- Donald Trump's Day 1 executive order, "unleashing American energy" led to the Federal Highway Administration suspending funding for the National Electric Vehicle Infrastructure program.
- The suspension halts $5 billion in NEVI program obligations.
- New Department of Transportation's order criticizes the calculation of "social cost of carbon" and requires agencies to only pursue initiatives where benefits outweigh costs.
As part of his Day 1 executive order, “Unleashing American Energy,” President Donald Trump paused federal funding for the construction and sustaining of electrical vehicle charging stations, and Thursday afternoon, the rubber met the road.
The order required all agency heads to submit a report on which programs, policies or processes need to be suspended, revised or rescinded, by April 20.
Responding to the order, the Federal Highway Administration published a public letter to the Department of Transportation, suspending funding to the National Electric Vehicle Infrastructure, or NEVI, program.
NEVI was announced by then President Joe Biden during his first year in office, and while he originally asked for $174 billion for the program, Congress gave him $7.5 billion, per NPR.
At an electric vehicle plant in May 2021, Biden explained why he thought the funds were necessary. “The future of the auto industry is electric. There’s no turning back,” he said.
The Department of Transportation is changing tack
In addition to rescinding the NEVI Formula Program Guidance, the Federal Highway Administration “is also immediately suspending the approval of all state electric vehicle infrastructure deployment plans for all fiscal years,” the letter said.
This action is effective immediately and prohibits NEVI from making new deals or obligations until the the highway administraiton submits plans to update the program and the plans are approved.
The letter also explained how suspending funds to NEVI is directed to realign the program to fit with current Department of Transportation policies and priorities, “including those set forth in DOT Order 2100.7, titled ‘Ensuring Reliance Upon Sound Economic Analysis in Department of Transportation Policies, Programs, and Activities.’”
New DOT order critiques how ‘social cost of carbon’ is calculated
The Environmental Protection Agency, defines the social cost of carbon as “a measure, in dollars, of the long-term damage done by a ton of carbon dioxide emissions in a given year.”
DOT Order 2100.7, which the highway administration references in its letter rescinding NEVI funds, requires agencies within the Department of Transportation to only engage in policy making, grant making and rule making where benefits are estimated to outweigh the costs.
The order continues, “The calculation of the ‘social cost of carbon’ is marked by logical deficiencies, a poor basis in empirical science, politicization, and the absence of a foundation in legislation.”
The Department of Transportation added that the administrator of the Environmental Protection Agency “has been ordered by the president to issue guidance to address these harmful and detrimental inadequacies.”
Until they have been addressed, DOT will follow earlier guidance issued in 2003.