Markets win again: Congress repeals California car ban

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Markets have a way of violently intruding on wishful thinking. Consider progressive efforts to ban gasoline-powered vehicles, which aren't going according to plan.

The House passage of President Donald Trump's "big, beautiful bill" hogged much of the spotlight in Washington last week. But Republicans in the Senate also achieved a significant win Thursday when they blocked California's edict that outlawed the sale of new internal combustion vehicles by 2035.

The House — with significant Democratic support — had already passed the proposal and President Donald Trump vows to sign it.

Notably, the GOP bill was embraced by General Motors, which for years has been cheerleading for government interventions that tipped the scale in favor of electric vehicles. But when consumers had other ideas, the auto manufacturers began to reconsider in light of harsh market realities.

In April, The Wall Street Journal reported, EV sales fell 5 percent while sales of traditional vehicles increased 10 percent. EVs still make up only 7 percent of the cars on the road. California EV sales are well below targets the state sets in hopes of achieving the 2035 transition.

Many consumers remain wary of the exaggerated battery range, long charging times and high cost of most EVs. In addition, the Journal reports, "discounts are drying up, car buyers are seeking lower-priced alternatives and Congress is looking to roll back tax credits that for years have powered electric-vehicle sales."

Under the Clean Air Act, California may apply for waivers from the Environmental Protection Agency to enact emission and other standards that exceed federal limits. A waiver from the Biden EPA paved the road for the state's effort to ban gasoline-powered cars. A handful of other leftists states followed suit.

If allowed to stand, the bans would have affected consumers in every other state as automakers would have been forced to build far more EVs than demand could support, making gasoline cars more expensive as manufacturers raised prices to make up for EV losses. It would have created a nightmare for drivers who would prefer not to purchase an electric vehicle.

"This is about an effort to eliminate every gas-powered vehicle in America," Sen. John Barrasso, a Wyoming Republican, noted. "That's completely impractical. It's expensive beyond the affordability of most families."

California Gov. Gavin Newsom vowed to appeal. But on what grounds doesn't Congress have authority to revoke a waiver granted through a process it created?

EVs may be dominating American roads in the future as technologies advance. But the California rule was overreach driven by green extremism. Even the good intentions of central planners can't trump the wisdom of the marketplace.

(COMMENT, BELOW)

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