Our Work

Federal EV Policy

A shift to electric transportation will reduce the economic, national security, and emissions impacts that stem from America’s dependence on oil. Widespread adoption of electric vehicles will create new jobs, reap financial savings for consumers and fleet operators, improve air quality, and reduce greenhouse gas emissions. 

Federal Legislation: Laying the Foundation for an Electric Transportation Future 

The Biden-Harris Administration and 117th Congress have passed critical legislation that will establish U.S. leadership in electric transportation and maintain our global competitiveness in the automotive industry. The Infrastructure Investment and Jobs Act and the Inflation Reduction Act are historic acts that invest hundreds of millions into the EV sector. They will bolster U.S. manufacturing and supply chains to support the transition for both the light-duty and medium- and heavy-duty sectors.   

The Electrification Coalition has long advocated for federal policies to accelerate the adoption of EVs. These policies can be categorized into four core pillars:  

  1. Purchase incentives  
  2. Charging infrastructure funding 
  3. Federal fleet electrification funding 
  4. EV manufacturing and supply chain funding and programs  

Electrifying the Federal Fleet

Nearly all federal buses and light-duty vehicles could be replaced by EVs at a cost savings to taxpayers.

Purchase Incentives

Tax credits for all vehicle types (light-, medium-, and heavy-duty) will continue to spur market growth by reducing the early higher upfront costs of EVs. They also signal to manufacturers, consumers, and fleet operators that the United States is prioritizing an electric transportation future. The Inflation Reduction Act created a long-term extension of the Section 30D tax credit for light-duty vehicles, a new commercial EV credit (Section 45W), and a used EV credit (Section 25E). The Bipartisan Infrastructure Law also created a Clean School Bus program, with $2.5 billion in dedicated funding for the purchase or lease of electric school buses. While the EC thanks Congress and the Biden-Harris Administration for these credits and programs, there are some modifications still needed:  

  • Section 30D Credit:
    • Modify the timeline for compliance on the final assembly, minerals, and battery sourcing requirements to allow for the greatest number of consumers to claim the credit while still allowing for market development.   
    • Expand the free-trade agreement (FTA) country requirement for the minerals and battery sourcing requirements to include NATO and Major Non-NATO Allies. 
    • Modify the sourcing requirement for foreign entities of concern to be 80%. 
  • Clean School Bus program:
    • Increase the funding for this program and limit the program to only electric school buses.  
  • Excise tax:
    • Suspending the 12% federal excise tax on zero-emission trucks will set a clear market signal and incentivize public interest. This also acts as a purchase incentive. 

Charging Infrastructure Funding

Consumers, businesses, fleet operators, and drivers need adequate access to EV charging infrastructure. The Bipartisan Infrastructure Law included $5 billion to build out a network of EV charging along highways (alternative fuel corridors) and provided another $2.5 billion in competitive grant funding to further build out charging infrastructure (though this includes all alternative fueled charging technologies). At least 50% of the funding under the competitive grant program must be put towards communities, with priority given to low-income and rural communities. The Inflation Reduction Act also included a long-term extension of the Section 30C Alternative Fuel Vehicle Refueling Property Credit until Dec. 31, 2032. The Section 30C credit was also modified to allow for bidirectional charging stations to qualify for the credit. With these programs and this credit, the U.S. is on its way to meeting the demand for charging infrastructure as adoption grows. However, the following programs are still needed: 

  • Rest stop electrification:
    • Enable commercialization of rest stops along interstate highways: Allow for EV charging stations to be defined as allowable commercial activity at rest stops. 

Federal Fleet Electrification

The United States government can lead by example by electrifying the federal fleet, including the U.S. Postal Service vehicles. The Biden Administration has already set a goal to electrify all new light-duty vehicles by 2027, and to make all federal vehicle acquisitions electric by 2035. The EC strongly encourages each agency to keep track of fleet electrification efforts. In addition, the EC supports a bold allocation of funding for federal fleet electrification, including USPS fleet electrification, along with these additional programs:  

  • USPS funding:
    • The Inflation Reduction Act included $3 billion to electrify the federal fleet, but more is needed to completely transition the fleet and to cover the initial upfront payment of the vehicles. As the fleet transitions to electric, the USPS will see financial savings and significant carbon reductions. conversion.  
  • Total cost of ownership methodology:
    • Currently, government fleets do not use a total-cost-of-ownership calculator to determine which gas vehicles to replace with electric. Requiring that this methodology be used in fleet vehicle replacement would ensure that any upfront price of EVs and charging infrastructure is appropriately balanced with the benefits that EVs bring (I.e., lower maintenance and fueling costs compared to gas and diesel vehicles). The EC supports the total-cost-of-ownership methodology to be used for replacing vehicles within the government fleet, including non-tactical military vehicles.   

EV Manufacturing and Supply Chain Funding and Programs 

The Inflation Reduction Act and the Bipartisan Infrastructure Law included multiple policies and programs to promote the U.S. manufacturing and supply chain of these clean vehicles. Policies in the Bipartisan Infrastructure Law include $6.135 billion for battery material processing, manufacturing, and recycling grants. Policies in the Inflation Reduction Act include $10 billion for the Section 48C manufacturing tax credit, with specific inclusion for applicable EV projects; a new Advanced Manufacturing Production Credit (Section 45X) for the manufacturing of batteries and critical minerals facilities; $3 billion for the Advanced Technology Vehicle Manufacturing program with specific incentive amounts for battery and critical minerals production; and $2 billion for the Domestic Manufacturing Conversion Grant program.  

RESOURCES

EXAMPLES OF OUR WORK

Get America Moving Again

The EC and SAFE developed recommendations to stimulate renewal, growth, and global leadership and support national security in the movement of people and goods.

EXAMPLES OF OUR WORK

Ben Prochazka Federal Testimony

Ben Prochazka, Vice President of the EC delivers testimony before congress.

EC NATIONAL DIRECTOR
DELIVERS EV TESTIMONY

The EC’s National Director, Ben Prochazka, delivered testimony for EVs, EV infrastructure, and advancing the future of electric mobility before the House Transportation and Infrastructure Committee in 2019.

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Amy Malaki

Amy Malaki is the Director of Partnerships and Policy at SkyNRG and SkyNRG Americas, pioneering global leaders in sustainable aviation fuel production and supply. Prior to SkyNRG, Amy was the Associate Director for the transportation portfolio at the ClimateWorks Foundation where she developed philanthropic investment strategies to advance a sustainable, equitable and low-carbon mobility system. She also pioneered the organization’s international aviation decarbonization strategy. Prior to that she focused on Asia business development at Better Place, a Silicon Valley electric vehicle network startup. She has a B.A. in Chinese and China studies from the University of Washington and an M.A. in international policy studies (energy and environment) from Stanford University.