EV infrastructure gets $15 billion in new U.S. bipartisan proposed plan

EV infrastructure gets $15 billion in new U.S. bipartisan proposed plan

In a bid to accelerate the pace of mass adoption of electric vehicles (EVs), a bipartisan group in the US Senate is working on a new measure that proposes the government to spend a significant amount of $15 billion on EV infrastructure expansion.

Earlier this year, President Biden had made a proposal for investing $174 billion on EVs as part of his administration’s new infrastructure plan. The actual EV infrastructure bill was not expected to be as generous after going through the lengthy legislative process.

Now, a bipartisan group in the U.S. Senate has come forth with a new framework for the EV infrastructure bill, which includes the proposal of setting aside $15 billion for expanding basic infrastructure for the environment-friendly zero emission vehicles. It is less than originally planned, but it is still a decent amount for the EV infrastructure. Most of the political analysts are of the view that the measure would easily pass in the Senate.
Out of the proposed $15 billion, $7.5 billion would be utilized for expanding “EV infrastructure” through deployment of charging stations. The remaining $7.5 billion would be spent on electric buses and transit vehicles.

However, the largest new EV investment that has been proposed by the government was a reform of the federal tax credit. As it has not been mentioned in the new framework, some people raised concern that it might be ditched by the government. Some argued that the proposed rebate of $10,000 on the purchase of a new EV has been left behind by the government, but experts say it is most probably still alive. Thus, the situation is quite complicated.

The government’s latest plan that passed the U.S. Senate Finance Committee is the new “Clean Energy for America” bill, which includes a tax rebate of up to $12,500 for new fully-electric vehicles. It also proposes the removal of the cap of 200,000 deliveries in the U.S. per manufacturer. Instead, it proposes a three-year phase-out period to be triggered by manufacturers reaching a 50 per cent market share of new passenger car sales volume in the country.

The “Clean Energy for America” bill is far more ambitious than any previously proposed EV incentive program in the U.S. However, it still has a long way to go, and one must not ignore the fact that it has yet to be finalized. But, legislators are now trying to have a new rebate program passed by the end of 2021.