California Regulators Plan to Increase EV Incentives as Feds Withdraw Support
California regulators said they will strengthen efforts to reduce vehicle emissions as the Trump administration reduces support for electric vehicles (EVs) and ends California’s emissions waivers. In a new report released August 19, 2025, the California Air Resources Board (CARB) and other agencies outlined ways California could respond to federal actions.
CARB issued the report in response to Governor Gavin Newsom’s executive order directing CARB, the California Energy Commission (CEC), Governor’s Office of Business and Economic Development (GO-Biz), California State Transportation Agency (CalSTA), and Department of Consumer Affairs (DCA) to recommend strategies that make clean transportation more affordable, reliable, and accessible.
Newsom issued Executive Order N-27-25 in response to Congress and President Donald Trump’s revocation of California’s vehicle emissions waiver, including the waiver that allows the state to end the sale of new gasoline-fueled or diesel-fueled passenger cars and trucks by 2035.
“Clean air efforts are under siege, putting the health of every American at risk,” CARB Chair Liane Randolph, said with release of the report. “California is continuing to fight back and will not give up on cleaner air and better public health — we have a legal and moral obligation.”
Agency Recommendations
The agencies recommended near-term actions around private investment, incentives, infrastructure, fuel pricing, regulations, and procurement.
Private Investment: The report noted the importance of sustaining the state’s Low Carbon Fuel Standard (LCFS) program to ensure continued private investment in the zero emissions vehicle (ZEV) market. This private investment is critical to accelerating ZEV adoption and “moving away from fossil fuels.”
Incentives: The report also discussed the importance of incentives and the need to address both the affordability of vehicles and infrastructure and to support market expansion. This includes:
Backfill the federal tax credits.
Support ZEV market deployment incentive and rebate programs.
Create an education pipeline for good paying jobs.
Explore options to retain high-occupancy vehicle (HOV) access.
Infrastructure: The report noted that the availability of reliable infrastructure remains one of the largest barriers to ZEV adoption for both private use and commercial deployments. It identified the following actions:
Collaborative build-out of infrastructure.
Increase electric vehicle (EV) charger reliability and access.
Accelerate zero-emission infrastructure build-out.
Maximize use of existing transportation funding programs to support ZEVs and infrastructure.
Fuel: The report also noted that strategies that reduce the cost of fueling a ZEV will provide long-term support for the ZEV market. It recommended efforts to:
Explore options to utilize the California Climate Credit to support more affordable ZEV charging.
Expand regional power markets.
Leverage private investments to bring down the cost of hydrogen.
Unlock beneficial Vehicle-Grid Integration (VGI) technology.
Regulations: The agencies recommended two new regulatory programs that will address consumer protection and ensure overburdened communities see the benefits of reduced emissions within their community.
Advance ZEV consumer assurance measures.
Advance statewide indirect source rule, which would reduce emissions from mobile sources that frequent indirect sources such as warehouses, ports, airports, and railyards.
Procurement: The report also noted that state has the ability to use its purchasing power as a market participant to increase of ZEV deployments.
Prioritize use of ZEVs in state procurement.
Support local government fleet electrification.