Ford, Volkswagen, Honda, and BMW have reached a deal with California to increase the fuel economy of — and reduce emissions from — their new vehicle fleets through 2026. The deal roughly matches the cleaner car plan put in place by the Obama-era Environmental Protection Agency — a plan that the Trump administration has been working feverishly to undo since the president took office in 2017. It could end up being a crucial victory in the fight to keep vehicle emissions standards high in the face of a worsening climate crisis.

Under the deal, automakers will have increase the fuel economy of their new vehicle fleets to nearly 50 miles per gallon by model year 2026, by reducing their greenhouse gas emissions 3.7 percent each year. Automakers will also have “flexibility in how they meet each year’s emissions goal,” according to The Washington Post. The deal leaves room for other automakers to adopt the standards.

“If the White House does not agree, we will move forward”

The four major automakers combine to make up about 30 percent of the global car market, giving California massive leverage in its fight against the Trump administration’s rollback efforts. California has had the ability to set its own air standards since the Clean Air Act was established in 1970, though the Trump administration is trying to revoke that right alongside its attempt to lower the national emissions standards, part of a larger (and, so far, losing) fight with the state. A dozen states follow California’s lead on emissions rules, and Canada has recently agreed to as well.

“This agreement represents a feasible and acceptable path to accomplishing the goals of California and the automobile industry,” Mary D. Nichols, the chair of California’s Air Resources Board, and the woman who has led the charge against Trump’s rollback, said in a statement. “If the White House does not agree, we will move forward with our current standards but work with individual carmakers to implement these principles. At the same time, if the current federal vehicle standards proposal is finalized, we will continue to enforce our regulations and pursue legal challenges to the federal rule.”

“The Trump administration is hell bent on rolling [emissions standards] back. They are in complete denial about climate change,” California Governor Gavin Newsom said on a call with reporters. “I don’t know if they’re sincere about that, but for whatever reason, politically, they think it’s advantageous.”

In response, the EPA called the deal a “stunt,” and said it won’t change the administration’s rollback plans.

The EPA called the move a “PR stunt”

“The Trump Administration is pursuing one national standard and certainty for the entire auto market that will provide safe, affordable vehicles for consumers while also improving environmental outcomes,” said Michael Abboud, an EPA spokesperson. “Today’s announcement from CARB has no impact on EPA’s regulation of greenhouse gas emissions under the Clean Air Act. This voluntary framework is a PR stunt that does nothing to further the one national standard that will provide certainty and relief for American consumers.”

Abboud added that, “despite our best efforts to reach a common-sense solution with CARB, they continually refused to produce reasonable and responsible proposals.” (On a call with reporters, Nichols said CARB hasn’t had “any conversations” with the White House since the administration called her in February to break off talks.)

Advocacy groups praised the deal. “This announcement reaffirms the authority of California — and every other state — to set eminently achievable vehicle pollution standards that protect the public and curb carbon pollution,” Luke Tonachel, the director of clean vehicles and fuels at the Natural Resources Defense Council, said in a statement. “The agreement clearly demonstrates that the Trump administration’s rollback, which has no technical or legal rationale, is doomed. The administration should drop its senseless and harmful plan that would make cars pollute more and cost drivers more at the pump.”

Admiral Dennis Blair, a council member of nonpartisan group Securing America’s Future Energy, said he hopes the deal will “revitalize discussions with the Trump administration” regarding emissions. “We commend Ford, Volkswagen, Honda, and BMW of North America for thinking outside the box and making the effort,” Blair said in a statement.

“[T]he Trump administration’s rollback, which has no technical or legal rationale, is doomed”

Automakers lobbied Trump to roll back the Obama-era rules even before he was sworn in as president. The administration quickly got to work on doing just that, and in April 2018, then-EPA director Scott Pruitt kicked off the process to rewrite the rule. Pruitt said the standards were “not appropriate,” and argued that the previous EPA cemented the rules with “politically charged expediency” and “set the standards too high.” He also claimed that the previous administration was too optimistic about the adoption of all-electric and hybrid vehicles, though he based some of these arguments old, misleading data and industry talking points in his own EPA’s first proposal.

In August 2018, the Trump administration unveiled more of its plan. The EPA and the National Highway Traffic Safety Administration (NHTSA) proposed freezing the increasing standards at the 2020 level, a fleet average of 37 miles per gallon, with no further improvements. To justify this, the administration tried to claim that dirtier cars would be safer.

The administration’s theory is that making cars too clean will make them too expensive, which would cause customers to stay in older vehicles with fewer advanced safety features. (The administration’s argument basically ignored the fact that the average selling price of vehicles in the US has gone up anyway, thanks to the increased mix of SUVs and trucks, which have led to an increase in pedestrian deaths.)

In the meantime, a phalanx of states led by California sued the EPA over the rollback attempt. Automakers started to waver on their desire for a full rollback, and this June, they officially requested that the White House find a compromise. The White House “quickly rejected that effort,” according to Reuters, and some of the automakers instead went to California to work out the deal that was announced today.

Both the administration and the automakers’ lobbying groups have argued since the start of the rollback that, by setting higher standards than the federal government, California could bifurcate the US market. They claim they instead want “one national standard,” which would provide the clarity required for the years-long process of designing and releasing new cars. But throughout the process, it was clear that California was never going to give up its desire to set a high bar.

One major automaker that has not signed onto the new California framework, Toyota, parroted that request for “one national program” in an email to The Verge. The company declined to answer if it will join Ford, Volkswagen, Honda, and BMW in adopting California’s standards. “We are passionate about improving emissions and fuel economy standards and our leadership in electrified vehicles serves as a proof point of this commitment,” a spokesperson for the company said. “We have, and continue to, pursue an outcome supported by the auto industry at large, the Federal government and the State of California.”

Fiat Chrysler tells The Verge it “was not invited to participate in this discussion” with California, though Nichols said on the press call that CARB “didn’t issue and kind of special invitation or invite people to come to a meeting or anything of that sort.”

“FCA US is committed to continuing the improvement of our fleet fuel economy,” the company said in a statement. “We have been clear throughout the federal rulemaking process that the current standards need to be adjusted to reflect changing conditions in the marketplace, and today’s announcement acknowledges that is true.”

General Motors said in a statement that its “focus remains on working with all parties on a deal that would involve a 50-state solution and a national electric vehicle program.”

Other US market share leaders like Daimler and Nissan did not immediately respond to a request for comment.

Update July 25th, 12:00PM ET: Added comments from FCA, EPA, and information from a press call with California Governor Gavin Newsom and CARB head Mary Nichols.

Update July 25th, 1:30PM ET: Added comment from General Motors.

Correction: This post originally said the plan forces automakers to increase their fleets’ fuel economy by 3.7 miles per gallon per year. It actually calls for a 3.7 percent reduction in greenhouse gas emissions per year.