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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.

EPA Tier 3 Certification Fuel Impacts Test Program Report

On January 11, 2018, EPA released a report entitled, "Tier 3 Certification Fuel Impacts Test Program." The test program discussed in this report was initiated to compare Tier 2 certification fuel, the fuel on which the Phase 1 and Phase 2 GHG and CAFE standards were established for light-duty and heavy duty-vehicles, with the new Tier 3 certification fuel from the Tier 3 program. The test program found an overall fuel economy reduction of 1.76% for the FTP and 2.42% for the HFET for Tier 3 compared to Tier 2 test fuel.  It also found that the overall test fleet showed a reduction in CO2 of 1.78% for the FTP and 1.02% for the HFET.  The program results will be used as a basis for test procedure adjustments to ensure consistent stringency of GHG and fuel economy standards as vehicle certification makes the transition to Tier 3 test fuel.  Additional information on the testing program is available here

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]).

Proposed E10 Cert Spec

Air Resources Board staff has posted an updated proposed E10 certification fuel specification on California Certification Fuel Development webpage. Staff is proposing to update specifications for certification fuel for on-road gasoline vehicles; the proposed specifications will be considered by our Board together with proposed Low-Emission Vehicle (LEV) III standards later this year. The updated proposed E10 certification fuel can be found here:

http://www.arb.ca.gov/fuels/gasoline/certfuel/Proposed_E10_Certification_Fuel_v8.0.pdf

The new California Certification Fuel Development webpage can be found here:

http://www.arb.ca.gov/fuels/gasoline/certfuel/certfuel.htm

 

E15 Misfueling Rule



On June 27, 2011, the EPA released a final rule that establishes several measures to mitigate E15 misfueling.  A copy of the pre-Federal Register version of the rule, along with other information related to the rulemaking, is available at http://www.epa.gov/otaq/regs/fuels/additive/e15/index.htm. 

In the final rule, EPA has established several measures to mitigate misfueling of certain vehicles, engines and equipment with E15. The key mitigation measures are as follows:

1. The rule prohibits the use of gasoline containing more than 10 vol% ethanol in vehicles, engines and equipment not covered by the partial waiver decisions. 
2. The final rule requires all E15 gasoline fuel dispensers to have a specific label when a retail station or wholesale-purchaser consumer chooses to sell E15.
3. The rule requires that product transfer documents (PTDs) specifying ethanol content and Reid Vapor Pressure (RVP) accompany the transfer of gasoline blended with ethanol through the fuel distribution system.
4. The rule requires a survey of retail stations to ensure compliance with E15 labeling, ethanol content and other requirements.

The requirements contained in the final rule will go into effect 30 days after the rule is published in the Federal Register.  Docket reference: EPA-HQ-OAR-2010-0448.  EPA contact: Robert Anderson, Office of Transportation and Air Quality, Compliance and Innovative Strategies Division, 202-343-9817, [email protected].

 

E15 Waiver

On Jan. 26, 2011 EPA issued a notice in the Federal Register at 76 FR 4662 announcing that they are granting a partial waiver allowing fuel and fuel additive manufacturers to introduce into commerce gasoline that contains greater than 10 volume percent ethanol and no more than 15 volume percent ethanol (E15) for use in model year 2001 through 2006 light-duty motor vehicles, if certain conditions are fulfilled.  In October of 2010, EPA granted a partial waiver for E15 for use in MY2007 and newer light-duty motor vehicles subject to the same conditions.  Taken together, the two waiver decisions allow the introduction into commerce of E15 for use in MY2001 and newer light-duty motor vehicles if those conditions are met.   EPA contact: Robert Anderson, Office of Transportation and Air quality [email protected], (202) 343-9718.