California’s Replacement Tire Efficiency Program Triggers Industry Backlash

The California Energy Commission (CEC) approved a plan that, beginning in 2029, will require most replacement tires sold in the state to meet a minimum rolling-resistance/energy-efficiency standard. The rule, championed by Governor Gavin Newsom, is intended to lower emissions and improve vehicle mileage. Newsom has called the policy a “good choice.” Dunlop Tires, one of the world’s largest tire manufacturers, held a press conference in Southern California to contest the regulation, warning of “startling” impacts on consumers.

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Dunlop Tires North America President and CEO Darren Thomas argued the rule will raise manufacturing costs and pass them to drivers, raising safety, durability and environmental concerns. Republican Rep. James Gallagher said the state is using high gas prices to justify regulations that could make tires more expensive. Sen. Former Los Angeles mayoral candidate Spencer Pratt labeled the regulation a “scam” that would drive up driver costs.

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Governor Newsom defended the program, reiterating its environmental benefits. CEC Chairman David Hochschild asserted that safety and durability will not be compromised and said the environmental impact is comparable to removing 400,000 cars from the road. Former Assemblyman Joe Nation, who authored AB 884 granting the CEC authority, noted the legislation’s primary aim was emissions reduction and expressed confidence in the CEC’s analysis.

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The Tire Industry Association estimates average tire prices could rise from about $81 to as much as $157, potentially adding over $300 for a set of four tires. The CEC projects the rule could save up to $1 billion annually in fuel costs for Californians. Environmental analysts cite the rule’s projected air-quality benefit as equivalent to taking 400,000 cars off the road.

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• “Generally, when you attempt to regulate something you don’t understand, or don’t care much about, you create bad policy. And that’s probably what we have here,” — Darren Thomas, president and CEO

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• “Will prices increase? You bet they’ll increase. It’s going to be a real issue, in terms of cost, it’s going to go up. By how much? We don’t know. Is there going to be fuel savings? In theory,” — Darren Thomas, president and CEO

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• “To be fair, I haven't looked at those analyses,” — California Assemblyman Joe Nation

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• “I will admit, the first thing I thought of was the reduction in emissions,” — California Assemblyman Joe Nation

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• “Budget tires are like budget sushi, or budget anything else. If you buy something that's well below, that's cheap, it's probably lower quality, it's probably not going to last as long, and you're probably going to end up buying a new set of tires sooner than you expected,” — California Assemblyman Joe Nation

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• “This is a death by a thousand cuts. These folks are tone deaf,” — Sen. Tony Strickland

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