This past year represents a real turning point in the transition to electric vehicles, demonstrated by new major incentives and regulatory activities at both federal and state government levels and several notable accomplishments in the private sector. First, the U.S. government approved EV Infrastructure Deployment Plans for all 50 states, the District of Columbia and Puerto Rico with an estimated $4.155 billion in funding going to states in the next five years to build out EV infrastructure. Second, the Inflation Reduction Act revised and expanded critical federal EV tax credits. Many states also took big steps in promoting EVs by banning the sale of vehicles with gasoline-powered internal combustion engines (“ICE”) by 2035 and passing other important legislation. Lastly, the EV manufacturers also made strides with the announcement of a host of new models and record breaking sales years. This all contributed to making 2022 the best year yet for EVs. Let's see if 2023 pushes the needle even further.

Government Policy News  

Federal Government

  • National Blueprint for Transportation Decarbonization
    • Outlines federal strategies to decarbonize transportation by eliminating all GHG emissions from the sector, including emissions from light-duty vehicles, medium- and heavy-duty vehicles, offroad vehicles, rail, maritime, aviation, and pipelines.
  • Inflation Reduction Act
    • Expanded EV tax credits.
    • Critical Minerals Requirement for EV batteries.
    • Additional $3 billion to support access to EV charging for economically disadvantaged communities.
  • EPA proposed RFS rulemaking to allow vehicle original equipment manufacturers to generate eRINs for light-duty electric vehicles they sell by establishing contracts with parties producing electricity from qualifying biogas.
  • U.S. Post Office plans to deploy over 66,000 EVs by 2028.

States ban sales of ICE vehicles by 2035

  • California, Massachusetts, New York, Washington, and Oregon all banned the sale of new vehicles with gasoline-powered internal combustion engines beginning in 2035.

Massachusetts

  • Act Driving Clean Energy and Offshore Wind
    • Bans sale of ICE vehicles by a dealership after January 1, 2035.
    • Increased ZEV rebate from $2,500 to $3,500-$5,000 for passenger and light duty trucks.
    • Requires MBTA to purchase/lease all zero-emission passenger buses no later than December 31, 2030;
      • Requires the entire MBTA bus fleet to be zero emissions by December 31, 2040.
    • Requires MassDOT to install EV chargers at all Turnpike plazas, five commuter rail stations, five subway stations, and one ferry terminal.

New York

California

  • Ban of ICE vehicles by 2035 triggered conversations in 16 other states that traditionally followed California's vehicle air emission standards on whether to do the same.
  • National Electric Cehicle Infrastructure Plan
    • $56,789,406 actual FY 2022
    • $81,720,595 estimated FY 2023

Industry News

EV sales exploded in the US in 2022 representing 5.8% of all vehicles sold in the US in 2022. This is an increase from 3.2% in 2021. In response to ever-increasing demand and federal regulatory activities, EV manufacturers announced large investments in new EV facilities throughout the US, including in Texas, Tennessee, and Michigan. Lastly, major corporations continue to announce plans to transition their vehicle fleets to EVs.

Tesla

  • 1.31 million EVs delivered worldwide.
  • 65% of EVs sold in U.S.
  • Applied for approval of $700 million expansion of Texas Gigafactory.

Ford

  • 61,575 EVs sold in the U.S. in 2022, representing 126% annual sales growth.
  • 6% of EV's sold in the U.S.
  • Broke ground on $5.6 billion EV truck and battery facility in Tennessee.

GM

  • 39,096 EVs sold in the U.S.
  • Announced $7 billion spend to build battery plant in Michigan and overhaul an existing factory outside Detroit to begin producing electric pickup trucks by 2024.
  • Announced plans to build more than 5,200 charging stalls across the country through a “Community Charging” initiative.

Mercedes-Benz

  • 117,800 EVs sold worldwide.
  • Announced plans to spend $1.07 billion to build 400 EV charging plazas by 2027 that prominently feature the Mercedes-Benz brand, representing nearly 2,500 charging plugs. Mercedes also announced that the cost of the effort will be split with MN8 Energy, a solar and storage developer created by Goldman Sachs according to E&Ee News.

Volkswagen

  • 572,100 EVs sold worldwide in 2022 representing a 26% increase over 2021.
  • 44,200 EVs sold in U.S.
  • Volkswagen and Siemens announced a $450 million investment in its “Electrify America” project, once a punishment for VW, to expand EV charging infrastructure according to E&E News.

Rivian

  • 24,337 EVs produced and 20,332 delivered in 2022.
  • Over 1,000 vans delivering for Amazon.

Domino's Pizza

  • 338 EVs on the road in 2022 with plans for 885 EVs by the end of 2023.