The Senate Budget and Fiscal Review Subcommittee No. 2 on Resources, Environmental Protection and Energy convened on May 1, 2025, to address pressing issues surrounding California's transition to cleaner transportation technologies. The meeting highlighted significant uncertainties stemming from recent federal actions that threaten the state's clean vehicle standards.

A key discussion point was the impact of the federal administration's decision to nullify California's clean vehicle standards. This move has raised concerns among original equipment manufacturers (OEMs), fleets, and technology providers regarding the future of cleaner transportation initiatives. The uncertainty surrounding these standards is compounded by recent changes in U.S. federal tariff policy, which have implications for the competitiveness of California's domestic industry and the affordability of necessary technologies and vehicles.

The California Air Resources Board (CARB) also addressed its decision to withdraw outstanding waiver requests from the U.S. Environmental Protection Agency (EPA). This strategic move was made to keep options open as the Biden administration's EPA faced time constraints in approving these requests. Notably, the withdrawal included a waiver request for the Advanced Clean Fleets regulation, which mandates large carriers to transition to zero-emission fleets starting in 2024 and continuing through 2025. Additionally, CARB has not yet sought authorization from the EPA for its zero-emission forklift rule, reflecting ongoing caution in navigating federal regulations.

The meeting underscored the challenges California faces in its environmental goals amid shifting federal policies, emphasizing the need for continued dialogue and strategic planning to ensure the state's clean transportation objectives are met.