The electric handcuffs get removed from the wrists of automakers
Today, the U.S. Senate has voted to block California’s landmark plan to phase out gasoline-only vehicles by 2035 in a landmark decision, as reported by news outlet Reuters. Not only does this impact the country’s most progressive anti-fossil fuels state, but it also signals a move that could very well affect the rest of the country.
What this decision means
The move effectively reverses a waiver granted by the Environmental Protection Agency (EPA) under former President Biden’s administration that allowed California to enforce strict emissions regulations. That waiver enabled California to require at least 80% of new vehicles sold by 2035 to be electric or plug-in hybrid, with some automakers having warned they might need to limit gas-powered vehicle sales in certain states to meet California’s stringent rules. The Senate vote is viewed as a major victory for automakers, including General Motors, Toyota, Volkswagen, Hyundai, and Stellantis. These companies, represented by the Alliance for Automotive Innovation, have lobbied against the rules, arguing they are unrealistic and financially burdensome.
“These EV sales mandates were never achievable,” said John Bozzella, CEO of the Alliance. “Complying would have required diverting limited capital from the EV transition just to purchase compliance credits from Tesla.”
Tesla did not offer immediate comment, but GM welcomed the decision, saying it brings emissions standards more in line with current market conditions. In contrast, environmental advocates sharply criticized the vote. Abigail Dillen, president of Earthjustice, said, “While our Republican leaders may try to put the horse back in the barn when it comes to electric vehicles, the world has already shifted under their feet.”
These legislative moves are part of a broader political effort to scale back federal and state-level EV incentives. On the same day, the House of Representatives passed a bill that would eliminate the $7,500 federal tax credit for new EVs, impose a new $250 annual fee on EV owners to fund road maintenance, and phase out battery production tax credits by 2028. The bill also aims to roll back federal emissions regulations that encourage automakers to expand EV production.
These rollbacks could give automakers more legal elbow room to delay or reduce planned EV production, which has recently been tumultuous. Numerous changes have been made to both short—and long-term EV strategies that were affected by changes in the market and production hurdles.
Some view it as a detriment to environmental progress
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California’s initiative, which was first announced five years ago, has already been adopted by eleven other states and impacted approximately a third of the American automotive market. Environmental groups and clean energy advocates praised it for its daring measures, which they viewed as hard-hitting against air pollution and climate change.
California has historically led the country in emissions standards, but some have viewed their measures as Draconian and far too lofty (and costly) a goal for automakers to reach in such a short time. The legislation now heads to President Donald Trump, who is expected to support the repeal.
Chevrolet
The Senate also voted to overturn the EPA’s 2023 approval of California’s plan to gradually increase the number of zero-emission heavy-duty trucks. California already requires 35% of new light-duty vehicles sold by the 2026 model year to be zero-emission, but automakers argue that the demand for electric vehicles remains too low in many states to reach this goal. In response, Vermont and Maryland have already postponed their compliance timelines.
Final thoughts
The Senate’s decision to block California’s ambitious 2035 zero-emissions vehicle mandate marks a significant shift in the national conversation around EV policy, states’ rights, and the future of automotive regulation. While automakers may find temporary relief from aggressive compliance targets, the long-term direction of the industry remains driven by global trends, technological advancements, and shifting consumer preferences. EVs might have hit a hurdle, but they’re not going to disappear.
