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California regulator sees 2035 EV mandate as 'sweet spot'

By David Shepardson NEW YORK (Reuters) - California's choice of 2035 as the deadline to end gasoline-only new car sales was the "sweet spot" that will sharply cut emissions but...
California regulator sees 2035 EV mandate as 'sweet spot' © Reuters. FILE PHOTO: Electric cars sit charging in a parking garage at the University of California, Irvine January 26, 2015. REUTERS/Lucy Nicholson/File Photo
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By David Shepardson

NEW YORK (Reuters) - California's choice of 2035 as the deadline to end gasoline-only new car sales was the "sweet spot" that will sharply cut emissions but was also realistic for the industry, the head of the state's clean air regulator said on Tuesday.

"We had to be cognizant of where the automakers are, where the supply chains are, where the production facilities are," California Air Resources Board (CARB) chair Liane Randolph told Reuters in an interview during Climate Week, a summit that takes place alongside the U.N. General Assembly.

"I feel like we landed at the sweet spot."

In August, CARB said it would require all new vehicles sold in California by 2035 to be electric or plug-in hybrid electrics (PHEVs) after Governor Gavin Newsom issued a 2020 executive order directing the move. CARB said the rules will reduce smog-causing pollution from light-duty vehicles by 25% by 2037 and result in 9.5 million fewer conventional vehicles sold by 2035. Automakers in 2035 can sell no more than 20% of models as PHEVs.

California was not as aggressive as some environmental groups wanted, or Tesla (NASDAQ:TSLA), which urged ending new gas-powered vehicles by 2030.

"Of course an EV-only automaker is going to want as high a standard as possible because that is going to create a market for their credits," Randolph said.

California needs a waiver from the U.S. Environmental Protection Agency to adopt the 2035 rules, which will open the request for public comment. "Obviously it's their decision to make but I mean that's why the waiver exists. So California can move forward and protect its residents," she said.

President Joe Biden has called for 50% of all new vehicle sales by 2030 to be EVs or plug-in hybrids but not endorsed a phase-out date.

Some states that previously adopted California's zero emission vehicle rules have not yet signed on for the tougher 2035 phase-out date. A spokesman for Colorado's environmental agency told Reuters, "Colorado is certainly not California and Colorado has our own plan."

Randolph said "some states are ready right now" to adopt 2035 while others will "get more comfortable as the models continue to roll out."

She said the regulator has other transportation emissions reductions in the works on medium- and heavy-duty trucks and for in-state locomotives. Randolph added the state is "working really hard on looking at the Imperial Valley as a potential source of lithium" for EVs.

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01-10-2022 05:30:11 (UTC+7)

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    EUR/USD 0.9801 ↑ Buy  
    GBP/USD 1.1172 Buy  
    USD/JPY 144.79 ↑ Sell  
    AUD/USD 0.6403 ↑ Buy  
    USD/CAD 1.3830 Neutral  
    EUR/JPY 141.89 Sell  
    EUR/CHF 0.9673 Sell  
    Gold 1,668.30 ↑ Buy  
    Silver 19.015 ↑ Buy  
    Copper 3.3885 ↑ Sell  
    Crude Oil WTI 79.74 Buy  
    Brent Oil 85.56 ↑ Buy  
    Natural Gas 6.826 ↑ Buy  
    US Coffee C 220.98 ↑ Sell  
    Euro Stoxx 50 3,318.20 Neutral  
    S&P 500 3,585.62 ↑ Sell  
    DAX 12,114.36 Neutral  
    FTSE 100 6,893.81 Sell  
    Hang Seng 17,222.83 ↑ Buy  
    Small Cap 2000 1,667.27 ↑ Sell  
    IBEX 35 7,366.80 Neutral  
    BASF 39.600 Neutral  
    Bayer 47.41 Sell  
    Allianz 161.80 ↑ Sell  
    Adidas 118.88 ↑ Sell  
    Lufthansa 5.918 ↑ Buy  
    Siemens AG 101.20 Sell  
    Deutsche Bank AG 7.646 Sell  
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