Justice Department Sues California as State Ramps Up Own EV Incentives

The U.S. Department of Justice has filed suit against California, seeking to block what it calls the state's "de-facto electric-vehicle mandate" and to require the California Air Resources Board (CARB) to align its vehicle-emissions policies with federal law. The action follows a letter from House Energy and Commerce Committee Chair Brett Guthrie contending that California’s rules effectively force automakers to sell more zero-emission cars nationwide. California regulators signaled they will not retreat. CARB said it has begun drafting a new round of tailpipe-emission standards and, together with five other state agencies, recommended that Sacramento replace the $7,500 federal EV tax credit due to lapse at the end of September with state-funded rebates or vouchers. The plan, still subject to budget approval, is part of Governor Gavin Newsom’s directive to maintain momentum toward the state’s target of phasing out sales of gasoline-powered cars. Separately, California Attorney General Rob Bonta and Democratic attorneys general from several states urged the Environmental Protection Agency to abandon its proposal to rescind the long-standing finding that greenhouse-gas emissions endanger public health. They argue that overturning the “endangerment finding” would strip the legal foundation for federal limits on carbon pollution from vehicles, power plants and other sources. The parallel moves underscore an escalating legal and policy confrontation between the Trump administration and California over climate regulation, with implications for U.S. automakers, consumers and the nation’s broader decarbonization goals.