Governor of California signed the executive order on 23 Sep 2020. The action aims to promote zero-emission vehicle with the plan to phase out cars with ICE (Internal Combustion Engines) within 2035, or 15 years from now all new passengers car sales must be zero-emission vehicles. This decision will put California in alliance with major cities who also aim to ban ICE and opt to cleaner option (e.g., Paris, Madrid, Athens, Mexico City, Brussels, British Columbia, Bristol, etc.)

The California Air Resources Board (CARB) will develop regulations to mandate
a) Passenger vehicle and truck regulations requiring increasing volumes of new zero-emission vehicles sold in the State towards the target of 100 percent of in-state sales by 2035.
b) Medium and Heavy-duty vehicle regulations requiring increasing volumes of new zero-emission trucks and buses sold and operated in the State towards the target of 100 percent of the fleet transitioning to zero-emission vehicles by 2045 everywhere feasible and for all drayage trucks to be zero- emission by 2035.

Currently, in California, the transportation sector is accountable for more than 50 percent of carbon pollution, 80 percent of smog-forming pollution, and 95 percent of toxic diesel emissions. However, California has a Clean Air Act waiver which enable California to establish and regulate the state-own clean air rules. With the implementation of this regulation, significant pollution reduction is expected.

Even though this policy will not cover used car market, but we can expect the significant impact to clean energy transportation business and could account as major driving force to push EVs Car and its value chain forward. Because within California alone, with 40 million population, the state purchase more than 10% of new cars and trucks sold in the U.S. annually. Furthermore, most states across the west coast will follow California guideline (e.g., OR, WA, NV, AZ. CO, etc.) and these states represent about a third of the US population.

As total cost of ownership of EVs car will reach parity point with ICE car within the near future, plus major car and battery manufacturers are striving toward better efficiency, The bright outlook of innovations for clean energy awaits.

References

Photo: CHUTTERSNAP on Unsplash

The Wall Street Journal, “California’s Ban on New Gas Cars Further Upends Auto Industry"
https://www.wsj.com/articles/californias-ban-on-new-gas-cars-further-upends-auto-industry-11600969791
Arstechnica, “California bans new internal combustion engines, starting in 2035"
https://arstechnica.com/cars/2020/09/by-2035-new-trucks-and-cars-sold-in-california-must-be-emissions-free/
Electrek, “California will ban sale of new ICE cars in 2035. Why not sooner?"
https://electrek.co/2020/09/23/california-ban-sale-new-ice-cars-in-2035/
Office of Governer Gavin Newsom, “EXECUTIVE ORDER N-79-20"
https://www.gov.ca.gov/wp-content/uploads/2020/09/9.23.20-EO-N-79-20-text.pdf
Office of Governer Gavin Newsom, "Governor Newsom Announces California Will Phase Out Gasoline-Powered Cars & Drastically Reduce Demand for Fossil Fuel in California’s Fight Against Climate Change"
https://www.gov.ca.gov/2020/09/23/governor-newsom-announces-california-will-phase-out-gasoline-powered-cars-drastically-reduce-demand-for-fossil-fuel-in-californias-fight-against-climate-change/