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The Securing America’s Clean Fuels Infrastructure Act

On March 25, 2021, Senator Tom Carper (D-Del.), Chairman of the Environment and Public Works Committee (EPW), Debbie Stabenow (D-Mich.) and others introduced legislation (S.975) to promote investments in clean vehicle infrastructure, such as electric vehicle charging stations and hydrogen refueling stations for fuel cell vehicles.

The Securing America’s Clean Fuels Infrastructure Act would improve and expand the Alternative Fuel Vehicle Refueling Property Investment Tax Credit (ITC), commonly referred to as “30C,” lowering costs for clean vehicle infrastructure deployment. Providing incentives to build the needed infrastructure to support clean vehicles, the legislation will support American consumers as they move towards more electric and clean energy vehicles.

According to the Sen. Carper, the current 30C ITC structure isn’t adequate for encouraging greater private investments in clean vehicle refueling infrastructure like electric charging stations and hydrogen refueling stations. If implemented, Securing America’s Clean Fuels Infrastructure Act would do three things:

1. Clearly state that the 30C ITC can be applied to each item of refueling property (i.e., each charger) rather than per location.

2. Increase the 30C ITC cap for business investments from $30,000 to $200,000 for each item of refueling property.

3. Extend the 30C ITC tax credit for eight more years from the December 31, 2021 expiration date, which means the 30C ITC would apply to refueling property that is placed in service by December 31, 2029.

The full text of the bill can be found here.

This legislation has broad support from the auto companies, environmental community, and industry stakeholders, including Ford, Honda, General Motors, Volkswagen, Alliance for Automotive Innovation, Electric Drive Transportation Association, the Fuel Cell and Hydrogen Energy Association, Zero Emission Transportation Association, Electrify America, EVGO, Environmental Defense Fund, National Wildlife Federation, Natural Resources Defense Council, Sierra Club, American Lung Association, Clean Air Task Force, Union of Concerned Scientists, Stellantis, Duke Energy, Volta Charging, ChargePoint, EV Box Group, and ABB.

GREEN Act of 2021

On Feb. 4, 2021, Rep. Mike Thompson (D-CA) introduced the GREEN Act of 2021 (H.R. 848).  Main features of the legislation are as follows:

• Builds on current successful tax incentives that promote the deployment of green energy technologies, while providing new incentives for activities that reduce greenhouse gas emissions,
• Encourages residential investments in green energy and energy efficiency,
• Expands incentives for energy efficiency and conservation in homes and buildings, with updated standards,
• Supports widespread adoption of zero-emission cars, vans, and buses through tax credits for purchasing vehicles, and supporting deployment of publicly accessible electric vehicle charging infrastructure,
• Invests in the green workforce by providing tax credits for advanced manufacturing facilities and mechanical insulation installations,
• Advances environmental justice using tax credits for research and other academic programs, and
• Prices greenhouse gas emissions.

Specifically with regard to EVs, the bill would expand the qualified plug-in electric drive motor vehicle credit under Section 30D to apply a new transition period for vehicle sales of a manufacturer between 200,000 and 600,000 electric vehicles (EVs), under which the credit is reduced by $500. The provision replaces the current phaseout period (which begins at 200,000 vehicles) with a phaseout period that instead begins during the second calendar quarter after the 600,000-vehicle threshold is reached. At the start of the new phaseout period, the credit is reduced by 50% for one quarter and terminates thereafter. For manufacturers that pass the 200,000-vehicle threshold before the enactment of this bill, the number of vehicles sold in between 200,000 and those sold on the date of enactment are excluded to determine when the 600,000-vehicle threshold is reached. The provision extends the 2-wheeled plug-in electric vehicle credit through 2026. It also extends the 3-wheeled plug-in electric vehicle credit through 2026.

For used EVs, the bill creates a new refundable credit for buyers of used plug-in electric cars from date of enactment through 2026. Buyers would be able to claim a base credit of $1,250 for the purchase of qualifying used EVs, with additional incentives for battery capacity. The credit is capped at the lesser of $2,500 credit or 30% of the sale price. To qualify for this credit, used EVs must generally meet the eligibility requirements in the existing Section 30D credit for new EVs, not exceed a sale price of $25,000, and be a model year that is at least two years earlier than the date of sale. Buyers with up to $30,000 ($60,000 for married couples filing jointly) in adjusted gross income can claim the full amount of the credit. The credit phases out so that buyers with below $40,000 ($70,000 for married couples filing a joint return) in AGI may be eligible for a reduced credit. Buyers must purchase the vehicle from a dealership for personal use and cannot claim the credit more than once every three years. The credit only applies to the first resale of a used EV and includes restrictions on sales between related parties.

