(Adds more details, background, Hochul comment)

By David Shepardson

Sept 29 (Reuters) - New York state plans to adopt California's rules approved in August that would require all new vehicles sold in the state by 2035 to be either electric or plug-in electric hybrids, Governor Kathy Hochul said on Thursday.

Hochul said in a statement that she has directed a state environmental agency to propose and finalize rules adopting California's plan setting yearly rising zero-emission vehicle rules starting in 2026 that phases out gasoline-only new car sales by 2035.

The agency will hold a public hearing before the rules are finalized.

The California Air Resources Board $(CARB)$ adopted its rules after Governor Gavin Newsom issued a 2020 executive order directing the move. CARB said the rules will reduce smog-causing pollution from light-duty vehicles by 25% by 2037 and result in 9.5 million fewer conventional vehicles sold by 2035.

Automakers must sell 68% of sales by 2030 as EVs or plug-ins and by 2035 can sell no more than 20% of models as plug-in hybrids.

"With sustained state and federal investments, our actions are incentivizing New Yorkers, local governments, and businesses to make the transition to electric vehicles," Hochul said.

California needs a waiver from the U.S. Environmental Protection Agency to adopt the 2035 rules.

President Joe Biden has called for 50% of all new vehicle sales by 2030 to be EVs or plug-in hybrids but not endorsed a phase-out date.

Some states that previously adopted California's zero emission vehicle rules have not yet signed on for the tougher 2035 phase-out date.

A spokesman for Colorado's environmental agency told Reuters, "Colorado is certainly not California and Colorado has our own plan."

CARB chair Liane Randolph told Reuters this month "some states are ready right now" to adopt 2035 rules while others will "get more comfortable as the models continue to roll out."

(Reporting by David Shepardson Editing by Marguerita Choy)

((David.Shepardson@thomsonreuters.com; 2028988324;))