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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.

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]).

Department of Energy Awards More Than $175 Million for Advanced Vehicle Research and Development

On August 10, DOE issued the following press release announcing awards for more than $175 million for advanced vehicle research and development. 

Department of Energy Awards More Than $175 Million for Advanced Vehicle Research and Development

August 10, 2011

U.S. Energy Secretary Steven Chu today announced more than $175 million over the next three to five years to accelerate the development and deployment of advanced vehicle technologies. The funding will support 40 projects across 15 states and will help improve the fuel efficiency of next generation vehicles. The projects will target new innovations throughout the vehicle, including better fuels and lubricants, lighter weight materials, longer-lasting and cheaper electric vehicle batteries and components, more efficient engine technologies, and more. This comprehensive approach to vehicle efficiency research and development will help ensure the technologies are available to help automakers achieve recently announced fuel efficiency standards.

Last month, the President announced historic fuel efficiency standards for cars and light trucks which will bring fuel efficiency to 54.5 miles per gallon by Model Year 2025 and which, combined with steps already taken by this administration, will save American families $1.7 trillion at the pump and reduce oil consumption by 12 billion barrels by 2025. Yesterday, the Administration announced of first-of-their-kind fuel-efficiency standards for work trucks, buses and other heavy-duty vehicles, which will save American businesses who operate and own these commercial vehicles approximately $50 billion in fuel costs over the life of the program.

"The Department of Energy is investing in new advanced technologies that will significantly improve vehicle fuel economy, save consumers money, and create skilled jobs for Americans," said Secretary Chu. "Investments in the next generation of autos will strengthen our economy and lead to a more fuel-efficient, clean energy future."

The funds will leverage additional investments by the grantees to support projects totaling more than $300 million. The selections announced today focus on eight approaches to improving vehicle efficiency:

• Advanced fuels and lubricants: Eight projects awarded to improve fuels and lubricants that will enable optimal performance of advanced combustion engines.
• Light-weighting materials: Five projects awarded to accelerate commercial availability of lighter weight vehicles using advanced materials that dramatically reduce vehicle weight while maintaining the highest safety standards.
• Light weight multi-material prototype: Two projects awarded to design, build, and test a light-weight vehicle that is 50% lighter than a baseline light-duty vehicle. These projects are being undertaken as part of the Clean Energy Dialogue with Canada.
• Advanced cells and design technology for electric drive batteries: Twelve projects awarded to develop high energy or high power batteries for electric vehicles that should significantly exceed existing state-of-the-art technologies in terms of performance and/or cost.
• Advanced power electronics and electric motor technology: Four projects awarded to develop the next generation of power inverters and electric motors to meet demanding performance targets while achieving significant cost reductions.
• Thermoelectric and enabling engine technology: Three projects awarded to improve the efficiency of thermoelectric devices to convert engine waste heat to electricity. Selections of projects to develop early-stage enabling engine technologies to improve fuel efficiency and reduce emissions are expected in September.
• Fleet efficiency: Five projects awarded to develop and demonstrate fuel efficient tire and driver feedback technologies that will improve efficiency of the passenger car and commercial fleet.
• Advanced vehicle testing and evaluation: One project awarded to conduct laboratory and field evaluations of advanced technology vehicles and related infrastructure, while developing new or modified test procedures.

Read the full list of award winners.

 

New $184 Million DOE Funding Opportunity Announced

DOE announced today that it is accepting applications for up to $184 million over three to five years to accelerate the development and deployment of new efficient vehicle technologies that will reduce U.S. dependence on foreign oil, save drivers money, and limit carbon pollution. Projects will span the broad spectrum of technology approaches, including advanced materials, combustion research, hybrid electric systems, fleet efficiency, and fuels technology.

The Funding Opportunity Announcement addresses the development of key technologies required to achieve large scale adoption of advanced vehicles such as plug-in electric hybrids (PHEVs) and electric vehicles (EVs). The Department is seeking applications from industry, laboratory, and university teams to address its challenges. The solicitation seeks to fill gaps in the existing program through the development of enabling technologies that will remove barriers and create new paradigms in vehicle design.

