U.S. House Votes to Revoke California's EPA Waiver to Ban Sale of Gas Cars

The House passed H.J.Res. 88 to revoke California’s EPA waiver which will ban the sale of new gas cars and distort the vehicle market in all states. The bill passed by 246-164 in an overwhelming vote that included support from 35 Democrats. This convincing House vote positions the Senate to take up this legislation, which could occur as soon as next week.

 Here is a link to the House vote on H.J.Res. 88; see how your delegation voted. Please take a moment to thank these Members of Congress, and particularly the Democratic members. The Democratic leadership whipped their members and put pressure on them to vote “NO” on H.J.Res. 88. 

H.J.Res.88 is a Congressional Review Act (CRA) joint resolution to overturn EPA’s California waiver for its Advanced Clean Cars II (ACC II) rule requiring new vehicle sales in California to be 35% Zero Emissions Vehicles (ZEVs) for MY2026 and increases to 100% in MY2035. Eleven states (CO, DE, MA, MD, NJ, NM, NY, OR, RI, VT, WA) have adopted California’s unachievable ZEV mandate rule, although none – including California – are close to meeting the 35% target for MY2026. See issue brief here and read NADA’s letter to all Representatives urging a “Yes” vote here.

Additionally, the House passed legislation revoking the California waivers affecting heavy-duty trucks:

1. ZEV Mandate and Diesel Requirements (ACT rule) - H.J.Res.87. Passed with support from 13 Democrats. Issue brief here and vote tally here. 
2. Omnibus Low NOx rule - H.J.Res.89. Passed with support from 10 Democrats. See issue brief here and vote tally here.  

Identify Vulnerabilities Before Hackers Do: Phishing Tests for Auto Dealers

In today’s digital landscape, dealerships collect and store some of the most sensitive customer information in any industry. With high-stakes financial transactions occurring daily, protecting this data isn’t just good business—it’s a regulatory requirement. As we explore the 10 Steps to Privacy and Safeguards Compliance, Step 5 stands out as one of the most practical and effective methods to test your information security program: Phishing Penetration Testing.

How KPA can help dealers with phishing testing.

March & April Financial Statement Results Scott Woodward, CPA 

February 2025 was one of the weaker profitability months that we have seen in several years. Stellantis, Ford and GM all earned less than 1% profit margin on sales for both the month and year to date, with our average Stellantis dealer earning a -0.63% return on sales.  Import dealers hovered around a 2% return on sales. March results reflect a bounce back with Import dealers at 4%, GM at 2.17%, Ford at 1.71%, and Stellantis at 1.54%, with the overall average at 2.29% return on sales.  Our average Stellantis dealer reflected $1,289 front end new gross and only $780 front end used gross.  The average used gross for all brands is just over $2,000. For comparison's sake, in March 2024 Import dealers reflected 3.33%, GM 1.44%, Ford 2.59%, and Stellantis 1.55% with the overall average at 2.17% return on sales.

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