The California EV mandate — once poised to completely phase out internal combustion engine (ICE) vehicles by 2035 — has officially been struck down. But what does that actually mean for your business? Ed and Rich break down what this reversal means for manufacturers, consumers, recyclers, and the future of the catalytic converter market.

Understanding the EV Mandate 

The now-eliminated mandate was built on three key pillars: 

1. California Advanced Clean Cars Act 2 (ACC2) – Set a phase-out of ICE vehicle sales by 2035. 
2. Advanced Clean Trucks Act – Targeted diesel-powered vehicles with similar restrictions. 
3. Omnibus Low-NOx Rule – Tightened emissions standards for legacy vehicles still operating on California roads. 

California had previously received EPA waivers to implement these policies, and 17 other states plus D.C. had adopted similar standards. The elimination of these waivers fundamentally shifts the national direction on vehicle emissions. 

The Hidden Costs of the Mandate 

For Manufacturers 

Mandating an all-EV future meant manufacturers had to rapidly retool operations — a costly move. Billions were lost in the transition. Ford, for example, saw significant financial hits from EV development and production line changes. This also resulted in layoffs and the shutdown of some ICE-related facilities. 

For Consumers 

The shift to EVs hasn’t been seamless: 

• Range anxiety and unreliable charging infrastructure remain major concerns. 

• Higher upfront costs: EVs average $8,000–$10,000 more than ICE equivalents. 

• Insurance premiums and repair costs tend to be higher. 

• Limited model availability restricts consumer choice. 

On top of that, higher emissions standards meant even existing ICE owners faced increased smog checks, repair costs, and risk of their vehicles being labeled as gross polluters. 

A Win for the Recycling Sector 

For recyclers, this is a welcome development. A full transition to electric vehicles would have eventually eliminated the catalytic converter market entirely. That’s no longer the case. 

With internal combustion engines “ICE” vehicles sticking around: 

• There’s continued opportunity to recycle converters, O2 sensors, and other scrap parts. 

• Battery recycling won’t yet replace the scale or profitability of ICE vehicle recycling — and it’s often more dangerous. 

• Parts supply chains stay alive, providing continued revenue for dismantlers and used parts dealers. 

The Congressional Vote and What It Means 

In April and May of 2025, Congress and the Senate voted to eliminate California’s EPA waivers: 

• House Vote: 246–164 in favor of eliminating the mandate 

• Senate Vote: Bipartisan support, including Democrat Elissa Slotkin of Michigan, citing the protection of over 1 million automotive industry jobs 

Importantly, the way the waiver elimination was written makes it difficult to overturn through judicial review. Legal pushback is expected, but unlikely to reverse the decision. 

Who Benefits From This? 

Manufacturers 

They now have freedom to produce a wider range of vehicles, reduce costs, and avoid forced shutdowns of ICE-related production. 

Consumers 

They regain freedom of choice. Lower costs, more options, and less regulatory pressure make this a major win. 

Recyclers 

ICE parts recycling remains viable — meaning your business can continue to profit from converters, spark plugs, O2 sensors, and more. 

What Comes Next? 

Despite the political and environmental debates, one thing is clear: ICE vehicles are here to stay — at least for the foreseeable future. That means more parts to recycle, more options for buyers, and more stability for businesses like yours.