The California EV bill most people are asking about is the Advanced Clean Cars II regulation, adopted by the California Air Resources Board (CARB). It requires that 100% of new passenger vehicles sold in the state be zero-emission by the 2035 model year, with rising annual targets starting at 35% for the 2026 model year.1United States Environmental Protection Agency. EPA Grants Waiver for Californias Advanced Clean Cars II Regulations In June 2025, Congress nullified the federal waiver California needed to enforce it, so the regulation remains on the books but cannot currently be implemented.2The White House. Statement by the President
What the Rule Actually Requires
The obligation falls on automakers, not on you. Advanced Clean Cars II requires manufacturers to ensure that a growing share of the new cars, light-duty trucks, and SUVs they deliver for sale in California are zero-emission vehicles.1United States Environmental Protection Agency. EPA Grants Waiver for Californias Advanced Clean Cars II Regulations Nothing in the regulation restricts the sale, registration, or ownership of used gasoline-powered vehicles. No one is required to buy an electric car. If a manufacturer falls short of its annual requirement, it faces financial penalties under California law that can reach tens of thousands of dollars per non-compliant vehicle.
CARB adopted the rule as a package covering model years 2026 through 2035 and beyond, combining the state’s Low Emission Vehicle standards and its Zero-Emission Vehicle program into a single framework.
Year-by-Year Sales Targets
The percentages ramp up gradually rather than switching on in 2035. The schedule for each model year is:
- 2026: 35%
- 2027: 43%
- 2028: 51%
- 2029: 59%
- 2030: 68%
- 2031: 76%
- 2032: 82%
- 2033: 88%
- 2034: 94%
- 2035: 100%
The early years involve roughly eight-percentage-point jumps; the increases from 2032 onward are closer to six points per year. The numbers represent the combined share of zero-emission vehicles and qualifying plug-in hybrids each manufacturer must deliver for sale in California.
Which Vehicles Qualify
Not every electric or hybrid vehicle counts toward a manufacturer’s target. The regulation sets minimum technical standards.
Battery Electric and Fuel Cell Vehicles
A zero-emission vehicle is one that produces no tailpipe emissions, which covers battery electric vehicles and hydrogen fuel cell vehicles. To qualify for full credit, a BEV or FCEV must have a minimum all-electric range of 150 miles and include fast-charging capability.1United States Environmental Protection Agency. EPA Grants Waiver for Californias Advanced Clean Cars II Regulations
Plug-in Hybrids
Plug-in hybrids can count toward compliance, but only up to 20% of a manufacturer’s total annual requirement. A qualifying plug-in hybrid must deliver at least 50 miles of all-electric range under real-world driving conditions, and its gasoline engine must meet strict low-emission standards.1United States Environmental Protection Agency. EPA Grants Waiver for Californias Advanced Clean Cars II Regulations The 50-mile threshold is considerably higher than most plug-in hybrids on the market have historically offered.
Battery Durability and Warranty Protections
Advanced Clean Cars II also sets rules for how long an EV battery must last. For 2026 through 2029 model year vehicles, manufacturers must design batteries so that at least 70% of vehicles in a given test group retain 70% or more of their certified electric range for 10 years or 150,000 miles, whichever comes first. Starting with the 2030 model year, the average vehicle in a test group must retain at least 80% of its certified range over the same period.3California Air Resources Board. Final Regulation Order – Section 1962.4
Manufacturers must also warrant the battery against falling below defined capacity thresholds for at least 8 years or 100,000 miles. The regulation requires that buyers be able to check their battery’s state of health directly from the vehicle, with no special tools. That gives you a simple way to verify warranty-eligible degradation before it becomes a dispute.
Why the Rule Isn’t Being Enforced Right Now
Under the Clean Air Act, California has a unique ability to set vehicle emission standards stricter than federal rules, but only with an EPA waiver. The Biden administration granted that waiver for Advanced Clean Cars II. In June 2025, Congress passed and President Trump signed three Congressional Review Act resolutions nullifying the waiver, along with waivers for the Advanced Clean Trucks and Heavy-Duty Omnibus NOx programs.2The White House. Statement by the President
The practical effect is blunt: as of mid-2025, Advanced Clean Cars II “is fully and expressly preempted by the Clean Air Act and cannot be implemented.”2The White House. Statement by the President The Congressional Review Act also bars the EPA from approving any future waiver that is “substantially the same” as the one that was disapproved.4United States Environmental Protection Agency. EPA Hails Congressional Disapproval of California EV Mandate Rule How broadly that language will be read remains an open legal question.
California has signaled it will challenge the revocation in court, arguing that the Congressional Review Act cannot be used to override a Clean Air Act waiver. Those legal battles could take years. In the meantime, the regulation exists on CARB’s books but manufacturers face no enforceable compliance obligation under it.
States that had moved to adopt California’s standards under Section 177 of the Clean Air Act are affected the same way. Their authority to enforce California-based standards depends on a valid California waiver, so enforcement is blocked in those states as well.
Incentives Still Available for EV Buyers
Whatever happens with Advanced Clean Cars II in court, incentives are what actually touch your wallet, and the picture has changed in the last two years.
California Programs
California’s Clean Vehicle Rebate Project, which offered cash rebates to buyers and lessees of qualifying electric vehicles, closed permanently on November 8, 2023.5California Air Resources Board. Clean Vehicle Rebate Project The broadest remaining state program is Clean Cars 4 All, which helps lower-income consumers in priority communities replace older high-polluting vehicles with newer electric or plug-in hybrid models. It is income-qualified, so it is not available to all buyers, and participants can also receive incentives for home charger installation.6California Air Resources Board. Clean Cars 4 All Additional local utility and air district rebates exist but vary by region.
Federal Tax Benefits
The federal New Clean Vehicle Credit of up to $7,500 under IRC Section 30D is no longer available for vehicles acquired after September 30, 2025.7Internal Revenue Service. Clean Vehicle Tax Credits If you purchased an eligible vehicle before that date, you can still claim the credit on your 2025 tax return.
The replacement is not EV-specific. The One, Big, Beautiful Bill Act created a “No Tax on Car Loan Interest” deduction effective for 2025 through 2028. You can deduct up to $10,000 per year in interest paid on a loan used to purchase a new vehicle that underwent final assembly in the United States. The vehicle must be new (used vehicles do not qualify), purchased for personal use, and the loan must be secured by a lien on the vehicle. Lease payments do not qualify. The deduction phases out for single filers above $100,000 in modified adjusted gross income and joint filers above $200,000.8Internal Revenue Service. One, Big, Beautiful Bill Act – Tax Deductions for Working Americans and Seniors The deduction applies equally to gas-powered cars, hybrids, and EVs, as long as they are assembled domestically.