President Biden Will Accelerate Transition to Electric Vehicles
The electrification of the U.S. auto fleet is poised to deliver desperately needed emission reductions from the transportation sector, and this important effort will now have an ally in the White House. Joe Biden is well positioned to support the transition to electric vehicles by advancing sensible, centrist policies. The proud owner of a ’67 Corvette Stingray, Biden has a lot of credibility with people who love cars. He is unlikely to pursue extreme environmental regulations that might jeopardize his standing with bluecollar voters. New climate legislation will require bipartisan support, and Biden has signaled a genuine willingness to work across the aisle.
Biden’s Environmental Protection Agency will want to negotiate feasible auto emission standards that are acceptable to all stakeholders. He will likely act quickly to end the Trump administration’s legal standoff with the California Air Resources Board, reaffirming California’s right to set its own stricter emission standards. Many automakers and 13 progressive states have already agreed to abide by California’s standards, which include a modest mandatory quota for the sale of zero emission vehicles. Biden’s EPA will be in a strong position to enact prudent emission standards that apply in all fifty states, providing certainty to automakers as they plan for the future.
Biden has also indicated that he would like to update the federal tax credit that supports the sale of EVS. If you buy a Tesla or an EV made by General Motors, you are no longer eligible to receive the $7,500 tax credit because both companies have now sold more than 200,000 EVS. The unusual sunset provision in the tax legislation is designed to phase out the incentive as each automaker reaches the sales limit, but it is now distorting the market, putting GM and Tesla at a great disadvantage. Nissan is quickly approaching the limit. Biden wants to restore the full tax credit for all EVS and deny it to taxpayers with high incomes. There may well be bipartisan support for his thoughtful approach.
During the presidential campaign, Biden promised to support EV adoption by increasing the number of public charging stations, a climate policy that appeals to our common sense. Many people can’t see themselves purchasing an electric vehicle until charging facilities become more widely available. The private sector is already doing a great job providing public chargers wherever EVS are being sold in substantial numbers, but federal infrastructure support could help increase EV adoption in areas of the country where it is especially low.
Biden can also begin electrifying the vehicle fleets that are owned and operated by the federal government. State and local governments can be encouraged to do the same. Vigorous EV procurement by government agencies will likely favor U.S. automakers, rewarding them for the risky investments they’ve made in electrification. It will also help U.S. companies that provide charging stations.
The election of Joe Biden is great news for our planet, but our nation’s excessive auto emissions cannot be curtailed without the help of consumers. Progressive government policies will fall short if we continue to believe that our individual carbon footprints make no difference. If you’re in the market for a new car, support our newly elected president and get yourself an EV.