EPA's CARB Waivers
On December 18, 2024, the Biden Administration EPA granted a waiver to the California Air Resources Board (CARB), allowing California to implement its Advanced Clean Cars II (ACC2) program (see NADA’s press release).
ACC2 requires new vehicle sales by vehicle manufacturers to be 35% Zero Emissions Vehicles (ZEVs) for MY2026 and increases to a complete ban on gas-powered cars in MY2035. Eleven states have adopted California’s strict mandate, in whole or in part.
NADA has long supported a single, national fuel economy standard that is technologically feasible, economically practicable, and does not restrict consumer choice.
California’s ZEV mandate is far ahead of consumer demand and expected ZEV sales in California and the 11 CARB states are nowhere close to meeting the mandates.
For dealers, this could mean significant allocation issues, where OEMs push EVs in CARB states and make a disproportionate number of internal combustion engine (ICE) vehicles available in non-CARB states.
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