U.S. President Donald Trump is set to sign three resolutions on Thursday aimed at halting California’s aggressive clean vehicle mandates, according to industry and congressional aides. The move marks a major rollback of Biden-era environmental policies and a significant win for automakers and industry groups that have pushed back against strict emissions rules.
Trump’s action, taken under the Congressional Review Act, targets California’s plan to phase out gasoline-only vehicles by 2035—a policy adopted by 11 other states and covering roughly one-third of the U.S. auto market. The signing ceremony is expected to include auto industry executives, though the White House has not publicly commented.
One resolution will repeal a waiver issued in December 2022 by the U.S. Environmental Protection Agency (EPA) under President Joe Biden, which allowed California to mandate that at least 80% of new vehicle sales be electric by 2035. The other resolutions will roll back California’s zero-emission requirements for heavy-duty trucks and a low-nitrogen oxide (low-NOx) rule for diesel engines used in highway and off-road applications.
The reversal has been welcomed by several major automakers and trade groups, including General Motors, Toyota, and the Alliance for Automotive Innovation, which previously argued the mandates were too costly and unrealistic. “The fact is these EV sales mandates were never achievable,” said John Bozzella, the group’s CEO. “In reality, meeting the mandates would require diverting finite capital from the EV transition to purchase compliance credits from Tesla.”
California Governor Gavin Newsom denounced the move, calling it illegal and vowing to challenge it in court. He warned the repeal could cost the state an estimated $45 billion in additional healthcare expenses due to increased pollution. California has received over 100 EPA waivers since 1970 under the Clean Air Act to implement its own emissions standards.
The move comes as part of a broader Republican-led effort to scale back federal support for electric vehicles. In May, the U.S. House passed a bill to eliminate the $7,500 EV tax credit, impose a $250 annual road-use fee on EVs, and phase out battery production subsidies by 2028. These combined actions could significantly alter the trajectory of EV adoption in the U.S. auto market.
Source: Reuters