California has solidified its position as a leader in environmental policy by officially adopting the Advanced Clean Cars II rule. This groundbreaking regulation sets the stage for a dramatic shift in the automotive market, mandating that 100% of new cars and light trucks sold in the state must be zero-emission vehicles (ZEV), including plug-in hybrids, by 2035. This ambitious move is designed to drastically reduce air pollution and combat climate change, paving the way for a cleaner transportation future and fundamentally changing the landscape of New Cars For Sale.
This landmark rule, approved by the California Air Resources Board (CARB), provides a clear, year-by-year roadmap for automakers. Starting with model year 2026, a progressively increasing percentage of new cars for sale must be ZEVs, culminating in the complete phase-out of new gasoline-powered vehicle sales by 2035. This regulation codifies the goals outlined in Governor Newsom’s Executive Order N-79-20, solidifying California’s commitment to transitioning away from fossil fuels in the transportation sector.
“California is once again leading the nation and the world with a regulation that sets ambitious yet achievable targets for ZEV sales,” stated CARB Chair Liane Randolph. She emphasized the significant air quality improvements and pollution reductions this rule will bring, particularly benefiting communities located near major roadways that disproportionately suffer from air pollution. The regulation is further supported by substantial state investments aimed at making ZEVs accessible to a wider range of consumers, including those with low and moderate incomes, ensuring a just transition in the market for new cars for sale.
While numerous regions have set targets for phasing out internal combustion engine vehicles, California’s regulation is the most aggressive and definitive. It establishes a concrete mechanism to achieve the required zero-emission vehicle sales targets, increasing year after year until reaching 100% ZEV sales in 2035. This timeline means that within a little over a decade, the selection of new cars for sale in California will be overwhelmingly dominated by zero-emission options, with only a limited number of advanced plug-in hybrids potentially available. The regulation also prioritizes equity in this transition and assures consumers about the long-term performance, durability, and environmental benefits of these new cars for sale and their batteries.
Cleaner Air and a Healthier Climate Drive the Demand for New Cars For Sale
Transportation is the largest contributor to both air pollution and greenhouse gas emissions in California. This pioneering regulation directly tackles these issues by significantly reducing emissions from cars and light trucks, directly impacting the types of new cars for sale in the coming years.
By 2037, the regulation is projected to cut smog-forming pollution from light-duty vehicles by 25%, helping California meet federal air quality standards. This will result in significant health improvements for all residents, especially those in environmentally burdened communities near busy roads. Between 2026 and 2040, the estimated cumulative health benefits are valued at nearly $13 billion, including preventing thousands of hospitalizations, emergency room visits, and deaths related to respiratory and cardiovascular illnesses.
The environmental benefits are equally substantial. By 2030, it’s estimated that there will be 2.9 million fewer new gasoline-powered vehicles sold, increasing to 9.5 million fewer by 2035. By 2040, greenhouse gas emissions from cars, pickups, and SUVs will be halved. From 2026 to 2040, the cumulative reduction in climate-warming pollution from these vehicles will reach 395 million metric tons – equivalent to the emissions from burning 915 million barrels of oil. This demonstrates the profound impact this regulation will have on the environmental footprint of new cars for sale.
What to Expect When Shopping for New Cars For Sale: Regulation Details
The Advanced Clean Cars II rule mandates a progressive increase in the percentage of zero-emission light-duty vehicles that automakers must deliver each year, beginning in model year 2026. The sales targets for new cars for sale are set to start at 35% ZEV and PHEV in 2026, rising to 68% in 2030, and ultimately reaching 100% in 2035.
Projected sales percentages of Zero-Emission Vehicles (ZEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) as a portion of all new car sales in California, ramping up to 100% ZEV by 2035.
It’s important to note that this regulation applies to automakers, not car dealerships, and it only affects the sale of new cars for sale. Existing gasoline-powered vehicles already on the road are not impacted and remain legal to own and drive.
The regulation encompasses battery-electric vehicles, hydrogen fuel cell vehicles, and plug-in hybrid vehicles as qualifying ZEVs. To qualify, PHEVs must have a minimum all-electric driving range of 50 miles in real-world conditions. Furthermore, automakers can only fulfill a maximum of 20% of their overall ZEV requirement using PHEVs, pushing the market towards fully electric new cars for sale.
