The state of California is slated to put into effect on Thursday Gov. Gavin Newsom's 2020 plan to prohibit the sale of new gasoline-powered cars and pickup trucks by 2035.
What happened: The California Air Resources Board's regulations mandate that by 2035, 100% of all new cars sold in the state must be free of the emissions from fossil fuels that are mostly to blame for global warming, up from the current 12%.
By 2026, 35% of new passenger vehicles sold in the state must have zero emissions, according to the state's intermediate goals. Under Newsom's directive, residents of California would still be permitted to own and trade in used gas-powered vehicles.
The effects from the bill could be widespread, as 13 states — including New Jersey, New York and Pennsylvania, some of the most populated states in the country — operate under the rules of the California Air Resources Board when establishing their own emission standards, making it conceivable they will also enact the ban.
Read more: Tesla Model Y, Model 3 Leave Other Cars' Sales In the Dust In California: Report
Benzinga previously reported that California, with nearly 40 million residents, is the most populous state and represents one in every 10 new automobiles sold. California new vehicle registrations were predicted to reach 1.85 million units for all of 2021 compared to the 66.7 million worldwide car sales in the same year.
Why It Matters: Leading electric vehicle makers like Elon Musk’s Tesla Inc TSLA already stand to benefit from this historic mandate.
General Motors Company GM has already stated that by 2035 it will phase out the sale of all automobiles powered by petroleum and solely provide those with zero exhaust emissions. Companies like GM that are making distinct promises for an all-EV future are setting the precedent for where the American automobile market is headed.
The Democratic governor's move would cut greenhouse gas emissions (GHGs) by 35%, according to his administration. This bolsters President Joe Biden’s Inflation Reduction Act of 2022, as the new bill aims for GHGs to drop by nearly 40% below 2005 levels by 2030 and provides Americans with tax credits for purchasing electric vehicles.
Other world governments including Canada, Britain and at least nine other European countries have set goals of phasing out the sale of new gasoline-powered vehicles between 2030 and 2040.
Forbes mentioned Biden's executive order from 2021, which calls on the government to work to ensure that 50% of all vehicles sold in the U.S. are electric by 2030, up from the current 6%. However, the directive is not legally binding.
Photo via Shutterstock.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
