How U.S. Presidents Shaped Today’s World of Transportation
By Edward A. Sanchez – Feb. 15, 2021
On this Presidents’ Day 2021, The Watt Car is going to look back over some past presidential administrations, and their influence on transportation policy and law, and how those orders, policy decisions or legislation is still influencing and guiding the future trajectory of transportation.
Although most transportation law and policy was formalized in the 1960s and ’70s with the formation of the Department of Transportation and Environmental Protection Agency, the idea of an organization making recommendations for automotive safety goes back to the National Safety Council formed in 1913. Originally formed by the Association of Iron and Steel Electrical Engineers, the organization expanded its scope in 1914 to cover transportation safety. The NSC was recognized by President Dwight Eisenhower and the U.S. Congress in 1953 for its contributions to “...arouse and maintain the interest of the people of the United States... in safety and in accident prevention, and to encourage the adoption and institution of safety methods by all persons, corporations, and other organizations." Turned on yet?
Eisenhower and the Interstate Highway System
Speaking of Eisenhower, the 34th president had arguably the biggest influence on the modern American transportation infrastructure and network than any other single president or administration, possibly brought about by Eisenhower’s involvement in his younger years in the Army’s Transcontinental Motor Convoy in 1919, as well as his first-hand observation of the efficiency of the German Autobahn system during his service in World War II. The National Interstate and Defense Highways Act was signed into law on June 29, 1956, authorizing the expenditure of $25 billion ($240 billion in today’s money) for the construction of 41,000 miles of interstate highway over the course of 10 years.
America’s interstate system didn’t happen by accident. (Image by RJA1988 from Pixabay)
With the formation of the modern interstate highway system underway, the need for a more formalized framework and approach to transportation was deemed necessary. It was under the administration of Lyndon Johnson that the cabinet-level Department of Transportation was established in 1967. The Department includes 13 “Administrations” covering various sub-categories of transportation, including the Federal Aviation Administration, the National Highway Traffic Safety Administration, and Federal Motor Carrier Safety Administration, among others.
Nixon and the EPA
Although modern Republican politicians are known for their anti-regulatory stance most of the time, it was under the administration of Richard Nixon that the Environmental Protection Agency (EPA) was formed with the signing of an executive order by the president in 1970. Being a native of Southern California, Nixon was keenly aware of the effect transportation could have on air quality. An incident in which the Cuyahoga River in Ohio caught fire in 1969 due to an excess of chemicals in the water was an additional catalyst for environmental action.
George W. Bush and EV Tax Credits
The Energy Improvement and Extension Act of 2008 was signed into law by George W. Bush in October 2008, toward the end of his second term, as part of the larger Emergency Economic Stabilization Act of 2008. As part of the legislation, a tax credit for plug-in hybrid electric, and battery electric vehicles was included with batteries over 12 kWh.
President Bush also authorized the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program in 2007, which Congress funded in fall 2008. The main recipients of the loans, which many credit for jump-starting EV research and development in the modern era, were Ford ($5.9 billion), Nissan ($1.6 billion), Tesla ($465 million), and Fisker ($192 million.) Tesla was the first to fully repay its loan in May 2013.
Obama and “Cash for Clunkers”
Barack Obama, the 44th President of the United States, takes office just as the U.S. and the global economy was in the midst of a financial crisis, colloquially known in the U.S. as “The Great Recession.” A variety of different steps were taken to try to stabilize and revive the U.S. and global economy. A vehicle scrappage scheme was proposed by economist Alan Blinder in 2008 as a possible economic stimulus scheme. The idea got the attention of politicians on both sides of the aisle, and President Obama signed the Supplemental Appropriations Act of 2009, which contained Title XIII, the Car Allowance Rebate System (C.A.R.S.) better known by its nickname: Cash for Clunkers. The act also inadvertently increased the prices of used cars, as part of the program required permanently disabling the engine by adding sodium silicate to the crankcase, which would eventually solidify into a glass-like substance in the crankcase, essentially “bricking” the engine.
The act, although controversial, and not universally popular, accomplished two things simultaneously: Incentivized consumers to purchase new, more fuel-efficient vehicles, as well as stimulating demand for new cars, therefore putting factory workers back to work.
Although still working its way thought the halls of Congress, the Growing Renewable Energy and Efficiency Now (GREEN) Act contains many objectives that President Joe Biden outlined in his campaign, and many environmental activists favor. Among them is removing the 200,000 per-company cap on eligibility for EV tax credits. The GREEN act lowers the maximum rebate amount from $7,500 to $7,000, but raises the maximum number of eligible units per company to 600,000. Although not yet law, this act has a much greater likelihood of passing under Biden than under former President Trump.
(Main image by David Mark from Pixabay)
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