"Unleashing American Energy": Electric Vehicle (“EV”) Infrastructure Impacts
Background/Introduction
On January 20, 2025, President Trump signed the “Unleashing American Energy” Executive Order, establishing the new administration’s national energy policy. The Order includes directives to promote domestic exploration and production of oil and gas, including on federal lands. The Order also abolishes the White House Office on Clean Energy Innovation and Implementation that former President Biden established.
In addition, the Order calls for all relevant agencies to review their regulations for compliance with the new administration’s energy policy, as well as the suspension of any regulations which have not yet been implemented. The Order ties the regulatory changes issued in conjunction with the “Regulatory Freeze Pending Review” Order, also issued on January 20, which suspends the development of new regulations and prevents publication of any new regulations, and postpones regulations which have been published but not implemented, until they are reviewed by a White House appointee for compliance with the new energy policy.
Impact on EV Charging Station Grants
The Order also targets EVs. Section 2(e) of the Order eliminates the “electric vehicle mandate,” referring to former President Biden's 2021 Executive Order that called for half of new vehicles sold in the U.S. to be electric by 2030, in order to “promote true consumer choice” by “ensuring a level playing field for consumer choice in vehicles” and “considering the elimination of unfair subsidies ... that favor EVs over other technologies.” Likely among those subsidies are the tax credits for new EVs purchased in 2023 or later, which are currently eligible for the Clean Vehicle Credit of up to $7,500 for vehicles with a gross vehicle weight rating (GVWR) under 14,000 pounds, and up to $40,000 for vehicles with a GVWR over 14,000 pounds. This Order may discourage future production and sales of electric vehicles.
Section 7(a) directs agencies to pause "disbursement of funds appropriated through the Inflation Reduction Act (IRA) of 2022 (Public Law 117-169) and the Infrastructure Investment and Jobs Act (IIJA) (Public Law 117-58), including but not limited to funds for electric vehicle charging stations made available through the National Electric Vehicle Infrastructure Formula Program (NEVI) and the Charging and Fueling Infrastructure Discretionary Grant Program (CFIDGP).” The Order directs agencies to immediately suspend funding any grants under the NEVI and the CFIDGP, which will immediately impact EV infrastructure. Without that funding, it may become prohibitive for manufacturers of EV charging stations to continue manufacturing and installing them, as the credits were instituted to incentivize production to reach the previous administration’s goal of 500,000 EV chargers by 2030. This could create a downstream effect where fleet operators and automotive dealers are less interested in buying EVs because they are not practical without a sufficient network of charging stations.
Although the Biden administration reported last week that 84% of the allocated IRA clean energy grant was already “obligated,” EV infrastructure developers and producers remain uncertain due to frozen financial support to further develop and expand the nation’s EV charging network.
However, the Executive Order only affects grants, and not tax credits. The new clean energy tax credits established under IRC sections 30C, 45Z, and 48 are not affected. Similarly, any transferable tax credits established under IRC Section 6418 are not affected.
Conclusion
President Trump’s “Unleashing American Energy” Executive Order signals a break from the prior administration’s policy, suspending or eliminating incentives for clean energy and electric vehicles. The Order also calls for all agencies to review their existing regulations for compliance with the new energy policy, in conjunction with the “Regulatory Freeze Pending Review” order, which suspends development of new regulations. The Order also calls for promotion of further developments of energy exploration and production domestically, including on federal lands.
The most immediate impact on EV infrastructure development and production derives from the Order’s declaration to eliminate the “electric vehicle mandate” and to suspend disbursements of any funds appropriated through the IRA or IIJA for EV charging stations.
Affected businesses are advised to stay informed about further policy developments and legislation. The details in those developments will be crucial to understanding how the new energy policy will be implemented and how producers in the relevant industries will be affected.