*

Trump to sign resolutions against California's EV

mandates,

sources say

*

California's EV rules face legal challenge from Governor

Newsom

*

Auto industry supports repeal, citing unachievable EV

sales

mandates

(Updates with White House official confirming, adds quote from

Petroleum Institute president in paragraph 6)

By David Shepardson and Steve Holland

June 10 (Reuters) - U.S. President Donald Trump will

sign three congressional resolutions on Thursday barring

California's electric vehicle sales mandates and diesel engine

rules, a White House official said, confirming an earlier

Reuters report citing auto industry sources and House aides.

Trump is signing resolutions of disapproval under the

Congressional Review Act to bar California's landmark plan to

end the sale of gasoline-only vehicles by 2035, which has been

adopted by 11 other states and representing a third of the U.S.

auto market.

Trump will sign one resolution to repeal a waiver granted by

the U.S. Environmental Protection Agency under former Democratic

President Joe Biden in December, allowing California to mandate

that at least 80% of vehicles be electric vehicles by 2035.

The White House invited numerous auto industry officials to

attend the signing on Thursday, sources said.

Trump will also sign a resolution approved by Congress to

rescind the EPA's 2023 approval of California's plans to require

a rising number of zero-emission heavy-duty trucks, and another

resolution on California's low-NOx, or low-nitrogen oxide,

regulation for heavy-duty highway and off-road vehicles and

engines.

"Today's historic bill signing is a major victory for

American consumers, manufacturers and U.S. energy security. We

thank President Trump and Congress for delivering on their

promise to put an end to these extreme mandates and ensure every

American can choose the vehicle that's best for them," American

Petroleum Institute President and CEO Mike Sommers said.

The signing is a win for General Motors ( GM ), Toyota ( TM )

, auto dealers and other automakers that heavily lobbied

against the rules, and a blow to California and environmental

groups that say the requirements are essential to ensuring

cleaner vehicles and cutting pollution.

GM said the move would help align emissions standards with

market realities.

California announced a plan in 2020 to require that by 2035

at least 80% of new cars sold be electric and up to 20% plug-in

hybrid models.

California Governor Gavin Newsom has vowed to challenge the

repeals in court, saying the action by Congress is illegal and

would cost California taxpayers an estimated $45 billion in

additional health care costs.

Since 1970, California has received more than 100 waivers

under the Clean Air Act.

The Alliance for Automotive Innovation, representing GM,

Toyota ( TM ), Volkswagen Hyundai Stellantis

and others, previously praised the repeal.

"The fact is these EV sales mandates were never achievable,"

the group's CEO, John Bozzella, said. "In reality, meeting the

mandates would require diverting finite capital from the EV

transition to purchase compliance credits from Tesla."

These are the latest actions in recent months taking aim at

electric vehicles.

A separate bill passed by the U.S. House of Representatives

in May would end a $7,500 tax credit for new EVs, impose a new

$250 annual fee on EVs for road repair costs and repeal vehicle

emissions rules designed to prod automakers into building more

EVs. It would also phase out EV battery production tax credits

in 2028.