CALSTART Media Contact: Sasha Tenenbaum, stenenbaum@calstart.org, 917-887-0146 

Today, Congress passed the final version of its tax-and-spending bill (H.R. 1) sending the legislation to the President’s desk for signature, and cementing provisions that will disrupt investment, sow market instability, and stall American leadership in a rapidly growing clean transportation sector.   

CALSTART President and CEO, John Boesel issued the following statement: 

“In a profoundly misguided move, Congress has voted to undermine American jobs, weaken our global competitiveness and stall the growth of the clean transportation sector by clawing back vital clean transportation tax credits in their budget package.

“This is a consequential reversal that eliminates the long-term policy stability companies rely on to make bold investments in U.S. manufacturing and innovation. At the same time, this legislation maintains subsidies for the oil and gas industry, which will lead to more pollution and costly climate disasters. 

“In the past two and a half years alone, companies have invested more than $125 billion in U.S. clean transportation manufacturing—investments made in good faith, based on the promise of stable federal policy through 2032 under the Inflation Reduction Act.  However, H.R. 1 now breaks that promise, pulling the rug out from under thousands of businesses and threatening the hundreds of thousands of jobs of the Americans they employ. It is no exaggeration to say this giant policy bill is a giant jobs-killer.  

“While global competitors continue to double down on advanced vehicle manufacturing and growing their supply chains, the U.S. now risks falling further behind – putting our economy, our workforce, and our climate at an unacceptable disadvantage. In short, this vote injects massive uncertainty into a market that thrives on long-term predictability – the kind of certainty that drives private capital, spurs factory expansion, and secures good-paying jobs.

“Despite this setback, the zero-emission transportation industry will keep moving forward, but not at the speed and scale needed for the clean transportation sector to remain globally competitive. And it certainly sets back the kind of strong, reliable federal partnership that fosters sector growth.

“To fill this gaping void left by the federal government, it will be incumbent on states to keep their hard-won momentum on clean transportation going strong and steady. We look forward to partnering with states to advance our shared goals.   

“CALSTART will continue working alongside our partners and lawmakers to advance forward-looking policy that reduces pollution, creates high-quality jobs, and strengthens America’s global competitiveness. Shortsighted politics will not stop our commitment to building a cleaner, more prosperous transportation future.”

BACKGROUND:
According to the EV Jobs Hub, there are nearly 550 manufacturing facilities in the United States supporting the EV industry, which employ at least 228,000 workers and have brought more than $207 billion in investment into the U.S. economy. Repealing the IRA undermines the business case for many of these projects and directly imperil 130,000 American auto manufacturing jobs by 2030, according to independent analysis by the International Council on Clean Transportation. This latter resource explores the 15 states with the most American jobs at risk. 

About CALSTART
A mission-driven industry organization focused on transportation decarbonization and clean air for all, CALSTART has offices in New York, Michigan, Colorado, California, Florida, and Europe. CALSTART is uniquely positioned to build the national clean transportation industry by working closely with its more than 240 member companies and building on the lessons learned from the major programs it manages for the State of California. CALSTART manages more than $1 billion in vehicle incentive and technical assistance programs in the United States and is leading a global effort to build the zero-emission commercial vehicle market.