With regard to heavy vehicles, the bill includes a manufacturer credit for the sale of zero-emission heavy vehicles starting after the date of enactment through the end of 2026. Eligible manufacturers may claim a credit of 10% of the sale price of an eligible vehicle, capped at a credit of $100,000 per sale. To be eligible, vehicles must be for domestic use, must weigh no less than 14,000 pounds, must not include an internal combustion engine, and must be propelled solely by an electric motor which draws electricity from a battery or fuel cell.

Regarding fuel cell vehicles, the bill would extend the credit for the purchase of a qualified fuel cell motor vehicle through 2026.

Regarding refueling infrastructure, the bill calls for extending the alternative fuel vehicle refueling property credit through 2026.  Beginning in 2022, the provision expands the credit for zero-emissions charging infrastructure by allowing a 20% credit for expenses in excess of $100,000 (i.e., it allows a credit for expenses beyond the current limit if certain requirements are met). To qualify for this uncapped credit, the property must: 1) be intended for general public use and either accept credit cards as a form of payment or not charge a fee, or 2) be intended for exclusive use by government or commercial vehicle fleets.

The bill has been referred to the House Committee on Ways and Means.

Full text of the bill is available here and a section-by-section summary is available here.

Regulatory and Legislative Tracking Reports for Vehicle Manufacturers and Suppliers

Since 1999, Kardos & Associates LLC has supplied the auto industry with the most comprehensive regulatory and legislative tracking reports available. We currently offer clients the following:

Motor Vehicle Safety & Emissions Regulatory Update (the REG UPDATE)

The REG UPDATE has been tracking US and Canadian regulatory activity impacting the auto industry for over twenty years. Regulations developed by the NHTSA, FMCSA, EPA, FCC, CARB, Transport Canada, and Environment Canada are the focus. For each rulemaking, the Reg Update provides a description of the rulemaking, comment deadlines, effective dates, a docket reference, and links to documents available online. Deadlines and critical path items are color-coded so that you can quickly identify what’s new and important. In addition to being an excellent tool for tracking regulatory activity, the Reg Update is a great archive of past actions. The report contains information on virtually every rulemaking affecting automakers from the past two decades. Approximately 400 pages in length.

U.S. Safety & Fuel Economy Regulatory & Legislative Update
The U.S. Safety & Fuel Economy Regulatory & Legislative Update provides a snapshot of the past month’s legislative and regulatory activities relating to safety, emissions and fuel economy. The report provides brief summaries of notices issued by DOT, EPA, CARB and others. With regard to federal legislation, the report covers newly introduced bills, information on committee hearings, etc. Activities at the state level pertaining to emerging technologies (e.g., automated vehicles, advance driver assistance systems, EVs and EV infrastructure, etc.) are also covered.

Federal Legislation Tracking Report
Our legislative tracking report focuses on matters relating to environment and energy, safety and fuel economy/climate change. The report covers two years-worth of bills (the length of each Congressional session) and includes summaries and status updates for each tracked bill. Links to bill text and related information are provided.

All of our reports are distributed monthly via email as a PDF. Subscribers also get access to an online archive of past reports.

For pricing, contact Dale Kardos at (202) 3064997 or [email protected]. For more information about Kardos & Associates LLC, see www.kardosllc.com.

For a PDF of this information, click here.

Clean Cars for America

On Oct. 27, 2019, Sen. Schumer (D-NY) announced a plan to promote electric and hydrogen fuel cell vehicles.  The plan is comprised of the following three components:

1. Cash vouchers for trading-in gas-powered cars and buying a plug-in electric, plug-in hybrid, or hydrogen fuel cell car.  Consumers wishing to trade in a gas vehicle for a new vehicle could receive a point of sale rebate starting at $3000, and ramping up based on the zero-emission range of the vehicle. Consumers with household incomes less than or equal to 200 percent of the federal poverty would receive an additional $2000 rebate for new vehicles, or a 20% rebate to purchase used vehicles built prior to the program taking effect.  An additional incentive worth an additional 50% of the base incentive would also be available for vehicles made in America with strong labor standards, as well as $500 for vehicles with 50% domestic content and a US manufactured battery.  The program would receive $392 billion in funding and replace approximately 25% of the US gas-vehicle fleet with clean vehicles after 10 years.
2. Making charging infrastructure accessible through a new grant program to states and localities to ensure all Americans have access to charging infrastructure.  The proposal includes $45 billion in funding to states, cities, and municipalities for making charging infrastructure accessible to everyone.
3. Incentives for manufacturers to build new factories or re-tool existing factories in the United States to assemble zero-emission vehicles or manufacture charging equipment.  The plan would create two new grant programs that would stimulate the regional economy, and improve the global competitive position of the United States in the electric vehicle industry by creating a robust domestic supply chain, and require that workers both building and working in the new factories make good-wages and have strong labor standards. One program would provide cash grants to manufacturers to build new factories for assembling electric vehicles, manufacturing charging equipment, or manufacturing or recycling critical component parts of electric vehicles like batteries. A second program would help reduce permanent plant closures in the U.S. by providing an additional cash grant for manufacturers that re-tool existing U.S. factories that make internal combustion engine vehicles or component parts. These programs would receive $17 billion, which is enough money to ensure that all new clean vehicles sold (including their batteries) through Clean Cars for America are manufactured in the U.S.

