President Biden Issues Executive Order Setting National Target for Adoption of Zero-Emission Vehicles

Yesterday, President Biden issued an “Executive Order on Strengthening American Leadership in Clean Cars and Trucks.”  The executive order sets “a goal that 50 percent of all new passenger cars and light trucks sold in 2030 be zero-emission vehicles, including battery electric, plug-in hybrid electric, or fuel cell electric vehicles.”  It also directs the Administrator of the Environmental Protection Agency (EPA) and the Secretary of Transportation to consider beginning work on rulemaking to establish new emissions and fuel economy standards for light-, medium-, and certain heavy-duty vehicles for model years 2027 through at least 2030, with any final rulemakings to be issued by July 2024.  Executives from several major auto manufacturers and representatives from United Auto Workers attended the President’s remarks announcing the executive order and pledged their support for these initiatives.

The 50% goal is not mandatory and does not purport to preempt any state-mandated targets.  Last September, for example, California’s governor signed an executive order banning the sale of new combustion engine cars and trucks after 2035 in an effort to jump start industry support and consumer interest in electric vehicles (EVs).  With respect to establishing new emissions standards, President Biden’s executive order praises the “significant expertise and historical leadership demonstrated by the State of California” and instructs the EPA Administrator to coordinate the agency’s activities with that state and others “that are leading the way in reducing vehicle emissions, including by adopting California’s standards.” 

Achieving this ambitious goal will require significant infrastructure investment to promote consumer acceptance of EVs.  EVs are off to a good start in 2021; according to a leading industry source, EV sales accounted for 7.8% of total sales in the first quarter of this year, a significant increase over their 4.8% share during the same period in 2020.  The U.S. Department of Energy reports that at the end of 2020, there were over 106,000 charging ports in the United States, an increase of more than 21,000 from the prior year.  In his remarks yesterday, the President reiterated the administration’s goal of building 500,000 new charging stations.  Developing the necessary infrastructure for widespread adoption of EVs will also require substantial buy-in and investments by states, municipalities, and private companies.