The U.S. Environmental Protection Agency made a significant decision on Wednesday by granting California the waiver to implement its “Advanced Clean Cars II” regulation. This regulation mandates that all vehicles sold in California from 2035 onward must produce zero emissions. The California Air Resources Board adopted this rule in 2022, and it requires a waiver from federal regulators under the Clean Air Act. EPA Administrator Michael S. Regan's approval allows the state to gradually roll out its zero-emission plan over the next 11 years, with at least 35% of 2026 model year vehicles being zero-emission vehicles or plug-in hybrids.

Impact on the Automotive Industry

Car manufacturers have expressed concerns about the new regulation. Toyota Motor North America COO Jack Hollis stated in November that it seems impossible to meet the 35% clean vehicle mandate California plans to impose for the 2026 model year. He mentioned that there is no forecast indicating the achievability of this number, as the demand is not there and it will limit customers' choices of vehicles. This raises questions about the future of the automotive industry and the ability of manufacturers to adapt to these strict emissions requirements.

Electric Vehicle Market Share

In the second quarter of 2024, electric vehicles slightly increased their market share in the U.S. However, this increase was largely driven by hybrid electric vehicle sales. According to the U.S. Energy Information Administration, the growth in electric vehicle sales is not as significant as one might expect. This indicates that there is still a long way to go in terms of widespread adoption of pure electric vehicles.

State and Local Initiatives

Cities and states across the nation are taking action to address climate change and pollution problems by placing tighter restrictions on gas-powered machines. For example, Baltimore lawmakers voted in October to ban gas-powered leaf blowers for all city workers and contractors. The ban took effect on December 15. These local initiatives show the growing awareness and determination to reduce emissions and improve air quality.

Opposition and Future Outlook

The American Petroleum Institute, an oil and gas trade association, issued a scathing statement in response to the waiver. Vice President of Downstream Policy Will Hupman wrote that Governor Newsom's extreme energy policies have already raised costs and limited choices for Californians, and granting this waiver will only expand this misguided approach that American voters have clearly rejected. As the Trump transition team plans to recommend “sweeping changes” to roll back policies promoting electric vehicles and be more aggressive at rejecting vehicle components from China, the future of these regulations remains uncertain. It will be interesting to see how the automotive industry and various stakeholders navigate through these changing landscapes and work towards a more sustainable future.