Here’s a quick overview of what CAWA anticipates legislators in Sacramento will focus on in the coming year in regard to the auto industry
Sacramento, Calif.—In anticipation of another complex and potentially challenging 2025 legislative session, below is a quick overview of what CAWA anticipates legislators in Sacramento will focus on in the coming year.
Environmental Regulations:
- Expansion of clean energy policies, including stricter emissions standards for vehicles and supply chain operations.
- Extension of the Cap and Trade program and potential alterations to the low carbon fuel standard.
- Policies promoting the adoption of electric vehicles (EVs) and phasing out internal combustion engines may impact parts suppliers and distributors. Alternatively, there will likely be greater scrutiny over such mandates by a faction of both Republican and more moderate Democrats.
Workforce Development:
- Potential programs to address skilled labor shortages, particularly for automotive technicians and supply chain roles.
- Initiatives to retrain workers for emerging EV technologies.
Circular Economy and Recycling:
- Legislation related to extended producer responsibility and requirements for automotive parts recycling.
- Incentives for using recycled or sustainable materials in automotive parts production.
Consumer Protection:
- Bills aimed at enhancing transparency in pricing and ensuring access to accurate repair and maintenance information for consumers.
- Increased scrutiny of warranty and service contract practices.
Tax Incentives and Business Regulation:
- Possible adjustments to tax credits for companies involved in EV infrastructure or clean energy initiatives.
- Review of regulations impacting small and medium-sized businesses, including automotive wholesalers.
Supply Chain Resiliency:
- Policies aimed at bolstering California’s supply chain resilience, potentially including grants or incentives for automotive wholesalers to improve logistics and inventory systems.
Comments are closed.