Automakers in California and many other states may soon have to restrict sales of gasoline and non-plug-in hybrid vehicles this year if California’s zero-emission vehicle requirement is not overturned, industry leaders say.
California’s Advanced Clean Cars II rule, which phases out the sale of gas-powered cars in 2035, requires that 35% of model year 2026 vehicles be either zero emission — which largely means battery-electric, though hydrogen vehicles exist — or plug-in-hybrids that have both gas engines and battery-powered electric motors.
The ACC II mandate applies to Massachusetts, New York, Oregon, Vermont, and Washington for model year 2026, and Colorado, Delaware, Maryland, New Jersey, New Mexico, Rhode Island, and Washington, D.C. for model year 2027.
The California New Car Dealers Association’s report on car sales in the year’s first quarter earlier comments by Toyota that the mandate is “impossible” to meet: ZEV market share fell from 22% in 2024, to 20.8% in the first quarter of 2025.
“If CARB doesn’t pause or adjust the ACCII mandate, we are concerned automakers will restrict shipments of traditional hybrids and affordable gas-powered models to avoid massive fines,” said CNCDA President Brian Maas to The Center Square. “This is occurring in California’s heavy-duty truck marketplace, which has been devastated by similar CARB rules that took effect in January 2024.”
In California, which has the nation’s highest gas prices and second-highest energy prices, and where the state asks EV owners to refrain from charging on hot days to limit grid stress, residents have been flocking to standard hybrid vehicles. Standard hybrid market shares 37% in the past year, from 13.1% in the first quarter of 2024 to 17.9% of the market in the first quarter of 2025.
