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On June 12, 2025, President Donald Trump signed a Congressional Review Act resolution aimed at ending an Environmental Protection Agency waiver, which allowed California to set strict rules on the sale of gasoline vehicles. California’s Advanced Clean Cars II regulations are aimed at lowering emissions to protect air quality by phasing out combustion vehicles by 2035. The goal included a 35% phase-out target by 2026, 51% by 2028, and 68% by 2030, rather than a hard cut-off in 2035.

“We officially rescue the US auto industry from destruction by terminating the California electric vehicle mandate once and for all,” Trump said at a White House event. “It’s been a disaster for this country, and they’re never coming back.”

“Trump’s all-out assault on California continues, and this time he’s destroying our clean air and America’s global competitiveness in the process,” California Governor Gavin Newsom said in response. “Big polluters and the right-wing propaganda machine have succeeded in buying off the Republican Party,” he added.

Who Is Backing Trump?

Trump’s decision to challenge California’s ability to set its own emissions standards is nothing new, as similar opposition emerged during his first administration. The resolution was backed by the Specialty Equipment Market Association (SEMA), which represents automotive aftermarket companies.

“President Trump meant what his [sic] said when he declared his intent to stop radical policymakers from depriving the American people of vehicle choice. He’s proven to be a man of his word and a true champion of American innovation and ingenuity, particularly of that borne out of the automotive aftermarket industry,” said SEMA President and CEO Mike Spagnola, who was present for the signing ceremony. “This is a clear example of American government at its finest, where a bipartisan set of lawmakers set aside their differences for the sake of the American people – in this case, to strike down a bad, ill-conceived policy from California that would’ve shattered the nation’s economy and destabilized the automotive marketplace.”

SEMA claims it is not “anti-EV” as an organization, pushing what it calls a “technology-neutral approach that fosters innovation and ingenuity.” The organization says it has sent more than 56,000 letters to lawmakers, lobbied lawmakers in Washington DC, and published memes and posts outlining the “harms of EV mandates.”

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SEMA Doesn’t Agree With Trump On Everything

Though SEMA agrees with Trump on EV mandates, it disagrees on tariffs. “Our primary request is that American automotive parts manufacturers, including our members, be provided a transition period to re-shore their manufacturing, as well as some form of economic relief to assist in that transition,” said SEMA President and CEO Mike Spagnola in an April letter written to President Trump. SEMA clearly believes there can be transition periods to reach legislative goals, just not with EVs.

The decision was also backed by the Alliance for Automotive Innovation, which represents BMW Group, General Motors, Honda, Hyundai, Mazda, Stellantis, Subaru, Toyota, Volkswagen, Volvo, and others. “Everyone agreed these EV sales mandates were never achievable and wildly unrealistic. Worse than unachievable – these EV mandates were going to be harmful. Harmful to auto affordability, to consumer choice, to industry competitiveness and to economic activity. Customers don’t want the government telling them what kind of car to buy. What they want is a range of choices like efficient gas-powered, battery electric, hybrid and plug-in hybrid vehicles,” said John Bozzella, president and CEO Alliance for Automotive Innovation.

Who Supports California?

California was given the ability to set its own, stricter environmental standards by the EPA via waiver. Though California can only impose these standards on itself, there are currently 17 states (plus Washington DC) that have opted in as “CARB (California Air Resources Board) States.” In response to the resolution, California – along with 10 other states – is suing to block the Trump Administration from ending the 2035 EV rules. The states include:

• Colorado
• Delaware
• Massachusetts
• New Jersey
• New Mexico
• New York
• Oregon
• Rhode Island
• Vermont
• Washington

The lawsuit also challenges Trump’s actions to nix regulations on heavy-duty truck emissions for highway, off-road vehicles, and diesel engines. These states argue that Congress has no authority to revoke the EPA waivers using the review act.

The Impact of Chevron Deference

Last year, the US Supreme Court upended decades of precedent when it overturned Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc. This landmark case gave the EPA and other government organizations the broad power to regulate industries (within reason). For example, the EPA could impose stricter emissions regulations using the Clean Air Act, which set a goal to improve air quality.

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Chevron being overturned takes away power from organizations like the EPA, meaning companies may be able to challenge determinations like the EV mandate, claiming it is not within the organization’s explicitly stated power. The results of the Court’s decision in Loper Bright Enterprises v. Raimondo may have important ramifications for California and its ability to regulate its own emissions standards. We will continue to follow this case and provide updates.

Source: Reuters