The California Air Resources Board has changed their ZEV mandate from 25,000 vehicles to 7,500, but added a 60,000 hybrid requirement:

http://www.reuters.com/article/environmentNews/idUSN2716706420080328?pageNumber=1&virtualBrandChannel=0

Seems like a realistic policy move to me.

Yep. It does come closer to reality. I think that of those 7500 ZEVs, the first mandated owners should be all the people on the California Air Resources Board.

Yes adding Phev's is a good idea. It also explains why CA is for initial release as GM should be able to comply with Volt sales alone.
See http://www.greencarcongress.com/2008/03/california-air.html#more
for a easy take on it all.:)

Well let's face it, hydrogen is not ready nor is a practical EV. PHEVs seem like the best solution right now. Use either E85 or biodiesel and that will get us where we want to go. After a better battery technology is perfected the switch will be natural and obvious. I don't think anyone can stop the electrification of the automobile. It's a tidal wave of change.

I believe GM should offer Volts, Flextremes or Evoks with the rotary air engine to meet CARB's 7,500 ZEV mandate.

http://www.gm-volt.com/forum/showthread.php?t=15

Finally, the press gets it right in their coverage of the new CARB rules, especially the headline, where most press outlets neglect the increase in hybrid vehicle sales:

http://www.autoblog.com/2008/03/31/carb-backs-off-a-bit-on-zev-mandate-orders-66k-phevs-sold-by-20/

I posted what follows on the "California Drops..." post. There is more to the definitions that weren't on these links but I believe in reality it means 12,500 ZEV vehicles in the 2012-2014 period since it doesn't appear FCV's will be available in quantity by then.

The press was a little misleading. It is (7,500 “pure” ZEV’s or 12,500 100+ range BEV’s) + (58,333 Silver+ Vehicles) OR (25,000 ZEV’s per previous requirements) for 2012-2014. “Silver Plus”* Enhanced AT PZEV AT PZEV that uses a ZEV fuel such as electricity or hydrogen.
Examples include plug-in hybrids or hydrogen internal
combustion engine.
http://www.arb.ca.gov/msprog/zevprog/factsheets/2008zevfacts.pdf
http://www.arb.ca.gov/msprog/zevprog/zevreview/summary.pdf

Apparently they have yet to fully define Silver+ Vehicles, but they must have some electric only range. Longer EV range may count more than short range. Vehicles that can complete US06 in EV only are being considered for extra credit.Overall, it could have been better IMO giving available technology but not a terrible compromise. Make it federal.