California to Introduce New Rules Banning the Sale of Gasoline-Powered Cars by 2035

Regulators in California will enact new rules that will ban the sale of new cars with internal combustion engines in the state by 2035.

California is the largest car market in the US, and typically more than a dozen other states are following California's lead in setting their own emissions standards. It is highly likely that other states will adopt the new rules.

Under the new rules by the California Air Resources Board, new cars with internal combustion engines will be completely banned from trade in 2035. The rules call for a phased-in ban: by 2026, the proportion of zero-emission passenger cars in new vehicle sales must be 35%, and by 2030 - 68%.

The new rules come amid a continuing fall in petrol prices, which fell to a national average of $3.90 a gallon this week. They are also written to comply with the sweeping new climate law, which provides $370 billion in spending and tax credits for clean energy programmes, the largest measure the federal government has taken to combat climate change.

To comply with the rules, California will fine automakers up to $20,000 for each car that fails to meet production targets.