By David Shepardson

WASHINGTON (Reuters) – The U.S. Environmental Protection Agency (EPA) has approved California's groundbreaking plan to phase out gasoline-only vehicle sales by 2035.

This decision, made during the final days of President Joe Biden's administration, opens up a conflict regarding the future of California's vehicle regulations. President-elect Donald Trump has pledged to revoke the EPA’s permissions for California to mandate additional electric vehicles (EVs) and stricter vehicle emissions standards.

EPA Administrator Michael Regan granted a waiver under the Clean Air Act, allowing California to implement its plan first announced in 2020. The plan states that by 2035, at least 80% of new car sales must be electric, and up to 20% can be plug-in hybrids. Eleven other states, including New York, Massachusetts, and Oregon, have adopted California’s regulations.

Additionally, the EPA approved another waiver for California's “Omnibus” low-NOx regulation affecting heavy-duty vehicles and engines, with six others still pending.

California Governor Gavin Newsom expressed confidence, stating, "Clean cars are here to stay." He criticized those like Trump who align with the oil industry rather than consumers and American automakers, promising continued innovation in the market.

If Trump removes the $7,500 federal EV tax credit, Newsom stated he would propose a new version of the state’s Clean Vehicle Rebate Program.

The Alliance for Automotive Innovation, representing major automakers, anticipates Trump will revoke the waiver next year, warning that California's vehicle regulations could hinder economic activities, raise costs, and reduce vehicle options. They asserted that many states adopting California's rules are unprepared for such requirements.

California's regulations mandate that 35% of vehicles in the 2026 model year be zero-emission, increasing to 68% by 2030. The state emphasizes that these rules are vital for reducing greenhouse gas emissions and smog-forming pollutants.

The Supreme Court recently agreed to consider a challenge from fuel producers regarding California's 2022 waiver for vehicle emissions rules.

In March 2022, the EPA restored California's ability to establish its own tailpipe emissions limits and zero-emission vehicle rules through 2025, reversing a decision made during Trump’s first administration.