Talks Break Down Between California, U.S. on Car Mileage, Sources Say

Talks between California and federal officials on vehicle emissions and fuel economy standards have broken down without a deal, three people familiar with the matter said.

The Environmental Protection Agency and National Highway Traffic Safety Administration had been meeting with California’s Air Resources Board in pursuit of a compromise as the federal agencies aim to finalize by late March or early April a replacement for Obama-era fuel efficiency regulations that automakers are seeking to modify.

The breakdown in talks adds to tension between Washington and Sacramento, which has emerged as a major antagonist to the Trump administration. California is leading a group of more than a dozen states in a lawsuit to block Trump from diverting funds from the federal budget to pay for his promised border wall, saying the move exceeds the power of his office.