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A shift to electric transportation will reduce the economic, national security, and emissions impacts that stem from America’s dependence on oil. Widespread adoption of electric vehicles will create new jobs, reap financial savings for consumers and fleet operators, improve air quality, and reduce greenhouse gas emissions.
The Biden-Harris Administration and 117th Congress have passed critical legislation that will establish U.S. leadership in electric transportation and maintain our global competitiveness in the automotive industry. The Infrastructure Investment and Jobs Act and the Inflation Reduction Act are historic acts that invest hundreds of millions into the EV sector. They will bolster U.S. manufacturing and supply chains to support the transition for both the light-duty and medium- and heavy-duty sectors.
The Electrification Coalition has long advocated for federal policies to accelerate the adoption of EVs. These policies can be categorized into four core pillars:
Tax credits for all vehicle types (light-, medium-, and heavy-duty) will spur market growth by reducing the higher upfront costs of EVs. They also signal to manufacturers, consumers, and fleet operators that the United States is prioritizing an electric transportation future. The Inflation Reduction Act created a long-term extension of the Section 30D tax credit for light-duty vehicles, a new commercial EV credit (Section 45W), and a used EV credit (Section 25E). The Bipartisan Infrastructure Law also created a Clean School Bus program, with $2.5 billion in dedicated funding for the purchase or lease of electric school buses. While the EC thanks Congress and the Biden-Harris Administration for these credits and programs, there are some modifications still needed:
Consumers, businesses, fleet operators, and drivers need adequate access to EV charging infrastructure. The Bipartisan Infrastructure Law included $5 billion to build out a network of EV charging along highways (alternative fuel corridors) and provided another $2.5 billion in competitive grant funding to further build out charging infrastructure (though this includes all alternative fueled charging technologies). At least 50% of the funding under the competitive grant program must be put towards communities, with priority given to low-income and rural communities. The Inflation Reduction Act also included a long-term extension of the Section 30C Alternative Fuel Vehicle Refueling Property Credit until Dec. 31, 2032. The Section 30C credit was also modified to allow for bidirectional charging stations to qualify for the credit. With these programs and this credit, the U.S. is on its way to meeting the demand for charging infrastructure as adoption grows. However, the following programs are still needed:
The U.S. government can lead by example by electrifying the federal fleet, including the U.S. Postal Service vehicles. The Biden Administration has already set a goal to electrify all new light-duty vehicles by 2027, and to make all federal vehicle acquisitions electric by 2035. The EC strongly encourages each agency to keep track of fleet electrification efforts. In addition, the EC supports a bold allocation of funding for federal fleet electrification, including USPS fleet electrification, along with these additional programs:
The Inflation Reduction Act and the Bipartisan Infrastructure Law included multiple policies and programs to promote the U.S. manufacturing and supply chain of these clean vehicles. Policies in the Bipartisan Infrastructure Law include $6.135 billion for battery material processing, manufacturing, and recycling grants. Policies in the Inflation Reduction Act include $10 billion for the Section 48C manufacturing tax credit, with specific inclusion for applicable EV projects; a new Advanced Manufacturing Production Credit (Section 45X) for the manufacturing of batteries and critical minerals facilities; $3 billion for the Advanced Technology Vehicle Manufacturing program with specific incentive amounts for battery and critical minerals production; and $2 billion for the Domestic Manufacturing Conversion Grant program.
© 2024 ELECTRIFICATION COALITION
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Amy Malaki is the head of policy and sustainability at SkyNRG and SkyNRG Americas, pioneering global leaders in sustainable aviation fuel production and supply. Prior to SkyNRG, Amy was the associate director for the transportation portfolio at the ClimateWorks Foundation where she developed philanthropic investment strategies to advance a sustainable, equitable and low-carbon mobility system. She also pioneered the organization’s international aviation decarbonization strategy. Prior to that she focused on Asia business development at Better Place, a Silicon Valley electric vehicle network startup. She has a B.A. in Chinese and China studies from the University of Washington and an M.A. in international policy studies (energy and environment) from Stanford University.