California's top air regulator: Trump opposes tax credits and EV regulations, but California is accelerating work on them.

California's top air regulator announced that officials will meet with Detroit automakers to discuss the next phase in greenhouse gas regulations for vehicles and trucks. California is fighting President Donald Trump in the U.S. Congress and in?the court against his efforts to dismantle federal vehicle emission standards. Lauren Sanchez, Chair of the California Air Resources Board and Governor Gavin Newsom, said in an interview that Newsom will announce next week details of a $200 million "electric" vehicle incentive program. The program is intended to fill the gap created by Trump's budget bill, which eliminated federal tax credits on new electric vehicles last year.

Sanchez stated, "We are speeding up our efforts to develop zero-emissions cars, and we understand that we must navigate a managed shift that protects the community, the environment, as well as workers, in collaboration with industry."

General Motors Ford Motors and Stellantis have not yet commented.

California has had some of the dirtiest air in the country for decades. California has set the standard for other states in the U.S. by establishing rules to reduce pollution.

California was granted a unique authority by the federal Clean Air 'Act of 1970 to request waivers to the Environmental Protection Agency to set emission standards that were stricter than those of the federal government. Congress reversed California waivers that were aimed at supporting zero-emissions cars after the Detroit Three lobbyists requested significant relief from California emission regulations. White House and Congress also passed legislation that significantly weakened federal tailpipe regulations.

GM announced this week that the rollback in federal emission rules could save up to $750,000,000.

Newsom, a vocal Trump opponent who is considered a likely Democratic presidential candidate for 2028, harshly criticized GM in September, saying GM CEO Mary Barra had "sold us" to undo the progress that CARB made.

Sanchez claimed that Trump's attacks on electric cars and policies designed to accelerate the transition to cleaner energy have ceded market share to China.

She said that the EV incentive program of Governor Newsom was a good example of how the state is doing all it can to encourage innovation and global competition. "We are looking forward to working with automakers in order to ensure that those investments will encourage innovation and global competitiveness, which we know is necessary."

CALIFORNIA CLIMATE GOALS

Trump used the Congressional Review Act last year to revoke California's Advanced Clean Cars II exemption to phase out gasoline powered cars by 2035. This move, coupled with the ending of federal tax incentives for EVs has put a damper on sales and production of electric passenger cars.

The state also revoked its Advanced Clean Trucks waiver, which?mandated a phase-in for zero-emissions heavy-duty trucks manufacturing. It also revoked its Heavy-Duty Engine omnibus Low NOx waiver, which would have dramatically reduced nitrogen oxide emissions over time from new diesel vehicles. The administration wants to end EPA's power to regulate greenhouse gas emission by rescinding its "endangerment findings" which define those?emissions a threat to human health. In the next few weeks, the repeal of the "endangerment finding" is expected. Sanchez stated that California will challenge a repeal of the endangerment finding in court. Before Trump's January 2025 inauguration, CARB officials withdrew their waiver request which would have set the most strict locomotive pollution rule for the entire country. They also required railroad operators phase out older diesel locomotives. The CARB officials also retracted a waiver request which would have established a deadline for truckers to replace their diesel trucks with zero emission rigs.

Sanchez described those withdrawals as strategic ones that allowed state regulators to pursue other strategies.

Sanchez stated, "We are prepared to fight but we're also prepared to explore alternative options at the same time." (Reporting and editing by David Gregorio; Lisa Baertlein)

(source: Reuters)