(Image Credit: IMAGN) Charging stations are set out for the two new electric vehicles. Photo taken Wednesday, Jan. 15, 2025, during the ribbon cutting at the new Public Works Campus in Lafayette, Ind.
Sacramento, California – A contentious battle has erupted between California air quality regulators and new-car dealers over the state’s ambitious zero-emission vehicle mandate, set to phase out new gas-powered car sales by 2035. The California Air Resources Board (CARB) is pushing back against an ad campaign launched by the California New Car Dealers Association, which warns of dire economic consequences if the state’s stringent targets are enforced.
The dealers’ “Calibrate” campaign is specifically targeting California’s Advanced Clean Cars II rule, which mandates that 35% of new cars sold in the state be zero-emission vehicles (ZEVs) by 2026, increasing to 68% by 2030, and 100% by 2035.
CARB, in a five-page rebuttal fact sheet, accused the auto industry of “undermining California’s public health goals by creating an artificial crisis and misleading consumers.” The agency defended the Advanced Clean Cars II rule, which received federal approval in December, allowing California to set stricter emissions standards than federal regulations.
The car dealers argue that the mandate is unrealistic, citing a mere 1% increase in ZEV sales in 2024 compared to previous years’ growth. They claim that consumer demand is not keeping pace with the mandate, and that only EV-exclusive automakers will meet the 35% threshold in 2026.
Brian Maas, president of the California New Car Dealers Association, warned of “serious economic consequences” if the rule is implemented, pointing to potential $20,000 penalties per noncompliant vehicle sold and the loss of $13 billion in annual state and local tax revenue. They also highlighted the state’s charging infrastructure gap, noting the need for 1.2 million chargers by 2035, while only 150,000 exist today.
CARB refuted these claims, stating that periods of limited growth are expected in the technology adoption cycle. They clarified that significant fines are only imposed for deliberate, fraudulent violations, and emphasized that the state has funding to expand charging infrastructure, particularly in underserved areas.
The agency countered the dealers’ concerns about meeting sales goals, stating that manufacturers have flexibility and sales are on track. They dismissed the campaign’s “doomsday scenario” of economic devastation, asserting that most manufacturers are prepared to meet ZEV requirements and that CARB will work closely with the industry to ensure success.
“CARB remains committed to continuing to work closely with manufacturers to ensure the success of the program and will extend flexibility to individual companies as needed,” the agency stated.
CARB Chair Liane M. Randolph criticized the dealers’ campaign as a “misleading attempt to create an artificial crisis” that undermines public health goals. The clash highlights the ongoing tension between environmental mandates and industry concerns, as California pushes forward with its ambitious plan to transition to zero-emission vehicles.
