Beginning in 2026, Vermont consumers will no longer be able to purchase new model Ford Escapes due to the state’s adoption of California’s Advanced Clean Cars II Rule. This regulation, also known as the California Cars Mandate, requires automakers and dealers in Vermont to meet emissions standards that are stricter than federal requirements.
The Ford Escape, a compact SUV introduced in 2001 and averaging a combined 30 miles per gallon for its 2025 model, is set to be discontinued by Ford after 2026. The inability to buy this vehicle in Vermont highlights the broader impact of aligning state auto sales with California’s emissions rules.
Electric vehicles (EVs) made up just under 9% of new light-duty car and truck sales in Vermont during the second quarter of 2025. This figure represents a 25% decrease compared to the same period in 2024. Under the California Cars Mandate, automakers must deliver an increasing percentage of EVs among all vehicles for sale: 35% by 2026, rising to 100% by 2035.
Although buyers are not directly required to purchase EVs, these regulations will reduce options for gasoline or diesel-powered vehicles over time. Without significant technological advancements, Vermonters may only have electric choices for new cars and light-duty trucks starting in 2035.
The California Trucks Mandate follows a similar approach but does not require all medium and heavy-duty trucks to be electric.
Federal tax credits for EV buyers are scheduled to end on September 30, 2025. The loss of these incentives makes it less likely that Vermont can meet the delivery targets without major disruptions or mismatches between available vehicles and consumer demand.
In December 2024, the Alliance for Automotive Innovation warned Vermont lawmakers about potential further restrictions on sales as these mandates progress. They also noted that prices for new passenger vehicles are expected to continue rising as a result.
Automakers have started scaling back plans for fully electric lineups. In December 2025, Ford announced it would discontinue its electric F-150 pickup as part of a broader move toward hybrid vehicles instead of an entirely electric future. Some estimates put Ford’s losses from its electric vehicle division at more than $35 billion since 2022. Other major manufacturers have indicated similar shifts toward hybrids rather than full electrification.
At the state level, Governor Scott issued an executive order in May 2025 pausing full implementation of both the California Cars and Trucks Mandates until January 1, 2027. He cited concerns such as those outlined above when taking this action—a move supported by NFIB VT.
“NFIB Applauds Gov. Scott’s Action to Pause California Cars and Trucks Mandates.”
If neither legislative repeal nor extension of executive action occurs before January 1, 2027, the mandate’s schedule would resume automatically.
On the federal level, Congress earlier this year rescinded approval for certain California regulations imposing stricter emissions standards than those required nationally—a decision affecting states like Vermont that adopted these rules. However, this revocation is being challenged in court cases that could take years to resolve.
The Congressional repeal also included provisions related to truck mandates; ongoing litigation continues between California, federal authorities, and automakers regarding these regulations.