In his first year in office, President Joe Biden has already focused quite a bit of attention on the auto industry: In August 2021 he announced his plan for electric vehicles (EVs) to comprise half of all U.S. car sales by 2030. In December 2021, the White House announced an aggressive increase of fuel economy standards. The President’s Build Back Better infrastructure bill includes funding for a nationwide charging network as well as incentives to increase EV sales.
Read on to learn more about the President’s plans which may have a significant impact on the automotive industry over the coming decades.
Executive Order to Support EV Sales
On August 5, 2021 President Biden signed the Executive Order on Strengthening American Leadership in Clean Cars and Trucks, which sets the goal for EVs to make up half of the cars and trucks that are sold in the U.S. by the year 2030. The ultimate purpose behind the executive order is to zero out greenhouse gas emissions across the economy by mid-century.
Build Back Better Bill Provisions for a Nationwide EV Charging Network
According to NBC News, Build Back Better proposes the building of 50,000 EV charging stations across the U.S. as part of the PResident’s plan to address greenhouse gas emissions. The bill originally proposed $15 billion for the massive project, but that amount has already been cut in half to $7.5 billion. Stll, despite the 50% reduction in budget, the target of 500,000 remains in place.
As NBC reports, “The administration’s five-page plan for accelerating that shift offered few details on where new charging stations will go, who will build them and how they’ll be funded, raising new questions about whether Biden will be able to meet his ambitious goal of installing 500,000 charging stations from coast to coast.”
The $1.75 trillion bill stalled after Sen. Joe Manchin of West Virginia said he wouldn’t vote for it. President Biden said he believes Congress will pass parts of the Build Back Better Plan, and these will include more than $500 billion toward fighting climate change and clean energy. These provisions include incentives for clean transportation — that is, EV vehicles.
Of the $7.5 billion provisioned for the charging stations project, the Biden administration plans to dole out $5 billion to states, territories, and Washington, D.C. to install charging stations. The remaining $2.5 billion will be used for grants to put charging stations in rural areas to benefit disadvantaged communities.
You can learn more about the bill’s provisions in the Biden-Harris Electric Vehicle Charing Action Plan. We’ll continue to keep you updated on the legislative proceedings as they unfold.