The Environmental Protection Agency (EPA) has announced that it will allow California to ban the sale of new gas- and diesel-powered cars and light trucks starting in 2035, marking a significant milestone in the state's efforts to reduce emissions and combat climate change.

California has long been granted the authority to set its own emissions standards under the Clean Air Act, provided they are more stringent than federal regulations. In 2022, the state announced a plan to phase out fossil fuel cars in stages, culminating in the 2035 ban. The phase-out will begin in 2026, when the state will require 35% of automakers' sales to be zero-emissions vehicles, either electric or hydrogen. As of the third quarter of this year, zero-emissions vehicles (ZEVs) already account for 26.4% of the market share.

By 2030, 68% of new cars sold in California will need to be zero-emissions, with the remaining 32% allowed to be plug-in hybrids with a range of 50 miles or more. The ban will be complete by 2035, with 100% of new car sales required to be zero-emissions. This move is expected to have a significant impact on the automotive industry, as California is the largest car market in the United States.

However, the EPA's decision may be short-lived, as the incoming Trump administration is likely to reverse the decision. In 2019, the Trump administration rescinded California's waiver, only for the EPA under the Biden administration to restore it three years later, after 23 states sued the federal government. Industry insiders expect the Trump administration to revoke the waiver once again, with John Bozella, CEO of the Alliance for Automotive Innovation, stating that "we expect President Trump will revoke the waiver in 2025."

Automakers have been divided on the issue, with some agreeing to recognize California's authority and limit emissions, while others have asked for more time and pressed the Trump administration to intervene. The industry's response to the EPA's decision will be closely watched, as it will have significant implications for the future of the automotive sector.

California is not alone in its efforts to phase out gas-powered cars. Sixteen states and the District of Columbia have adopted some form of California's emissions standards, and most of them have plans to phase out fossil fuel vehicles in the coming years. The EPA's decision is likely to have far-reaching implications for the industry, as states and countries around the world continue to grapple with the challenges of climate change and air pollution.

As the automotive industry continues to evolve, one thing is clear: the days of gas-powered cars are numbered. Whether the EPA's decision will stand or be reversed, the writing is on the wall – electric vehicles are the future, and policymakers and industry leaders alike must adapt to this new reality.