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.

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Dates: 2026-02-02 to 2026-02-08

📋 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 Energy and Commerce Subcommittee Markup of 12 Bills: The House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade will hold a markup of 12 bills on February 10, 2026, in Rayburn 2123.
• House Science, Space, and Technology Subcommittee Hearing on Surface Transportation Research: On February 11, 2026, the House Subcommittee on Research and Technology will conduct a hearing titled 'Accelerating Progress: U.S. Surface Transportation Research' at Rayburn 2318.

Federal Government News

EPA Partially Approves, Partially Disapproves California’s Heavy-Duty Vehicle Inspection and Maintenance SIP

The U.S. EPA issued a final rule on February 6, 2026, partially approving and partially disapproving California’s Heavy-Duty Inspection and Maintenance Regulation for vehicles over 14,000 pounds. While California's rule is approved for vehicles registered within the state, the partial disapproval rejects enforcement against out-of-state vehicles on Commerce Clause grounds, citing undue burdens on interstate commerce and possible conflicts with federal law. The rule will not trigger sanctions or a federal implementation plan. The EPA's decision spans more than 150 Federal Register pages, addressing extensive public and industry comment, and confirms that approval is limited to in-state vehicles and fleets.

Sources: www.federalregister.gov

IRS Releases Proposed Regulations for Section 45Z Clean Fuel Production Credit

The IRS published a notice of proposed rulemaking on February 4, 2026, setting out regulations for the Clean Fuel Production Credit under Section 45Z, as created by the Inflation Reduction Act and amended by the OBBBA. The regulations clarify credit eligibility, applicable emission models (including 45ZCF-GREET), registration requirements, and anti-stacking rules with other credits such as Section 45Q and 45V. Written comments are due April 6, 2026, and a public hearing is scheduled for May 28, 2026.

Sources: www.federalregister.gov

PHMSA Requests Feedback on Hazmat Transportation Risks for Heavy-Duty Electric Vehicles

On February 2, 2026, PHMSA opened a request for information on the risks, operational challenges, and regulatory issues related to transporting hazardous materials in heavy-duty EVs compared to internal combustion engine (ICE) motor carriers. Topics include battery hazards, charging infrastructure, emergency response, regulatory compliance, cargo stability, and economic feasibility, with comments due by May 4, 2026. The information will inform future research and possible regulatory action.

Sources: www.federalregister.gov

USITC Institutes Five-Year Review on Large Vertical Shaft Engines from China

The U.S. International Trade Commission initiated a five-year (sunset) review on February 2, 2026, to determine whether revocation of countervailing and antidumping duty orders on large vertical shaft engines from China would lead to renewed material injury to the domestic industry. Requests to participate and responses are due March 4, 2026, with further comments on adequacy due April 13, 2026. Detailed data requests for domestic and import production, shipments, and sales are included.

Sources: www.federalregister.gov

USITC Issues Limited Exclusion Order on Certain Rechargeable Batteries

The USITC issued a Limited Exclusion Order barring imports of certain rechargeable batteries and components by Shenzhen Yichen S-Power Tech Co. LTD of China on grounds of patent infringement. The order follows a default finding in the investigation brought by LithiumHub, LLC, Lithiumhub Technologies, LLC, and Martin Koebler under Section 337. The Commission did not issue a cease and desist order due to lack of evidence of domestic inventories, and the investigation formally terminated on January 29, 2026.

Sources: www.federalregister.gov

Legislative Updates

Motor Vehicle Modernization Act of 2026

Bill 7389, the Motor Vehicle Modernization Act of 2026, was introduced and referred to the House Committee on Energy and Commerce on February 5, 2026.

Sources: www.congress.gov

SELF DRIVE Act of 2026

Bill 7390, the SELF DRIVE Act of 2026, was referred on February 5, 2026, to both the Committee on Energy and Commerce and the Committee on Foreign Affairs for consideration.

Sources: www.congress.gov

Know Before You Drive Act

Bill 7377, titled Know Before You Drive Act, was introduced and referred to the House Committee on Energy and Commerce on February 4, 2026.

Sources: www.congress.gov

Safety is Not For Sale Act

Bill 7372, the Safety is Not For Sale Act, was referred to the House Committee on Energy and Commerce for initial review on February 4, 2026.

Sources: www.congress.gov

Fair Repair Act

Bill 7404, the Fair Repair Act, was introduced on February 5, 2026, and assigned to the House Committee on Energy and Commerce.

Sources: www.congress.gov

What We're Reading This Week

• Canada rolls back EV regulations but boosts incentives: Canada's federal government revises electric vehicle mandates while increasing financial incentives for buyers.
• Why U.S. Car Companies Want to Make Giant Batteries: U.S. automakers accelerate investments in large-scale battery production for electric vehicles.
• US lawmakers, Waymo, Tesla urge Congress to take action to speed deployment of self-driving cars: Industry leaders and lawmakers call for Congressional action to expedite self-driving car deployment.
• California's $200 million EV incentive program to require matching funds from automakers: New California EV incentives will require automaker cost-sharing to access funding.
• E&E News: Canada dumps Trudeau-era EV mandates: E&E News reports the Canadian government is withdrawing previous administration’s EV regulatory approach.
• EU proposals set to limit EV sales from 2035, says campaign group: European proposals may result in restrictions on electric vehicle sales from 2035.
• How to Practice the Lost Art of Negotiating the Price of a Car: WSJ offers advice for consumers on negotiating car purchases in a changing retail landscape.

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