The Biden administration’s new electric vehicle law intends to change. The $7,500 electric vehicle tax credit can no longer be used by Americans for vehicles manufactured outside of the United States due to the Inflation Reduction Act, which was passed into law over the summer.
President Biden set an ambitious goal of 50% of electric vehicle (EV) selling shares in the U.S. by 2030, and he has brought together automakers and autoworkers to advance American leadership on clean automobiles. Not only this, but many such rules have also been stated in Biden’s law for electric vehicles. The impact, changes, and benefits of that law are major. So what are the Biden’s Law for Electric Vehicles?
Biden’s Law for Electric Vehicles.
- Recent federal action
- Clean air act waiver
- Procurement
- Federal loan programs and R& D spending.
- Green act of 2021
- EV freedom act
- Future Infrastructure bill
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Biden’s law for electric vehicles: Recent federal action
The Biden administration has launched a significant campaign to encourage the usage of EVs. President Biden signed several executive orders in late January to advance the nation’s move away from fossil fuels.
One of these orders instructed federal organizations to “harness the federal government’s purchasing power to buy clean, zero-emission automobiles that are built and sourced by union employees right here in America.”
The executive order specifically instructed the heads of the Council for Environmental Quality, the General Services Administration, and the Office of Management and Budget to collaborate with other cabinet officials to develop a plan to use
The plan includes “all available procurement authorities to achieve or facilitate… a carbon pollution-free electricity sector no later than 2035; and… clean and zero-emission vehicles for Federal, State, local, and Tribal government fleets, including… electric vehicles”
The administration has worked to repeal and revoke the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule, which was released by the Trump Administration.
Biden’s law for electric vehicles: Clean air act waiver
Repealing and replacing the SAFE Vehicles Rule from the Trump administration and restoring California’s waiver to control motor vehicle CO2 emissions under Section 209 of the Clean Air Act are two of the Biden administration’s major environmental priorities.
The corporate average fuel efficiency (CAFE) and emissions regulations put in place by the Obama administration were significantly lowered by the SAFE Vehicles Rule.
The rule mandates that manufacturers reduce their CO2 emissions and boost their company average fuel efficiency by 1% annually from 2021 to 2026, which is a significant fall from the Obama administration’s mandate of a 5% improvement in fuel economy.
Along with changing these rules, the EPA also removed California’s Clean Air Act waiver that allowed it to set its pollution levels (see more detailed EELP analysis on both the SAFE Rule and the California waiver repeal). California waiver repeal).
Procurement
As previously mentioned, the Biden administration has already started to use the federal government’s purchasing power to advance the electrification of vehicles.
Given that the federal government owns the largest vehicle fleet in the nation, increasing the federal use of electric vehicles and charging stations is a crucial step in expanding the attractiveness of electric vehicles.
The federal government is in an ideal position to create the necessary demand for businesses to increase the production of electric trucks given the restricted number of electric truck options and increased customer interest in SUVs and trucks.
The table below shows electric vehicles with its federal fleets
| Electric vehicles | Federal fleets |
|---|---|
| Light & medium-duty trucks | 30% fleet |
| SUVs | 19% fleet |
Biden’s law for electric vehicles: Federal loan programs and R& D spending.
While several federal loan programs may be utilized to support electrification, the Department of Energy’s (DOE) Advanced Technology Vehicles Manufacturing (ATVM) loan program is well situated to support the Biden administration’s plan for electric vehicles.
The ATVM loan program was established by the Energy Independence and Security Act (“EISA”) of 2007 with the goal of “providing low-cost debt funding for fuel-efficient vehicle and qualified component manufacture in the United States.”
The ATVM initiative has achieved several triumphs, including giving Tesla the cash it needed to build the Model S production facility. The ATVM program, however, has slowed recently, and DOE hasn’t approved an ATVM loan in years.
The ATVM program’s legal requirements have made the loan program more difficult. Application for an ATVM loan requires applicants to show that their project “is financially sustainable without the receipt of additional Federal assistance associated with the proposed project.”
