In early October 2017, the California announced a potential ban on vehicles powered by internal combustion engines – in other words those running on gas and diesel.
The announcement raises plenty of questions like whether the Environmental Protection Agency will grant a waiver to the California to enforce the proposed law, or if it will have resort to other options, such as changing vehicle registrations or restricting the types of cars that can drive on state highways.
“We have not seen the wording of the proposed bill that will be introduced in California in January, but if it follows the lead of other so-called gasoline bans announced around the world, it will likely stipulate that all new vehicles sold in California by 2040 must [have] some form of electrification.”
California is already working on it, and was just awarded $800 million to allocate toward infrastructure as part of Volkswagen’s Dieselgate settlement.
“Automakers have traditionally been annoyed by California’s more stringent standards because they sometimes have to develop powertrains to two different standards: California and the rest of the country,” Kim says.
“A California mandate that all vehicles must be electrified can further complicate things.”
In other words, stricter rules will force automakers to make more electric cars to meet the demand in California, but since building cars just for California is unrealistic, it will affect the make-up of their entire fleets.