Governor Gavin Takes Another Swing At Pricing Working Families Out Of Car Ownership

The California Energy Commission recently approved new rules to phase out the sale of replacement tires that do not meet the state’s energy-efficiency standards. The Replacement Tire Efficiency Program (RTEP) would mandate that “replacement tires are at least as energy efficient, on average, as tires sold on new vehicles” and help “promote driver safety by setting a minimum wet grip standard.”  The rules target a tire’s “rolling resistance,” or how much energy it takes to keep a tire moving down the road. Lower resistance means cars use less gas or electricity for better mileage, which state officials claimed will help affordability. The first phase of the rule begins in 2029, when replacement tires must meet a maximum rolling-resistance level of 9.1 newtons per kilonewton — a threshold that drops to 7.2 in 2033.

California claims the incremental cost for consumers would be very low – only $1.50 per tire during Phase 1 (2029-2033) and $6.50 per tire during Phase 2 (2033 and beyond). According to the state, a typical driver of a gasoline car with more efficient tires at the Phase 2 requirement would save $179 of gasoline over the life of a set of tires, or about seven times the incremental cost based on gasoline prices of $4.60 per gallon. At mid-2026 gasoline prices, the state says savings could be 25% higher. The California Energy Commission estimates that drivers could save $79 in gas or electricity costs within four months under the first phase of the regulations, and about $153 within seven months under the second phase. California Governor Gavin Newsom and other state politicians boast that the new rules would save drivers $1 billion a year.

However, while some tire brands say the new standards would save a couple of miles per gallon on the highway, drivers have not seen a difference. Further, the change could potentially remove 70% of the tires currently available to California drivers from the market and increase the cost of an average set of tires by hundreds of dollars. In state testimony, tire industry leaders indicate that actual price increases could reach several hundred dollars by the 2030s. According to the Tire Industry Association, average tire prices could rise from $81 to $157. If a car owner purchased four new tires, the difference could exceed $300 per vehicle. Higher prices could push vehicle owners to buy used tires, which cost about half the price of new tires, defeating the purpose of the new rule. Other buyers could put off buying tires for as long as possible, hurting sales when many tire businesses may be struggling.

The tire industry is not against tire efficiency, but it questions whether regulators have adequately shown the requirement will be cost-effective for consumers, as the industry does not believe the rules will reduce overall consumer costs. Most all-season replacement tires last roughly 65,000 miles, but the European-standard tires that would be mandated average 27,000 miles, meaning consumers will have to replace them twice as often. Other tire industry concerns include replacement tire compatibility and consistent enforcement that protects consumers and supports fair competition. Some critics see the new rules as forcing consumers to buy thinner tires that are more prone to flats in a state with some of the worst roads in the country, despite high fuel taxes meant to maintain them.

The reality is that state lawmakers refuse to address the real reasons California gasoline and diesel prices are the highest in the nation, such as the state’s taxes and environmental regulations that demand certain gasoline blends. And the new rules could make electric vehicles—politically correct vehicles in Newsom’s California—less affordable, since they could wear through tires more often because they are heavier due to their large batteries. All Americans should be concerned, since California regulations sometimes become de facto national standards because of the size of California’s market. Companies end up standardizing their products rather than producing multiple offerings for different states.

Tires are often an under-appreciated contributor to vehicle performance, safety, and drivability.  Reducing resistance affects braking and steering, which ultimately shape the driving experience. The California Energy Commission’s record on energy affordability is poor, judging by California’s extraordinarily high electricity, gasoline, and other energy prices.  It would be surprising if this latest rule did not increase overall costs for California drivers, given that record.

Conclusion

The California Energy Commission has approved new rules for replacement tires, mandating that replacement tires are at least as energy efficient, on average, as tires sold on new vehicles. California officials, including Governor Newsom, claim the program will lower fuel costs for drivers, saving drivers $1 billion per year, while the tire industry believes the opposite—that tire costs will increase, exceeding $300 for a set of four tires, with little benefit from lower fuel costs. To lower gasoline and diesel prices, California should review the climate policies and fuel taxes that make it have the highest gas prices in the country. These policies invite energy unaffordability and drive businesses out of the state. All Americans should be concerned because California regulations sometimes become de facto national standards because of the size of California’s market.

*This article was adapted from content originally published by the Institute for Energy Research.