Berliner Boersenzeitung - US Senate blocks California's electric vehicle mandate

The Republican-led Senate revoked a waiver instituted under then-president Joe Biden that allowed the state to set aside national pollution standards for cars and set its own more stringent regulations.

But the Senate's rubber stamp of a House-passed bill was immediately set for a challenge, with California's liberal government announcing it would sue President Donald Trump's administration.

California Governor Gavin Newsom said the vote was a "big day for big oil, big day for GM and Toyota, big day for China.

"Terrible day for your kids, terrible day for air quality, terrible day for innovation and entrepreneurship."

The state, especially its biggest city, Los Angeles, historically tolerated the nation's worst smog before decades of efforts to clean up.

Part of that push was a mandate ensuring that a third of new 2026 model cars sold in the state must be zero-emission, rising to two-thirds in 2030 and 100 percent in 2035.

Republicans in Washington argue that this is costly, unworkable and anathema to consumer choice.

"California got special permission from the Biden administration to ban gas-powered cars. Because of their market share, this would impact the entire nation," said right-wing Utah Senator Mike Lee.

"But Gavin Newsom doesn't get to ruin 49 other states."

Republicans argue that the Congressional Review Act gives them the right to overturn California's carve-out on a simple majority vote.

But Democrats say Thursday's move was illegal, as nonpartisan watchdogs including the Government Accountability Office and the Senate Parliamentarian said the CRA could not be applied to waivers.

California Attorney General Rob Bonta said he would sue over the Senate's move.

"The president and his administration are attempting to trample on our authority to maintain long-standing clean vehicle standards and keep our air breathable," he said.

"We're not going to let that happen... Our lawsuit will be about ensuring California can enforce its state laws."

The Senate has only overruled its parliamentarian a handful of times since the role was launched in the 1930s.

Trump harshly criticized electric vehicles (EVs) as he sought reelection, despite significant federal funding allocated to projects in Republican districts, where thousands of jobs are expected to be created.

He took aim at the sector as part of his flurry of executive orders on his first day in office in a bid to ensure what he called a "level" playing field for gasoline-powered motors.

But he has not been consistent in his opposition -- even taking time out of his schedule to promote his ally Elon Musk's prestige EV company Tesla at the White House.

US EV sales reached 1.3 million units last year, up 7.3 percent from 2023, according to Cox Automotive's Kelley Blue Book, but automakers have recently scaled back investments, pointing to slowing demand growth.

(T.Renner--BBZ)