Biden Wants All Light Vehicles on Federal Fleets to Be EVs by 2027

President Joseph Biden based his campaign on electrification and clean sustainable energy. More than a year after he won the election, he is working to keep the promises he made. He unveiled a plan to build a network of half a million charging stations shortly after assuming office, and just a few weeks later, he signed a $2 trillion infrastructure bill that would provide funding for this electric vehicle (“EV”) charging network into law. On Dec. 8, 2021, the White House announced that it intends for all new light-duty vehicles bought for the federal fleet to be electric by 2027 and all new federal fleet purchases to be electric by 2035.

This expands upon Biden’s previously stated goal of electrifying the entire federal fleet. Early this year, he announced that he would move to follow through on several of the promises he made during his campaign, including replacing the government fleet of around 500,000 with electric cars over time. It would be the largest ever mobilization of public investment in infrastructure, research and development (R&D), and procurement since the Second World War, he said at the time, creating a million new jobs in the auto sector and expediting the move towards clean energy. With the economy recovering from the effects of the coronavirus pandemic, plenty of people would appreciate job opportunities.

During the recent announcement, the White House also talked about hopes of making 100% of automobile purchases by the federal government electric by 2030 and completely eliminating emissions from all federal procurement by mid-century. Climate change has emerged as a major threat amid extreme weather, including heat waves and blistering colds. With transportation accounting for a significant portion (30%) of global greenhouse gas emissions, replacing conventional fossil fuel cars with zero-emission electric cars is a viable way of cutting down carbon emissions and reducing the rate of global warming.

Biden made electrification a core issue in his campaign, and he has stayed true to his promises. On top of the massive infrastructure bill that will invest a whopping $5 billion in building a network of EV charging stations across the country, electrifying the entire federal fleet will significantly increase the rate of EV adoption in the United States and cut carbon emissions by a wide margin. Studies have found that electrifying the fleet is feasible, with an Electrification Coalition and Atlas Public Policy report stating that the U.S. could replace 97% of light-duty federal vehicles and buses with electric versions by 2030, excluding USPS mail delivery vehicles.

As federal fleets are electrified, it will become significantly easier for EV makers such as Nikola Corporation (NASDAQ: NKLA) to make bigger sales since the public will have become acclimatized to electrified vehicles.

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