Umair Gaines
Electric vehicles are the future of the automotive industry, with many major car companies planning to phase out gas-powered cars and transition to electric-only models in the coming years. However, the adoption of electric vehicles varies across the United States, with some states embracing the change while others imposing barriers. While no state has explicitly banned electric vehicles, certain states have implemented measures that make purchasing and owning an electric vehicle more challenging and costly. These restrictions are often driven by Franchise Tax laws and direct-to-buyer regulations, which vary across state lines. As the automotive industry evolves, it is essential for states and policymakers to work together to encourage the adoption of electric vehicles and create a cohesive environment that promotes sustainable practices and supports the transition to a greener future.
| Characteristics | Values |
|---|---|
| States banning the sale of gas-powered vehicles | California, Vermont, Oregon, Washington D.C., Washington, Massachusetts, New York |
| States with targets for EV sales | Minnesota, Colorado |
| States considering banning EV sales | Wyoming |
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What You'll Learn
California's ban on electric vehicles
California has been at the forefront of the transition to electric vehicles in the United States. In 2020, Governor Gavin Newsom issued an executive order requiring all new passenger cars and trucks sold in the state to be zero-emission by 2035. This policy, known as the California Electric Vehicle Mandate, aims to reduce greenhouse gas emissions from the transportation sector, which accounts for over 40% of emissions. The state has also been expanding its infrastructure for charging stations and hydrogen fueling stations to accommodate the growing number of electric vehicles.
California's ban on the sale of new gas-powered cars is being implemented in phases. Under the current plan, 35% of 2026 model-year vehicles must be zero-emission, increasing to 68% by 2030, and finally reaching 100% in 2035. This means that car dealerships will only be allowed to sell electric vehicles and certain plug-in hybrids from 2035 onwards. The policy will not affect existing gas-powered vehicles, which can continue to be driven and sold as used cars.
The state's efforts to promote electric vehicles have faced some opposition, particularly from the Trump administration, which has threatened to challenge California's vehicle regulations in court. Despite this, the Biden administration approved California's zero-emission vehicle mandate in December 2024, just weeks before the end of President Biden's first term. This approval was granted by the Environmental Protection Agency (EPA), which authorized California to set its own tailpipe emissions limits and zero-emission vehicle rules.
California's leadership in this area has influenced other states to follow suit. As of 2024, 12 US states, including Washington, Massachusetts, New York, and Oregon, are planning to ban the sale of gas-powered cars by 2035. Some states, like Minnesota, have adopted California's emissions standards without implementing an outright ban. Additionally, President Biden has set a goal of having 50% of all new vehicle sales in the US be electric by 2030 and has allocated funding for a nationwide network of charging stations.
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States with higher registration fees for EVs
While no US state has banned electric vehicles, Wyoming's Republican lawmakers have proposed a bill to ban the sale of new electric cars. The bill argues that the infrastructure required for electric vehicles in Wyoming would be "impracticable". Wyoming's electricity supply is majorly reliant on coal-fired power plants, and the state's fossil-fuel sector would benefit from higher electricity consumption due to increased EV usage.
Now, let's shift our focus to states with higher registration fees for electric vehicles (EVs). Currently, 39 states charge additional fees for EV registration, ranging from $50 to $400. These fees are implemented on top of the standard car registration costs. Here are some specific examples of states with higher registration fees for EVs:
- Montana: Annual fees for EVs range from $130 to $190, with a one-time permanent registration fee ranging from $260 to $380 for older EVs.
- Nebraska: Annual additional fee of $150 for EVs.
- New Hampshire: Annual additional fee of $100 for EVs.
- New Jersey: Annual additional fee of $250 for EVs.
- North Carolina: Annual additional fee of $214.50 for EVs.
- North Dakota: Annual additional fee of $120 for EVs.
- Ohio: Annual additional fee of $200 for EVs.
- Oklahoma: Annual additional fee of $110 to $158 for EVs, depending on weight.
- Georgia: Annual licensing fee of $210.87 for non-commercial EVs, plus additional fees for registration and manufacturing.
- Hawaii: Annual additional fee of $50 for EVs.
- Idaho: Annual additional fee of $140 for EVs.
- Illinois: Annual additional fee of $100 for EVs.
- Indiana: Annual additional fee of $221 for EVs.
- Iowa: Annual additional fee of $130 for EVs.
- Kansas: Annual additional fee of $100 for EVs.
- Kentucky: Annual additional fee of $120 for EVs.
- Louisiana: Annual additional fee of $110 for EVs.
- Michigan: Annual additional fee of $100 to $200 for EVs, depending on weight.
- Minnesota: Annual additional fee of $75 for EVs.
- Mississippi: Annual additional fee of $150 for EVs.
These higher registration fees for EVs are intended to compensate for the loss of gas tax revenue that states would typically collect from traditional gasoline-powered vehicles. As more people transition to EVs, state governments worry about maintaining roads and infrastructure due to a potential budget crunch. By imposing higher registration fees, states aim to distribute the cost of upkeep among all vehicle owners and prepare for the wider EV adoption.
