Senate votes to block California 2035 electric vehicle rules
cnbc.com
cnbc.com
`The GOP-led Senate voted Thursday to take away California’s ability to set its own tailpipe emissions standards, effectively killing the country’s biggest driver of EV investment.
The vote was 51-44. The move nullifies a measure, enacted by the state in 2022 and later adopted by 11 other states, banning the sale of new gasoline-powered cars by 2035. The House already passed the same resolution. Now it heads to President Trump for his signature.
U.S. carmakers and auto dealers argued that keeping in place the waiver—which permits California to set stricter emissions rules than the federal government—could cripple the industry by forcing sales of cars the public doesn’t want in mass numbers.
Senate Majority Leader John Thune (R., S.D.) called the waiver “an attempt by the Biden administration to impose an electric-vehicle mandate across this country.” Thune said it would have a devastating impact on the U.S. economy if not overturned.
Democratic Gov. Gavin Newsom and other supporters argue that California, which has long struggled with some of the nation’s highest rates of air pollution, has a right to impose regulations that help improve air quality. The California Air Resources Board, or CARB, a state regulator that sets the auto mandates, said the rules provide ample flexibility to enable car companies to meet them. The rules were set to be implemented in phases starting in 2026.
“This is a huge setback, and not just for California, but for all the states that have adopted California clean-air standards,” said Sen. Adam Schiff (D., Calif.). “It means we’ll fall further behind other countries in the adoption of new EV technologies.”
EV demand isn’t close to what it was even a few years ago. Discounts are sparser, charging stations can be hard to find and Congress hopes to do away with incentives that have long juiced demand. EV sales, which make up about 7% of the U.S. car market, fell 5% in April, while the broader market grew by 10%, according to estimates from research firm Motor Intelligence.`