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Auto industry group asks Congress to repeal California’s EV rule
California’s EV waiver, adopted by 11 other states, would require all new vehicle sales to be zero-emission by 2035. (3 min. read)
Marcus Amick
April 29, 2025
An auto lobbying group is pushing Congress to roll back a California-driven EPA rule that would require all new vehicles in California (and 11 other states) to be EVs by 2035—just as the fight heats up in the House this week.
Hmmm…any early bets on how this political drama plays out?
The details: The Alliance for Automotive Innovation (AAI)—which represents the Detroit Three and several other automakers—sent a letter Monday to Speaker Mike Johnson and Minority Leader Hakeem Jeffries urging Congress to reverse the guideline enacted under the Biden Administration, saying it’ll make it even tougher for car companies amid the tariffs.
The letter contends that banning gas-powered vehicles in a decade—under California’s Advanced Clean Cars II Program—will increase prices and reduce vehicle choices for buyers just as the market is adjusting to the shock of 25% tariffs.
That fallout will also increase the overall age of the U.S. vehicle fleet and keep higher-emitting/less fuel-efficient vehicles that lack the latest safety innovations of newer models, claims the alliance group.
In addition to California, the Clean Cars II program has been adopted by Oregon, Washington, New York, Massachusetts, Vermont, New Jersey, Rhode Island, Maryland, Colorado, Delaware and New Mexico.
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 percent tariffs on imported vehicles and auto parts,” wrote John Bozzella, CEO and President of AAI)
Why it matters: There’s been growing opposition to the Advanced Clean Cars II Program, so expect a lot more to start chiming in on the move to repeal the measure as it makes its way through the House.
Between the lines: If I had to guess, most of you in auto retail—especially on the mass-market side—are betting the guidelines get repealed. Whether that’s optimism or a sharp read on the politics, it’s probably a smart gamble, given how other Biden-era EPA rules have fared in Washington.
In February, EPA Administrator Lee Zeldin started calling for a full review of a string of environmental initiatives initiated by the Biden administration, including two truck-related emissions waivers for California and the clean cars program.
During the same month, Congress passed a joint resolution under the Congressional Review Act (CRA), essentially overturning the EPA’s regulations implementing methane waste emissions charges (WEC) for petroleum and natural gas systems.
The Biden administration "failed to send rules" on the Clean Air Act waivers to Congress, “preventing members of Congress from deciding on extremely consequential actions that have massive impacts and costs across the entire United States. The Trump EPA is transparently correcting this wrong and rightly following the rule of law,” said Lee Zeldin, EPA Administrator.
Bottom line: The repeal effort has momentum—but the bigger story is what follows. The political whiplash around EV policy is making it almost impossible for automakers and dealers to plan for the long term—and even harder to build product, infrastructure, and investment strategies with any real confidence.
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