On Wednesday, September 25th, California Gov. Gavin Newsom signed an executive order for one of the country’s most aggressive clean-car policies. The order bans the sale of new gasoline-powered cars, trucks, and SUVs by 2035. Gov. Newsom called the ban “the most impactful step our state can take to fight climate change.” He cited the ongoing wildfire crisis and rising temperatures as grave consequences of pollution from vehicles. California is the fifth-largest economy in the world, and half of its carbon emissions come from transportation.

As a longtime California fuel and lubricant supplier, we know that legislation like this can be confusing. Many of our clients are small business owners who rely on wholesale fuel companies like ours to fuel their business vehicles. They look to us for industry information and trend analysis. Here’s what we know so far about this ban and how it could potentially affect your business and the car you drive.

  • When does this ban take effect? The ban is set to be put in place by 2035 for the sale of new gasoline-powered cars. This ban means that up until 2035, you can buy a gasoline-powered car. Once the ban is in place, you will only be able to go out of state to purchase a gas-powered vehicle. The ban also includes a goal for all heavy-duty trucks on the road to be emissions-free by 2045.
  • What is the purpose of the ban? The purpose of the ban is to increase the development and purchase of electric vehicles. Gov. Newsom, in a press conference announcing the ban, said, “Our cars shouldn’t make wildfires worse – and create more days filled with smoky air. Cars shouldn’t melt glaciers or raise sea levels threatening our cherished beaches and coastlines.” While the ban may be unwelcome by some members of the auto and oil and gas industry, economic trends show that electric vehicles may be the way of the future. Tighter regulations in Europe and China are leading to growing electric vehicle development. Hakan Samuelsson, CEO of Volvo Cars, said of the ban, “California is not alone. We have to realistically believe that around 2035, there will be a serious discussion about banning the internal combustion engine and not just in California.”
  • How will this ban affect me? Right now, the electric vehicle market is too expensive for many people and businesses. Most electric vehicles have a sticker price 30% higher than other cars, and the infrastructure for widespread charging and travel is minimal. Consulting firm McKinsey estimates that electric vehicles will reach price parity with gasoline-powered cars by 2025. Many analysts also predict that hundreds of models will be developed for consumers before the ban is in place. For now, many consumers looking to buy electric vehicles take advantage of government incentives to reduce the price of their vehicles. Manufacturers hope that this ban will incentivize automakers and consumers to turn to electric vehicles in the future.
  • Will an electric vehicle meet my transportation needs? Right now, 6.2% of all new cars sold in California are electric. Most electric vehicles can go about 100 miles before needing to be recharged, depending on the make and model. Depending on the battery size, charging can take anywhere from 3 to 20 hours, but some vehicles have fast charging technology that allows for an 80% charge in 20 minutes. California has the most charging stations in the nation with 22,620, and 38,000 more charging stations will be added in the next four years as part of a $437 million electric vehicle infrastructure program approved by the California Public Utilities Commission.
  • How will this ban affect my business? No one knows yet how quickly the industry will catch up to this proposed ban. The ban may still be challenged in court. Time will only tell what comes from this bombshell announcement. For business owners, this uncertainty can be concerning. Now is the time to start to prepare your business.

Here are a few ways to prepare your business for this proposed ban.

  • Keep your vehicles in good running order. Replacing an entire business fleet is a considerable expense. For now, the best way you can save money is by keeping your gasoline-powered vehicles in top condition. Choose premium oils and lubricants to prevent carbon build-up and to keep your engines in top order. Ask our ordering team for recommendations for your fleet.
  • Cut back on fuel costs. Fuel is expensive, and it may only get more costly before this ban takes effect. Do your best to cut back on fuel costs and save that money for switching to electric when the time comes. We can help you cut back on your businesses’ fuel costs with wholesale gasoline, wholesale diesel, and our fleet fueling program.
  • Keep your fuel and lubricants in good working order. Fuel and lubricant contamination is a leading cause of engine failure. Properly storing your fuel and lubricants can help prevent contamination and unnecessary repair downtime for your vehicles and equipment. Make sure that your oil and lubricants are always in good working order by regularly testing your supplies. We offer an oil analysis program that can help you stay on top of lubricant and fuel needs and prevent contamination and machinery breakdowns.

No one knows how this announcement will affect the industry. There are hopes and predictions, but time will tell how it all plays out. The important thing to remember is that there is plenty of time to prepare your business for this eventual change.

By taking steps now to keep your gasoline-powered vehicles and machinery in good working order, you can extend the life of your machinery. Engine maintenance and care may be more important than ever for businesses who may not be able to switch over to electric engine vehicles completely. We have the supplies you’ll need to keep your vehicles in top condition.

As Gov. Newsom said in the press conference, “We’re not taking anything away. We’re providing an abundance of new choices and new technology.” The market may take time to catch up with this proposed legislation. Until it does, invest in quality lubricants and fuels to keep your fleet in good working order. We can help you do that.