Background on Key Players and Relevance
The automotive industry’s leading companies, including General Motors, Toyota, Volkswagen, Hyundai, and others, are seeking to prevent California’s groundbreaking plan to phase out gasoline-powered vehicle sales by 2035. This initiative, adopted by 11 other states representing nearly 40% of the US automotive market, aims to increase electric vehicle (EV) adoption. The Automakers’ Innovation Alliance, representing these major automotive companies, has expressed concerns about the potential impact on vehicle supply and consumer choice.
Congressional Action and Automakers’ Concerns
The US House of Representatives is set to vote this week on legislation to overturn an exemption granted in December under the Environmental Protection Agency (EPA) during Joe Biden’s presidency, allowing California to enforce an 80% EV sales target by 2035.
In a letter published on Monday, the Automakers’ Innovation Alliance warned that automotive companies might soon be “forced to substantially reduce the total number of vehicles available for sale to inflate their proportion of electric vehicle sales.” The group argues that these restrictions will increase car prices and limit consumer options, especially as the industry adjusts to a 25% tariff on imported vehicles and parts.
Legislative Challenges and Controversies
There is uncertainty regarding whether Congress can revoke the exemption using the Congressional Review Act (CRA). In March, the Government Accountability Office stated that the exemption cannot be revoked under the CRA, which only requires Senate majority support.
Additionally, the House of Representatives plans to vote on measures preventing California from imposing new emission standards and a growing number of zero-emission electric commercial vehicles, as well as California’s low NOx emission regulation for heavy-duty trucks and off-road vehicles.
California’s regulation mandates that 35% of light-duty vehicles sold in 2026 be zero-emission—an unattainable goal, according to automakers, given current sales figures. This requirement will escalate to 68% by 2030.
Key Questions and Answers
- What is the main issue? Automakers are urging Congress to block California’s plan to phase out gasoline-powered vehicle sales by 2035, citing concerns about increased car prices and limited consumer choices.
- Which states have adopted California’s plan? Eleven states, including New York, Massachusetts, and Oregon, have adopted California’s plan, representing nearly 40% of the US automotive market.
- What are the automakers’ concerns about the legislation? Automakers argue that the proposed legislation will force them to reduce vehicle supply and inflate electric vehicle sales figures, ultimately increasing car prices and limiting consumer options.
- Can Congress revoke the exemption using the CRA? There is uncertainty about whether Congress can revoke the exemption using the CRA, as the Government Accountability Office stated that it cannot be revoked under this act.
- What are the specific EV sales targets set by California? California’s regulation mandates that 35% of light-duty vehicles sold in 2026 be zero-emission, increasing to 68% by 2030.
