California Gasoline Phaseout Legislation

 

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What California Gasoline Phaseout Legislation Will Do

AB40, the “AB40 for 2040” bill, directs the California Air Resources Board (CARB) to develop a strategy for all new cars sold starting with model year 2040 to be Zero Emission Vehicles (ZEVs). In this gasoline phaseout, older gasoline cars would be grandfathered in — people could keep, sell and purchase model year 2039 and prior gasoline vehicles without restriction.  Clean vehicles are, and are expected to continue to be, predominantly electric vehicles (EVs). Once the strategy is developed, another law would have to be passed to implement the strategy.

Benefits of Developing and Implementing 2040 Gasoline Phaseout Strategy

Health:

Environment:

Business/Economy:

  • Sends a clear signal that the gasoline era is ending. The phase-out date creates certainty for investors, automakers and parts suppliers, the EV charging industry, utilities and governments that the shift to clean vehicles will happen, helping them plan for the transition and ensure it takes place in a smooth, orderly fashion.

  • Puts California businesses, utilities, and government on the leading edge of the EV revolution; helps ensure California EV automakers, EV charging infrastructure companies, battery companies, EV startups, and EV-related products and services companies remain competitive as the global trend towards vehicle electrification continues.

  • Benefits California’s electronic industry -- EVs have $4,000 more in electronics than equivalent gas cars.

  • Ultimately saves $15 billion/year in health and climate costs in California from smog, soot and climate pollution of vehicle emissions.

  • Moves billions of dollars to the domestic economy from crude oil (mostly imported from OPEC countries and Alaska).

  • Gives Californians control over pricing and sources of transportation fuel; insulates Californians from volatile oil prices.

Environmental Justice/Economic Justice:

Household Economics:

  • Lowers health care costs for Californians, through fewer doctor visits for patients and lowered health insurance premiums and tax burdens for the broader public.

  • Enables savings of many hours spent on gas station fill-ups and mechanical car maintenance.

Personal Choice/Freedom:

  • Ensures a wide selection of makes and models of clean: trucks, SUVs, sports cars, CUVs, luxury vehicles, compact cars and everything in between, with automakers offering competitive prices to compete for drivers’ business.

  • Enables drivers to travel by personal vehicle without also having to pollute the air and cause harm to health and climate.

  • Frees drivers from having to purchase fuel at toxic gas stations with prices set by volatile global markets.

  • Facilitates a future in which drivers can fuel from the comfort of home, and make their own fuel from sun and wind.

 Electric Grid:

Taxpayer Benefits:

  • Provides the cheapest, most effective policy to get more clean cars on the road. California has 25 million passenger vehicles, and sells two million/year. With the legislation, beginning in 2040, all two million new vehicles will be clean -- with no taxpayer outlay.

 Political Control:

Jobs:

  • Creates hundreds of thousands of California jobs related to transportation electrification in areas such as auto design and manufacture, charging infrastructure, public awareness/education, grid upgrades and operation, battery manufacture, electronics/software, research and development and innovation.

  • Economic growth from fuel cost savings increases average real wages and employment across the economy (even for those who don’t buy a new EV). On average, a dollar saved at the gas pump and spent on the other goods and services that households want creates 16 times more jobs.

  • Expands fuel supply work from a few giant corporations that have controlled the fuel system for decades to create new companies and job opportunities.