Biden’s law for electric vehicles: Green act of 2021
The GREEN Act of 2021, proposed by Representative Mike Thompson, has a range of financial incentives to promote the use of electric vehicles.
The law would increase the number of vehicles a manufacturer can produce before the tax credit runs out by 400,000, changing the present electric vehicle tax credit.
The measure also creates a tax credit for producers of heavy-duty electric vehicles and alternative fuel charging infrastructure, and it permits buyers of used electric vehicle purchases to be eligible for the credit.
Biden’s law for electric vehicles: EV freedom act
The EV Freedom Act was introduced in 2020 by Representative Andy Levin.
The bill would create a federal electric vehicle charging network that would permit “a driver starting at any place along an approved road in the continental United States,” as well as commission the Department of Transportation to perform a study on the subject on a national scale.
Without running out of juice, travel any distance on a qualifying route within the contiguous United States.
Biden’s law for electric vehicles: Future Infrastructure bill
Negotiations on an infrastructure plan have started between the Biden administration and legislative allies, and it is anticipated to include provisions making the switch to electric vehicles easier.
The Biden-Sanders Unity Task Force supported a plan to work with local and state governments “to establish at least 500,000 public charging stations from coast to coast” throughout the campaign.
The upcoming infrastructure bill is likely to feature a similar provision.
An Electric Vehicle in President Biden’s Popular Tweet.
President Joe Biden had only been in office for a week in January of this year when he first demonstrated his support for the auto industry, and more specifically for electric mobility.
Then he declared that he will switch the whole US Federal fleet over to all-electric cars.
Unquestionably a huge effort considering that this action impacts 645,000 vehicles, of which 245,000 are used for civilian purposes, 173,000 are used for military purposes, and 225,000 are used for postal services.
Let’s see what he had to say in the tweet.
In a video message to General Motors CEO Mary Barra, Biden discussed his climate change strategy and how EVs may help in a post on Twitter.
In the Tweet, Biden claimed that when he said that the future would be made right here in America, he meant it. He also noted that manufacturers like GM and Ford are now making more electric cars here than ever before.
The US President is heard saying, “Folks, I am here with Mary Barra, the Chairman of the Board of General Motors,” in his video message.
Barra then went on to declare, “Mr. President, we are pleased to inform you that we will be investing $7 billion in Michigan to expand our EV production and bring a third battery cell factory to the US.
We want to offer a variety of EVs so that everyone can successfully switch. Therefore, we have only just begun.
We are thrilled to support your initiatives to combat climate change and move toward an all-EV future.”
Why is Biden’s Government going Electric?
- Bipartisan Infrastructure agreement.
As part of the bipartisan infrastructure package, which includes $7.5 billion to establish a vast network of EV charging stations around the nation, the Biden administration unveiled a plan to distribute $5 billion to states over five years to fund electric car chargers.
Senior administration officials stated that the new guidelines will assist states in developing a network of EV charging stations along designated alternative fuel corridors on the national highway system.
- To fight climate change.
The significant expenditure is a component of the administration’s larger plan to fight climate change caused by human activity and advance the switch to clean energy.
According to the Biden administration, gas-powered automobiles are more expensive for Americans than EVs, and half of all new cars sold in the country will be electric or plug-in hybrids by 2030.
- Greenhouse gas emissions.
The transportation industry continues to be one of the biggest producers of greenhouse gas emissions in the United States, despite an increase in EV sales in recent years.
According to President Joe Biden, the effort to install charging stations may help the average driver of an electric vehicle save up to $1,000 annually on gas.
The administration promised to convert its 600,000-car and truck federal fleet to electric power by 2035.
Historic Investments in the Private Sector for Electric Cars.
Since President Biden’s inauguration, businesses have announced investments totaling more than $36 billion in the production of electric vehicles and $48 billion in batteries right here in the United States.
The following are a few fresh and recent examples of investments in the EV supply chain:
- Production of EVs and batteries.
Manufacturing of Electric vehicles and batteries announced an investment from various top EV companies.
The graph below shows investments done by EV manufacturers
- Processing Battery Material.
Piedmont Lithium announced a $582 million commitment to build a facility in Southeast Tennessee for processing, refining, and manufacturing lithium hydroxide.
