Electric Vehicle Technologies and Selected Policy Issues for the 119th Congress

Contents

• Introduction
• Vehicle Technologies
• EV Market Trends
• Electric Vehicle Charging Technologies
• Policy Landscape in the 119^th Congress
• Concluding Observations

Summary

Electric vehicles (EVs) remain a focus of transportation and energy policy in the United States. EVs—comprising hybrid-electric vehicles (HEVs), plug-in hybrid-electric vehicles (PHEVs), and battery-electric vehicles (BEVs)—are alternatives to conventional internal combustion engine (ICE) vehicles powered by petroleum-based fuels. EVs are part of a broader effort to reduce greenhouse gas (GHG) emissions, decrease reliance on petroleum-based fuels, and promote domestic manufacturing. Light-duty EV sales have grown steadily since 2010, reaching 3.2 million units sold in 2024—approximately 20% of all U.S. light-duty vehicle sales.

The deployment of PHEVs and BEVs, collectively referred to as plug-in electric vehicles, is closely linked to the availability of charging infrastructure. EV charging technologies are categorized into three charging levels, differentiated by the voltage of the electrical source: Level 1 (120 volts alternating current [AC]), Level 2 (240 volts AC), and direct current (DC) fast charging (Level 3). Different applications are available for residential, workplace, and public use. Public and private investment, including federal support through grant programs and tax incentives, has contributed to an expanding national network of EV charging stations. Continued expansion of access to charging infrastructure remains a key factor for future EV adoption.

Federal policies supporting EVs and vehicle electrification have been shaped by laws such as the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58) and the law commonly referred to as the Inflation Reduction Act (IRA; P.L. 117-169). These laws have created or expanded programs and other incentives to support EV adoption, charging infrastructure deployment, and vehicle and infrastructure production. Key programs and incentives include the National Electric Vehicle Infrastructure (NEVI) Formula Program, Charging and Fueling Infrastructure (CFI) Grants, and tax credits for purchases of new and used EVs, for installation of EV charging infrastructure, and for domestic production of EV components and critical minerals.

During the 119^th Congress, executive actions and legislative proposals have signaled a shift in policy priorities, introducing uncertainty regarding the federal role in vehicle electrification. Executive Order 14154 ("Unleashing American Energy," signed January 20, 2025) directed federal agencies to pause IIJA and IRA grant program disbursements pending program reviews. Standards for vehicle fuel economy and emissions are under review. Reports of staffing reductions across federal agencies—including at the Departments of Energy (DOE) and Transportation (DOT), the Environmental Protection Agency (EPA), and the Internal Revenue Service (IRS)—could pose challenges for administering programs and incentives that support vehicle electrification. In Congress, legislation regarding EV-related programs has been introduced, including proposals to limit or repeal those programs established or modified by the IIJA or IRA. On July 4, 2025, the FY2025 reconciliation act, commonly referred to as the One Big Beautiful Bill Act (OBBBA), was signed into law (P.L. 119-21). It includes provisions that limit or repeal several EV-related programs that were modified or established in the IRA.

These policy developments are set to influence the pace and trajectory of vehicle electrification in the United States. While the extent of federal support is uncertain, private investments and state and local actions may continue to shape EV adoption and infrastructure deployment.

Introduction

In the 119^th Congress, more than a dozen bills have been introduced that would impact federal policies and incentives related to transportation electrification.¹ In particular, these bills concern programs and incentives enacted or modified in the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58; signed into law November 15, 2021) and the law commonly referred to as the Inflation Reduction Act (IRA; P.L. 117-169; signed into law August 16, 2022). The FY2025 reconciliation act, commonly referred to as the One Big Beautiful Bill Act (OBBBA), signed into law July 4, 2025, as P.L. 119-21, includes provisions that limit or repeal several EV-related programs that were modified or established in the IRA.

Since the late 20^th century, interest has grown in the use of electric vehicles (EVs) and other vehicles as alternatives to petroleum-fueled internal combustion engine (ICE) vehicles predominantly to address environmental concerns about petroleum consumption and greenhouse gas (GHG) emissions in transportation.² Broadly, "electric vehicles" refers to three types of light-duty vehicles with electric motors and traction battery packs ("traction batteries"):³

• Hybrid-electric vehicles (HEVs). In an HEV, the internal combustion engine supplies primary power to the wheels. The electric motor and traction battery provide supplemental power to the wheels. The traction battery is charged by the engine and regenerative braking.⁴
• Plug-in hybrid-electric vehicles (PHEVs). Depending on the PHEV model, the internal combustion engine and/or the electric motor and traction battery supply primary power to the wheels. The traction battery is charged by an external source of electricity, as well as by the engine and regenerative braking.⁵
• Battery-electric vehicles (BEVs; also called all-electric or fully electric vehicles). In a BEV, power to the wheels is supplied entirely by the electric motor and traction battery. The traction battery is charged by an external source of electricity and by regenerative braking.⁶

PHEVs and BEVs are often collectively referred to as plug-in electric vehicles ("plug-in EVs") to distinguish these as a subset of EVs that can connect to an external power source.

