California Governor Gavin Newsom is gearing up for a potential showdown with the Trump administration over electric vehicle (EV) policies, vowing to revive the state's clean vehicle rebate program if the federal government eliminates the $7,500 tax credit for new EV purchases.

During his campaign, President-elect Donald Trump pledged to eliminate the "EV mandate" on his first day in office, and his advisors have already discussed including a measure to kill the tax credit as part of a broader tax reform package. In response, Newsom has promised to step in and revive California's Clean Vehicle Program, which was phased out in 2023.

The program, which existed from 2010 to 2023, helped California residents purchase over 594,000 vehicles, saving an estimated 456 million gallons of gasoline in the process. If revived, the program would likely include changes to promote competition in the zero-emission vehicle market and would be funded by the state's Greenhouse Gas Reduction Fund, which is supported by companies that emit pollution under the state's cap-and-trade program.

Newsom's move is seen as a proactive measure to counter potential federal rollbacks on clean energy policies. During Trump's first term, his administration attempted to revoke California's ability to set its own air standards, established under the Clean Air Act of 1970. Although Trump was unsuccessful in that attempt, he did manage to roll back Obama-era tailpipe emissions rules. However, those rules were later reinstated under President Joe Biden.

This time around, Newsom is likely to have more support from the automotive industry, which has benefited from favorable EV policies. The Alliance for Automotive Innovation, representing major automakers including General Motors, has sent a letter to Trump's team urging him to preserve the tax credit. This shift in industry sentiment could prove crucial in the battle over EV policies.

The potential showdown between California and the federal government has significant implications for the future of clean energy in the United States. If Trump succeeds in eliminating the federal tax credit, it could slow the adoption of electric vehicles and undermine efforts to reduce greenhouse gas emissions. On the other hand, if California is able to revive its rebate program, it could create a model for other states to follow, potentially paving the way for a more sustainable transportation sector.

As the situation unfolds, one thing is clear: California is ready to take a stand in defense of its clean energy policies, and the outcome will have far-reaching consequences for the environment, the automotive industry, and the country as a whole.