Automaker Group Joins House Republicans In Attempt To Stop California’s 2035 Gas-Powered Car Mandate

The push to federally end California’s 2035 gas-powered car sales ban gained considerable traction this week as Congressional Republicans were joined by major trade groups to repeal an Biden Administration era Environmental Protection Agency (EPA) waiver that approved of California’s mandate in December 2024.

The Alliance for Automotive Innovation (AAI), which represents BMW, Ford, GM, Honda, Kia, Mazda, Mercedes-Benz, Subaru, Toyota, among others, said on Monday that if the mandate continues, the companies would suffer greatly because they would be selling fewer cars, increasing the price of cars that are already on the market, and reduce overall competition and vehicle choice. In short, the auto industry would be very badly hurt, quite quickly. AAI even warned that car shipments based on the 2035 mandate, which currently affects California and 11 other states, could begin to impact new shipments by this summer.

“Car companies could soon be forced to substantially reduce the number of overall vehicles for sale to inflate their proportion of electric vehicles sales,” said AAI in their letter on Monday. “Allowing these gas vehicle bans (something never attempted before in the United States) to proceed will increase automobile prices and reduce vehicle choices for consumers across the country at precisely the same time they are adjusting to the marketplace shock of 25% tariffs on imported vehicles and auto parts.”

Timing is critical on the matter too. The U.S. House is set to vote on the EPA waiver matter this week, with the vote making or breaking the possibility of a repeal of the waiver, which would then open up the federal government to step in and stop state decisions on the matter.

Since California Governor Gavin Newsom first signed the executive order in September 2020 to make all passenger cars zero emission by 2035, the policy has been in a politically gray area. While the policy launched other states to make similar laws, it soon faced something that California-led policies rarely receive – contraction. Some states left the 2035 gas-powered car ban policy, including Virginia last year. Some states delayed their mandates, like Maryland did earlier this month. Others reacted more strongly, like Wyoming, which instead is currently trying to ban the sale of all electric car sales in the state by 2035.

A possible end for the 2035 mandate

For California, the 2035 goal is likewise becoming much less ideal as the sale of all-electric cars has stagnated in the past few years. 2024 electric rates were around 21.4% of all cars sold in the state – with the figure remaining unchanged from 2023. California is also likely to miss the electric vehicle sales goal of 35% by 2026, which will force the state to delay the original 2035 end date. Or the state can change it to include the far more popular hybrid vehicles. Newsom and other California lawmakers are feeling increased pressure to do something about it thanks to the declining sales.

In November 2024, Governor Newsom, faced with president-elect Donald Trump saying he would end the federal EV rebate resulting in reducing the number of electric cars sold in California, announced he would bring back state rebates to electric cars. While the backlash against that announcement was swift, Newsom stood firm on the decision, even after Trump made good on his promise to end the mandate on the day of his inauguration.

Even more of a backlash came against the EPA waiver in December, which was the Biden Administration’s attempt at “Trump-proofing” the mandate by having the EPA, and by proxy, the federal government, back it. While the Biden administration thought it was safe because of Congress not being able to change it even with the Congressional Review Act, which allows Congress to change federal agency decisions, Congressional Republicans went ahead as the interpretation of what rules meant was open. This led to the possible repeal gaining more traction and the AAI joining in with their support.

California faces a 2025 bust in Washington when it comes to vehicles and pollution standards. In addition to the 2035 mandate now up in the air, the Trump administration is also going after the similar truck mandate, state fuel economy rules, and the state nitrogen oxide rule for engines. However, the biggest by far is the 2035 mandate. Many have said that the repeal would make the 2035 ban dead in the water. And with car prices to go up by between $2,500 and $20,000 because of the impending tariffs, the mandates would make them grow even more, something many lawmakers, auto companies, and consumers alike don’t want.

The EPA waiver is set to be voted on later this week.