Battery recycling business Cirba Solutions has announced a $200 million expansion of a lithium-ion battery recycling facility in Lancaster, Ohio, with a target to increase battery recycling by more than 600%.
- Charging an electric car.
ABB has announced the opening of a new EV charging factory in Columbia, South Carolina, with a capacity to produce up to 10,000 chargers annually.
On August 29, Cleveland, Ohio-based Lincoln Electric—a seasoned domestic producer of electric machinery—announced the launch of a new line of DC fast chargers.
GM will invest $750 million in EV charging infrastructure as part of a partnership with Delta Electronics and EVgo, including at Pilot and Flying J truck stops and fueling stations.
The White House announced more than $700 million in investments in June, including new production sites by ChargePoint, Flo, Siemens, Tesla, and Tritium. These investments are an addition to those.
What New Models Are There for Consumers?
The economic strategy and leadership of Vice President Biden are inducing automakers to produce more electric car types than ever before, including trucks, SUVs, trucks, and more, to give consumers a wider range of options.
To get the U.S. closer to an emission-free future in line with the Paris climate targets, all major manufacturers declared in 2021 that they all shared the goal of selling 40–50% of annual U.S. volumes of electric vehicles (battery electric, fuel cell, and plug-in hybrid vehicles) by 2030.
The proof of this transition is plain to see at the Detroit Auto Show. For instance, Stellantis will display two brand-new Jeeps that are powered by hybrid electric technology and illustrate how well they function in off-road situations.
The new electric Equinox will be featured, along with the entirety of General Motors’ EV lineup. Numerous more automakers will display their most recent products, including both new models and updated iterations of well-known brands.
Overall, there are now more than 70 plug-in models available, and new models, including more economical ones, are constantly being released.
What Are the Effects Biden’s Law for Electric Vehicles.
- Auto manufacturers avoid commitment.
The plan makes much of electric vehicles, claiming that by 2030, the fleet of new cars might contain up to 50% EVs. But automakers didn’t promise Biden that they would even meet that low bar.
Auto companies’ voluntary commitments make a New Year’s goal to slim down seem like a contract that must be upheld in court.
Because automakers have proven they cannot be trusted (See: Volkswagen diesel-gate), adherence to every provision of the package must be enforced by law.
President Barack Obama and major automakers negotiated the 5% annual increases in gas economy and emissions for 2012. With those improvements, the fleet of new vehicles in 2025 would have had a driving average of 36 mpg.
The strategy would have prevented 6 billion tonnes of carbon dioxide, which traps heat, from entering the atmosphere while also saving customers $1 trillion on gas.
- Net-zero emissions of greenhouse gases.
Biden has established a target of net-zero greenhouse gas emissions by 2050 to prevent the greatest climatic calamities.
We can’t meet that important goal unless we stop selling new gas-powered cars and light trucks by the end of this decade because some vehicles last at least 20 years on the road.
However, despite all the talk, only a small number of these emissions-free automobiles and trucks have been produced by the auto industry.
Ford produced 800,000 gas-powered F-150 pickups last year, but only sold 11,000 EVs in the 12 months ending in April.
The executives of the corporations refused to make legally enforceable guarantees, even with the president on the White House lawn on Thursday and their brand-new, shining EVs arranged on the driveway.
- Avoiding upgrades to save money.
Automobile manufacturers have long had access to the technology required to make significant advancements, such as electric motors, safe, lightweight steel and aluminum, constantly variable gearboxes, and aerodynamic designs.
Consumers would save more with them than the changes would cost at the pump.
But rather than fully utilizing the fuel- and money-saving advancements, automakers invested over $14 billion yearly in TV, web, and other marketing to increase the manufacture of gas-guzzling SUVs and pickups.
They have been charging consumers up to $30,000 in truck markups for years, even though they frequently only transport a coffee from Starbucks.
The New Tax Credits Apply to Electric Cars.
A new “final assembly in North America” criteria must be met by the electric vehicle you purchased.