For additional details, click here.  

EPA, DOT Propose Greenhouse Gas and Fuel Efficiency Standards for Heavy-Duty Trucks

The U.S. Environmental Protection Agency (EPA) and the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) are jointly proposing standards for medium- and heavy-duty vehicles that would improve fuel efficiency and cut carbon pollution.

The proposed standards are expected to have the following impact:

• Lower CO2 emissions by approximately 1 billion metric tons
• Cut fuel costs by about $170 billion
• Reduce oil consumption by up to 1.8 billion barrels over the lifetime of the vehicles sold under the program 

The EPA concludes the reductions would nearly equal the greenhouse gas (GHG) emissions associated with energy use by all U.S. residences in one year and the total oil savings under the program would be greater than a year’s worth of U.S. imports from the Organization of the Petroleum Exporting Countries (OPEC).

The proposed vehicle and engine performance standards would cover model years 2021-2027, and apply to semi-trucks, large pickup trucks and vans, and all types and sizes of buses and work trucks. They would achieve up to 24 percent lower CO2 emissions and fuel consumption than an equivalent tractor in 2018, based on the fully phased-in standards for the tractor alone in a tractor-trailer vehicle. Additionally, the proposed standards are:

• Not mandating the use of specific technologies. Rather they establish standards achievable through a range of technology options, and allow manufacturers to choose those technologies that work best for their products and for their customers. (These technologies include improved transmissions, engine combustion optimization, aerodynamic improvements and low rolling resistance tires). 
• Phased in over the long-term, beginning in model year 2021 and culminating in standards for model year 2027 – giving manufacturers the time and flexibility to plan.
• Flexible, by allowing banking and trading emissions credits for most manufacturers, and providing businesses the opportunity to choose the most cost-effective path to meet the standards.

The proposed standards are fully harmonized between NHTSA and EPA. The agencies have also worked closely with the State of California’s Air Resources Board in developing the proposed standards. A public comment period will be open for 60 days after the proposal is published in the Federal Register. In addition, NHTSA and EPA will host two public hearings. 

Vehicle Innovation Act (S.1408)

On May 20, 2015, U.S. Senators Gary Peters (D-MI) and Debbie Stabenow (D-MI), along with Lamar Alexander (R-TN), introduced the bipartisan Vehicle Innovation Act (VIA) to promote investments in research and development of clean vehicle technologies that will create more fuel efficient vehicles, reduce our nation’s dependence on foreign oil and support American auto manufacturers.

The Vehicle Innovation Act reauthorizes the Department of Energy’s Vehicle Technologies Program, which works with light duty automobile and medium and heavy duty commercial truck manufacturers and suppliers to conduct research and development to improve fuel efficiency in vehicles.

The bill directs the Department of Energy to partner with public and private sector entities to promote technology-neutral research and investment which will include a diverse array of technologies including hybrids, battery electric vehicles and natural gas-powered vehicles, that will reduce our dependence on imported oil, support domestic research and development and grow our advanced manufacturing industry in the United States.

The Vehicle Technologies Program has been operating without Congressional authorization for over seven years, and in that time, new technologies and new applications of existing technologies have been developed. The bill will encourage further research and development of technologies including mild hybrid, engine down speeding, power pack modeling and testing, advanced boosting systems, new vehicle sensing and communication, hydrogen and natural gas refueling and electric vehicle charging technology. The legislation will also give the Department of Energy critical resources to focus on near-term developments that could lead to significant fuel savings for the national fleet if widely used. 

The legislation authorizes $313.6 million in funding for FY2016, and a four percent increase to each year after that through 2020, providing a consistent growth in funding to keep up with emerging technologies.

The Vehicle Innovation Act also includes provisions to specifically include vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications systems, collectively referred to as V2X. V2X technology has the potential to dramatically reduce traffic accidents and traffic congestion by allowing cars to communicate with one another and recognize dangers beyond what a vehicle’s radar, cameras or other sensors can detect.

The bill is supported by organizations including the Motor and Equipment Manufacturers Association (MEMA), the BlueGreen Alliance, the Auto Alliance and NTEA, the Association for the Work Truck Industry. 

