Boosting New-Car Technology, California Says All New Vehicles Sold Must be EVs or Plug-In Hybrids by 2035

The rule approved today won't “ban” existing gas cars. Consumer Reports tests and recommends many high quality, zero-emissions cars on the market.

Keith Barry, Consumer Reports Senior Autos Reporter.

By Keith Barry
Senior Autos Reporter

Updated August 25, 2022

In a major step toward fighting climate change and air pollution, the California Air Resources Board (CARB) approved a new rule today that will require all new vehicles to be zero emissions starting in 2035. It’s the latest in a series of policies hastening a transition to electric vehicles.

Today’s announcement comes a few weeks after President Biden signed federal legislation that adds new tax credits for new and used EVs. At the same time, automakers are working on a new generation of EVs that meets the demands of more American consumers, including the all-electric Ford F-150 Lightning pickup and Chevrolet Blazer EV SUV.

Learn which EVs already earn CR’s recommendation—including popular models from Ford, Hyundai, and Tesla.

The California rule is also a boost for plug-in hybrid vehicles (PHEVs), such as the Toyota Prius Prime and RAV4 Prime. That’s because some PHEVs will still be allowed as a portion of new-car sales after 2035.

Outside of California, the new rule, known as Advanced Clean Cars II, could have a significant impact on what future cars will be available at dealerships across the country because of the state’s enormous power over the auto industry. About one-eighth of all new cars sold in the U.S. are registered in California. In addition, now that the rule has been approved, other states that stay in line with California’s emissions rules—so-called “CARB states”—are likely to follow suit. They are Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, and Washington D.C.

“As interest in clean transportation technology grows, it is important that we give consumers the resources they need to gain access to clean transportation technologies,” says Dylan Jaff, policy analyst at Consumer Reports. “This common-sense rule is a critical tool to bring an increased array of zero-emission vehicle options to California consumers, increasing their ability to reduce their carbon footprint. As other states choose to adopt the rule, they will also see a greater variety of clean vehicle options for consumers, ranging in affordability and vehicle class.”

The rule isn’t an outright ban on gas-powered cars. It doesn’t have any requirements for used cars, nor does it have an impact on any of the many gas-powered vehicles that will still be on the road 13 years from now.

In addition, it will allow for up to 20 percent of new vehicles sold after 2035 to be PHEVs, which combine a gas engine and battery-electric drivetrain, and can be filled up at any gas station. Fuel-cell vehicles, such as the Toyota Mirai and Hyundai Nexo, are considered EVs and will be allowed. CR estimates that between 50 percent and 60 percent of vehicles on California roads will still have a gasoline engine in 2035.

The rule also sets interim targets that will likely increase demand for EVs. By 2026, 35 percent of new passenger vehicles must meet zero-emissions rules, increasing to 68 percent by 2030. Shoppers in the market now for a new EV will find cars with longer ranges, lower prices, and quicker charging times than ever before. CR has counted 31 EVs that can already go more than 250 miles on a single charge, with prices that start below $27,000.

Learn more about EVs with CR’s guide to electric cars.

In addition, as new requirements from Europe and China increasingly favor electric vehicles, automakers are already working to develop new EVs that they will be able to sell in multiple markets, which should help bring prices down, says Chris Harto, senior energy policy analyst at CR.

“We’re starting to see the auto market hit tipping points all over the world,” he says. It’s leading to a virtuous cycle where automaker investments are leading to greater consumer choice, which is driving increasing consumer demand, and rapid increases in EV sales.”

Similar rules have already been proposed or enacted by multiple European Union countries, the United Kingdom, Canada, China, Costa Rica, Egypt, India, Israel, Singapore, Sri Lanka, and Taiwan.

“The auto industry and companies across the supply chain have made it clear that zero-emission vehicles are the way of the future, and we urge these states and others to now adopt this pragmatic solution to help foster the market and guide this transition,” said Alli Gold Roberts, senior director of state policy at Ceres, a nonprofit organization for sustainable business development, in a statement.

Those forthcoming models will also include pickup trucks and SUVs, the most popular vehicle types in the U.S., which are sure to add to existing consumer demand that’s already driving EV adoption.

“While some of it is policy-driven, we’re starting to see the consumer take over in many markets,” Harto says. For example, in California and in the U.S. overall, current EV sales are already well ahead of what’s required by existing regulation, and many automakers have already made commitments to electrifying their lineups.

2022 Toyota Mirai driving — A Toyota Mirai fuel-cell vehicle.

The results of a nationally representative car-buying survey conducted by Consumer Reports in spring 2022 found that people’s car buying habits have changed since 2019, perhaps as a result of elevated prices. Fewer are looking for used cars, more are looking for new cars than in 2019, and more are considering buying a car in a higher price range.

The rule will also have considerable benefits for all Californians, regardless of what they drive—or if they drive at all. According to a 2020 analysis from the California governor’s office, the new passenger car mandate alone will reduce greenhouse gas emissions by more than 35 percent. It will specifically cut oxides of nitrogen emissions—which are linked to cardiac disease, may cause damage to lung tissue in children and adults, and may worsen conditions such as asthma, emphysema, and bronchitis—by 80 percent. In addition, the American Lung Association estimated that California could experience $22 billion in annual public health benefits via widespread transportation electrification.

Acura Precision EV concept — The Acura Precision EV.

Real Growing Pains

Despite those benefits, there could be some serious challenges during the transition, says Brett Smith, director of technology at the Center for Automotive Research, especially when it comes to the scramble for raw and recycled materials needed to build batteries.

“It will be difficult for the supply chain to get there,” he told CR. “While costly, the manufacturing side could be built. The availability of the battery materials could be very difficult to get.”

While today’s rule also requires the development of new affordable charging options for EVs, the current charging network is lacking. A Consumer Reports survey found that charging logistics was the top reason would-be EV buyers decided not to go electric.

Merely switching from gas-powered cars to EVs also fails to address issues of congestion, sprawl, and electricity generation—all of which have serious environmental consequences. The rule also calls for the state to invest in alternatives to private car-based transportation, including a statewide train network and projects that support bicycle and pedestrian infrastructure.

Ultimately, today’s new rule could be threatened by political challenges. In May, a group of Republican attorneys general filed a lawsuit to try to prevent the federal government from allowing California to set its own emissions standards—a move that would essentially block the new mandate. California’s ability to do so was taken away by the Trump administration and reinstated by President Biden.

“Consumers across the country deserve better access to clean air, and Congress has granted California, and other states that choose to adopt these rules, the authority to put these important standards in place when the federal government falls short,” says CR’s Jaff. “As political dynamics change at the federal level, it is critical that states have certainty that they will be able to carry out the policies that best serve their residents. Additionally, this rule will send a strong market signal that California, and other states that adopt it, are serious about EVs, which comes with greater private investments to build out infrastructure in communities across the nation.”

@consumerreports EVs have a number of advantages over gas-powered cars, which make up the largest source of global emissions in the U.S. See more on electric vehicles and potential savings at CR.org/EVincentives #carsoftiktok #electricvehicle #cartok ♬ original sound - Consumer Reports

Toyota EV Concepts — EV concept cars from Toyota.

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Keith Barry

Keith Barry has been an auto reporter at Consumer Reports since 2018. He focuses on safety, technology, and the environmental impact of cars. Previously, he led home and appliance coverage at Reviewed; reported on cars for USA Today, Wired, and Car & Driver; and wrote for other publications as well. Keith earned a master’s degree in public health from Tufts University. Follow him on BlueSky @itskeithbarry.bsky.social.