President Biden sets target of 50% share of electric vehicle sales by 2030 to unlock all economic benefits of the Rebuild a Better Agenda and advance smart emissions and energy efficiency standards
President Biden’s Build Back Better program and the bipartisan infrastructure deal invest in the infrastructure, manufacturing and incentives we need to develop well-paying union jobs at home, run electric vehicles around the world, and save money. money to American consumers. Today, the President will announce a set of new actions to advance those goals and increase the impact of his proposed investments for Build Back Better – Positioning America to Advance the Future of Electric Vehicles, Outperform China and fight against the climate crisis.
Specifically, the president will sign an executive decree that sets an ambitious new target to make half of all new vehicles sold by 2030 zero-emission vehicles, including battery-electric, plug-in hybrid or fuel cell electric vehicles. . The decree also kicks off the development of long-term energy efficiency and emissions standards to save consumers money, reduce pollution, improve public health, advance environmental justice and fight against the climate crisis.
Additionally, and in accordance with the Presidential Executive Order of Day One, the Environmental Protection Agency (EPA) and the US Department of Transportation (USDOT) will announce how they are addressing the previous administration’s damaging reductions in energy efficiency standards and short-term issues. Through these coordinated notices of proposed regulations, the two agencies are advancing smart energy efficiency and emissions standards that would generate approximately $ 140 billion in net benefits over the life of the program, save approximately 200 billion gallons of gas. ‘gasoline and would reduce about two billion metric tons. of carbon pollution. For the average consumer, that means net benefits of up to $ 900 over the life of the vehicle in fuel savings.
These new actions, coupled with investments in the presidential Build Back Better Agenda program, will strengthen U.S. leadership in clean cars and trucks by accelerating innovation and manufacturing in the automotive sector, strengthening the sector’s national supply chain. automotive and developing high paying automotive jobs. and benefits. That’s why today, American automakers Ford, GM and Stellantis and United Auto Workers (UAW) will stand alongside President Biden in the White House with one aligned ambition: to support the Presidential Build Back Better program and the need. of automakers to invest in and create well-paying union jobs in the United States.
Rebuilding a better investment program
The global market is turning to electric vehicles and harnessing their potential to save families money, reduce pollution and make the air we breathe cleaner. Despite being a pioneer in technology, the United States lags behind in the race to manufacture these vehicles and the batteries that go into them. Today, the market share of electric vehicle sales in the United States is only a third of that of the Chinese electric vehicle market. The President believes it is time for the United States to be at the forefront of electric vehicle manufacturing, infrastructure and innovation, by investing in:
- Installation of the very first national network of charging stations for electric vehicles.
- Offer consumer incentives at point of sale to stimulate manufacturing and unionized employment in the United States.
- Funding for retooling and expansion of the entire domestic manufacturing supply chain.
- Innovate the next generation of clean technologies to maintain our competitive advantage.
Through investments in the Build Back Better program and the bipartite infrastructure agreement, we can strengthen the US leadership in electric vehicles and batteries. These one-time investments in a generation will allow America to win the future of transportation and manufacturing and create well-paying union jobs, dramatically expand American manufacturing, make electric vehicles more affordable for families, and d ” export our electric vehicles all over the world. .
And, the president has already made a down payment on his vision for American leadership in automobile manufacturing. Last month, the Commerce Department announced $ 3 billion in currently available US bailout funds that can be used to advance the domestic electric vehicle industry in communities that have historically been the backbone of our automobile industry.
Ambition of electric vehicles for 2030
Over the past decade, we have witnessed a transformation in the technological costs, performance and availability of electric vehicles. Since 2010:
- Battery costs fell 85%, paving the way for price parity with gasoline vehicles.
- The average vehicle range has increased significantly as charging times have shortened.
- Electric models available to US consumers have grown to over 40 last year – and growing.
Seeing this change, countries are quick to take the lead. For example, China is increasingly cornering the global electric vehicle and battery supply chain with its rapidly growing electric vehicle market. By setting clear targets for electric vehicle sales trajectories, these countries are becoming magnets for private investment in their manufacturing sectors – from parts and materials to final assembly.
President Biden is committed to changing that and serving the American people. This is why he will sign a decree which sets a new target of electric vehicles representing half of new vehicles sold in 2030. This is based on today’s announcements from car manufacturers, representing almost the entire automotive market who have positioned themselves around the objective of reaching 40 to 50% of electric vehicle sales by 2030. More than a deployment objective, it is an objective to take advantage of unique investments and an effort government to uplift the American auto worker and strengthen American leadership in clean cars and trucks. The 2030 target is calibrated to allow time for existing manufacturing facilities to modernize without abandoning assets, upgrades that will be catalyzed by the Build Back Better program, and to move towards a path that expands domestic manufacturing. in the United States with unionized workers.
Smart energy efficiency and emissions standards
In accordance with the Presidential Executive Order of Day One, the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) of the United States Department of Transportation will announce how they are addressing the previous administration’s damaging fuel reductions. short-term fuel and emissions standards. The standards of the two agencies operate compatible until model year 2026, with the NHTSA proposed rule starting in model year 2024 and the proposed EPA rule taking effect one year earlier with the model year. 2023. The standards build on the momentum of the California Framework Accord – an agreement between the State of California and five automakers: Ford, Honda, Volkswagen Group, BMW and Volvo.
Through these coordinated notices of proposed regulations, the two agencies are advancing smart energy efficiency and emissions standards that would bring approximately $ 140 billion in net benefits over the lifetime of the standards, including asthma attacks. avoided and lives saved, save about 200 billion gallons of gasoline, and reduce about two billion metric tonnes of carbon pollution. For the average consumer, that means net savings of up to $ 900 over the life of the vehicle through fuel savings.
Building on these short-term measures, the decree the President will sign launches the development of long-term energy efficiency and emissions standards to save consumers money, reduce pollution, improve public health, advance environmental justice and fight the climate crisis. More specifically, the decree establishes a rigorous timetable for the development of energy efficiency standards and multiple pollutant emissions until at least the 2030 model year for light vehicles and for medium and heavy vehicles from model year 2027. The executive decree also directs agencies to:
- Consult with the Secretaries of Trade, Labor and Energy on ways to accelerate innovation and manufacturing in the automotive sector, strengthen the national supply chain for this sector and create good-paying jobs and benefits.
- Collaborate with California and other states at the forefront of vehicle emissions reduction.
- Get input from a wide range of stakeholders, including representatives from labor, industry, environmental justice organizations, and public health experts.
Together, today’s announcements would put us on track to reduce greenhouse gas emissions from new passenger vehicle sales by more than 60% in 2030 compared to vehicles sold last year, and facilitate the achievement of the President’s goal of 50 to 52% net greenhouse gases in the economy as a whole. emission reductions below 2005 levels by 2030.