The Department of Energy has put out a list of electric vehicles that might comply with the final assembly regulation, but if you’re curious about where a particular car was made, you can use the NHTSA VIN Decoder to determine whether it satisfies the manufacturing standards for tax credits in 2022.
The Department of Energy has provided a list of electric vehicles produced in North America.
Here “Manufacturer sales cap met” this indicates that the model has “reached a cap of 200,000 EV credits used and is therefore not now eligible for the Clean Vehicle Credit.”
| Model Year | Vehicle | Note |
| 2022 | Audi Q5 | |
| 2022 | BMW 330e | |
| 2022 | BMW X5 | |
| 2022 | Chevrolet Bolt EUV | Manufacturer sales cap met |
| 2022 | Chevrolet Bolt EV | Manufacturer sales cap met |
| 2022 | Chrysler Pacifica PHEV | |
| 2022 | Ford Escape PHEV | |
| 2022 | Ford F Series | |
| 2022 | Ford Mustang MACH E | |
| 2022 | Ford Transit Van | |
| 2022 | GMC Hummer Pickup | Manufacturer sales cap met |
| 2022 | GMC Hummer SUV | Manufacturer sales cap met |
| 2022 | Jeep Grand Cherokee PHEV | |
| 2022 | Jeep Wrangler PHEV | |
| 2022 | Lincoln Aviator PHEV | |
| 2022 | Lincoln Corsair Plug-in | |
| 2022 | Lucid Air | |
| 2022 | Nissan Leaf | |
| 2022 | Rivian EDV | |
| 2022 | Rivian R1S | |
| 2022 | Rivian R1T | |
| 2022 | Tesla Model 3 | Manufacturer sales cap met |
| 2022 | Tesla Model S | Manufacturer sales cap met |
| 2022 | Tesla Model X | Manufacturer sales cap met |
| 2022 | Tesla Model Y | Manufacturer sales cap met |
| 2022 | Volvo S60 | |
| 2023 | BMW 330e | |
| 2023 | Bolt EV | Manufacturer sales cap met |
| 2023 | Cadillac Lyriq | Manufacturer sales cap met |
| 2023 | Jeep Grand Cherokee PHEV | |
| 2023 | Jeep Wrangler PHEV | |
| 2023 | Lincoln Aviator PHEV | |
| 2023 | Mercedes EQS SUV | |
| 2023 | Nissan Leaf |
Conclusion
The Biden administration has a fantastic opportunity to alter the make and model of the American fleet of vehicles. In the upcoming years, ICE vehicles will gradually be phased out, with support from both private businesses and government entities. Here we stated all the rules and laws done by Biden for electric vehicles.
We are aware of Shifting from fuel vehicles to electric cars with Biden’s electric car law running better. We also discussed the impact of these laws in the states of the U.S. And thus Biden’s law for electric vehicles will be good for the future.
FAQs
What is the Position of the Biden Administration on Electric Cars?
In particular, the Biden administration has made electric vehicles the focal point of its “Build Back Better” and anti-climate change initiatives. The U.S. automobile fleet must be electrified if the Biden administration is to keep its campaign commitments about climate change.
Will Joe Biden be Able to Control the Electric Vehicle Market?
Joe Biden wants to control the electric vehicle market. He set a goal in August to have half of all vehicles sold in the US by 2030 be battery-, fuel-cell-, or plug-in hybrid-powered.
What does the Inflation Reduction Act Proposed by Biden Entail for Electric Cars?
The Inflation Reduction Act is signed by President Joe Biden (C) on August 16, 2022. Automakers have been urging the American government to offer tax credits and other incentives to help buyers afford electric vehicles (EVs).
What is Biden’s Effort to Reduce Gas Consumption in Vehicles?
The Biden administration has struggled to secure the significant federal investments in electric vehicle infrastructure that experts say is required to make them economically viable for Americans on a large scale. This push to get automakers to offer fewer and fewer gas-burning vehicles comes simultaneously.
What will the Federal Spending Plan Proposed by Biden Entail for EV Adoption?
To address one of the significant barriers to EV adoption—fear of running out of battery—Biden last year proposed $174 billion in federal financing to create a nationwide network of 500,000 electric vehicle charging stations.
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