Biden and Harris must pass the legislation through Congress with lingering opposition from both sides of the aisle. The chances of passing through Congress are very good, but any sweeping reform in the slimly held Senate (50-50) will limit guaranteed long-lasting effects. This could remind you of what happened to President Obama when he was unsuccessful at passing major climate reform during his term.
If we only focus on vehicle electrification, which is the most relevant subject for our purposes, the proposed changes could be massive. $174B massive, to be exact – 10% of the total Climate Plan. It’s a big-government push that the EV sector (and consumers to some degree) have been waiting for. The plan promotes almost every aspect of the electric vehicle industry, from U.S. battery production to auto factory retooling, manufacturing job creation, and incentives for car buyers and charging stations needed to “fuel” all those new EV’s. That last point is particularly important for us at LocalEVInstall.
One of the key initiatives is an expansion of the existing $7,500 tax credit, potentially to $10,000+. Additionally, point-of-sale rebates are being considered to encourage consumers to purchase an EV over an internal combustion engine (ICE) vehicle. Other ideas being discussed are incentives focused on the lower-middle class through a tiered system and the removal of the existing 200,000-per-manufacturer ceiling on the existing tax credits. This would put GM and Tesla back in the tax credit game and not penalize them for successfully encouraging early EV adoption.
The Biden-Harris Climate Plan includes grant and incentive programs aimed at building up a network of 500,000 electric vehicle chargers by 2030. This could help reduce “range anxiety” as people use EV’s for road trips or longer distance travel. It would also help with those who don’t have access to EV chargers at home, a common issue in rental properties, high-rises, multi-family or lower income.
Ultimately, the plan aims to “establish the United States as a leader in climate science, innovation and R&D” with $15 billion for infrastructure related demonstration projects, EV included. This will include additional grants and programs to support the overarching challenges surrounding renewable and “green” energy infrastructure projects. It will also focus on more resilient transportation and investing in advanced road pavements, because you won’t want to drive your brand new EV on an old, crumbling road.