Inside Automotive with Jim Fitzpatrick, powered by CBT News

California's EV Reset Button

• Jim Fitzpatrick • Season 1 • Episode 4

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The president has signed resolutions blocking California's EV mandate, marking a major legislative win for the auto industry nationwide. Brian Maas, President of the California New Car Dealers Association, discusses how this development impacts dealers, OEMs, and consumers in California and other states following California's emissions standards.

• California's Advanced Clean Cars 2 regulation required 100% zero-emission vehicles by 2035
• The Congressional Review Act process was used to eliminate California's special emissions waiver
• CARB agreed to pause enforcement for the 2026 model year even while their lawsuit is pending
• California EVs comprise 20% of new vehicle sales—triple the national rate but far below the mandated 35% 
• California currently has 170,000 public chargers but needs 2.1 million by 2035
• Tesla's market share has dropped six consecutive quarters in California
• Dealers in California are now collectively selling more EVs than Tesla
• Current business climate shows dealer concern about tariffs, high interest rates, and political uncertainty
• Market uncertainty most significantly impacts consumer willingness to purchase new vehicles


Jim Fitzpatrick:

Welcome to Inside Automotive with Jim Fitzpatrick. Hey everyone, jim Fitzpatrick, welcome into another edition of Inside Automotive right here at CBT News. A major legislative win for the auto industry nationwide, as the president signed resolutions to block California's EV mandate. Joining us now with his perspective on what's happening in his state and how his members are feeling is Brian Maas, president of the California New Car Dealers Association. Brian, first of all, I guess, congratulations on this big news and thank you so much for taking the time out of your schedule to join us.

Brian Maas:

Thanks for having me, Jim. Really appreciate the opportunity.

Jim Fitzpatrick:

Sure. So for those who haven't been following closely, can you explain the resolution, the resolutions that were signed.

Brian Maas:

Sure. So under the Federal Clean Air Act, california is the only state that can adopt its own emissions rules and as part of that, california adopted something called Advanced Clean Cars 2, which is effectively a zero emission vehicle mandate that 100% of vehicles sold in California and about a dozen other states that follow California were supposed to be zero emission. President Trump and Republicans in Congress did not like those rules and they used a process that was created in legislation about 40 years ago called the Congressional Review Act, where you can review rules adopted by the federal government, in this case, a waiver granting California the ability to adopt its zero emission vehicle standards Within six months of the rule being adopted. The Biden administration approved California's waiver in December. Congress and the Trump administration jumped on the Congressional Review Act process and both houses of Congress have passed the resolutions and President Trump just signed them earlier this month.

Jim Fitzpatrick:

Right, right. So what implications does this have in your state for dealers and OEMs and consumers?

Brian Maas:

So we had tilted up a significant public affairs campaign with over 60 coalition partners, urging CARB to pause enforcement of its mandate because none of the manufacturers our dealers represent were going to meet the 35% threshold for the 26th model year, let alone the 100% by 2035. Right, so in so doing, we were asking CARB to pause enforcement. What the Congressional Review Act passage does is eliminate the rule entirely. Yes, and although California has sued, arguing that the CRA's passage was illegal, what's significant is CARB on its own, at our urging, agreed to pause enforcement of the mandate, even while the lawsuit is pending, for model year 2026. So that means dealers can continue to get the inventory that they were expecting the mix of ICE and EV vehicles that are going to sell in their particular market, not only in California but in all the other CARB states as well.

Jim Fitzpatrick:

Yeah, yeah, fantastic, and I think that's good news. All around right.

Brian Maas:

Absolutely. A lot of us, especially in the carb states, are very supportive of the transition to electrification of the vehicle fleet EVs. That's three times the national rate but well short of the 35% standard that was in ACC2. And that was the message we were trying to deliver to CARB and other policymakers is we're supportive of EVs but it's got to make sense in the market and the numbers just didn't bear it out.

Jim Fitzpatrick:

That's right. That's right, and you know, and obviously the OEMs are running around like chickens with their head cut off trying to figure out how are we going to accommodate, you know, this demand and of course, so many dealers made huge investments into EV charging stations and their structures and their buildings to accommodate this situation. Ford kind of leading the pack out there, but this really, I think just kind of releases that pressure now on OEMs and dealers. Right, that says okay, clearer heads need to prevail on this issue, and it's just what didn't make sense.

