What it means: Congress and the Trump Administration recently blocked California’s   attempt to phase out the sale of gas-powered vehicles by 2035. H.J. Res. 88, passed by Congress and signed into law by President Trump, rescinds the federal waiver granted to California to implement more stringent vehicle emissions standards than what is already enforced through the Clean Air Act. It’s a critical step toward protecting small businesses from one-size-fits-all mandates that do not reflect their realities.  

Our take: “Over a dozen states have adopted California’s standards, effectively allowing a single state’s policymakers to dictate vehicle regulations nationwide. This is an overreach that imposes costly and unrealistic mandates on small business owners, most of whom do not have the financial means to comply with these regulations,” said Adam Temple, NFIB Senior Vice President for Advocacy. 

Blocking California’s vehicle emissions mandate is a big win to protect small businesses and limit harmful regulations. Although this regulation was created in California, its effects stretch well beyond the state’s border. Over a dozen states encompassing nearly 140 million people have also adopted the same regulation as California. Small businesses rely on affordable gas-powered vehicles for many day-to-day business operations and often treat their vehicle as their mobile office. Phasing out gas-powered vehicles would place a much higher cost on essential transportation for all small business owners.   

In May, NFIB sent a letter to the U.S. House of Representatives to stop the federal waiver granted to California to implement strict vehicle emissions. According to a recent member ballot, 96% of NFIB members believe the federal government should not ban or restrict the purchase of gas-powered vehicles. Blocking this zero-emissions mandate is a measure of protection for small businesses to continue accessing and using affordable transportation choices.