Summary
- California plans to require all cars to be EVs, hydrogen-powered, or plug-in hybrids by 2035
- The Environmental Protection Agency approved California’s Advanced Clean Cars II regulations
- The potential impact on the U.S. auto market is significant, with 11 other states committed to adopting the regulations
- Trump has promised to end the "EV mandate," posing a threat to the survival of the policy
- The auto industry may struggle to meet the requirements, and uncertainty in the regulatory climate could lead to a collapse in the U.S. auto market
Article
The New Regulation in California: Transitioning to EVs
California recently proposed a new regulation that would require all cars to be electric vehicles (EVs), hydrogen-powered, or plug-in hybrids by 2035. The Environmental Protection Agency (EPA) has approved this regulation, allowing California to start increasing EV quotas. However, with President Trump promising to end the "EV mandate," there is uncertainty about the future of this regulation beyond his term.
Biden Administration’s Approval and Impact on the Auto Market
The Biden Administration’s EPA has green-lighted California’s Advanced Clean Cars II regulations, paving the way for the state’s gas car ban. With 11 other states already committed to adopting these regulations and the requirements set to take effect in 2026, this move will have a significant impact on the U.S. auto market. However, the fate of this regulation is uncertain under a future Trump Administration.
California’s Authority to Set Emission Standards
California has historically had the authority to impose stricter emission standards on top of federal regulations, dating back to the Clean Air Act. Due to its geography, California is particularly susceptible to smog, which has necessitated the need for tighter regulations. The EPA must approve many of California’s environmental regulations, and with Trump likely to roll back federal support, the future of California’s authority to set its own rules is in question.
Ramp Up to 100% Zero-Emissions Vehicle Sales
Under the Advanced Clean Cars II regulations, 100% of light-duty passenger vehicle sales in California must be Zero-Emissions Vehicles (ZEVs), hydrogen vehicles, or plug-in hybrids by 2035. To achieve this, the regulations require 35% of all new vehicle sales to be ZEVs or plug-in hybrids by 2026, with increasing quotas in subsequent years. Eleven other states have committed to following this plan, but compliance poses a challenge for automakers due to varying timelines and geographical locations.
Challenges for the Auto Industry and Compliance
While California may be on track to meet the 35% target by 2026, there are concerns about whether other states will reach this goal. The auto industry is facing financial pressure to sell a significant number of EVs at a loss, and the tight timelines set by the regulations present challenges for compliance. With uncertainty surrounding the future of these regulations under different administrations, the auto market is bracing for potential instability and legal battles.
The Future of the U.S. Auto Market
The U.S. auto market is facing unprecedented uncertainty as regulations push for a transition to EVs and other zero-emission vehicles. The industry needs clarity and stability to navigate these changes effectively, and consumers are looking for assurance in their purchasing decisions. As the debate over EV mandates continues, the future of the auto market hinges on clear regulatory frameworks and a cohesive approach from policymakers nationwide.
Read the full article here
