California is pressing forward with ambitious clean transportation goals despite federal rollbacks threatening its authority to regulate vehicle emissions. From the outset of his second term, President Trump pledged to eliminate California’s ZEV mandates, and within months, congressional actions and the “One Big Beautiful Bill” effectively repealed key state authorities and ended federal EV tax credits of up to USD 7,500, which will expire on 30 Sep. These moves have contributed to a slowdown in statewide EV sales, with Tesla registrations falling sharply compared to last year. Without federal incentives, California risks missing its greenhouse gas reduction targets and violating federal air quality standards.
Coordinated State Action: Newsom’s Executive Order and California’s ZEV Roadmap
In response, Governor Gavin Newsom signed Executive Order N-27-25 in June, directing state agencies to safeguard California’s climate leadership and ZEV adoption. On 19 Aug, CARB, along with the California Energy Commission (CEC),
California State Transportation Agency (CalSTA), California Public Utilities Commission (CPUC), GO-Biz, and Department
of Consumer Affairs (DCA), delivered a joint report outlining strategies to accelerate ZEV adoption across all vehicle types.
The report builds on earlier policies such as the 2020 mandate to phase out new gas car sales by 2035 and the 2022 carbon
neutrality target for 2045, underscoring the centrality of ZEVs to cutting emissions, improving air quality, and protecting public health.
Comprehensive Policy Solutions: Incentives, Investment, and Infrastructure for ZEV Adoption
The recommendations are organized into six categories: private investment, incentives, infrastructure, fuel pricing, regulations, and procurement. Key proposals include sustaining the LCFS, which generates over USD 4 billion in private investment annually, replacing expiring federal EV tax credits with state-funded rebates, vouchers, and incentives for both new and used ZEV purchases, and supporting bulk fleet acquisitions. Infrastructure remains a priority, with plans to accelerate EV charger and hydrogen fueling station deployment, strengthen reliability and accessibility, and streamline permitting and utility connections. Fuel costs would be reduced through private investment, regional power market expansion, and the California Climate Credit, while regulatory measures such as stronger battery warranties, durability standards, and buyer protections aim to boost consumer confidence.
Maintaining Market Leadership: State Fleet Electrification, Local Support, and Legal Resilienc
California is setting the pace with a “ZEV-first” policy for state fleets while supporting local governments and transit agencies in electrifying their vehicles through enhanced funding and joint purchasing programs. About 20% of new vehicles sold in California are ZEVs, supported by 178,000 charging stations and a growing clean-tech workforce. Legal challenges continue, including a lawsuit by California Attorney General Rob Bonta over the federal rollback of Advanced Clean Cars II. Meanwhile, CARB is developing Advanced Clean Cars III to maintain emissions targets. With new incentives, infrastructure, and policies, California is reaffirming its leadership in zero-emission transportation, influencing nearly 40% of the US auto market.
California’s resilience and innovation in advancing zero-emission transportation, despite significant federal challenges, exemplify the state’s enduring leadership in climate policy—and offer a pragmatic blueprint for achieving broader decarbonization and public health goals nationwide.
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