Executive Order Establishes New Rule-Making on Emissions Standards And Sets Goal 50 Percent Electric Vehicles by 2030
August 7, 2021–President Joe Biden signaled a new push for U.S. battery manufacturers and lower greenhouse gas emissions with an Executive Order calling for half of all new cars and trucks made in America to be electric by 2030.
In addition to setting that goal, the president called for federal investment in building a national network of a half-million electric vehicle charging stations, customer incentives that will result in more manufacturing and union jobs, financing and retooling the domestic manufacturing supply chain, and developing more clean technologies. Funds for some of those investments are included in the bipartisan infrastructure bill now before Congress.
At the same time, the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NTHSA) will be working to increase fuel economy standards.
Working to beat China
Leaders of Ford, General Motors, and Stellantis (of which Chrysler is a part), as well as the president of the United Auto Workers, joined Biden at the event in a sign of industry support for the goal.
Biden pointed to China as the world leader in battery development and production during his remarks.
“The question is whether we’ll lead or fall behind in the race for the future,” he said. “It’s whether we’ll build these vehicles and the batteries that got them to where they are in the United States — here in the United States, or we’re going to have to rely on other countries for those batteries. Whether or not the jobs to build these vehicles and batteries are good-paying union jobs — jobs with benefits, jobs that’s going to sustain continued growth of the middle class.”
-President Biden said on Thursday
The automakers released a joint statement of support in which they pledged 40 percent to 50 percent of their vehicles will be electric in the prescribed time frame.
“Our recent product, technology, and investment announcements highlight our collective commitment to be leaders in the U.S. transition to electric vehicles,” the automakers said. “With the UAW at our side in transforming the workforce and partnering with us on this journey, we believe we can strengthen continued American leadership in clean transportation technology through electric vehicle innovation and manufacturing.”
-Ford, GM and Stellantis
Automakers BMW, Ford, Honda, Volkswagen, and Volvo also pledged their support.
Labor Leader Emphasizes Wages and Benefits
Labor-leader and UAW President Ray Curry welcomed the plan to manufacture electric vehicles and batteries in the United States. “Today’s announcement on emissions standards brings more certainty and better planning for the auto industry and UAW member future jobs.”
Fuel Economy Standards
The EPA and NTHSA’s Safer Affordable Fuel Efficient (SAFE) Vehicles rule for auto model years 2021-2026 calls for 40.4 mpg projected overall industry average required fuel economy in model year 2026.
Additionally, the rule would result in cutting carbon dioxide emissions by motor vehicles by 1.5 percent through model year 2026. According to the EPA, an average passenger vehicle emits 4.6 tons of carbon dioxide every year based on vehicles averaging 22 miles per gallon and driving about 11,500 miles annually.
Executive Order Full Text
The August 5, 2021 Executive Order is available in full here.
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