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California’s Vehicle Ban: A Potential Shift for Investors

in Wall Street Word
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The U.S. Environmental Protection Agency (EPA) gave California the green light on Wednesday to ban the sale of new gasoline-powered light-duty vehicles by 2035.

What Happened: The agency granted a waiver to California under the Clean Air Act to implement its plan mandating that all new light-duty vehicles delivered in the state by 2035 be plug-in hybrids, battery electric, and hydrogen-powered vehicles.

The EPA also granted a waiver for the state’s “Omnibus” low-NOx (nitrogen oxides) regulation aimed at reducing harmful emissions from heavy-duty trucks.

“California has longstanding authority to request waivers from EPA to protect its residents from dangerous air pollution coming from mobile sources like cars and trucks,” said EPA Administrator Michael S. Regan. “Today’s actions follow through on EPA’s commitment to partner with states to reduce emissions and act on the threat of climate change.”

The EPA said in a statement that the opponents of the two waivers failed to show how either program is inconsistent with the Clean Air Act.

Why It Matters: “Clean cars are here to stay. The Biden-Harris Administration reaffirmed what we’ve known for decades – California can rise to the challenge of protecting our people by cleaning our air and cutting pollution,” California Governor Gavin Newsom said.

“Naysayers like President-elect Trump would prefer to side with the oil industry over consumers and American automakers, but California will continue fostering new innovations in the market.”

The California Governor, however, clarified in his statement that the rules are not aimed at gas vehicles already on the road but only attempt to regulate new cars. “We expect to see internal combustion engine vehicles on California roads past 2050…,” he said.

Last month, Newsom also outlined a new proposal to offer incentives for EV buyers in California if Trump gets rid of the federal $7,500 tax break for EV buyers when he returns to the White House early next year.

Trump has previously said that he would repeal the approvals granted by the EPA to California for its push towards electrification of transport.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next:

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Photo courtesy: Unsplash

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