How the new federal administration impacts EV fleet adoption
The many recent shifts in federal climate and environment-related policies have cast uncertainty on the future of electrification incentive and funding programs, including for businesses and organizations in the Pacific Northwest that are considering upgrading their fleets to electric vehicles (EVs).
While it’s still unclear exactly how federal electrification policy shifts will play out, many of the fundamental motivations and benefits for organizations moving to EVs remain – as does the market’s interest in realizing these benefits through electrification.
What we know now: Proposed federal changes
Here’s what we’re seeing about the Trump administration’s current policy intentions regarding EVs:
Repeal Biden Administration’s EV goals: The Trump administration has revoked a non-binding goal set by President Biden to have EVs make up half of new cars sold by 2030. This was largely a symbolic gesture, as the Biden administration’s goal did not include any actual mandates.
Reduce investment in national charging infrastructure: One of the Trump administration’s executive orders targeted several programs that came out of Congress’ bipartisan 2021 Infrastructure Investment and Jobs Act, which allocated a total of $7.5 billion to build out the US charging infrastructure. The Trump administration has suspended the disbursement of unspent funds from those programs, but many experts do not believe that the executive branch can unilaterally halt and rescind this Congressionally-approved spending. Stay tuned…
Attempt to end federal EV subsidies and incentives: Trump also aims to repeal the $7,500 tax credit on new EV purchases that was passed as part of the 2022 Inflation Reduction Act. This would require an act of Congress.
Roll back EPA rules setting emissions standards: Anticipated roll-backs by the Trump administration would reduce Biden administration rules that regulated vehicle emissions and pushed automakers to sell more low-emissions EVs and hybrid vehicles.
What these changes do – and don’t – actually mean
While several of Trump’s executive orders sounded like sweeping, immediate changes, the reality is that some of these changes will be slow, or may not actually happen.
When it comes to cutting subsidies and investments in infrastructure, legal experts believe the executive branch does not actually have the power to block spending that was approved by Congress. It’s widely understood that rescinding much of this federal spending would first require Congressional action.
And legislators may not find it politically advantageous to follow the Trump administration’s lead. The boom in EV manufacturing has been extremely beneficial for job growth, and federal investments in EV manufacturing have largely benefitted congressional districts represented by Republicans.
Nonetheless, there is no doubt that wavering federal support for EVs is a blow. There are likely to be significant impacts to the country’s ability to rapidly reduce vehicle emissions and pollution, even from a small slowdown in EV sales or charging buildout. These changes would also negatively impact businesses, particularly in states without strong local incentives, that are seeking to transition their fleets.
The EV transition is still going strong
In spite of all of these potential changes, the long-term transition to EVs is already well underway, and doesn’t show signs of a significant slowdown. Last year, global EV sales rocketed by 25%, while U.S. EV sales hit a record 1.3 million – and industry experts still predict that overall sales will continue to increase in 2025.
The market increasingly favors EVs
Many automotive industry experts expect that market forces alone will dictate the continued shift toward EVs in the long term – even without incentives.
The price gap between the average EV and gas-powered vehicle continues to shrink rapidly. As technology progresses, prices of the most expensive parts of an electric vehicle (especially batteries) are falling fast.
When the total cost of ownership (TCO) is taken into account over the life of a vehicle, EVs have an even more competitive cost. (If you’re curious to explore how the TCO of an electric fleet compares to that of a gas-powered fleet for your business, you can check out the Electrification Coalition’s popular DRVE tool.)
“Make no mistake about it, we’re committed to electrification.” —Randy Parker, chief executive of Hyundai Motor America
State and local incentives continue
In spite of potential federal changes, state and local financial incentives for fleet electrification are holding steady – especially in the Pacific Northwest. The region’s commitment to EV adoption was reinforced in November by Washington voters who affirmed their support of the Climate Commitment Act – including the many fleet programs it funds – by striking down ballot initiative I-2117, and by the Oregon leadership who reinstated the state’s Climate Protection Program.
Washington State incentives include grants for EV chargers, diesel emission reduction, and zero-emissions school buses, and tax credits and exemptions for businesses purchasing alternative fuel vehicles; Oregon incentives also include a number of electrification grants, rebates, and loans.
The Electrification Coalition provides an EV Funding Finder tool that helps eligible recipients sort through available federal funds for transportation electrification. It can also help users identify where technical assistance is available.
Stay in the loop with BBC
No matter what policy changes are in the works, the Breaking Barriers Collaborative is here to keep you informed and support you through the process.
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Get hands-on electrification support: If your organization or businesses wants to seriously explore decarbonizing your fleet, no matter where you are in your electrification journey, check out our Fleet Decarbonization Accelerator. In this cohort-based program, participants learn directly from specialists who know the ins and outs of electrification: utilities, government agencies, seasoned experts from the Electrification Coalition, and businesses who have successfully “greened” their fleets.
This proven program is endorsed by 95% of its graduates, from those with small fleets like the Seattle Aquarium to larger fleets like McKinstry and Skanska. More than 65 organizations in the Pacific Northwest have been through the program, representing over 25,000 vehicles.