• The U.S. House of Representatives voted to repeal California's EPA waiver, blocking its 2035 ban on new gas-only vehicle sales.
  • The move follows automaker and dealer concerns over market constraints, as 11 other states adopted similar rules.
  • California's EV sales plateau at 21.4%, well below targets, raising questions about the feasibility of its mandate.

A Blow to California's Clean Car Ambitions

The U.S. House of Representatives has moved to halt California's plan to phase out gas-only vehicles by 2035, voting to revoke the EPA waiver that enabled the state's Advanced Clean Cars II program. The mandate, which requires 80% of new vehicles sold to be zero-emission by 2035, has been adopted by 11 other states—collectively representing 40% of the U.S. auto market.

Automakers and dealers have lobbied against the rule, warning it could disrupt inventory management and limit consumer choice. "This isn't just about California—it's about maintaining a balanced market," said one industry executive, speaking on condition of anonymity. The House action, led by Republicans, seeks to reassert federal authority over emissions standards, setting up a potential legal clash with the Biden administration, which had backed California's waiver.

Stalling EV Demand Meets Regulatory Pushback

Despite aggressive policies, California's EV adoption has stagnated at 21.4% of new car sales, far below the 35% target for 2026. The slowdown mirrors broader U.S. trends, where consumer enthusiasm for EVs has cooled amid charging infrastructure gaps and affordability concerns.

Dealer groups argue the state's rules could eventually bar not just gas-powered cars but also hybrids, a segment that still dominates sales. "You can't regulate demand into existence," noted an auto retail analyst. Meanwhile, environmental advocates warn the House vote could delay progress on emissions reductions, though some experts suggest California may pivot to incentives rather than mandates.

The repeal effort now heads to the Senate, where its fate remains uncertain. Legal challenges are expected either way, prolonging the debate over how aggressively the U.S. should transition to electric vehicles.