On December 18, 2024, the U.S. Environmental Protection Agency (EPA) granted California approval to implement a groundbreaking plan that will prohibit the sale of gasoline-only vehicles by 2035. This decision is poised to ignite a legal battle between California and the incoming Trump administration, which has expressed intentions to reverse such environmental regulations.
Under the new regulations, California aims for at least 80% of new vehicles sold by 2035 to be electric, with the remaining 20% being plug-in hybrids. The approval aligns with California's long-standing authority under the Clean Air Act, allowing the state to set stricter vehicle emissions standards.
California Governor Gavin Newsom reaffirmed the state's commitment to reducing air pollution and fostering innovation in the automotive sector, despite opposition from President-elect Donald Trump, who has criticized the regulations as excessive. The state has a history of implementing stringent environmental policies, which have been adopted by 11 other states.
Additionally, the EPA approved California's 'Omnibus' low nitrogen oxide (NOx) regulation, aimed at reducing emissions from heavy-duty vehicles. However, the automotive industry has raised concerns that these mandates could hinder economic activity and limit consumer choices.
Meanwhile, the U.S. Supreme Court has agreed to hear a case regarding the legal standing of oil companies to challenge California's vehicle standards, further complicating the regulatory landscape as the Biden administration nears its transition.