auto dealer in black and red logo
MenuMENU
SearchSEARCH

California Seeks Approval to End ICE Vehicle Sales

CARB seeks wavier under Clear Air Act to implement its new rules by 2035.

May 25, 2023
California Seeks Approval to End ICE Vehicle Sales

California aims to halt the sale of new gasoline-only powered vehicles in the state by 2035.

Credit:

Pixabay

2 min to read


 

 

California has asked the Biden administration to OK a proposal for all new vehicles sold to be electric or plug-in hybrids by 2035, according to a letter seen by Reuters.

The California Air Resources Board approved the plan in August. The state now has approached the U.S. Environmental Protection Agency to secure a waiver under the Clean Air Act. The waiver would enable new regulations that establish escalating zero-emission vehicle standards starting in 2026. The goal is to cease the sale of new gasoline-only powered vehicles in California by 2035.

CARB Executive Officer Steven Cliff told Automotive News that zero-emission vehicles would effectively replace emissions generated by conventional vehicles, as motor vehicles and other mobile sources are the primary contributors to pollution in California.

Despite California’s efforts, the Biden administration has repeatedly declined to endorse a specific timeline for phasing out gasoline-only vehicle sales. EPA Spokesperson Tim Carroll told Automotive News that the agency would thoroughly consider California's waiver request through an open public process, as is customary.

An EPA proposal unveiled in April forecasted automakers will need to manufacture 60% electric vehicles by 2030 and 67% by 2032 to fulfill the requirements aimed at reducing vehicle emissions by 2032. EVs still accounted for just 5.8% of total U.S. vehicle sales in 2022.

California's zero-emission regulations are expected to curtail smog-causing pollution from light-duty vehicles by 25% by 2037. The rules stipulate that, by 2026, 35% of new-car sales must be comprised of plug-in hybrid electric vehicles, EVs or hydrogen fuel cell vehicles. That figure will increase to 68% by 2030 and reach 100% by 2035.

A 60-page waiver request submitted by California and viewed by Reuters outlined the projected costs and benefits of the state's zero-emission regulations. It estimates that between 2021 and 2040, the rules will result in a cost of $210.35 billion but yield overall benefits amounting to $301.41 billion.

An increasing number of states, including Rhode Island, Washington, Virginia, Vermont, Oregon, New York and Massachusetts, have adopted California's more stringent EV regulations, surpassing the proposals put forth by the Biden administration.

Under CARB's regulation, automakers could sell up to 20% plug-in hybrid electric vehicles by 2035. However, by that time, those vehicles would need to possess a minimum all-electric range of 50 miles.

 

More Dealer Ops

Auto Dealer Today, Dealer Debrief, 07/15/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 15, 2026

Dealer Debrief: Defection Data & EV Updates

In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.

Read More →
Two professionals shake hands while exchanging a car key fob beside a vehicle, symbolizing a vehicle sale, lease agreement, or dealership transaction.
SponsoredJuly 8, 2026

How Defection Data is Bridging the Dealership Conversion Gap

Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.

Read More →
Auto Dealer Today, Dealer Debrief, 07/02/2026 with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 2, 2026

Dealer Debrief: Where are you losing customers?

In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.

Read More →
Ad Loading...
Auto Dealer Today, Dealer Debrief, 06/25/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJune 26, 2026

Dealer Debrief: Improving Your Inventory Management

In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.

Read More →
group of people standing in a circle holding puzzle pieces together
Dealer OpsJune 1, 2026

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins

A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.

Read More →
Cover image for a BOK Financial report titled “Timing the market: How avoiding volatility entirely can hurt long-term reinsurance program performance.” The image shows several road construction barricades with flashing amber warning lights lined up in a nighttime work zone. Beneath the image, red text explains that avoiding volatility can mean falling behind inflation and missing market rebounds that drive long-term surplus growth. The BOK Financial logo appears at the bottom right.
SponsoredMay 8, 2026

What Market Timing Mistakes Mean for Your Reinsurance Program

When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.

Read More →
Ad Loading...
two cars on a billboard, No Hidden Fees
ComplianceMay 1, 2026

Dealer Ads and the FTC

The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.

Read More →
Closeup of white car's headlight, front end
Dealer Opsby Hannah MitchellApril 17, 2026

Used Autos Supply Dwindles

The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.

Read More →
hands making protective frame over red car, Risk Reality Check, Be Proactive, Auto Dealer Today logo
Dealer OpsApril 1, 2026

Managing Risk Effectively Through Changing Times

The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.

Read More →
Ad Loading...
Car key, stacks of coins, and a paper car cutout with AutoPayPlus logo, representing auto financing, loan terms, and vehicle affordability trends.
Dealer Opsby StaffMarch 31, 2026

Survey Reveals What Won't Fix What's Breaking Car Sales

AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.

Read More →