2035 Electric Cars The Impact of Auto Manufacturers' Commitment on Energy Providers

How the Legislative Framework Supports the 2035 Electric Cars Commitment

Signed in 2021, the $1 trillion Bipartisan Infrastructure Deal was touted as a once-in-a-generation federal effort to shore up and modernize the country’s infrastructure and includes billions of dollars in funding for roads, bridges, passenger rail, drinking water, and high-speed internet.

The Bipartisan Infrastructure Law (BIL) also features funding to deploy public EV transit and functional EV charging stations across the country, including electric buses and other replacements for ICE vehicles.

$7.5 billion to provide EV purchase incentives and create a national network of EV charging stations.

To date, most EV charging has been at single-family homes and work sites. To facilitate the full transition to EVs, the act seeks to install public charging stations, as well as the networks to keep them running, along highways, in rural areas, and in dense urban areas with rows of multi-family dwellings.

The Bipartisan Infrastructure Law created the National Electric Vehicle Infrastructure Program (NEVI), a $5 billion programadministered by the Federal Highway Administration. This program aims to distribute BIL funding at the state level to support the development of a charging infrastructure.

As of Q1 2024, 33 states have received NEVI funding, and 16 states have begun deploying charging projects. NEVI also recently awarded $150 million in grants to repair or upgrade existing EV charging stations to create a more reliable infrastructure.

$5 billion for nonprofits, states, and local governments to adopt low-zero emission buses under the Clean School Bus Program.

This program will help protect millions of children and bus drivers from continual exposure to pollutionfrom aging ICE buses. So far, the Clean School Bus Program has awarded $2 billion in funding to support the purchase of 5,000 electric buses for 600 schools.

$65 billion for a clean, renewable energy grid.

The goal is to upgrade our aging power infrastructure. It includes funds for building miles of new, resilient transmission lines to expand access to renewable energy.

The measure also created a Grid Deployment Office, which will invest in the development of better electric transmission and distribution technologies and promote smart grids that offer greater energy resilience.

The Grid Deployment Office recently oversaw a historical investment of over $71 millionto develop the country’s hydroelectric infrastructure.

The 2022 Inflation Reduction Act also included provisions and savings for a variety of industries seeking to reduce carbon emissions. For example, it boosts EV adoption by offering financial incentives for EV purchases and charger installation.

Additional tax benefits to install energy-efficient appliances in homes, particularly for removing furnaces, stoves, or other equipment running on fossil fuels and replacing those with appliances that operate via electricity, will help to modernize homes across America with newer, more sustainable and energy-efficient appliances, reducing the strain on our electric grid and reducing household energy costs.

The 2035 Electric Cars Commitment from the Auto Industry

When people first began discussions on phasing out new ICE cars by 2035, the goal seemed aspirational at best. Now, the transition to a U.S. where all new cars and trucks sold are electric, or at least hybrid, appears to be feasible.

The transition to an electric-fueled future was further boosted by a 2035 EV commitment made by major automakers. All U.S. auto manufacturers have EVs in production or on the way, and several have announced their intentions to stop producing new vehicles that run on gas or diesel by 2035 – General Motors, Nissan, Volkswagen, and Ford are just a few of the automakers that have announced their commitment to an all-electric lineup.

While new-car demand still favors ICE autos and trucks, that preference is changing as consumers take note of ever-rising gas prices, greater EV model availability, and the increasing visibility and accessibility of charging stations.

Legislation at the state level is also helping to make electrification inevitable. California, which has its own emission standards, drove the change by banning the sale of ICE vehicles after 2035. The California Air Resources Board has established gradual milestones, beginning with a plan that 35% of new passenger vehicles and light-duty trucks sold in the state must be zero-emission versions by 2026. The target increases to 51% in 2028 and grows annually until it reaches the 100% 2035 electric cars commitment.

Other states, including New York, New Jersey, and Massachusetts, have followed California’s lead. As of 2023, a total of nine states had adopted legislation to follow in California’s footsteps and either ban or limit ICE vehicle sales.

How has the public reacted? In California, auto sales may reach the goal ahead of the 2026 model year, with recent sal