There's a lot of tires that are poorly made and just bad tires. For example, one tire got 2/5 for rolling resistance, tested to 55,000 miles for tread, and 2/5 and 3/5 ratings for the traction categories like wet braking, snow traction, ice braking.
I'm not arguing that there aren't trade-offs, but tire companies have been working to make better tires that minimize the trade-offs and produce better tires on all three.
> The rule is “designed to ensure that replacement tires sold in the state are at least as energy efficient, on average, as tires sold in the state as original equipment.”
It sounds like the rule isn't exactly that strict. This (combined with the fact that all season tires aren't covered) presents a very low bar. But there are tires that are just garbage - they're bad at all three. It doesn't sound like this rule would impact good tires that have very long tread life and amazing traction. It sounds like it'd impact the tires that are a pile of garbage.
There's a difference between a tire that trades off a small portion of rolling resistance for traction and tire wear and tires that are poorly made and are trading off a huge amount of one or two of those categories because they're just bad tires.