In the United States, the transportation sector accounted for 28% of GHG emissions in 2022, the most of any sector.⁷ Light-duty vehicles contributed 57% of total transportation emissions. Sources that contributed to the remainder included medium- and heavy-duty trucks, aircraft, trains, and ships and boats.⁸

EVs may help decrease transportation sector emissions of GHGs, particulate matter, and other air pollutants by reducing the use of petroleum-based fuels. BEVs and PHEVs (during electric operation) emit zero tailpipe emissions. Instead, emissions are attributable to the electricity generation associated with vehicle charging.⁹ Consequently, a plug-in EV's per-mile emissions depend on the sources used to generate electricity. Electricity sources vary hourly, seasonally, and by region.¹⁰ In the long run, a plug-in EV's per-mile emissions can also be expected to change as generation sources change.¹¹

This report provides a primer on the U.S. electric vehicle market, starting with a discussion of the three types of light-duty electric vehicles and related technology. A discussion of federal policies affecting EV adoption follows.

Vehicle Technologies

The primary characteristic that distinguishes an ICE vehicle from an EV is the source of propulsion. In an ICE vehicle, propulsion comes entirely from an internal combustion engine. In an EV, propulsion is supplied entirely by, or in conjunction with, an electric motor and a traction battery comprising numerous battery cells.¹² The sources of propulsion for ICE vehicles and the three types of EVs are summarized in Figure 1.

Figure 1. Differences in Propulsion Sources

Source: CRS graphic with information from Alternative Fuels Data Center (AFDC), "How Do Gasoline Cars Work?," accessed August 26, 2025, https://afdc.energy.gov/vehicles/how-do-gasoline-cars-work; AFDC, "Hybrid Electric Vehicles," accessed August 26, 2025, https://afdc.energy.gov/vehicles/electric-basics-hev; AFDC, "Plug-In Hybrid Electric Vehicles," accessed August 26, 2025, https://afdc.energy.gov/vehicles/electric-basics-phev; AFDC, "All-Electric Vehicles," accessed August 26, 2025, https://afdc.energy.gov/vehicles/electric-basics-ev.

Light-duty ICE vehicles (Figure 2) rely primarily on petroleum-based fuel (typically gasoline or diesel), which is injected into a small chamber in the internal combustion engine where a spark ignites the fuel to produce the power that propels the vehicle.¹³ Between the engine, the transmission, and various other components, the ICE vehicle powertrain can comprise more than 100 moving parts.¹⁴ These parts require regular maintenance to ensure the vehicle is in good working order. A typical ICE vehicle has a driving range of approximately 400 miles and a combined fuel economy rating of 22 miles per gallon (mpg).¹⁵

Figure 2. Internal Combustion Engine (ICE) Vehicle

Source: U.S. Department of Energy, Alternative Fuels Data Center, "How Do Gasoline Cars Work?," accessed August 26, 2025, https://afdc.energy.gov/vehicles/how-do-gasoline-cars-work.

HEVs, PHEVs, and BEVs all feature regenerative braking, an energy conservation design that captures otherwise-wasted friction energy from deceleration to charge the traction battery. Certain hybrid models feature an additional energy conservation design. Following an idle stop, these vehicles can delay reignition of the internal combustion engine and use the electric motor and traction battery to resume motion.¹⁶

HEVs (Figure 3) bear the most similarity to ICE vehicles. HEVs rely primarily on an internal combustion engine to propel the vehicle.¹⁷ Once running, however, an HEV's electric motor and traction battery provide supplemental propulsion power. HEVs cannot be charged via external electricity; rather, the traction battery is charged by the engine while the vehicle is in use or through regenerative braking. These features contribute to a generally higher average fuel economy rating compared to ICE vehicles.

Figure 3. Hybrid-Electric Vehicle (HEV)

Source: U.S. Department of Energy, Alternative Fuels Data Center, "How Do Hybrid Electric Cars Work?," accessed August 26, 2025, https://afdc.energy.gov/vehicles/how-do-hybrid-electric-cars-work.

