California’s Auto-Emission Standards Face Federal Rollback
In a decisive move, former President Donald Trump rolled back California’s influence on national auto-emission standards. Within the early months of his second term, he nullified California’s zero-emission mandates, including the ambitious 2035 gas-only car sales ban.
Following a series of congressional decisions in May, Trump endorsed legislation that effectively dismantled key Californian auto-emission rules.
Reacting swiftly, Governor Gavin Newsom signed an executive order to reaffirm the state’s emission objectives. He tasked state agencies with formulating strategies to uphold California’s environmental leadership and enhance sales of zero-emission vehicles.
The stakes include not only the car industry’s sales figures but also California’s broader climate ambitions and public health. The absence of federal incentives threatens the state’s ability to meet greenhouse gas reduction targets, risking non-compliance with federal air standards unless state action is intensified.
On Tuesday, California officials submitted an eight-page report outlining strategies to overcome federal challenges and promote zero-emission vehicles, particularly in areas with severe air quality issues.
Approximately 1,500 people in Southern California die annually due to poor air quality, according to Liane Randolph, chair of the California Air Resources Board. “Clean air efforts are under siege, putting the health of every American at risk,” Randolph stated. “California is continuing to fight back and will not give up on cleaner air and better public health. We have a legal and moral obligation.”
The report emerges amidst dwindling electric vehicle sales and the looming expiration of federal clean-vehicle subsidies, compounded by economic uncertainties from Trump-imposed tariffs.
California officials advocate for state-funded subsidies to replace the soon-to-expire federal tax credits for zero-emission vehicles. Trump’s “One Big Beautiful Bill” will terminate these credits, which have been crucial for making electric vehicles financially attractive.
Newsom had previously pledged to reinstate a state rebate program if federal credits were abolished. Previously, the state allocated $1.49 billion to support over 594,000 electric, hydrogen, or plug-in hybrid vehicles.
Proposed state subsidies could require legislative action or budget allocations. Daniel Villasenor, a spokesperson for Newsom, suggested that funds from California’s cap-and-trade program, generating $4 billion annually, could be redirected towards vehicle incentives.
In 2024, over 25 percent of the 1.75 million new cars sold in California were zero-emission or plug-in hybrids. This year, sales figures show a slight decline in this percentage. Tesla’s registrations dropped significantly, highlighting the need for strong incentives.
Adrian Martinez, from Earthjustice’s “Right To Zero” campaign, emphasized the dual benefits of subsidies, citing both environmental and economic advantages. “It’s incredibly important right now, because there’s huge environmental need for these zero emission vehicles. But there’s also huge economic benefits from facilitating and advancing electric vehicles, including a lot of jobs in California.”
The report also suggests financial incentives for zero-emission vehicle drivers, such as toll lane discounts, and calls for improvements in the state’s charging infrastructure. The California Public Utilities Commission is urged to make charging more affordable.
State agencies are encouraged to lead by example with their own vehicle purchases. Randolph mentioned, “One of the opportunities is whether or not the state fleet might be able to move even faster [than our requirements].”
California Attorney General Rob Bonta has initiated legal action against the federal government following Trump’s legislation reversal. As the legal battle continues, Newsom has directed the drafting of the next major regulation, Advanced Clean Cars III, to ensure the state’s environmental objectives remain robust.
“The world is accelerating forward toward cleaner vehicle technologies, and is going to watch the U.S. fade into the rearview mirror because this administration is choosing to quit the race,” Randolph remarked.
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