Charging Stations and Electric Cars Affected by New Proposals (Part I)

The European Union passed new laws to fight global warming and harmful effects to the environment. Soon after, attention turned to the U.S. wondering if President Biden would follow the growing political trend- environmental action. The 46th U.S. President proposed a highly debated budget packet and The House recently passed the bipartisan infrastructure bill. To no surprise, these two proposals received mixed reactions in Washington D.C.. The budget proposal would have an impact if it passes and the infrastructure bill will have a big impact on environmental action, the electric car market (EVs), charging station numbers, and the American automotive industry in general. Here’s what you need to know about President Biden’s proposed budget plan and recently passed infrastructure bill, along with how they could affect the country’s electric cars, EV auto sales, charging stations, and the overall auto industry.

How are charging stations and electric cars impacted?

In order to understand the weight of the proposals, knowing what they target and contain is key. President Biden’s budget packet attempts to help Americans financially and provide relief in different areas. The idea is to provide more relief and encourage recovery as the nation tries to heal from the COVID-19 pandemic. The budget packet also addresses various environmental issues, new regulations and incentives, along with other benefits. The approved infrastructure bill will attempt to help with the country’s disaster preparedness and transportation infrastructure. This infrastructure bill also includes some focus on bridges and roads, electric car sales, EV infrastructure, and more. These two proposals will affect much more than just the automotive industry, but the auto industry will be impacted.

Electric car sales and EV prices affected by Biden’s proposals

This proposed budget packet addresses global warming and environmental incentives in Washington. The budget packet also focuses on Americans and the economy recovering from the COVID-19 pandemic.

• This proposal tries to expand on tax incentives for the electric car sales. This is done by offering a tax credit incentive to help promote more sales. However, if the EV is produced by a unionized workforce, then even more credit would be received.
• President Biden’s proposed budget package would penalize oil and gas companies if they fail to properly contain methane. Methane is one of the infamous greenhouse gasses affecting the environment.
• This budget would reward utility companies that use green energy like, solar, wind, and more. This would also penalize utility companies not meeting the new standards. There would also be an incentive for utility companies switching to clean energy.
• Other major points from this proposed budget are: two free years of community college for eligible students, child care and universal pre-K, Medicare expansion, extended child tax credit, lower prescription drug prices, and paid family/medical leave.

These proposals cover a lot, but aim to make the U.S. ready to source 80% of its electricity from utilities not generating carbon dioxide by the year 2030. As of right now, the U.S. only receives 40% of its electricity from sources that don’t produce carbon dioxide. Paired with the infrastructure plan, Biden’s budget package would be the United States’ strongest action toward becoming a more environmentally stable Nation.

Charging stations and more affected by infrastructure bill

This infrastructure bill, which is waiting on the President Biden’s signature, is detailed by The White House in this fact sheet. This bill aims to sharpen the country’s readiness for natural disasters, targets threats to the environment, and global warming. This infrastructure bill also plans to manage, reduce, and repair damaged communities, while creating more a environmentally healthy infrastructure for the future.

• This bill is investing $7.5 billion into electric car charging points along highways and throughout communities. This investment will be vital in preparing EV infrastructure for growing and future demand.
• $5 billion towards updating thousands of school and transit busses to electric power in order to cut down on unwanted emissions. This would also help towards domestic manufacturing of zero emission vehicles and parts. There is also a $39 billion investment in maintenance, environmentally clean, and creating more accessible public transportation.
• Develop an “infrastructure financing authority” that’s responsible for using billions of dollars to help develop clean transportation and energy.
• Upgrade the country’s power infrastructure by building thousands of miles of new transmission lines. The transmission lines would help with the expansion of renewable energy. This plan attempts to be the single largest investment in clean energy transmission in the history of the U.S.
• This bill aims to improve American transit and railway networks throughout the country. The bill also focuses on reducing greenhouse gas emissions.
• Repair and rebuild different roads and bridges, while still focusing on climate change, equity, safety for all commuters, and lasting durability. This plan is the largest bridge venture since the interstate highway system.
• other major points of the infrastructure bill are: weather disaster preparedness, making American buildings more environmentally and energy efficient, address legacy pollution, create more environmental awareness with environmental related jobs, and more.

 

Electric vehicle and charging station changes affecting the future

The budget proposal from President Biden, if passed, and the recently approved infrastructure bill will have a big impact on the nation’s auto sales and the automotive industry, among other things. Specifically, with the auto industry, the investment into EV infrastructure and incentivizing the sale of EVs could push the industry further into an automotive revolution. Interest in the EV market is rising, along with interest and demand in charging stations. With the capital invested from these proposals, EV sales would be expected to increase.

Ford is a major automotive manufacturer currently making big moves towards electric cars. The historic manufacturer recently announced plans for two electric car factories to produce their vehicles and batteries, with the goal of more electric car sales. These two factories would create thousands of jobs. Ford and other manufacturers/dealers will have to properly train new and old employees. Working with EV technology is becoming more common, as auto manufacturers buying into electric car technology is a growing industry trend. Tesla is the easiest example of an automotive manufacturer pushing the industry forward through successful competition. The American automotive industry, in general, has historically resisted evolving to electric powered vehicles. Now, the industry seems to agree that environmentally friendly and electric cars are the future.

 

Will there be more charging stations and electric cars in the future?

The future of the automotive industry and auto sales are going further and further down the road toward electric cars, so there’s obviously a need for more EV infrastructure. The infrastructure bill will be the country’s largest investment ever into electric car charging points. The infrastructure bill sets the goal of building 500,000 charging stations nationwide. The charging stations would be along highways and in rural communities. An increased number of charging stations will be a huge step forward for EV sales. The limited number of EV charging stations currently available is one of the main factors holding electric car sales back. Now that the infrastructure bill has been passed, it looks like more charging stations will be coming.

President Biden’s budget proposal also targets electric car sale incentives. The proposal incentivizes EV sales by giving an amount of credit towards the vehicle. However, like previously mentioned,  if the electric car comes from a unionized workforce there would be an additional amount of credit too. This aspect of the proposals is being met with mixed reactions from the automotive industry, but the incentives proposed attempt to increase the sales of electric cars.

 

Electric car sales and EV charging stations are tied to Washington

So, is this all going to happen? Well, the growing awareness of global warming and environmental justice has pushed governments, specifically the U.S., to take more action. The President and some Washington politicians celebrated passing the bipartisan infrastructure bill, but approval of the budget packet is still up in the air. Other politicians and lobbyist groups are in disagreement, so they want to block the remaining proposal. The infrastructure bill and budget packet have drawn a lot of fighting through lobbying in Washington. The fighting comes from a multitude of interested parties and trade groups. Utility companies, automotive manufacturers, environmental lobbyists, big oil, and more are all fighting for their agenda. They’re also fighting for the chance to change or stay the same. Now that the infrastructure bill is passing, the auto industry and rest of the nation will wait to see if the budget plan passes too.

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