Sales of new petrol-powered cars will be banned in California by 2035, in a landmark move for electric vehicles, plug-in hybrids, and hydrogen fuel cell models.
Car makers will have to introduce cleaner vehicles faster under the new rules, with the state being the largest in the US in terms of population and on its own being one of the largest economies in the world.
Ford Motor Company (NYSE:F) praised it as a "landmark standard" and Honda Motor (NYSE:HMC) called it an "ambitious but important milestone".
New regulations by the California Air Resources Board (CARB) require 35% of new vehicles sold in the state by 2026 to be electric, hybrid or hydrogen-powered.
It would apply to 68% of vehicle sales by 2030 and 100% by 2035.
Laine Randolph, CARB's chair, said the move was "a historic landmark for California, for our partner states and the world".
Tesla Inc (NASDAQ:TSLA) senior counsel Joseph Mendelson says CARB's plan is "achievable" and will allow California to lead in electrifying the sector, reported the BBC.
However, the Alliance for Automotive Innovation, which represents car manufacturers such as General Motors Company (NYSE:GM), Volkswagen Group (XETRA:VOW) and Toyota Motor (NYSE:TM), contends more needs to be done to boost demand for electric vehicles (EVs).
"What we've said to CARB and others is that getting more EVs on the road must go hand-in-hand with other policies that together will ultimately determine the success of this transition," the Alliance's chief executive John Bozzella said.
US government approval is still needed for the new rules.