30 January 2026
California is accelerating work on electric vehicle regulations and incentives in open defiance of President Donald Trump’s rollback of federal climate and clean transport policies, according to the state’s top air regulator. State officials are meeting with major Detroit automakers this week to discuss the next phase of greenhouse gas standards for cars and trucks, signaling California’s intent to press ahead despite mounting federal opposition.
Lauren Sanchez, chair of the California Air Resources Board (CARB), said the state is moving faster on zero-emissions vehicle policies while pursuing a “managed transition” that balances environmental goals with industry and worker concerns. Governor Gavin Newsom is expected to announce details next week of a new $200 million state-funded EV incentive program, designed to partially replace federal tax credits for electric vehicles that were eliminated under Trump’s budget legislation last year.
California, which has long suffered from severe air pollution, has historically led U.S. vehicle emissions policy under special Clean Air Act waivers allowing stricter standards than federal rules. Those waivers were rescinded last year after lobbying from major automakers, weakening California’s authority to mandate zero-emission vehicles and heavy-duty truck standards.
Despite this, state officials say California will continue to pursue alternative strategies and legal challenges. Sanchez warned that federal attacks on EVs risk ceding global leadership to China, while California seeks to support innovation and competitiveness in one of the world’s largest auto markets.
The state is also preparing to challenge the Trump administration’s expected repeal of the EPA’s “endangerment finding,” which underpins federal authority to regulate greenhouse gas emissions. Sanchez said California remains ready to fight in court while advancing its climate goals through new policy pathways.
California's EV push against federal rollback is exactly the state-versus-federal tension that US auto and clean-technology corporates need to navigate, and the endangerment-finding fight will shape how far federal deregulation can actually go. Our energy-transition and market-intelligence teams help clients build multi-scenario planning that stays robust across federal-state divergence.
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