Elimination of Tax Credits for Alternative Fuel Vehicles

On May 1, 2014, Sen. Lee (R-UT) introduced the Energy Freedom and Economic Prosperity Act of 2014 (S.2279) to terminate certain energy tax subsidies and lower the corporate income tax rate. Vehicles impacted by the legislation would include those that run on alcohol fuels, biodiesel, various alternative fuel mixtures, hydrogen, fuel cells, electricity, and others.  The bill was referred to the Committee on Finance.

Fuel Cell Industrial Vehicle Jobs Act of 2013

Proposed by Rep. Tonko (D-NY), H.R. 3057 would amend the Internal Revenue Code to: (1) allow a $4,000 new qualified fuel cell motor vehicle tax credit for motor vehicles weighing not more than 8,500 pounds that are manufactured primarily for use in carrying or towing loads or materials for commercial or industrial purposes (off-highway vehicles); (2) continue the maximum dollar amount of $8,000 for motor vehicles with at least 4 wheels weighing not more than 8,500 pounds that are manufactured primarily for use on public streets, roads and highways; (3) allow an enhanced credit for light (not more than 8,500 pounds) and heavy (more than 8,500 pounds) vehicles if such vehicles' fuel cell systems achieve a specified electricity generation efficiency rating; and (4) allow a new energy tax credit, through December 31, 2018, for qualified fuel cell property that is manufactured for use in powering qualified motive property. Defines "qualified motive property" as property which is manufactured primarily for carrying loads or materials for commercial or industrial purposes not on public streets, road, highways, or rails or operated primarily for recreational purposes. The bill was referred to the Committee on Ways & Means.

Monthly Regulatory & Legislative Tracking Reports Available for 2013 - Sign Up Now!

Since 1995, Dale Kardos & Associates, Inc. (DKA Inc.) has been supplying automakers, automotive suppliers and their trade associations with comprehensive detailed regulatory and legislative tracking reports.  Each month, DKA Inc. publishes the following three related, but uniquely-focused, tracking reports:

The Reg Update

The Reg Update is a monthly report that tracks the status of all North American regulatory activity concerning emissions, fuel economy (CO2) and safety (we track all regulatory actions of NHTSA, EPA, California Air Resources Board, Transport Canada, Environment Canada, and Section 177 States (i.e., states that have adopted CA’s Low Emission Vehicle program rules). For each rulemaking, the Reg Update provides electronic links to the latest official publications and includes information concerning comment period deadlines, anticipated future actions, projected implementation dates, and more.  In print since 1998, the Reg Update also serves as a tremendous archive of past actions. 

U.S. Motor Vehicle Safety and Legislative Update

The U.S. Motor Vehicle Safety & Legislative Update is a monthly report summarizing the past month’s legislative and regulatory activity concerning motor vehicle safety, emissions, and fuel economy/GHG issues.  The report provides brief summaries of and electronic links to key Federal Register notices, Congressional bills, public laws, NHTSA interpretation letters, recall listings, defect reports, NCAP test results, etc.  The report also covers financial incentive program announcements coming out of the Department of Energy, California and elsewhere.

Status of Motor Vehicle Related Legislation in the 113^th Congress

This report is devoted to keeping automakers and supplier up-to-date on the status of all legislation pending in the U.S. Congress that may potentially affect the auto industry.  We cover the introduction of all new bills and track their status over the course of the next two years.  We’ll provide updates on any official new activity related to the bill, increases in sponsorship, etc.  The report typically groups bills into the following categories:  Appropriations, Climate Change/GHG/Environment, Financial Incentive Programs, Biofuels and Flex Fuel Vehicles, Funding for Vehicle Development, Safety, Toxic Chemicals, misc.

 Report samples are available via the links below:

1.  Download REG UPDATE (SAMPLE - DEC 2012)

2. Download US Motor Vehicle Regulatory and Legislative Update (Dec 2012)

3. Download 111TH CONGRESS MOTOR VEHICLE LEGISLATION TRACKING SUMMARY (SAMPLE)

Pricing: The above reports can be purchased individually or at a discount (as a package).  A one year subscription is required (12 monthly updates).  For pricing and/or questions, please send an email to Dale Kardos ([email protected]).

Low Volume Manufacturers Act of 2011

On October 27, 2011, Rep. Campbell (R-CA) introduced  legislation that would essentially exempt  manufacturers producing one thousand vehicles per year or less from the safety standards and allow them to bypass the EPA certification system by using previously certified engines that are compliant with the OBD II evap standards.  The bill was referred to the Committee on Energy and Commerce.  It is co-sponsored by Representatives Posey (R-FL), Manzullo (R-IL), Blackburn (R-TN), Hunter (R-CA), and Barrow (D-GA).