The UK government recently announced an ambitious new strategy to end the sales of new petrol and diesel cars by 2030. Together, these actions represent the most powerful shift toward electrification in the automotive sector. California has already made ambitious plans to phase out gas-powered vehicles. This outlandish proposal, if passed, will have a monumental ripple effect on the rest of the automotive industry throughout the United States. This ambitious public initiative is already under siege by possibly fatal legal challenges as the U.S. Congress seeks to intervene.
California is known for having the most stringent environmental regulations in the nation. For more than 30 years the state has received waivers from the Environmental Protection Agency (EPA), allowing it to establish stricter emissions standards than the federal government’s. The state’s electric vehicle (EV) market is on fire. In jurisdictions with robust incentives, last year electric cars accounted for as much as 25 percent of all new car sales. And California isn’t alone in this trend. Almost a dozen other states, including New York, Massachusetts, Colorado and New Mexico, are champing at the bit to sign up for California’s tougher emissions standards. Together, these states account for more than a third of the U.S. car market.
President Donald Trump’s administration previously attempted to strip California of its regulatory powers concerning automotive emissions during his first term. In response, Congress has passed a special provision barring California’s ability to ban petrol-only vehicles. The decision, which passed on a 51-44 party-line vote, is yet another example of the deep partisan divides that exist within the agency. This measure would likely open the floodgates to a long and costly legal battle.
The current political climate is indicative of a larger divide starting to take place over environmental policy. The measure’s passage is seen as a victory for Republicans, energy firms, and traditional car manufacturers who argue against California’s aggressive regulations. This isn’t just a niche market in the United States—last year, electric vehicles, including hybrids, accounted for roughly one of every ten new car sales. By contrast, the UK reached an extraordinary 30% market share of EV sales in that same time period, as reported by the International Energy Agency.
John Bozzella, President of the Alliance for Automotive Innovation, commented on the situation:
“The concerns were about the mandate – not the technology.”
Manish Bapna, president of the Natural Resources Defense Council, emphasized the benefits of electric vehicles:
“They reduce costs for drivers, boost domestic manufacturing, improve air quality, and help address the climate crisis.”
The Biden administration is, somewhat paradoxically, making a major push for a nationwide transition to electric vehicles. Whether this congressional action succeeds will have a huge impact on future automotive policies and environmental standards. This possible legal showdown may have far-reaching ramifications for U.S. emissions policy. Finally, it would affect state and local flexibility to set their own environmental policies.
“If other states don’t like California’s approach, they don’t need to follow it—but federal lawmakers shouldn’t be intervening to block states from providing cleaner air and a healthier environment.”
As the Biden administration continues to advocate for a transition to electric vehicles nationwide, the outcome of this congressional measure may significantly impact future automotive policies and environmental standards. The potential legal battle could also shape the trajectory of U.S. emissions regulations and state autonomy in setting environmental policies.