Brian Maas:

Yeah, I think for the market in California and the rest of the US, the transition to EVs is going to have to reflect where customers are. Yeah, to give you some data in California, our Energy Commission says we need 2.1 million public fast chargers by 2035 in order to accommodate 100% zero emission vehicles. We currently have about 170,000 public chargers and we're only adding 50,000 a year, so there was no way we were going to get there. And these are the conversations we want to have with CARB, our elected officials in California and, frankly, national policymakers as well, about if you're going down this direction. It's got to make sense in the marketplace, and consumers have said we're not willing to transition to these vehicles if there isn't the infrastructure to support them.

Jim Fitzpatrick:

That's right. That's right. Even though it's a great idea and it might save the economy down, it still has got to make sense for working men and women that rely on their cars every day and want to get in, turn the key and go. And it just was unrealistic. And, as you said, you've got a 20% penetration out there of EVs leading the country and yet you're not even close. So it was ridiculous really, at the end of the day, right.

Brian Maas:

Yeah, and you know. Take a look at Tesla's market share. It's dropped six consecutive quarters in California, almost certainly going to drop a seventh consecutive quarter, and our dealers are selling more EVs in California than Tesla is. So it's not that Californians don't support EVs, it's just that there are some headwinds in that market and we need to confront the reality of what consumers are telling us with their wallets.

Jim Fitzpatrick:

Yeah, I agree. I agree. What's your governor out there, gavin Newsom, who looks like he's almost running for president in 2028? I mean, that's almost a sure-fired bet, right, but what's his take on all of this? What's he saying? What's he doing?

Brian Maas:

So he's obviously supporting California's lawsuit to invalidate the Congressional Review Act. I think that's a bit of a Hail Mary, based on my conversations with lawyers who are much smarter than me, but their position is that they're already starting work on advanced clean cars three 29, because under the Clean Air Act California would need a waiver granted by the Trump administration, and the chances of that happening are zero, zero, zero, right, just not going to happen.

Jim Fitzpatrick:

And this comes at a time that the industry is trying to figure some things out on some other issues that are pressing the dealer body and OEMs alike right now, and so this is a big win for dealers and congratulations to you and, obviously, the job that NADA has done, and all of your counterparts, the ATAEs out there that worked hard on this effort, and it all came together in a very positive way with a great result.

Brian Maas:

Yeah, I think the automakers and NADA deserve a lot of credit for pushing this issue hard in Washington and supported in California and some of the other states by state-based level policy initiatives to ensure that folks understand that, notwithstanding the great goal of moving toward electrification, we couldn't do it as fast as people thought in the rule that California adopted.

Jim Fitzpatrick:

Right, right, Exactly exactly. I'd be remiss if I didn't ask you how's business in California today, among your members and dealer members out there.

Brian Maas:

It's good. I think dealers are a little bit nervous. I saw a headline today that kind of summed it up nicely Tariffs that creates uncertainty, high interest rates that's a challenge in the marketplace, especially for middle and lower income consumers, and there were a lot of pull forward sales in March and April sales in March and April and I think people are a little concerned about you know what sales are going to look like this summer. Hopefully the political situation stabilizes, people feel good about their job prospects and therefore turn around and purchase the personal transportation that they need from our members. But we'll have to see.

Jim Fitzpatrick:

Yeah, and I've spoken to a number of people that feel as though this tariff situation will be over by the end of the summer. I mean, I think we're all hoping that right. We're kind of all tariffed out by now, so we're hoping there is some resolution on all of that. We can get back to selling cars and taking good care of our customers right Beyond this whole.

Brian Maas:

Yeah, I've been representing the California dealers in one capacity or another for 23 years and I can tell you the one thing that chills the car market more than any other is uncertainty. If people don't feel secure in their personal financial situation because they're worried about national or global political developments or whether they're going to have a job next month or next year, they're not going to run out and buy a $50,000 new car. So stabilizing that environment will yield increased vehicle sales.

Jim Fitzpatrick:

That's right. That's right. That's right. Couldn't have said it better. Brian Maas, president of California New Car Deal Association, thank you so much for taking the time out of your schedule, all the hard work that you do for your dealer members there in California, fighting the good fight every day, and appreciate all the time you've given us. Thanks so much, congratulations.

Brian Maas:

Thanks again for having me, jim, really appreciate it Absolutely.

Jim Fitzpatrick:

Thanks for watching Inside Automotive with Jim Fitzpatrick.