President Donald Trump has signed an executive order reversing federal policies that incentivize electric vehicle (EV) adoption. The new administration is also targeting emissions rules adopted by some states that further encourage EV purchases.
What Biden-era EV policies does this order target?
The Biden administration had implemented a range of measures to support transportation electrification efforts. Those included tax credits of up to $7,500 for new EV purchases, tighter greenhouse gas emissions limits and stricter fuel-efficiency standards.
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In total, the Biden administration allocated over $190 billion for EVs and related infrastructure through the next decade. The administration allocated these funds from the Bipartisan Infrastructure Law, the Inflation Reduction Act, Department of Energy grants and additional investments.
Trump’s executive order directs federal agencies to reevaluate these policies, including tax credits for EV purchases, federal funding for charging infrastructure and regulatory incentives encouraging automakers to shift from gas-powered vehicles to electric models.
How will the order impact states following California’s emissions rule?
The order also seeks to terminate an exemption that allows California to enforce stricter emissions standards than those set at the federal level.
California’s standards call for a phasing out of new gas-powered vehicle sales by 2035 and are followed by more than a dozen other states.
California Democratic Gov. Gavin Newsom previously pledged to maintain the $7,500 EV incentive within the state, regardless of federal changes. Newsom announced plans to revive California’s rebate program for zero-emission vehicles. The program funded the purchase of over 594,000 EVs and saved an estimated 456 million gallons of fuel before expiring in 2023.
What happens next?
Environmental groups have criticized Trump’s executive order. They warn it could slow efforts to combat climate change.
The transportation sector remains a significant contributor to U.S. greenhouse gas emissions. According to experts, light-duty vehicles are responsible for over half of transportation-related emissions.
The executive order is expected to face legal challenges from environmental organizations and states that rely on California’s emissions standards.
