California Leads States in Suing to Block Trump’s EV Rule Repeal

A coalition of 11 US states led by California filed a lawsuit in federal court challenging the repeal of California’s electric vehicle (EV) and emissions regulations, following the signing of three resolutions by President Donald Trump. The legal challenge seeks to overturn the termination of Environmental Protection Agency (EPA) waivers that had previously allowed California to set stricter-than-federal emissions standards, including a 2035 ban on new gasoline-only vehicle sales.

Trump’s action voids California’s Advanced Clean Cars II rule, which mandates that by 2035, 80% of new vehicle sales must be electric, with the remainder plug-in hybrids. “We officially rescue the US auto industry from destruction by terminating the California electric vehicle mandate once and for all,” Trump said. California Governor Gavin Newsom responded, “Trump’s all-out assault on California continues. And this time he’s destroying our clean air and America’s global competitiveness in the process.”

The lawsuit, filed in the US District Court for Northern California, argues that the federal government unlawfully revoked the state’s authority. “The Federal Government carried out an illegal playbook designed to evade lawful procedures that might prevent the 'take down' of disfavored California laws,” the filing states. Plaintiffs include New York, New Jersey, Colorado, Massachusetts, and Washington. Defendants named are President Trump, the EPA, and its Administrator Lee Zeldin.

The repeal also cancels California’s low-nitrogen oxide (low-NOx) rules and its zero-emission heavy-duty truck requirements. Trump’s administration overrode a 2023 EPA decision permitting the state to enforce these regulations. The Government Accountability Office previously concluded in March that the Congressional Review Act could not be used to repeal EPA waivers, but Senate Republicans moved forward regardless.

Industry response has been mixed. The Alliance for Automotive Innovation, representing companies such as General Motors, Toyota, Volkswagen, Hyundai, and Stellantis, supported the repeal. CEO John Bozzella said Trump “stood up for customer choice and helped restore a degree of balance to US emissions regulations.” He also stated the EV mandates were “unachievable” and “made cars less affordable.”

The EPA dismissed the lawsuit as meritless. Spokeswoman Molly Vaseliou said, “This is nothing more than California throwing a temper tantrum because the American people don't want the state's terrible policies.”

The repeal is expected to impact the value of emissions credits used by automakers, particularly Tesla. Additionally, a bill passed by the United States House in May proposes ending the US$7,500 EV tax credit, imposing a US$250 annual EV fee, repealing emissions mandates, and phasing out battery tax credits by 2028. A related Senate proposal would eliminate penalties for failing to meet federal fuel economy standards.

The lawsuit comes as EV sales in the United States show signs of slowing. For the first time in over a year, new EV registrations declined year-over-year in April 2025, with Tesla leading the downturn. According to S&P Global Mobility, 97,833 new EVs were registered, down 4.4% from over 102,000 in April 2024. The dip reduced EV market share to 6.6%, from 7.4% the year before. 

Tesla saw a 16% drop in registrations, driven by a 42% fall in Model Y deliveries and weak Cybertruck performance. Meanwhile, Chevrolet rose to the No. 2 spot with 9,160 EV registrations, led by the Equinox and Blazer EVs. Ford followed in third place, but its registrations fell 33% year-over-year.