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Diesel, Fuel Cells Get Spotlight as Plug-Ins Lose Favor

With U.S. sales of plug-in electric vehicles on pace to reach half of President Barack Obama’s goal, regulators are following customers and automakers to vehicles powered by other fuels, from hydrogen to diesel.

California, which leads 10 states that require automakers to sell zero-emission vehicles, may alter its system of tradable credits to stop favoring plug-ins over hydrogen-powered cars. That would hurt Tesla Motors Inc. while helping Honda Motor Co.