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The Vermont Low and Zero Emission Vehicle Regulation

The Update: EV Mandates on Pause

Governor Phil Scott issued Executive Order 04-25 on May 13, 2025, which directs the Agency of Natural Resources to pause enforcement of Vermont’s electric vehicle (EV) sales mandates. Vermont’s adoption of the "California Car Rule” requires 35% of new vehicles delivered to Vermont to be electric by Model Year 2026, rising to 100% by 2035. The “Truck Rule" requires 10% of new medium and heavy-duty trucks to be electric in 2026. Watch this video for more information. Governor Scott’s Executive Order acknowledges challenges such as insufficient charging infrastructure and technological limitations in heavy-duty vehicles, which hinder the feasibility of meeting current EV sales goals. It also addresses concerns that some manufacturers are imposing zero-emission vehicle (ZEV) sales ratios on local dealerships, limiting the availability of internal combustion engine vehicles for Vermont consumers. Under this directive, the Vermont Department of Environmental Conservation is instructed to use enforcement discretion to ease compliance with the Advanced Clean Cars II and Advanced Clean Trucks standards. This includes refraining from penalizing manufacturers for not meeting ZEV sales targets, provided they do not impose ZEV sales ratios on dealerships and continue supplying internal combustion engine vehicles to meet consumer demand.

Meanwhile, President Trump signed into law resolutions that stop California’s authority to ban gasoline and diesel-powered vehicles. This is the same “California Rule” adopted by Vermont. Shortly after President Trump “banned the ban” on gas-powered vehicles, Vermont Attorney General Charity Clark joined her counterpart in California to file a lawsuit against the Trump Administration in order to reinstate the mandates. While all of this plays out in the courts, the EV mandates in Vermont will not be enforced. That's because Governor Phil Scott issued Executive Order 04-25 that effectively pulled the plug on the regulation for at least eighteen months.

Background

Vermont passed the Advanced Clean Car and Advanced Clean Truck Rule in 2022. This regulation requires 35% of the new cars delivered to Vermont to be battery-electric or plug-in electric hybrids. This ramps up to 100% of new cars in 2035. See chart below.

This is impossible. The auto makers say will take a “miracle to meet.” According to the Vermont Vehicle Index, only 12% of new vehicles registered in Vermont are electric. Manufacturers who want to ship vehicles with combustion engines to Vermont will have to pay fines or fees. Or they could lower allocation, which means fewer choices for consumers and fewer sales for Vermont’s vehicle sellers. And since Vermonters will still be able to go to New Hampshire and get whatever car they want, we aren’t really “solving” climate change. But we will be causing real economic damage to our communities. Click here to learn more about mandates on light duty vehicles and what you can do to pause or delay it before it takes effect.

Trucks are on a similar trajectory. Half of all new Class 2b-8 trucks sold in Vermont must have zero emissions by the end of the decade. Vermont’s Advanced Clean Truck rule sets overly aggressive timelines and targets for electric commercial vehicle adoption starting in 2027. Less than 1% of commercial vehicle sales in 2023 were ZEVs. New electric trucks cost two to three times more than comparable diesel vehicles and do not offer comparative performance and range capabilities. Additionally, there is no commercial vehicle charging network, which makes customer adoption of heavy-duty ZEVs and their day-to-day use impractical until the charging network is built. A study released by the Clean Freight Coalition found that full electrification of the U.S. commercial truck fleet would require nearly $1 trillion in infrastructure investment and grid network upgrades to meet demand.

Click here to learn more about the truck mandates.

The Vermont Vehicle and Automotive Distributors Association (VADA) is a Meadow Hill managed non-profit trade association.