On Wednesday, President Joe Biden signed an executive order ending the purchase of vehicles powered by gasoline and diesel by 2035 in order to reposition the US as a leader in sustainability. The US federal government’s fleet of new vehicles will look a lot different by the middle of the next decade. The government has pledged it will only purchase zero-emission vehicles by the deadline, as the Biden administration continues to work toward its goal of net-zero emissions by 2050 nationwide. The order ends the purchase of light-duty fossil fuel-powered vehicles even earlier by 2027. President Biden’s order declares the US government will use its purchasing and procurement power to set an example for the private sector. It’s something the administration has spoken of frequently this year as the president rolled out the new federal “Buy American” initiatives.
The new executive order also runs parallel with another executive order: The administration set a goal to make 50% of all new cars sold in the US electric by the end of the decade with backing from Ford, General Motors, Stellantis, and the United Auto Workers union. EVs only account for roughly 2% of all new cars sold, making the administration’s actions a near moonshot in a relatively short period of time. However, executive orders like this are designed to help speed the process along. The recently signed Bipartisan Infrastructure Act also includes support for the budding EV industry with a network of nationwide charging stations future drivers will be able to take advantage of. However, the Executive orders are not law. A future administration could wipe this order away with another pen stroke.
Moreover, the Build Back Better bill includes a $12,500 EV tax credit, up from the current $7,500 available to qualifying cars and buyers. Its inclusion comes as the bill sheds multiple other elements to compromise with various Democrats. The base amount remains $4,000, as it is today, with another $3,500 available if the EV’s battery pack includes at least 40 kilowatt-hours of capacity. The gas tank cannot exceed 2.5 gallons in the case of plug-in hybrids. This is for cars placed in service before 2027 and now comes to the $5,000 boost. EVs and consumers will be able to qualify for another $4,500 in the tax credit if an automaker makes the EV in the US with a union workforce. Another $500 comes into play for automakers using a US-made battery, for a maximum of $12,500 available.