Stock market today: S&P 500 closes higher after Trump denies plans to fire Powell
By David Shepardson
WASHINGTON (Reuters) - The U.S. Senate plans to vote this week to bar California’s landmark plan to end the sale of gasoline-only vehicles by 2035 that has been adopted by 11 other states, Majority Leader John Thune said on Tuesday.
The U.S. House approved legislation on May 1 to repeal a waiver granted by the U.S. Environmental Protection Agency under former President Joe Biden in December, allowing California to mandate at least 80% electric vehicles by 2035.
Major automakers had urged the action, saying the rules are not feasible. California says the rules are essential to cut pollution and contends the vote is illegal.
Thune said the action effectively imposes a stringent nationwide EV mandate because of California’s size and other states adopting it.
"Automakers around the country would be forced to close down a significant part of their traditional vehicle production with serious consequences," Thune said.
The Alliance for Automotive Innovation, representing General Motors (NYSE:GM) Toyota (NYSE:TM) Volkswagen (ETR:VOWG_p) Hyundai (OTC:HYMTF) and other major automakers has warned car companies could be "forced to substantially reduce the number of overall vehicles for sale to inflate their proportion of electric vehicle sales."
The California Air Resources Board rules have been adopted by another 11 states, including New York, Massachusetts and Oregon accounting for nearly 40% of the U.S. auto market -- but Vermont and Maryland have delayed compliance.
The U.S. House separately voted earlier to rescind the EPA’s 2023 approval of California’s plans to require a rising number of zero-emission heavy-duty trucks.
Democrats say the Senate is violating the rules by moving ahead. In March, the Government Accountability Office said the waivers cannot be repealed under the Congressional Review Act, which only requires a majority of the U.S. Senate.
California’s rules require 35% of light-duty vehicles in the 2026 model year to be zero-emission models. Automakers say it is impossible for them to meet that figure given current EV sales, which are 10% or lower in some states adopting the rules.
California says EVs must hit 68% of new vehicle sales by 2030. The U.S. Transportation Department is separately moving to undo aggressive fuel economy rules adopted by Biden and plans to declare that the Biden administration exceeded its authority in considering EVs when writing the rules.