Early this April, the U.S President Joe Biden unveiled $2.25 trillion infrastructure plan dubbed as the American Jobs Plan. Within the EV infrastructure bill, the White House is allocating a huge $174 billion dollars to invest into electrifying the automotive industry.
The American Jobs Plan is a historic move that will help the emerging EV market gain foothold in a gas-powered vehicle dominated market. If the Congress decides to pass with most of the infrastructure bill intact, the United States can see a large number of gas-powered owners convert into EV owners.
But what does President Biden’s plan to invest into the electric vehicle market means for the Americans? Below is top 10 critical things you need to know about the proposed federal bill for the EVs and the infrastructure.
1. Expands EV Charging Stations
First and foremost, President Biden have been calling for 500,000 new EV charging stations to be built across the United States by 2030 way before the election. The White House infrastructure plan says that the federal government aims to help achieve that goal by creating incentive programs and grants for both state and local governments.
Private sectors such as Tesla and ChargePoint will be able to benefit from the grants to deploy new EV charging stations. A growing number of EV charging stations will alleviate some of the pain points that the EV owners currently face when on long trips and especially in rural areas.
2. Transit System and School Buses will be Electrified
Currently there are around 50,000 diesel-powered transit vehicles operating in the country. Through electrifying 20% of the school buses fleet through a new Clean Buses for Kids Program will encourage the transit agencies and school districts to further adopt electric-powered transit vehicles.
Agencies and districts have been quick make the change because they save so much money on fuel and maintenance costs. At the same time, less air pollution is being produced for the riders, resulting in a cleaner air environment. Though these organizations need incentives to decrease the upfront purchase cost of electric-powered transit vehicles which tends to be expensive than diesel-powered vehicles.
3. Federal Fleet will Convert to Electric-Based Vehicles
Federal organizations like the United States Post Office will convert their trucks from gas-powered to electric-powered. There is not much details about this, however it is good to know that the USPS is among one of the federal government’s target to electrify the infrastructure.
4. Domestic EV will Benefit from the Bill
President Biden is hoping that the $174 billion EV infrastructure bill will boost domestic EV through incentives for the automakers. Former President Obama’s green recovery stimulus invested in battery and EV manufacturing but with some mixed results.
Biden’s federal bill plans to target proven domestic companies and help them scale their business and leverage existing technologies instead of betting on emerging ones. This will help produce a better, larger and tangible impact on the United States infrastructure.
5. Incentives for Americans to buy EVs
The Biden’s EV infrastructure bill includes incentives that aims toward Americans in form of $7,500 federal tax credit whenever they purchase an American-made electric vehicle. Even with the dropping costs of batteries and EVs, Americans need a good encouragement to buy the more expensive electric vehicle.
President Biden plans to extend the current federal EV tax credit that already diminished for the automakers like Tesla and General Motors as they already sold more than 200,000 electric vehicles. He sought to drop the 200,000 limit which will enhance the incentive for buyers, especially in disadvantaged communities.
6. Clean Energy is Prioritized
If many Americans choose to go electric, then the United States will need to deploy more electricity. Currently the nation’s energy grid is not resilient and is prone to extreme weather such as heatwaves and winter storms.
President Biden calls for a massive upgrade to the existing electric infrastructure. This means increasing the nation’s energy resiliency and improves reliability as well as ensuring that the homeowners and businesses have energy security.
This plan will slowly transit the nation’s dependence on non-renewable sources like fossil fuels, oils and goals to renewable sources such as battery energy and solar energy. It also aims to decentralize the power plants by converting residential homes into distributed power plants.
7. It Addresses Racial Justice
The $174 billion investment in EV infrastructure bill will address long-standing racial injustice in disadvantaged communities. Around 40% of the total planned investments will create and boost clean energy benefits for the minority and disadvantaged communities.
8. Reducing Carbon Emission is a Big Focus
Beyond the electric vehicles, charging stations and clean energy. Around $85 billion will be spend on modernizing the transit systems and help the transit agencies boost ridership. On top of that, another $80 billion will expand intercity rail systems like Amtrak.
9. Corporate Taxes will fund it
President Biden plans to raise corporate taxes with an objective to generate $2 trillion over the next 15 years. Corporations such as Amazon, Tesla, Facebook and Google will see their corporate tax increase to 28% and offshore tax loopholes will be closed.
The corporate taxes that the federal government generate from these corporates will be used to upgrade the United States infrastructure and accelerate adoption of electric vehicles.
10. Proposed Bill needs to go through Congress
As good as the Biden’s EV infrastructure bill sounds, it needs to get passed by Congress first before it is signed into law. It is very likely that Biden’s proposed bill will see some changes as the congressmembers and senators review. What is being floated right now is a rough idea of how the United States federal government plan to further integrated electric vehicles into Americans’ everyday life.