An Infrastructure Plan to Cause Faster EV Adoption

"We're going to set a new pace for electric vehicles," said Biden on Tuesday while speaking at the Ford Motor Co in Dearborn, MI. He was there to promote and further explain the need for his American Job’s Plan, a push to support infrastructure upgrades and investment in U.S.-based jobs.

The centerpiece of the EV portion of Biden’s plan is $100 billion in consumer rebates for U.S. made electric vehicles (EVs), though it is not yet decided how large grants would be or how they will be allocated. This may provide additional funding support beyond the $7,500 federal tax credit that is still available for most EVs, or gap funding for those looking to purchase Tesla or GM vehicles (manufacturers that no longer qualify for the tax credit).

Included in the plan Biden backs $10 billion in new tax credits for zero-emission medium and heavy-duty work vehicles, $20 billion for electric school buses (aimed at electrifying 20% of school buses in the U.S.), and $25 billion for zero emission transit vehicles.

Separately, the President wants $15 billion to build 500,000 EV charging stations by 2030 - including in apartment buildings and public parking. He also wants to work an electrifying federal fleets. including electric trucks for the Postal Service.

The reality is that whatever the final magnitude of this funding, it will expedite EV adoption across the country. It will make EVs and EV charging more visible, which will have ripple effects on future adoption. It will also help push more electric vehicles into the secondary market making more vehicles accessible to a variety of prospective buyers.

Thinking ahead about how to help make incentives more accessible to customers and funding, it will be important for cities and utilities to help residents and customer be aware of existing tax credit opportunities as well as new incentive opportunities. There is also the potential for local governments and rural electric cooperatives to work collectively to help ensure that future Federal funding is brought to their communities. These monies can help leverage improvements to grid infrastructure and help drive the attractiveness of programs that will support beneficial load growth and bring new amenities to local businesses as a form of economic development.