CalChamber Statement on Governor’s Executive Order Phasing Out Gasoline-Powered Cars

The California Chamber of Commerce has issued the following statement in response to Governor Gavin Newsom’s executive order on climate change policy, including phasing out the sale of new gasoline-powered vehicles by 2035:

“We agree with Governor Newsom that California has been a leader in mitigating greenhouse gas emissions, especially by adopting a market-based cap-and-trade program, and phasing in a greater share of renewable electricity generation. Businesses and residents alike have stepped up to the challenge.

“To develop a comprehensive and effective approach to climate change policy, California needs to have standards that other states and nations can follow. We can’t do it alone.

“Banning vehicles with internal combustion engines in just 14 years is unrealistic, since it presumes that consumer demand will not create a viable ZEV market by 2035. Unless California, along with other states and countries, supports a market for ZEVs that ensures vehicle performance, range, safety, functionality, price, and choice for automobile consumers, then California residents alone will be left with higher energy and transportation costs without a material effect on global GHG emissions. Forcing this transition through a mandate will burden the consumers least able to afford it, either by pricing them out of the new vehicle market or increasing the cost to maintain and fuel a used vehicle with a combustion engine.

“Eliminating the infrastructure for fueling internal combustion engines will only further exacerbate this cost increase for low-income Californians and will wipe out major elements of local government and schools’ property tax base.

“The Governor’s order has far reaching impacts for California commerce and residents. Our commerce and social cohesion is fundamentally tied to free flowing transportation and commerce of workers and goods. Developing any policy should involve elected representatives who can reflect the needs and aspirations of individuals and businesses from throughout California.”