All New Cars Sold in California Must be ZEVs by 2035

CARB final regulation implements Newsom’s order for a statewide transition to zero-emissions vehicles by 2035 and makes California the first state to ban the sale of new gasoline or diesel cars.

The California Air Resources Board (CARB) approved its Advanced Clean Cars II Regulations, which requires the phase-out of the sale of new gasoline-fueled or diesel-fueled passenger cars and trucks by 2035. The new regulation requires zero-emissions vehicles (ZEV) sales to be at least 35% of car sales by 2026 and 100% of car sales by 2035. ZEVs include battery-electric, hydrogen fuel cell electric, and plug-in hybrid electric vehicles.

The rule does not ban the operation or sale of existing gasoline-fueled or diesel-fueled vehicles but only the sale of new ones. Plug-in hybrid electric vehicles (PHEV) that use internal combustion engines may also continue to be sold and used after 2035. The regulation makes California the first state to ban the sale of new gasoline or diesel cars and mandate a transition to ZEVs.

Proposed Advanced Clean Cars II (ACC II) Regulations

The Advanced Clean Cars program regulates emissions from light-duty cars and trucks and sets minimum requirements for sales of ZEVs in the state. The Advanced Clean Cars II regulations implement more aggressive tailpipe emissions standards to meet the 100% ZEV goal for 2035. The stricter emissions standards would begin in 2026, when 35% of all new vehicles sold in California must be zero-emission. This would increase to 51% in 2028, 68% in 2030, and 100% in 2035. (See table below for additional details.)

The rules establish a credit system for automakers supplying California car dealerships. Automakers that do not hit the percentages would have to buy credits from another manufacturer that exceeded the sales target. The state would also impose a $20,000-per-car penalty on automakers that fail to meet the targets. Automakers could meet compliance requirements by improving access to ZEVs in low-income communities. CARB will also offer incentives for consumers to make buy ZEVs, including rebates for the purchase of new and used clean cars.

EPA Approval

The U.S. Environmental Protection Agency must still approve the regulations by granting California a waiver to set its own emission standards that are higher than federal standards. The EPA must grant the waiver from the Clean Air Act if California can establish that it has “compelling and extraordinary circumstances” for the standard and that manufacturers can develop and apply the necessary technology to meet the standards. The Act also allows other states to adopt the stricter California standards. (California’s Energy Transition: Auto Emissions here.)

Executive Orders and ZEVs

The regulation implements Newsom’s order for a statewide transition to zero-emissions vehicles by 2035 and follows a series of executive orders mandating a transition toward ZEVs. In 2012, Governor Jerry Brown issued Executive Order B-16-12, which called for 1.5 million ZEVs in California by 2025. Brown then issued Executive Order B-48-18 in 2018, setting a goal of 5 million ZEVs by 2030 and 250,000 ZEV chargers, including 10,000 direct current fast chargers, by 2025. In September 2020, Newsom issued Executive Order N 79-20, which outlined the state’s goals to achieve a carbon-neutral economy and included the goal for a full statewide transition to ZEVs by 2035 along with increased deployment of ZEV infrastructure. (See California’s Energy Transition here and California’s Energy Transition: Auto Emissions here.)

Charging Infrastructure

The need for ZEV infrastructure is a major obstacle in meeting these targets. In 2018, after Brown’s executive order, the legislature passed AB 2127, which requires the California Energy Commission to issue biannual assessments of the electric vehicle charging infrastructure needed to meet the state’s goal of 5 million ZEVs by 2030. A 2021 report from the California Energy Commission concluded that more than 700,000 public and shared private chargers will be required to support the goal of 5 million ZEVs by 2030 and around 1.2 million chargers are needed to support the goal of 8 million ZEVs goal by 2030. In addition to the lack of infrastructure, supply chain problems and the availability of rare earth minerals pose a problem.

Table: Annual Percentage Requirements

Model Year and Percentage

2026 35%

2027 43%

2028 51%

2029 59%

2030 68%

2031 76%

2032 82%

2033 88%

2034 94%

2035 and after 100%