Originally posted on EVANNEX.
By Charles Morris

The Biden administration has come up with a number of initiatives to promote transportation electrification and clean energy. Three of these are particularly focused on the automotive industry. Large investment in EV charge infrastructure; And a set of new fuel economy standards. Which of these three programs is the most important, which can be implemented most, and what can each of them be especially for Tesla drivers?

Before you move on, let’s note that predicting government programs is always a risky business. They are always extremely complex, often following major revisions between proposals and policy levels, and their real-world results will be revealed in years, if not decades. The following papal and pantry are based on our current understanding of these ideas.

Federal EV Tax Credits 2.0

Building a better plan for President Biden’s plan involves improving the federal tax credit system for EV purchases. The proposed system will improve the existing tax credit in many ways. Used EVs includes incentives for buyers; And it eliminates the automatic-oriented cap that ended thanks to Tesla and GM, and is unfairly punished for being an early driver of electrification.

However, there is one offer that is not popular with Tesla fans – one that is sweeter for cooperative vehicles. Currently, only Ford, GM and Stellant are eligible for additional loans – all other American car manufacturers are non-cooperative stores. Tesla CEO Elon Musk, as usual, has used some provocative language to oppose loans, linking himself to oil companies like Joe Manchin (de-fossil oil industry) and perhaps wanting no federal support. Absolutely not for EVs.

Some believe that supporting unions may be an appropriate goal, but it has nothing to do with promoting EVs. They argue that it has everything to do with electrifying other unions. Anti-productive EVs-versus-jobs narrative is taking shape (encouraged by the oil industry) not only in the US but also in Germany and Japan. Anti-Tesla FUDsters have found a new theme – describing EVs as murderers – so wasting a union in places like Texas may be politically popular, but it may not be of long-term benefit to the EVI industry.

Although Mr. Musk is angry, UAW is not a problem for Tesla, whether he throws a bone or not. It is difficult to imagine how much the discount would cost to the company that is currently selling each of its cars and is constantly increasing prices. And it’s not something Tesla buyers can call price. For those who can invest $ 45,000 + in a new car, another $ 4,500 will not affect their decision-making in one way or another (although, unfortunately, it may cause them to go through a set of premium tires or red. Tesla is a test drive that no one will miss because Bolt is cheap.

In addition, the debate is likely to escalate into a full-blown debate. At the time of writing, Better is dead in the water, and he was shot dead by Ebenezer Manchi the day before. Restarting EV tax credit may be limited to a certain extent, but it will certainly be less generous than originally intended.

Billions for new charging infrastructure

The Biden Administration Electric Vehicle Charging Action Plan is part of the bilateral infrastructure law signed in November, so it is a final agreement (hopefully). However, this is not a game changer we are reading on some credible media.

The account provides two separate programs and two separate cash registers. The Charging and Fuel Infrastructure Grants Program provides $ 2.5 billion in competition assistance, which can be invested in public EV chargers or hydrogen, propane or natural gas stations. Most of the money can be spent on projects that are not directly related to the EV charge, and a small amount may be in the oil industry.

The National Electric Vehicle Formula Program states that $ 5 billion will be used to build a “national charging network”. The wild card here is how state governments decide how to use the money. Legislators in non-EVA states may find ways to divert some looting to pet projects or reduce federal spending on existing EV initiatives. The good news is that support for EVs, at least at the state level, is not properly distributed along party lines. Some Red Cross states have invested in public funds in the past.

Pushing for EV Infrastructure Fund at the White House (YouTube ፡ KRIS 6 News)

Can some of these funds be used to fund the Tesla Superchargers? It would be unthinkable if Tesla would follow up with supercarriers to make it available to other car manufacturers in the US market. Tesla has previously placed superchargers with other chargers in public-funded projects.

Make no mistake, $ 7.5 billion is a big bucket – but with more than 50 states in place, the federal government will not allow it to sweep the market (and this is probably a good thing). For comparison, consider some other large-scale infrastructure projects. Electrifice USA was established in 2016 with a budget of $ 2 billion for 10 years. Last November, the European charging network announced that it would invest an additional € 700 million (approximately $ 792 million) to expand its IONITY network. Over the past few years, state governments and electricity providers have announced hundreds of millions of billing schemes. Edison Electric Institute Consumer Business Group recently announced that it has invested $ 3 billion in electro-mobile projects. Volvo, Daimler and Tarton Group have announced a new 500 500 million partnership to build a high-paying public transport network for trucks and coaches in Europe.

Fuel economy levels for the future

In December, EPA completed new car emissions standards, which New York Times The most important climate action taken by the Biden administration to date and [the] High level of fuel economy.

The new rules for the 2023 to 2026 model years include cars, passenger cars and light cars with an average fuel economy of 55 MPa by 2026. Obama administration The rules he issued in 2012 (and the Trump administration’s attempt to drain water) averaged 51 MPH by 2025.

This is by far the most important of the three major Eve initiatives we are discussing here. It requires a different action than the other two. Discounts on EVs and charging stations may be helpful, but if consumers do not have good EVs to buy, they will not use discounts or chargers. Demand-side incentives should be linked to supply-side incentives, and this is where the fuel economy standards come from.

Strong fuel economy standards are designed to force automated manufacturers to produce EVs, whether they like it or not. No gas vehicle can reach 55 MP. He will never get near or succeed at all. (Very effective [non-hybrid] The Mitsubishi Miraj in the US market is about 39 MPa, and the Ford F-150 is about 20. Popular Gas-Gutters (and / or Buy Credits from Tesla).

As with discounts and infrastructure investments, EPA standards apply immediately. Motorists have already pre-designed cars for the 2023 model and their lineup should include more EVs and / or hybrids for 2024 and beyond. None of this is surprising for men (and one woman) in corner offices – they know that strong EPA rules are on the way since November 2020 and that a new wave of investment in EV development, battery factories and sources is coming soon. Raw materials are definitely a direct result.

As with discounts and infrastructure investments, EPA regulations will make it harder for anti-EV forces to reverse. Unless some unexpected miracles happen, Republicans will recapture the House, and perhaps add their own. De Factu In November, it will be one of the first tasks of the Senate and most of President Biden’s climate change initiatives. However, Trump’s henchmen understand that rewriting federal regulations is a long and complicated process – they have four years to do so, but they are not running out of time. Although the future Republican president has taken some radical steps, such as the complete abolition of the EPA (or the removal of the Supreme Court), by 2024 cars are well on their way to meeting the new standards and we hope. A little belly to throw the process back into chaos.

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