LOS ANGELES/WASHINGTON, Jan 29 - California is stepping up work on vehicle emissions rules and incentives as it squares off with the federal government over efforts to unwind landmark greenhouse gas and zero-emissions vehicle policies, the state’s top air regulator told Reuters.
Lauren Sanchez, chair of the California Air Resources Board, said state officials are meeting with Detroit automakers this week to go over the next stage of greenhouse gas regulations for passenger cars and commercial trucks. The meetings come as California continues legal and legislative battles against President Donald Trump’s moves to dismantle federal vehicle emissions standards.
Sanchez said Governor Gavin Newsom intends to unveil details next week of a new $200 million electric vehicle incentive program designed to help cover the gap left after federal tax credits for new electric cars expired following actions in Congress last year. "We are accelerating all of our work on zero-emissions vehicles, and we know that we have to navigate a managed transition that protects the environment, protects communities, protects workers in collaboration with the industry," Sanchez said.
General Motors, Ford Motor and Stellantis did not immediately comment on the planned meetings.
Regulatory context and recent federal actions
For decades California has wrestled with some of the nation’s worst air quality. The federal Clean Air Act of 1970 granted the state a unique ability to request waivers from the Environmental Protection Agency that allow it to adopt emissions standards more stringent than federal rules. Several federal actions over the past year have narrowed that authority and reduced federal tailpipe standards.
Congress rescinded waivers that had supported California’s push for more zero-emissions vehicles after lobbying from the Detroit Three automakers led to new congressional legislation and White House action seeking relief from the state’s emissions rules. The White House also moved to significantly weaken federal tailpipe rules and Congress passed legislation to stop collecting penalties for failing to meet vehicle tailpipe standards.
GM said this week that the rollback of federal emissions rules could save the company up to $750 million. Newsom condemned GM in September, saying GM CEO Mary Barra "sold us out" in an effort to remove progress made by CARB. Newsom is a frequent critic of President Trump and has been mentioned as a possible Democratic presidential contender for 2028.
State response and legal strategy
Sanchez said Trump’s criticism of electric vehicles and broader moves to roll back clean energy policies have ceded market ground to China. In response, California is aiming to foster innovation and to work with automakers through Newsom’s incentive program. "We are doing everything we can to support the innovation that is needed for automakers to compete on the global scale again," she said. "We look forward to partnering with automakers to ensure that those investments encourage the innovation and global competition we know is needed."
Last year, the administration used the Congressional Review Act to rescind California’s Advanced Clean Cars II waiver that sought to phase out gasoline-powered cars by 2035. That action, together with the end of federal EV tax credits, has chilled electric passenger car sales and production, according to state officials. The rescissions also targeted the Advanced Clean Trucks waiver - which would have required a phase-in of zero-emission heavy-duty truck manufacturing - and the Heavy-Duty Engine Omnibus Low NOx waiver, which would have sharply reduced nitrogen oxide emissions from new diesel trucks over time.
The administration is also seeking to rescind the EPA’s "endangerment finding" that classifies greenhouse gas emissions as a threat to human health. Sanchez said California expects to challenge any repeal in court.
Withdrawn waiver requests and alternative approaches
Prior to President Trump’s inauguration in January 2025, CARB officials withdrew a waiver request that would have established the strictest locomotive pollution rule in the country and set requirements for railroad operators to phase out older diesel locomotives. CARB also withdrew a waiver request that would have established a timeline for replacing diesel trucks with zero-emission heavy-duty rigs.
Sanchez described those withdrawals as strategic, intended to leave regulators able to pursue other options. "We’re prepared to fight and we’re prepared to also explore alternatives at the same time," she said.
Implications for industry and markets
The state’s intensified activity on zero-emissions regulations and incentives has important implications for automakers, heavy-duty truck manufacturers, and rail operators. California’s actions could influence corporate investment decisions, manufacturing plans for electric passenger vehicles and zero-emission rigs, and the pace at which older diesel equipment is retired - all while legal fights over federal and state authority continue.
At the same time, uncertainty around federal regulatory direction and the potential repeal of the endangerment finding add legal and market risk for companies planning long-term investments tied to stricter emissions standards.
Summary of current state actions
- California is meeting with Detroit automakers to discuss the next phase of greenhouse gas standards for cars and trucks.
- Governor Newsom plans to announce a $200 million EV incentive program next week to help replace lost federal tax credit support.
- California is pursuing legal challenges and alternative strategies to defend and advance zero-emissions vehicle policies after federal rollbacks.
California regulators and state officials say they will press forward with rulemaking, incentives and litigation as they seek to manage a transition that balances environmental goals, community protections and worker interests while engaging the automotive industry.