What’s Next After EPA’s Waiver for CARB ACC2 Program

What’s new: 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.

Why it matters: 

• 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.

What NADA is doing:

• NADA has actively urged the EPA to deny the CARB waiver in comments and meetings with the Biden White House and EPA.
• NADA has engaged with the Trump transition team to express strong support for its intention to revoke the CARB waiver.
• NADA has and will continue to strongly support legislation to revoke the waiver and build congressional support through activating our members.

What to watch for:  

• NADA is closely involved in congressional discussions regarding legislative approaches to disapprove or reverse the waivers—including a possible Congressional Review Act (CRA) resolution that would block the waiver.
• The incoming Congress will be organizing in the next few weeks. NADA will be providing further updates on specific legislation, and potential calls to action, as they become available.