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California’s ZEV Mandate: Policy, Progress, and What Comes Next

Published May 26, 2025
nZero
By NZero
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California has long set the pace for environmental regulation in the U.S., especially in the realm of transportation. The Zero-Emission Vehicle (ZEV) Mandate, created by the California Air Resources Board (CARB) in 1990, was initially aimed at addressing smog and public health issues in cities like Los Angeles. Over the years, it has evolved into a major climate policy tool, now central to California’s strategy to decarbonize the transport sector—the largest contributor to greenhouse gas emissions in the state.

What makes California’s ZEV program uniquely powerful is its special authority under the federal Clean Air Act to set its own vehicle emission standards, as long as it obtains EPA waivers. This legal power has allowed California to push ahead of federal rules, influencing 17 “Section 177” states that have voluntarily adopted its stricter standards.

Purpose and Policy Mechanism: Why the ZEV Mandate Matters

The ZEV Mandate is more than a climate measure—it supports technological innovation, public health, and equity. Its key objectives include:

  • Decarbonizing transportation: The mandate is essential for meeting California’s climate targets, requiring 100% of new passenger car sales to be ZEVs by 2035.
  • Protecting health: Reducing emissions cuts fine particulate matter (PM2.5) and nitrogen oxides (NOx), helping reduce asthma and cardiovascular diseases.
  • Driving innovation: It pushes automakers to invest in electric powertrains, batteries, and connected technologies.
  • Expanding access: As the market scales, ZEVs become more affordable, with policies like rebates and income-based programs increasing consumer choice.

The 2022 update known as Advanced Clean Cars II (ACC II) added teeth to the policy by mandating sales benchmarks starting at 35% in 2026, rising to 100% by 2035, while also introducing durability and performance requirements for EVs.

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Momentum and Market Shifts: From Niche to Mainstream

ZEV adoption in California has accelerated dramatically. In 2023, ZEVs made up more than 21% of new car sales, a steep rise from just 3% in 2015. This growth is supported by:

  • State infrastructure investments, including over 90,000 public charging ports
  • Incentives like the Clean Vehicle Rebate Project (CVRP) and utility rebates
  • Commitments from automakers, both new entrants (Tesla, Rivian) and incumbents (Ford, GM)
  • Supportive local policies, such as EV-only parking, HOV access, and city fleet electrification

The influence of California’s ZEV policy extends beyond state borders. National clean vehicle rules proposed by the Biden administration draw from California’s model, while countries such as Canada and the UK are implementing similar 2035 targets to phase out internal combustion engine vehicles.

What’s Next: Scaling Infrastructure, Innovation, and Equity

California is already expanding the ZEV model beyond personal vehicles. CARB’s 2023 Advanced Clean Fleets rule mandates the electrification of commercial truck and delivery fleets, creating a new frontier for zero-emission transport. Several future trends will define the mandate’s next chapter:

  • Grid Integration: With growing EV adoption, technologies like smart charging and vehicle-to-grid (V2G) will help balance electricity demand.
  • Battery Innovation: Policies are encouraging local battery manufacturing and reuse to reduce reliance on critical minerals.
  • Equity Programs: Initiatives like Clean Cars 4 All provide financial support to help low-income residents replace older, high-emission vehicles.
  • Global Alignment: California’s leadership is driving harmonization in areas like battery passports, emissions reporting, and charging standards.

For businesses—especially automakers, utilities, and fleet operators—the ZEV Mandate represents both a regulatory challenge and a massive opportunity. Success will require scaling supply chains, investing in workforce development, and embedding clean mobility into long-term planning.

California’s ZEV Mandate is not only transforming the state’s vehicle market—it is setting the template for global transportation policy. As adoption accelerates and policies evolve, stakeholders must move from passive compliance to active leadership in building a sustainable, zero-emission future.

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