The Funding Opportunity Announcement focuses on eight approaches to improving vehicle efficiency:

• Advanced fuels and lubricants: Improve today's vehicle fuels and lubricants to enable optimal performance of advanced combustion engines.
• Light weighting materials: Accelerate commercial availability of lighter weight vehicles using advanced materials like magnesium and carbon fiber to dramatically reduce vehicle weight.
• Multi-material light weight material prototype: Design, build, and test a light-weight vehicle that is 50% lighter than a baseline light-duty vehicle.
• Advanced cells and design technology for electric drive batteries: Develop high energy or high power electric vehicles that significantly exceed existing state-of-the-art technologies in terms of performance and/or cost.
• Advanced power electronics and electric motor technology: Develop the next generation of power inverters and electric motors to meet demanding performance targets while achieving significant reductions in cost.
• Thermoelectric and enabling engine technology: Improve the efficiency of thermoelectric devices to convert engine waste heat to electricity. Develop early-stage enabling engine technologies to improve fuel efficiency and reduce emissions.
• Fleet efficiency: Develop and demonstrate fuel efficient tire and driver feedback technologies that will positively affect efficiency of the fleet of passenger cars and commercial vehicles.
• Advanced vehicle testing and evaluation: Conduct laboratory and field evaluations of advanced technology vehicles and related infrastructure, while developing new or modified test procedures.

Applications for the solicitation are due February 28, 2011.  A Letter of Intent due date is Jan. 18, 2011. DOE expects to announce the selections by summer 2011.  To read the solicitation, click here.  

 

Electric Drive Vehicle Deployment Act

On May 27, 2010, new EV legislation was introduced in both the House and Senate.  The House and Senate bills are sponsored by Representatives Markey, Biggert, McNerney and Eshoo and Senators Dorgan, Alexander and Merkley, respectively .   Key components of the legislation include the following:

• The Secretary of Energy will competitively award $800 million to 5 different deployment communities around the country, with the objective of deploying 700,000 electric vehicles in those communities within six years. 
• At least $2,000 in additional consumer incentives for the first 100,000 consumers purchasing electric vehicles in these communities would be provided. 
• All Americans would continue to be eligible for the electric vehicle tax credit, which reduces the prices of an electric vehicle by up to $7500, and additionally, tax credits of the costs of purchase and installation of electric vehicle charging equipment for individuals (up to $2000) or businesses (up to $50,000 for multiple equipment purchases) would be extended. 
• Additional research, development, deployment and manufacturing incentives are provided for technologies that enable the widespread deployment of electric vehicles and charging infrastructure. 

American Power Act Proposes Massive New Focus on Natural Gas Vehicles

The American Power Act, to be released this week, would be a major boon for the natural gas vehicle market.  More specifically, the Act would:

• extend and double for 10 years the alternative fuel credits for purchasing natural gas vehicles that have a weight greater than 8,500 pounds;
• extend and double the credit for vehicles weighing less than 8,500 lbs for commercial fleet vehicles of at least ten cars and purchases of at least three natural gas vehicles;
• make it easier for hybrid natural gas/conventionally-fueled vehicles to qualify for credits;
• assist states and local governments issue tax credit bonds to finance natural gas vehicle projects (up to $3 billion in federal assistance);
• allow 100% of the cost of a natural gas vehicle manufacturing facility placed in service before Jan. 1, 2015 to be expensed and to be treated as a deduction in the taxable year in which the facility was placed in service;
• direct the Government Services Administration to study how the Federal fleet could increase the number of light-, medium-, and heavy-duty natural gas and liquefied petroleum gas vehicles in the fleet. 

Companies that stand to benefit greatly include natural gas vehicle and component suppliers such as Cummins, Westport Innovations, Clean Energy Fuels, Honda and others.

Cash for Clunkers

NHTSA’s CARS program website now includes a link to the December 2009 report to Congress on the CARS program.  The reports covers:

1.         Establishment and Operation of the CARS Program
2.         Summary of CARS Transactions
3.         CARS Consumer Survey Data
4.         Economic Benefits
5.         Non-Market Effects
6.         Administrative Costs
7.         Conclusions
 
For a copy of the report, click here.

DOE to Provide $187 Million to Improve Vehicle Efficiency for Heavy-Duty Trucks and Passenger Vehicles

On Jan. 11, 2010, at an event in Columbus, Indiana, DOE Secretary Chu announced the selection of nine projects totaling more than $187 million to improve fuel efficiency for heavy-duty trucks and passenger vehicles. The funding includes more than $100 million from the American Recovery and Reinvestment Act, and with a private cost share of 50%, will support nearly $375 million in total research, development, and demonstration projects across the country. The nine winners have stated their projects will create over 500 jobs, primarily researchers, engineers, and managers who will develop these new technologies. By 2015, the projects expect to create over 6,000 jobs—many in manufacturing and assembly. 

Three projects will focus on cost-effective measures to improve the efficiency of Class 8 long-haul freight trucks by 50%. These projects will receive more than $115 million in funding to develop and demonstrate systems-level fuel efficiency technologies by 2015, including improved aerodynamics, reducing engine idling technologies, waste heat recovery to increase engine efficiency, advanced combustion techniques, and powertrain hybridization.  The remaining six projects totaling more than $71 million will support efforts to increase the fuel economy for passenger vehicle engines and powertrain systems. The goal is to develop engine technologies that will improve the fuel economy of passenger vehicles by 25-40% by 2015 using an engine-only approach.

