As President Biden's term nears its end, his administration is reportedly poised to grant California a waiver permitting the state to ban sales of new gasoline-powered vehicles by 2035. This move, which would allow California to enforce stricter emissions standards than federal regulations, sets the stage for a potential showdown with President-elect Donald Trump, who has expressed his intent to reverse such policies.

The Environmental Protection Agency (EPA) is reportedly planning to approve the waiver, which California needs to implement its ambitious emissions targets. While the EPA has not officially confirmed the decision, they have stated they are reviewing the regulation to ensure its legality and durability.

This development follows a recent Supreme Court decision rejecting a challenge to California's authority to set its own vehicle emissions standards. The state's Air Resources Board had requested the waiver to mandate that 22% of new cars sold be zero-emission by 2025, culminating in the complete ban on gas car sales by 2035. The request, driven by climate change concerns, faced opposition from several states and oil industry groups. However, the Supreme Court’s denial of the challenge cleared a significant hurdle for California.

While environmental groups have lauded the EPA's anticipated decision, President-elect Trump has voiced strong criticism of the proposed ban and other green energy initiatives. During his campaign, Trump condemned Biden’s actions related to California’s EV mandate and vowed to revoke both the federal EV requirements and California's waiver on his first day in office. His campaign spokesperson echoed this sentiment, criticizing the potential impact on the U.S. auto industry.

Anticipating legal challenges from the incoming administration, California officials have been strategizing on how to protect the state's environmental policies. They recently allocated $25 million for a legal defense fund specifically to combat potential actions by the Trump administration.