The Federal Government Just Killed California’s EV Mandate

The Senate has blocked California’s plan to phase out gas-powered cars by 2035. Using an obscure rule allowing a simple majority 51-44 vote to prevail rather than the usual 60-vote threshold, the Federal government has effectively killed all EV mandates, with a legal battle surely to follow.

For 50 years, California has set tougher emissions rules than what is nationally required, with automakers and lawmakers falling in line to follow those tougher standards. That authority has gone unchallenged until now.

While California, through the California Air Resources Board (CARB), did not officially set federal emissions standards, California holds enough of the market to influence automakers and other states significantly. If CARB sets standards that are tougher than EPA standards, the dominoes fall in line behind CARB—not the Environmental Protection Agency (EPA). California effectively sets national tailpipe emission policy.

The 2035 mandate had several steps. By 2026, 35 percent of new cars and trucks sold in California had to be zero-emission, plug-in hybrid, or hydrogen. By 2030, that climbed to 68 percent. And by 2035, 100 percent. The auto industry has lobbied against the 2035 mandate, even while Honda, Ford, and other automakers signed agreements recognizing California’s authority to set standards, because of its aggressive transition period.

California Governor Gavin Newsom maintains that the state will still meet its climate goals despite this, citing a “legal responsibility under the federal Clean Air Act to protect our community and reduce criteria pollutants to the levels required by federal law.” California may even consider stricter emissions limits on factories and oil refineries to make up the difference, according to Mary Nichols, former chair of CARB. The state could also encourage mass transit or impose penalties for gasoline-powered cars.

Meanwhile, the aftermarket is celebrating the repeal of the mandate. Mike Spagnola, President and CEO of the Specialty Equipment Market Association (SEMA) said:

‘Congress’s vote gives the nation’s automotive marketplace much-needed stability, which will deliver renewed investment and sufficient resources to aid our industry in doing what we do best: innovating the future of automotive technology.’ — Mike Spagnola, President & CEO, SEMA

Automakers and lawmakers who lobbied against the mandate also consider the repeal a victory for consumer choice and manufacturing jobs within the United States.