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The US state of Colorado has reportedly decided to adopt the same zero-emission vehicle (ZEV) sales mandate as California, according to media reports. According to a Reuters report, the decision by the state government follows several weeks of discussions with automaker groups. Colorado state officials reportedly released a statement saying, "We were unable to reach agreement on a voluntary approach that could be considered as a potential alternative to the zero emission vehicle (ZEV) standard." An Alliance of Automobile Manufacturers spokesperson is quoted as saying, "Unfortunately, while these discussions were encouraging, there were many complex details that we were unable to resolve. We remain committed to zero emission vehicles and to working with the Polis administration to accelerate the electric vehicle market in Colorado." According to Reuters, Colorado plans to finalise requirements that will take effect starting in 2022 model year; the state governor has signed an executive order directing the state to adopt California's rules.

Significance: Colorado's move comes as the US government has indicated it will ease fuel economy requirements for after 2022 model year, and 18 states have indicated they would sue the government over the issue, if it goes forward. In 2018, Colorado saw 1.8% of all US EV registrations, 4,988 units, compared with leading California's 4.7% (94,824 units). In the first three months of 2019, Colorado has accounted for 2.2% of US EV sales, with 1,448 units registered, according to IHS Markit data. If Colorado joins California, this will set a series of requirements for ZEV sales in order for automakers to participate in the state at all, and this would encourage automakers to ensure sales add Colorado to the list of priority states at this point. Whether Colorado joins the California requirements or not, sales of EVs are forecast to increase in the US in the near term on increased vehicle availability and improving infrastructure. While California has targeted about 22% of its sales be ZEV (including battery electric, fuel cell electric or plug-in hybrid), in 2018, EVs accounted for only 4.5% of California's light-vehicle registrations, with PHEV accounting for 3.1% and FCEV for only 0.12% of California registrations in 2018.

This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.