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California is about to ban the sale of new gas-powered vehicles.
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California is poised to ban the sale of new gas-powered vehicles, a policy that is likely to affect the rest of the country and the world.

The New York Times reports that the California Air Resources Board will issue new rules on Thursday that will require 100 percent of new cars sold in the state to be carbon-free.

The rule would phase in over time

The rule will phase in over time, with 35 percent of new passenger vehicles sold by the year 2020. According to the California Department of Motor Vehicles, over 16 percent of new car sales were zero-emission vehicles in 2022.

CA continues to lead the way:



“Experts said the new California rule, in both its stringency and reach, could stand alongside the Washington law as one of the world’s most important climate change policies.” https://t.co/l19OOcsLgF

— Gavin Newsom (@GavinNewsom) August 24, 2022

California is a standard bearer for clean air regulations, so its stance on new car sales is very important. Fourteen states have adopted the progressive zero- emission vehicle program for passenger vehicles, which has spurred the development of hybrid and fully electric cars. California is one of the largest markets for car sales in the world with over 15 million registered vehicles on the road.

One-third of the US auto market could shift to zero-tailpipe emission vehicles only if those states follow California's example.

California is also one of the largest markets for car sales in the world

The restriction on the sale and use of internal combustion engine vehicles is part of a larger effort to rein in greenhouse gas emissions. The governor signed two executive orders in 2020, one requiring all commercial trucks and vans sold in the state to be zero emission by 2045 and the other requiring only passenger vehicles to be zero emission by the year 2035. The bill that was signed into law last year requires all light-duty cars to emit zero emissions by the year 2030.

The new tax credits that are aimed at incentivizing EV sales and the domestic supply chain will be interesting to watch.