California Governor Gavin Newsom has defended the state's recently approved tire regulations, which mandate phase-out of tires that do not meet new energy-efficiency standards. Newsom argued the rules will ultimately benefit residents by reducing fuel consumption and saving money.
Speaking at a press conference, Newsom stated that the regulations, which are expected to affect approximately 70% of replacement tires on the market, offer a good return on investment. He cited estimates from the California Energy Commission suggesting drivers could save nearly $1 billion annually in fuel and electricity costs due to lower rolling resistance tires.
"Back to just facts, save a billion dollars a year in fuel," Newsom said. "You talk about an affordability agenda, that makes some sense to me." He added that drivers using more efficient tires could "lower your cost at the pump."
The new rules require tires to meet specific energy-efficiency standards, a move the governor's office said is designed to improve vehicle mileage. Rolling resistance, a key factor in the regulations, refers to the amount of energy required to keep a tire moving.
Newsom noted that the rulemaking process for these regulations spanned several years and indicated that most major tire manufacturers were in agreement with the changes. He suggested that opposition primarily came from a single company, likely referring to Goodyear, which publicly led industry objections.
However, critics, including the Tire Industry Association, have raised concerns that the phase-out of higher-resistance tires could lead to significant price increases for compliant replacements. Some estimates suggest that the average cost of tires could rise from $81 to as much as $157, potentially increasing the cost of a set of four tires by over $300 per vehicle.
Republicans have criticized the administration's justification for the rules, arguing that the state has not adequately addressed the root causes of high gas prices, such as taxes and specific fuel blend regulations. They contend that the rules artificially inflate costs to compel reduced driving, which then justifies further regulations and higher tire expenses.
While some manufacturers like Michelin did not oppose the rules, they expressed caution regarding enforcement, testing methodologies, and potential disadvantages for smaller businesses within the industry. The regulations are set to take effect, impacting a significant portion of the tire market in California.