 The following projects have been selected for awards under two topic areas:

Systems Level Technology Development, Integration, and Demonstration for Efficient Class 8 Trucks (SuperTrucks)

• Cummins Inc. - $38,831,115 - Columbus, Indiana: Develop and demonstrate a highly efficient and clean diesel engine, an advanced waste heat recovery system, an aerodynamic Peterbilt tractor and trailer combination, and a fuel cell auxiliary power unit to reduce engine idling.
• Daimler Trucks North America, LLC - $39,559,868 - Portland, Oregon: Develop and demonstrate technologies including engine downsizing, electrification of auxiliary systems such as oil and water pumps, waste heat recovery, improved aerodynamics and hybridization.
• Navistar, Inc. - $37,328,933 - Fort Wayne, Indiana: Develop and demonstrate technologies to improve truck and trailer aerodynamics, combustion efficiency, waste heat recovery, hybridization, idle reduction, and reduced rolling resistance tires.

 Advanced Technology Powertrains for Light-Duty Vehicles (ATP-LD)

• Chrysler Group LLC - $14,458,572 - Auburn Hills, Michigan: Develop a flexible combustion system for their minivan platform based on a downsized, turbocharged engine that uses direct gasoline injection, recirculation of exhaust gases, and flexible intake air control to reduce emissions.
• Cummins Inc. - $15,000,000 - Columbus, Indiana: Develop a fuel-efficient, low emissions diesel engine that achieves a 40% fuel economy improvement over conventional gasoline technology and significantly exceeds 2010 EPA emissions requirements.
• Delphi Automotive Systems LLC - $7,480,572 - Troy, Michigan: Develop a novel low-temperature combustion system, coupled with technologies such as continuously variable valve control and engine downspeeding, to improve fuel economy by at least 25%.
• Ford Motor Company - $15,000,000 - Dearborn, Michigan: Achieve a 25% fuel economy improvement with a gasoline engine in a 2010 mid- to large-size sedan using technologies including engine downsizing, turbo-charging, direct injection, and a novel exhaust aftertreatment system.
• General Motors Co. - $7,705,862 - Pontiac, Michigan: Develop an engine that uses lean combustion and active heat management, as well as a novel emissions control system, to improve the fuel economy of a 2010 Malibu demonstration vehicle by 25%.
• Robert Bosch - $11,953,786 - Farmington Hills, Michigan: Demonstrate a high compression, turbo-charged engine based on homogenous charge compression ignition technology (a combustion technology that allows for lower emissions and higher efficiency) to achieve up to 30% fuel economy improvement in a gasoline-fueled light-duty vehicle.

 

New DOE Funding Opportunity Announced

Today, DOE issued the attached Notice of Intent to Issue FOA No. DE-FOA-0000239 entitled, “FY2010 Vehicle Technologies Program Wide Broad Agency Announcement.” 

DOE expects to issue the FOA in or around the February 2010 timeframe.  The Department envisions awarding multiple financial assistance awards in the form of cost-shared grants/cooperative agreements.  The estimated period of performance for each award will be approximately 2-3 years. 
 
The following areas are expected to be covered by the FOA:

Area of Interest 1: Advanced Fuels and Lubricants Technologies

Subtopic 1(a): Fuels and Lubricants for Advanced Combustion Regimes

Subtopic 1(b): Direct Petroleum Displacement by Liquid Alternative Fuels for CI Engines in Transportation

Subtopic 1(c): Higher efficiency natural gas (CNG, LNG) engines and vehicle platforms for medium- and heavy-duty trucks and buses.

Area of Interest 2: Lightweighting Materials

Subtopic 2(a): Low Cost Development of Magnesium from a Domestic Source
 
Subtopic 2(b): Demonstration Project for a Multi-material Light Weight Vehicle as part of the Clean Energy Dialogue with Canada

Subtopic 2(c): Development of Low Cost Carbon Fiber

Area of Interest 3: Hybrid and Electric Systems R&D for Advanced Energy Storage and Electric Drive Technologies

Subtopic 3(a): Develop Advanced Cells for Electric Drive Vehicle Batteries

Subtopic 3(b): Improve Electric Drive Vehicle Battery Design

Subtopic 3(c):Modular, Scalable Inverter for Advanced Electric Drive Vehicle Electric Traction Drives

Subtopic 3(d): Motors Using No Rare Earth Permanent Magnets for Advanced EDV Electric Traction Drives

Area of Interest 4: Advanced Thermoelectric and Enabling Technologies for Energy Efficient Powertrains

Subtopic 4(a): Solid State Thermoelectric Energy Conversion Devices

Subtopic 4(b):Enabling Technologies for Engine and Powertrain Systems