California calls out GM for resisting stronger clean car standards

California calls out GM for resisting

California calls out General Motors for actively lobbying Congress in May 2025 to overturn the state’s strong clean car standards. Governor Gavin Newsom publicly criticized GM’s stance in May 2025, arguing the company was working to roll back California’s clean-air progress.

This conflict targets the Advanced Clean Cars II (ACC II) rule. This policy requires 100% of all new passenger vehicles sold in California to be zero-emission vehicles (ZEVs) by the 2035 model year.

Automakers lobby for waiver repeal

The resistance intensified when GM joined the auto industry to lobby Congress to revoke California’s clean air waiver. Major automakers, through the Alliance for Automotive Innovation, urged Congress to block California’s ACC II and related waivers in April–May 2025.

Soon after industry pushback, the U.S. House passed a resolution in early May 2025; the Senate followed on May 22, and the President signed the CRA resolutions on June 12, 2025.

Congressional vote against clean cars

Following the House action, the U.S. Senate passed a joint resolution to disapprove the ACC II waiver on May 22, 2025. The resolution passed with a close 51 to 44 vote.

GM argued that the required shift to electric vehicles (EVs) was unrealistic given current demand. By October 2025, California’s ZEV sales share hit 29.1% in the third quarter.

ZEV sales targets and severe penalties

The fight focuses on the demanding ZEV ramp-up schedule, which forces manufacturers to accelerate sales. Automakers must ensure 35% of their new light-duty sales are ZEVs starting with the 2026 model year.

If a manufacturer fails to meet this quota, they face a steep fine of $20,000 for every non-compliant vehicle. These rules affect California and at least 11 other states that have adopted its standards.

Newsom’s immediate legal challenge

Given the severe impact on clean air goals, California’s government immediately fought against the federal revocation. Governor Newsom and Attorney General Rob Bonta filed a lawsuit on June 12, 2025, leading a coalition of 10 other states.

The state argued that using the Congressional Review Act was illegal. Losing these standards would result in an estimated $45 billion in preventable healthcare costs for state taxpayers by 2040.

GM’s financial retreat and state boycott

GM’s renewed resistance aligned with its internal changes to EV plans. In October 2025, GM disclosed a $1.6B charge tied to revising EV capacity amid policy changes and slower near-term adoption.

In direct response, Governor Newsom signed an executive order on June 12, 2025. This order directs the state to prioritize buying vehicles from manufacturers that comply with the clean car standards.

Truck mandate and the sales ramp-up

GM’s opposition also extends to California’s Advanced Clean Trucks (ACT) rule for heavy-duty vehicles. The ACT rule requires commercial truck manufacturers to rapidly increase ZEV sales.

For the smallest Class 2b-3 trucks, the mandate started at 5% ZEV sales in the 2024 model year. This requirement will climb to 10% ZEV sales by the 2026 model year and reach 55% by 2035.

ZEV targets for heavy-duty vehicles

The ACT rule sets separate and high ZEV targets for the most significant truck segments. Mid-sized Class 4-8 straight trucks must hit 13% ZEV sales by the 2026 model year, increasing to 75% by 2035.

The heaviest Class 7-8 tractor trucks must reach 40% ZEV sales by the 2035 model year. Manufacturers selling more than 500 heavy-duty vehicles annually must comply.

Aggressive ramp-up of ZEV passenger sales

The ACC II rule significantly accelerates the ZEV sales percentages for light-duty cars to meet California’s zero-emission goal.

The ZEV sales target for the 2027 model year is 43%, increasing to 51% in 2028. The mandate continues to rise, reaching 68% by the 2030 model year. As of October 2025, California has cumulatively purchased 2,468,158 new ZEVs.

Smog reduction goals and air quality

The importance of the ACC II mandate is primarily tied to state air quality and federal compliance requirements. The rule is projected to reduce smog-forming pollution from light-duty vehicles by 25% by 2037.

Losing this regulation complicates the state’s efforts to clean its air. The clean air effort is vital, as 10 million Californians live in areas with severe nonattainment for ozone.

State procurement leverage and commitment

California uses its financial power to enforce compliance and support ZEV development among automakers. The June 12, 2025, executive order officially requires the state government to prioritize buying clean vehicles from compliant automakers.

California has previously leveraged state vehicle purchasing to influence automaker compliance, and the June 12, 2025, executive order again directs state buying toward manufacturers that comply with these standards.

Wondering which car mods could get you fined in California? Find out about car modifications that are illegal in California.

GM’s shifting investments and plans

GM’s investment strategy reflects a pivot toward mixed production, driven by market uncertainty, to balance gas and electric models.

GM plans to invest about $4 billion over two years to expand U.S. production to over 2 million vehicles annually by 2027. GM will also temporarily pause battery cell production in early 2026, aiming to reduce EV-related financial losses by the end of 2026.

Curious how Tesla resolved its Autopilot crash cases? Read more in Tesla settles lawsuits tied to 2019 California Autopilot crashes.

Should automakers face more challenging emissions demands? Let us know your view below.

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This slideshow was made with AI assistance and human editing.