Recent Federal Actions

On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (Public Law 117-169), which amends the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), now known as the Clean Vehicle Credit, and adds a new requirement for final assembly in North America that takes effect on August 16, 2022. Additional provisions will go into effect on January 1, 2023. Further guidance on these provisions is forthcoming. Find more information about the credit from the Internal Revenue Service.

See a list of vehicles with final assembly in North America based on data submitted to the National Highway Traffic Safety Administration (NHTSA) and FuelEconomy.gov.

The build location of a particular vehicle should be confirmed by referring to its Vehicle Identification Number (VIN) using NHTSA’s VIN decoder or an information label affixed to the vehicle.

The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) published the Final Rule on Corporate Average Fuel Economy (CAFE) Standards for Model Year (MY) 2024 – 2026 passenger cars and light-duty trucks in March 2022. The standards require an industry-wide average fleet fuel economy of approximately 49 miles per gallon in MY 2026, increasing fuel efficiency by 8% in MY 2024 and 2025 and 10% in MY 2026.

This action is the result of Executive Order 13990, issued January 2021, which directed NHTSA to review and reconsider fuel economy standards for passenger cars and light-duty trucks. For more information, refer to NHTSA's CAFE website.

The U.S. Environmental Protection Agency (EPA) published the Reconsideration of a Previous Withdrawal of a Waiver for California’s Advanced Clean Car Program Notice of Decision in March 2022, affirming California’s authority under the Clean Air Act to implement its own greenhouse gas (GHG) emission standards and zero emission vehicle (ZEV) sales mandate. States may continue to adopt and enforce California’s GHG standards. This action repeals The Safer Affordable Fuel-Efficient Vehicles Rule Part One: One National Program (SAFE-I), which was issued in September 2019 by EPA and the U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA).

This action is the result of Executive Order 13990, issued in January 2021, which directed the EPA and NHTSA to review and reconsider the SAFE-I Rule. For more information, refer to EPA’s Regulations for Emissions from Vehicles and Engines website.

The U.S. Environmental Protection Agency (EPA) issued the Control of Air Pollution from New Motor Vehicles: Heavy-Duty Engine and Vehicle Standards Proposed Rule in March 2022, which proposes new nitrogen oxides (NOx) and greenhouse gas (GHG) emissions standards for heavy-duty engines and vehicles for Model Year (MY) 2027 and later. EPA proposed two regulatory options for new NOx standards and requested comment on both. In addition, EPA proposed stricter GHG standards for the Heavy-Duty GHG Emissions Phase 2 program, which would affect certain subcategories of vocational and tractor vehicles, such as school buses, transit buses, commercial delivery trucks, and short-haul tractors. Stricter GHG standards would begin with MY 2027 vehicles.

This action is the result of Executive Order 14037, issued in August 2021, which directed EPA to consider setting new NOx emission standards and updating the existing GHG emissions standards for heavy-duty engines and vehicles. EPA must issue a final rule by December 2022. For more information, refer to EPA’s Regulations for Emissions from Vehicles and Engines website.

The U.S. Department of Energy (DOE) released the “America’s Strategy to Secure the Supply Chain for a Robust Clean Energy Transition,” identifying solutions to risks in the clean energy supply chain. For more information and to view the report, see DOE’s Securing America’s Clean Energy Supply Chain website.

This action is the result of Executive Order 14017, issued December 2021, which required DOE to conduct a risk assessment on clean energy manufacturing supply chains, including rare earth magnets and semiconductors used in electric vehicle batteries and hydrogen fuel cells and electrolyzers used in fuel cell electric vehicles.

The U.S. Environmental Protection Agency (EPA) issued the Revised 2023 and Later Model Year (MY) Light-Duty Vehicle Greenhouse Gas (GHG) Emissions Standards Final Rule in December 2021, which establishes new GHG emissions standards for passenger cars and light trucks from MY 2023 through MY 2026. This ruling is the result of Executive Order 13390, which required the EPA to establish ambitious fuel economy standards. For more information, refer to EPA’s Regulations for Emissions from Vehicles and Engines website.

Additionally, the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) published the Corporate Average Fuel Economy (CAFE) Preemption Final Rule in December 2021, which repealed The Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule Part One: One National Program. The repeal of SAFE I Rule allows states to set stricter automobile tailpipe emission standards for GHGs. For more information, refer to NHTSA's CAFE website.

Executive Order 14057, issued December 2021, directs the federal government to use its scale and procurement power to achieve ambitious goals, including 100% zero-emission vehicle (ZEV) acquisitions by 2035, including 100% light-duty ZEV acquisitions by 2027; net-zero emissions from federal procurement no later than 2050, including a Buy Clean policy to promote use of construction materials with lower embodied emissions; and net-zero emissions from overall federal operations by 2050, including a 65% emissions reduction by 2030. For more information, including The Federal Sustainability Plan: Catalyzing America’s Clean Energy Industries and Creating Jobs Through Federal Sustainability, visit the Office of the Federal Chief Sustainability Officer website.

On November 15, 2021, President Biden signed the Bipartisan Infrastructure Law, enacted as the Infrastructure and Investment Jobs Act (IIJA) (Public Law 117-58). The $1.2 trillion bill continues authorization for national surface transportation legislation and includes $550 billion in new infrastructure investments. See the Laws and Incentives database for new and updated laws and incentives relevant to alternative fuels, advanced vehicles, and corresponding fueling infrastructure.

Executive Order 14052, issued November 2021, outlines the Biden Administration’s implementation priorities and establishes an Infrastructure Implementation Task Force (Task Force) to coordinate the effective implementation of IIJA. The Executive Order lays out priorities to guide implementation across the federal government, including investing public dollars efficiently and equitably, increasing the competitiveness of the U.S. economy and bolstering domestic manufacturing and manufacturing supply chains, creating good-paying job opportunities, building resilient infrastructure that can withstand the impacts of climate change and that helps combat the climate crisis, and effectively coordinating with state, local, tribal, and territorial governments in implementing these critical investments. To coordinate effective implementation across the government and advance these priorities, the Executive Order also establishes the Task Force. The Task Force is co-chaired by the National Economic Council Director and the White House Infrastructure Implementation Coordinator. The Office of Management and Budget, Domestic Policy Council, and the Climate Policy Office in the White House will also sit on the Task Force along with various federal agencies.