During his campaign, President Joe Biden released the “Biden Plan” for addressing climate change — a modification of the “Green New Deal” proposed by progressives in Congress. One of the central tenets of the Biden Plan is ensuring that the United States achieves a 100 percent clean energy economy and reaches net-zero emissions no later than 2050. In order to do this, the Biden administration is likely to endorse additional emission regulations and electric vehicle legislation.
President Biden is not alone in the shift toward a focus on electric vehicles and emission reduction. This past month, General Motors (GM) announced their plan to increase their investment in electric vehicles by $7 billion—bringing GM’s total investment up to $27 billion through 2025. Additionally, GM has plans to launch 30 electric vehicle models by 2025, and more than two thirds will be available in the United States.
In some states, the shift toward electric vehicles has already begun. Earlier this year, California Governor Gavin Newsom announced an executive order requiring sales of new passenger vehicles to be exclusively zero-emission by 2035. In pursuit of this goal, the California Air Resources Board (CARB) has started developing rules to regulate the emission levels of cars in the state.
Over the first term of his presidency, President Biden has promised a $2 trillion accelerated investment aimed at stimulating the economy. Those funds will be allocated to the auto industry, transit and innovation, among others. The Biden Plan projects the creation of more than 1 million new jobs in the American auto industry, many of which will be centered around electric vehicles.
In July, Biden announced a proposal of a Cash for Clunkers-type plan aimed at incentivizing consumers to go electric. This plan would offer rebates for Americans to trade in older vehicles to switch for electric. The original Cash for Clunkers program, which was established in 2009 to reduce emissions and stimulate the economy, resulted in approximately 700,000 post-warranty vehicles taken off of U.S. highways. A new Cash for Clunkers program focused on electric vehicles could pose a problem to independent vehicle repair shops, of which post-warranty vehicle owners make up more than 70 percent of customers.
The success of many of Biden’s proposed electric vehicle and clean air initiatives will hinge on the outcome of the two Senate runoff races happening right now in Georgia. If the two Democrats Reverend Raphael Warnock and Jon Ossoff beat incumbent Republicans Sen. Kelly Loeffler and Sen. David Purdue, the Senate will be split 50-50, and Vice President Kamala Harris will have the deciding vote between the two parties. Sen. Chuck Schumer (D-NY) would replace Sen. Mitch McConnell (R-KY) as the Senate Majority Leader.
Senator Chuck Schumer has consistently made electric vehicle legislation one of his top priorities. Last year, Sen. Schumer proposed a $454 billion plan over 10 years focused on shifting the United States away from gasoline-powered vehicles and toward electric vehicles. This proposal included a Cash for Clunkers-type program, as well as funds for electric vehicle charging stations and incentives for automakers. With the Senate under Republican control, Senator Schumer’s plan did not make any substantial progress toward becoming law. However, with a Democratic Senate, a plan such as this one might have a much more favorable outcome.
It remains to be seen what substantive progress President Biden and other lawmakers will accomplish in electric vehicle and clean energy legislation. However, as we have seen in the last four years, a change in administration can make a big difference. During his term, President Donald Trump rolled back the emission regulations set by President Barack Obama, which were the toughest-ever emissions regulations imposed. The fuel-efficiency deregulation was met with opposition from environmental groups and automakers alike and has been subsequently challenged by environmental groups and states in the courts. President Biden is expected to attempt to reinstate those regulations.
