California’s efforts to lower fuel emissions at risk

California’s movement to improve air quality may begin to encounter friction and political smog. The effort to replace gasoline fueled vehicles with zero emission vehicles is not a priority of the new Administration.

Shortly after taking his oath of office, President Donald Trump signed several executive orders which will change the Federal government’s actions toward the expanding electric vehicle market.

“Today we congratulate President Donald Trump, Vice President J.D. Vance and their new administration. GM looks forward to working together on our shared goal of a strong U.S. automotive industry,” Mary Barra, Chief Executive of General Motors, posted on X, formerly Twitter.

Attributing inflation partly to “escalating energy prices,” Trump said, “I will declare a national energy emergency and we will ‘drill, baby, drill’.”

His first step was signing the “Unleashing American Energy” Executive Order. Among its energy polices, the EO states that the U.S. will now “. . . eliminate the ‘electric vehicle (EV) mandate’ and promote true consumer choice . . . by terminating, where appropriate, state emissions waivers that function to limit sales of gasoline-powered automobiles; and by considering the elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs over other technologies and effectively mandate their purchase by individuals, private businesses, and government entities alike by rendering other types of vehicles unaffordable.”

He revoked several of former President Joseph Biden’s EOs which encourage through subsides the expansion of the EV market and the goal of 50 percent of new vehicles sold in 2030 to be electric or hydrogen.

While Trump cannot revoke the $7,500 tax credit subsidy for the purchase of a new EV and the $4,000 credit for a used EV, these were created in law. The EO will stop federal funding to States and businesses to support EV marketplace.

This clouds the recent Federal grants to California for purchase of more EV charging stations. The award is essentially a contract, but in most cases the State has not yet expended the funds. The question is whether the Administration will be able to rescind the awards before the State does spend the funds.

While some automakers in Detroit applauded these actions, the nation’s auto manufacturers have been producing more and more EVs. This will affect their investments in this technology.

“The U.S. leads the world in oil and gas production, but it also leads the world in emissions reductions. We can do both of these things,” said Mike Sommers, president of the American Petroleum Institute. “The way that we’ve been able to cut back on our emissions is through new technology.”

Two years ago, the California Air Resources Board approved regulations that would prohibit the sale of new gas-powered vehicles in 2035 or later. Over the next 10 years, the percentage of new gas-powered vehicles sold in the State must gradually decline to zero in 2035.

The Clean Air Act, which became law in 1970, allows California to seek a waiver of the preemption which prohibits states from enacting emission standards for new motor vehicles. EPA must grant a waiver, however, before California’s rules may be enforced.

Whether Trump’s EO will rescind these waivers which have been issued in the past, will be determined. In December, the federal Environmental Protection Agency issued the most recent waiver, which allows California to implement its regulation that would move the state toward 100 percent sales of zero-emission options by 2035.

According to the most recent EV data, sales “jumped 15.2% year over year in the fourth quarter of 2024 to 365,824, setting a new volume record for any quarter. In 2024, full-year EV sales reached 1.3 million, an increase of 7.3% from the upwardly revised total in 2023. Sales of EVs in the U.S. benefitted from strong incentives from the automakers, excellent lease deals, and federal and state incentive programs”

Trump’s EO also halts expansion of new wind farms in federal waters.

“The offshore wind industry’s supply chain alone spans 40 states and $25 billion dollars in investments, powering economic development and job creation. Wind power is one of the safest forms of energy generation around the world, for both humans and animals, and enables coastal states to generate homegrown electricity by safely tapping into nearby natural resources,” said Heather O’Neill, President and CEO at Advanced Energy United in a statement. “Pausing offshore wind projects puts livelihoods at risk and will make it harder and more expensive for states to meet their energy needs.”