Joe Biden Just Signaled a Dramatic Change for the Auto Industry
President Joe Biden’s new $2 trillion infrastructure proposal will offer Americans tax credits with the purchase of a green vehicle. The administration also aims to create a reliable domestic supply chain, install 500,000 charging stations, and convert the entire fleet of U.S. government vehicles.
New to the electric car movement? Jerry is here to help you learn how to buy and insure your own electric vehicle (EV).
President Biden’s EV announcements
President Joe Biden walking out of a building | Twenty20
Examine U.S. supply chains
President Biden’s policies aim to make the production and purchasing of electric vehicles more feasible for the US population.
The first step examines the U.S. supply chain of critical resources (think semiconductor chips, rare earth materials, and rechargeable batteries). With a reliable domestic supply chain, the U.S. will rely less on foreign markets, which can cost us more, and will prevent any shortage of materials that hinder the widespread production and distribution of EV.
Convert U.S. government’s fleet of vehicles
According to CNET, Biden announced an executive order to convert all of the U.S. government’s vehicles to battery-powered vehicles. That’s 645,000 vehicles going green.
But challenges have emerged. The USPS, for example, announced a partnership with Oshkosh for a new vehicle, the “Next Generation Delivery Vehicle.”
Oshkosh stated that they will build “fuel-efficient low-emission internal combustion engine vehicles,” as well as electric mail trucks, which contradicts Biden’s order for a fully electric fleet.
Restore California’s right to limit state-level emissions
Biden also proposed a withdrawal of Donald Trump’s 2019 rule that would restore California’s right to set state-level emissions standards and zero-emission vehicle mandates.
Doing this would allow states to create their own mandates and standards for auto manufacturers to abide by in addition to federal mandates.
Tax credits boost use of EVs
In conjunction with the proposed infrastructure plan, President Biden and Democratic senators have reintroduced the GREEN Act, which will offer Americans tax credits for the purchase of an EV.
Under the GREEN Act, Americans can earn up to $7,000 in tax credits the year following the purchase of their EV. It will also increase the credit ceiling for automakers up to 600,000 vehicles.
With the new infrastructure proposal, $100 billion will be available for EV rebates at the point of sale. Many insurance companies also offer a green discount on their policies.
Widespread use of EVs seems more likely than ever before
With the financial support from the government and a steady supply chain, it seems the future of electric vehicles appears much more achievable for many more people than before.
Road trips, often thought to be impossible in an EV, will be reimagined. President Biden proposed 500,000 new charging stations across the U.S. with the goal to be installed by 2030.
By this July, President Biden and his administration plan to reveal the updated fuel economy and emissions regulations for automakers. This planning ahead will regulate future automaker policies and regulations, striving for a more environmentally conscious future.
Movements like Greta Thunberg have shown the world how important awareness and action are when it comes to climate change. People want options that align with their beliefs and lifestyles and the current administration is making strides in making EVs more accessible to more people.