PHEVs (Figure 4) also feature a hybrid design that includes an internal combustion engine and an electric motor paired with a traction battery.¹⁸ PHEV traction batteries typically have a greater electricity storage capacity than HEV traction batteries, and they can be charged via an external source of electricity. The greater battery capacity makes it possible for PHEVs to operate relying on either the electric motor or the engine, or on a combination of the two.

In PHEV models with a parallel configuration, the internal combustion engine and the electric motor can each provide direct propulsion power to the vehicle. In PHEV models with a series configuration, only the electric motor provides direct propulsion power to the vehicle, while the engine generates electricity for the electric motor. Some models are able to switch between parallel and series configurations.

PHEVs usually have higher average fuel economy ratings than HEVs or ICE vehicles. A typical PHEV has a combined fuel economy of 47 miles per gallon of gasoline equivalent (mpge) and a driving range of 430 miles.¹⁹

Figure 4. Plug-In Hybrid-Electric Vehicle (PHEV)

Source: U.S. Department of Energy, Alternative Fuels Data Center, "How Do Plug-In Hybrid Electric Cars Work?," accessed August 26, 2025, https://afdc.energy.gov/vehicles/how-do-plug-in-hybrid-electric-cars-work.

BEVs (Figure 5) operate entirely on electricity stored in a large traction battery, which must be charged via an external source of electricity.²⁰ The electric powertrain of a BEV features fewer moving and wearing parts and more electronic components compared to an ICE vehicle.²¹ Because BEVs have different components than ICE vehicles, BEV manufacturing relies on distinct supply chains.

BEVs tend to have the highest average fuel economy among the vehicle types discussed in this report. A typical BEV has a combined fuel economy of 87 mpge and a driving range of 283 miles.²²

Figure 5. Battery-Electric Vehicle (BEV)

Source: U.S. Department of Energy, Alternative Fuels Data Center, "How Do All-Electric Cars Work?," accessed August 26, 2025, https://afdc.energy.gov/vehicles/how-do-all-electric-cars-work.

EV Market Trends

Model year 2025 offerings in the U.S. vehicle market include 274 light-duty EV models—108 BEV models, 26 PHEV models, and 140 HEV models—from more than 30 automakers.²³ Overall EV sales in the United States (Figure 6) have increased from approximately 274,900 in 2010 to 3,167,904 in 2024; in 2024, EV sales made up 20% of all light-duty vehicle sales.²⁴ A similar trend was observed for the subset of plug-in EVs: Sales of PHEVs and BEVs (Figure 7) have increased from approximately 300 in 2010 to 1,561,511 in 2024, making up 9.9% of all 2024 light-duty vehicle sales. In 2023, BEVs, PHEVs, and HEVs accounted for 4.3% of all vehicle registrations.²⁵

Electric Vehicle Charging Technologies

PHEVs and BEVs have large traction batteries that must be charged by connecting to an external source of electricity via a charging port.²⁶ Each charging port can charge one EV at a time, though it may have multiple connectors for vehicle compatibility. Charging ports may be portable (e.g., cordsets) or stationary (e.g., mounted on a wall or pedestal). Plug-in EVs may be charged at home or at nonresidential (e.g., workplace, public) charging stations. In the United States, charging infrastructure is categorized into three charging levels, differentiated by the voltage of the electrical supply. Figure 8 summarizes key characteristics of the different charging levels.

Figure 8. Plug-In Electric Vehicle Charging Equipment

Source: CRS graphic with information from Alternative Fuels Data Center (AFDC), "Electric Vehicle Charging Stations," accessed August 26, 2025, https://afdc.energy.gov/fuels/electricity-stations; U.S. Department of Transportation, Charging Forward: A Toolkit for Planning and Funding Rural Electric Mobility Infrastructure, February 2022, pp. 8, 45, https://www.transportation.gov/sites/dot.gov/files/2022-01/Charging-Forward_A-Toolkit-for-Planning-and-Funding-Rural-Electric-Mobility-Infrastructure_Feb2022.pdf; and AFDC, "Procurement and Installation for Electric Vehicle Charging Infrastructure," accessed August 26, 2025, https://afdc.energy.gov/fuels/electricity-infrastructure-development. Notes: The information in this figure represents typical characteristics of charging infrastructure for plug-in EVs (i.e., plug-in hybrid-electric and battery-electric vehicles) in the United States. The J1772 CCS (Combined Charging System) features an adapter that adds two bottom pins for DC fast charging. NACS (North American Charging Standard) refers to the formerly proprietary design exclusive to Tesla's Supercharger network. CHAdeMO is used by some Japanese automakers. Typical equipment costs per charging port for each charging level can vary based on power output, mounting options, and smart capabilities, among other factors. Equipment costs do not reflect potential savings from incentives, tax credits, or rebates from governments or other entities. Installation costs are not included and can vary based on labor rates, physical distance to electricity source, electrical upgrades, permit costs, and number of charging ports installed.