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Trump's administration halting the adoption of EVs
In 2025, the Trump administration's reversal of EV policies has led to a shift from regulations to free-market principles, sparking debates about the impact on EV adoption. This includes the dismantling of regulations and targets that aimed to accelerate EV adoption, such as the 50% EV sales target for 2030 set by the Biden administration. The Trump administration has also attempted to freeze EV charging funds and halt the installation of new EV charging stations, facing legal challenges and creating uncertainty in the EV charging industry.
Trump's policies have halted the federal government's adoption of electric vehicles, with the U.S. General Services Administration suspending orders of zero-emission vehicles and discontinuing some EV charging stations. This move has been criticized as short-sighted by experts, who argue that it may impact the accessibility of EVs for consumers and stall the expansion of the nation's charging network. Despite these efforts, the momentum behind EV adoption is expected to be strong enough to withstand complete derailment.
In the short term, a surge in EV sales may occur as consumers rush to purchase before federal tax credits are eliminated. However, the absence of incentives could make EVs less affordable, potentially leading to a significant drop in annual registrations. Regional disparities may also emerge, with states adhering to stricter emissions standards continuing to adopt EVs, while others fall behind. Established companies like Tesla and General Motors may consolidate their market share due to their profitability and scale.
While the Trump administration's policies have slowed the transition to EVs, they have not banned them outright. Republican lawmakers in Wyoming proposed banning the sale of new electric cars, citing the detrimental impact of the necessary infrastructure on the state's economy and communities. However, this bill is largely seen as symbolic and a response to California's ban on the sale of new gas-powered cars by 2035.
As of 2024, 12 US states, including California, Vermont, Oregon, Washington, Massachusetts, and New York, are planning to ban the sale of new gas-powered cars by 2030 or 2035. These bans are expected to accelerate the transition to electric vehicles and reduce greenhouse gas emissions from the transportation sector. Despite resistance from some states and the Trump administration, the momentum towards EV adoption in the US appears strong.
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Automakers' plans to sell only electric vehicles
Automakers are increasingly adding electric vehicles to their lineups. For instance, Jeep aims to introduce four all-electric vehicles by 2025 and projects that half of its sales in the US will be battery-electric vehicles by 2030. Similarly, Dodge pledges to launch an electric muscle car in 2024, and Ram plans to launch a full-sized electric pickup truck in the same year.
Mercedes-Benz has committed to an electric-focused plan backed by $47 billion in funding, with all newly launched vehicle platforms being electric-only from 2025 onwards. Toyota, on the other hand, has showcaseed about a dozen electric concept vehicles, including cars, pickup trucks, and SUVs, indicating their future plans. Lexus, Toyota's luxury brand, will be 100% electric in the US by the end of the decade.
While some automakers are pushing forward with electric vehicles, others are facing challenges. Volvo, for example, has scaled back its plan to sell only electric cars by 2030 due to low consumer demand and price wars in China. Renault's CEO, Luca De Meo, has expressed similar concerns, calling for more flexibility in the transition to electric vehicles. Porsche has also adjusted its target for selling fully electric vehicles.
Despite these setbacks, the shift towards electric vehicles is gaining momentum. BMW, Buick, and Cadillac are among those expected to enter the electric vehicle market in the coming years. Additionally, states like California, Vermont, Oregon, Washington, Massachusetts, and New York have taken the lead in banning the sale of new gas-powered cars by 2030 or 2035, further encouraging the transition to electric vehicles.
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States with plans to phase out gas car sales
California was the first state to adopt the Advanced Clean Cars II rule, which at least seven other states have now embraced. California's plans specify that 35% of new car sales will need to be zero-emission vehicles by 2026, with that number rising to 68% by 2030. California's phase-out of gas vehicles will happen gradually between 2030 and 2035.
In March 2023, Maryland Governor Wes Moore announced Maryland's plan to phase out sales of new gas-powered cars by 2035, stating, “It’s a major step in our state’s acceleration to improve air quality and combat the effects of climate change.”
In November 2022, Vermont lawmakers approved changes to clean-car requirements that would require new cars sold in the state to be zero-emission vehicles by 2030. Vermont is the first state to mandate a transition to electric vehicles through legislation rather than an executive order.
In 2021, Washington became the second state to pass a gas-powered vehicle ban. Governor Jay Inslee signed a bill into law that bans the sale of new gas-powered cars starting in 2030. Washington has gone a step further by enacting a law setting a target of 2030 for all new cars to be electric.
Massachusetts became the third state to pass legislation banning the sale of new gasoline-powered vehicles by 2035 when Governor Charlie Baker signed the bill into law in 2021. The law requires that all new passenger cars, trucks, and SUVs sold in the state be zero-emission vehicles starting in 2035.
New York passed legislation in 2021 that bans the sale of new gas-powered vehicles starting in 2035. This legislation is part of New York’s goal to reduce greenhouse gas emissions by 85% by 2050.
Other states that have announced plans to phase out gas car sales include New Jersey, Oregon, Rhode Island, the District of Columbia, and New Mexico.
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Frequently asked questions
Wyoming state senators proposed a resolution to discourage the sale of electric cars, but it was not a ban and did not pass.
California was the first state to ban the sale of gas-powered cars.
12 US states are planning to ban the sale of gas-powered cars.
The goal is to reduce greenhouse gas emissions from the transportation sector, which accounts for over 40% of emissions.
One challenge is the lack of electric vehicle (EV) charging infrastructure, which would impede the widespread use of electric vehicles.