For battery-electric and fuel cell vehicles to qualify under the program and count towards the increasing ZEV percentages in new cars for sale, they must meet specific criteria, including a minimum driving range of 150 miles, fast-charging capability, and inclusion of a charging cord. They also must adhere to new warranty and durability standards, ensuring consumer confidence in these new cars for sale.
Durability and Warranty: Ensuring Long-Term Value for New EV Owners
A key aspect of the new regulation is ensuring that ZEVs are not just environmentally friendly but also reliable and durable, serving as true replacements for gasoline vehicles in the new cars for sale market. This includes protecting the resale value for owners and assuring used car buyers of the quality and longevity of these vehicles.
By model year 2030, the rules mandate that EV batteries in new cars for sale must maintain at least 80% of their original electric range for 10 years or 150,000 miles (this requirement is phased in from 70% for 2026-2029 models). Additionally, starting with model year 2031, individual vehicle battery packs will be warranted to maintain at least 75% of their energy capacity for eight years or 100,000 miles (phased in from 70% for 2026-2030 models). ZEV powertrain components will also be warranted for a minimum of three years or 50,000 miles. These robust warranty requirements will enhance consumer confidence in the long-term value and reliability of new cars for sale that are electric.
Equity and Access: Making New Clean Cars Available to All Californians
The regulation recognizes the importance of environmental justice, ensuring that the benefits of cleaner transportation are shared by all Californians, especially those disproportionately affected by air pollution. The durability and warranty provisions contribute to establishing a robust and dependable used ZEV market, making cleaner transportation more accessible over time. Furthermore, the regulation includes incentives for automakers to increase ZEV adoption among low-income households and residents of disadvantaged communities, promoting equitable access to new cars for sale that are zero-emission.
California is investing significantly to support this transition and improve access to new cars for sale that are ZEVs for all residents. Governor Newsom and the state legislature have allocated substantial funds – $2.7 billion in fiscal year 2022-23 and $3.9 billion over three years – towards ZEV adoption and clean mobility initiatives, particularly for environmentally and economically burdened communities.
These investments include expanding programs like Clean Cars 4 All, offering rebates through the Clean Vehicle Rebate Project (CVRP), and building out charging infrastructure, especially in underserved areas where home charging may not be readily available. These programs are crucial in making new cars for sale that are electric vehicles a viable option for a broader range of Californians.
Savings for Consumers in the New Car Market
Switching to battery-electric vehicles offers immediate financial benefits to drivers. EV owners already experience savings on fuel and maintenance costs compared to gasoline car owners. Charging an EV at home can cost roughly half the price of gasoline for the same distance driven, and EVs can reduce maintenance costs by as much as 40%. As the market for new cars for sale increasingly shifts to electric, these savings will become even more significant.
CARB analysis projects that battery-electric vehicles are likely to reach cost parity with conventional vehicles by 2030. By 2035, consumers are expected to save as much as $7,900 in maintenance and operational costs over the first 10 years of ownership. Even owners of 2026 model year EVs will see considerable 10-year savings, making new cars for sale that are electric a smart long-term financial decision.
Continued Improvement for Conventional Cars
While the focus is on the transition to ZEVs, the Advanced Clean Cars II rule also includes updated regulations for light- and medium-duty internal combustion engine vehicles. These stricter low-emission vehicle standards will further reduce air quality impacts from the remaining gasoline-powered new cars for sale in the interim period, complementing the larger emission reductions achieved through ZEV deployment. These standards prevent potential emission increases by removing ZEVs from the baseline used to calculate fleet-average emissions and reduce allowable exhaust emissions under real-world driving conditions.
California Leading the Charge, Nationally and Beyond
Transportation is responsible for approximately 50% of greenhouse gas emissions and 80% of air pollution in California, highlighting the urgency and importance of this regulation. The Advanced Clean Cars II rule builds upon the original Advanced Clean Cars Program adopted in 2012, reinforcing California’s commitment to clean air and climate action. This regulation is a critical tool in achieving California’s climate goals, including carbon neutrality by 2045.
Other states that currently adhere to California’s vehicle emissions standards are anticipated to adopt these regulations as well, extending the clean air and climate benefits across a wider region. These states represent approximately 40% of the nation’s new car sales, signifying the potential for this regulation to transform the landscape of new cars for sale nationwide and accelerate the transition to a zero-emission transportation future.