Level 1 charging infrastructure uses 120 volts alternating current (AC) electricity, the voltage supplied by standard electrical outlets in the United States.²⁷ Most plug-in EVs come with a Level 1 cordset featuring a standard plug on one end (for use with a 120-volt outlet) and a charging connector on the other end to plug into the vehicle.²⁸ Due to its low voltage, Level 1 charging is relatively slow and may take many hours to achieve a full charge. Level 1 charging requires no additional installation if the selected outlet is served by a dedicated circuit.²⁹

Level 2 charging infrastructure uses 208 volts AC or 240 volts AC electricity, the voltage supplied by high-voltage outlets typically used by electric ranges and other home appliances.³⁰ Plug-in EV owners may choose to upgrade to Level 2 portable or mounted charging equipment, which offers faster charging rates compared to Level 1 charging. Level 2 charging infrastructure is commonly used in nonresidential (e.g., workplace and public) applications.

Direct current (DC) fast, or Level 3, charging refers to any charging infrastructure that directly charges an EV's traction battery with DC electricity.³¹ DC fast charging infrastructure converts electricity from the grid—typically three-phase 480 volts AC electricity—to DC electricity, which facilitates electrical power output in excess of 50 kilowatts (kW).³² Because of its high voltage, DC fast charging infrastructure is available only for nonresidential (e.g., workplace and public) applications.

Plug-in EV ownership, in particular BEV ownership, relies on access to public and private charging infrastructure in places where vehicles are registered and where they are operated. Some charging stations have been built without federal funds. Federal investment has promoted the deployment of charging infrastructure to areas that lacked prior investment, and it has promoted certain standards for those charging stations. The availability of charging infrastructure has increased, though challenges remain to expanding the national network of EV charging stations. For more information about EV charging infrastructure, see CRS Report R47675, Federal Policies to Expand Electric Vehicle Charging Infrastructure, by Melissa N. Diaz and Corrie E. Clark.

Policy Landscape in the 119^th Congress

Federal EV policies have historically been shaped by multiple goals, including reducing reliance on foreign sources of petroleum-based fuels, promoting domestic manufacturing, addressing environmental concerns, and maintaining competitiveness with other countries. A number of provisions established by the IIJA and the IRA support domestic adoption of EVs and other alternative fuel vehicles, manufacturing of advanced vehicle technologies (including EVs), and expansion of EV charging and other alternative fuel infrastructure.³³ In the 119^th Congress, some Members support these provisions and others seek to limit or repeal them. The effects of the OBBBA on certain EV-related programs are noted below.

As for the Administration's priorities, Executive Order 14154 established a policy to "eliminate the 'electric vehicle (EV) mandate'" and ordered an immediate 90-day pause of IIJA and IRA grant program disbursements.³⁴ Tariffs announced by the Administration in early 2025 will likely affect prices and profit margins for both EVs and ICE vehicles, though implications for EV adoption remain uncertain.³⁵

The Administration's priorities raise questions about the extent of federal support for vehicle electrification. Furthermore, reports of staff reductions across federal agencies—including at the Departments of Energy (DOE) and Transportation (DOT), the Internal Revenue Service, and the Environmental Protection Agency (EPA)—could pose additional challenges for administering these programs in the future, depending on how such reductions occur.³⁶

A range of federal programs have provided funding, technical assistance, and incentives for EV-related activities such as research and development, manufacturing, and infrastructure deployment. Some programs have been specifically affected by recent executive or legislative actions—as noted below—and some have been generally affected due to the pause on IIJA and IRA disbursements and other actions. Key programs include the following:

