full committee by voice vote. It focuses on environmental protection topics involving diesel exhaust fluid.

Sources: www.congress.gov

CHARM Act (H.R. 9617)

The CHARM Act was moved forward to the full committee by voice vote, aiming at environmental protection measures.

Sources: www.congress.gov

To amend title 49, United States Code, to prescribe safety standards for autocycles and related equipment

Bill 9711 was referred to the House Committee on Energy and Commerce. The measure would require new safety standards for autocycles and related automotive equipment.

Sources: www.congress.gov

Reshoring American Manufacturing Act of 2026 (H.R. 9718)

The Reshoring American Manufacturing Act of 2026 was referred to the House Committee on Small Business. The bill seeks to support domestic manufacturing, potentially affecting automotive supply chains.

Sources: www.congress.gov

To protect the national security of the United States by strengthening review of foreign adversary investments in the general aviation sector

Bill 9707 was referred to multiple House committees including Financial Services and Energy and Commerce. The bill addresses foreign investment reviews in aviation, with implications for related automotive sectors.

Sources: www.congress.gov

Expanding the Fast Track Act of 2026 (H.R. 8003)

Bill 8003 was referred to the Subcommittee on Energy and Mineral Resources. This act addresses transportation and public works, with likely intersection with automotive logistics and infrastructure.

Sources: www.congress.gov

What We're Reading This Week

• US agency denies Tesla petition to avoid recall fix over headlight issue: Tesla's request to avoid a recall and remedy for noncompliant headlights was denied by regulators.
• Auto & Transport Roundup: Market Talk: Market updates and analyst opinion on key trends affecting auto and transportation sectors this week.
• The American E.V. Has Been Crushed. Will It Take the U.S. Auto Industry With It?: An exploration of setbacks in the US EV market and the future of domestic automakers.
• Breakingviews - China’s record car exports set collision course: Analysis of China’s surging automotive exports and emerging global trade tensions.
• California offering $3,500 EV rebates to first-time buyers: California launches a $3,500 incentive aimed at first-time electric vehicle purchasers.
• EU softens carbon market to ease pressure on industry: The European Union is revising the carbon trading system to reduce regulatory pressure on industrial sectors.
• How About an E.V. Charge With That Fried Chicken?: A story on the integration of EV charging stations with fast-food franchises across the country.
• EU to Relax Emissions Trading System: The EU plans changes to the emissions trading scheme in response to industry concerns.
• E.U. Proposes Changes to Emissions Trading System: The European Union proposes policy adjustments affecting emissions allowances and compliance.

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