As the U.S. House of Representatives prepares to vote this week on legislation to overturn California’s zero-emission vehicle mandate, major automakers and dealer associations are ramping up pressure to stop what they call a threat to consumer choice and vehicle availability across the country. The legislation, H.J.Res. 88, would repeal a waiver granted by the U.S. Environmental Protection Agency (EPA) in December 2023 that allows California to enforce its Advanced Clean Cars II (ACC II) program.
The ACC II requires automakers to ensure that 80% of new vehicles sold in the state are zero-emission by 2035. Eleven other states have adopted similar policies, creating a block representing roughly 40% of the U.S. auto market.
In a letter to House members, the Alliance for Automotive Innovation, which represents manufacturers including Ford, General Motors, Toyota, Hyundai, and Volkswagen, warned that the mandate could soon force companies to reduce shipments of gasoline-powered vehicles to affected states to meet EV quotas. John Bozzella, the alliance’s president and CEO, urged lawmakers to act before the regulations begin to affect deliveries this fall.
Dealers are also speaking out. Mike Stanton, president and CEO of the National Automobile Dealers Association (NADA), voiced strong support for the resolution, calling it a “top dealer priority.” In his letter to Congress, Stanton warned that the rule would eventually ban not only gas-powered vehicles but also traditional hybrids.
He highlights that consumer demand for EVs remains weak, with the current EV market share at just 7.5%. Affordability remains a challenge, with the average transaction price for an EV being $59,205, while the average for all new vehicles is $47,462. Charging infrastructure and long charging times remain additional hurdles to adoption.
Starting with model year 2026, affected states will require one in three new vehicles delivered for sale to be zero-emission. Automakers unable to meet these targets may face penalties of $20,000 per non-compliant vehicle or cut back gas-powered inventory, potentially limiting consumer choice and raising prices nationwide.
Industry leaders argue that California’s rule sets national policy without congressional input. Stanton emphasized that franchised dealers support electrification and have invested heavily in training, infrastructure, and inventory, but believe the timeline set by ACC II is unrealistic.
The House vote on H.J.Res. 88 is scheduled for Wednesday, April 30.