• National Electric Vehicle Infrastructure (NEVI) Formula Program.³⁷ The IIJA established NEVI, a $5 billion formula grant program, to support the deployment of publicly accessible EV charging infrastructure along designated alternative fuel corridors. In addition to the pause on disbursements, DOT rescinded program guidance. Several states filed a lawsuit challenging these actions.³⁸ On August 11, 2025, DOT issued revised program guidance.³⁹
• Charging and Fueling Infrastructure (CFI) Grants.⁴⁰ The IIJA established CFI, a $2.5 billion competitive grant program, to support the deployment of publicly accessible infrastructure for alternative fuels (electricity, hydrogen, propane, and natural gas).
• Clean School Bus Program.⁴¹ The IIJA appropriated $5 billion to provide competitive grants and rebates for the replacement of existing school buses with alternative fuel (natural gas, propane) or zero-emissions (electric, hydrogen fuel cell electric) buses and related infrastructure.
• Clean Heavy-Duty Vehicles.⁴² The IRA appropriated $1 billion to EPA to implement a grant and rebate program for zero-emissions heavy-duty vehicles. The OBBBA rescinded unobligated balances.⁴³
• Domestic Manufacturing Conversion Grants.⁴⁴ The IRA appropriated $2 billion to provide grants to establish manufacturing facilities for HEVs, PHEVs, BEVs, and hydrogen fuel cell electric vehicles.
• United States Postal Service (USPS) Clean Fleets.⁴⁵ The IRA appropriated $3 billion for USPS to acquire zero-emissions delivery vehicles (e.g., plug-in EVs, fuel cell electric vehicles) and install requisite infrastructure at USPS facilities.

Other incentives include tax credits established or modified by the IRA to promote plug-in EV adoption, deployment of EV charging and alternative fuel infrastructure, and production of technologies, including EV batteries, and production of critical minerals. The OBBBA modified the following tax credits:

• Clean Vehicle Credit (26 U.S.C. §30D).⁴⁶ This credit provides taxpayers up to $7,500 for purchases of qualifying plug-in EVs and fuel cell electric vehicles. This credit will no longer apply after September 30, 2025.
• Credit for Previously Owned Clean Vehicles (26 U.S.C. §25E).⁴⁷ This credit provides taxpayers up to $4,000 for purchases of certain used plug-in EVs or used fuel cell electric vehicles. This credit will no longer apply after September 30, 2025.
• Credit for Qualified Commercial Clean Vehicles (26 U.S.C. §45W).⁴⁸ This credit for purchases of qualifying commercial plug-in EVs or fuel cell electric vehicles provides up to $7,500 for vehicles with a gross vehicle weight rating less than 14,000 pounds, or $40,000 otherwise (e.g., for school buses, heavy-duty municipal vehicles). This credit will no longer apply after September 30, 2025.
• Alternative Fuel Vehicle Refueling Property Credit (26 U.S.C. §30C).⁴⁹ This credit provides up to 30% of installation costs for qualifying alternative fuel refueling property (e.g., EV charging) with a maximum amount of $1,000 for residential property and $100,000 for business property. This credit will no longer apply after June 30, 2026.⁵⁰
• Advanced Manufacturing Production Credit (26 U.S.C. §45X).⁵¹ This credit is for certain goods produced in the United States, including battery components and critical minerals, which may be used to produce EV traction batteries. The OBBBA modified the phase-out of this credit and introduced restrictions.⁵²
• Qualifying Advanced Energy Project Credit (26 U.S.C. §48C).⁵³ The IRA provided $10 billion of new funding for qualifying projects that reequip, expand, or establish industrial or manufacturing facilities, including those for producing or recycling plug-in EVs, fuel cell electric vehicles, and associated infrastructure, or for processing, refining, or recycling critical minerals. The OBBBA introduced restrictions.⁵⁴

Regulatory actions have also influenced EV market dynamics. EPA and DOT's National Highway Traffic Safety Administration (NHTSA) are responsible for promulgating fuel economy standards and GHG emissions standards for vehicles.⁵⁵ These standards have influenced the fleet of vehicles available to consumers:⁵⁶

• Corporate Average Fuel Economy (CAFE) standards.⁵⁷ NHTSA regulates the average fuel economy for each model year of new vehicles. In a January 2025 memorandum, Transportation Secretary Sean Duffy directed NHTSA to review existing CAFE standards for potential replacement or rescission.⁵⁸
• GHG emissions standards for motor vehicles.⁵⁹ EPA regulates the average emissions for each model year of new vehicles. In a March 2025 press release, EPA Administrator Lee Zeldin announced plans to review vehicle emissions standards for potential modification or elimination, including a regulation for light- and medium-duty vehicles promulgated in March 2024.⁶⁰

Concluding Observations

The evolving landscape of the 119^th Congress introduces opportunities and uncertainties for the EV market. The pause and potential repeal of IIJA and IRA programs would reduce federal investment in EV charging infrastructure, vehicle incentives, and fleet electrification. This may contribute to a slower overall pace of market adoption, hesitant private-sector planning, and disparities in charging availability across regions and states. Alternatively, private-sector investments may increase, and industry leaders may strengthen their commitment to vehicle electrification for business reasons. The near-term trajectory of vehicle electrification efforts may depend on ongoing legislative developments and the outcomes of program and regulatory reviews.

Footnotes