Highlights of President Biden’s $2 Trillion Infrastructure Plan
Just a few months into his first term, President Joe Biden has unveiled a massive infrastructure plan that would support a mass shift from fossil fuels to clean renewable energy and zero-emission vehicles. The Democrat campaigned on a green-energy platform, pledging to tackle the climate change crisis while simultaneously helping the country’s economy recover from the coronavirus pandemic. Soon after he assumed office, Biden announced a plan to build 500,000 public electric charging stations across the country.
The new infrastructure plan, which was released in late March, outlines his green-energy plan more conclusively. Among other things, the plan would support policies designed to boost electric vehicle (“EV”) adoption, provide funding for half a million public EV charging stations and prepare the electric grid for a mass shift from gas-powered vehicles to EVs. At the moment, EV adoption is held back by a variety of factors, chief among them the high upfront costs drivers have to bear as well as an insufficient and often unreliable network of public charging stations.
According to an official fact sheet released by the White House, Biden’s infrastructure plan sees technology leadership, climate change and more employment opportunities as connected issues that should be addressed together. The plan includes a massive $174 billion investment to boost EV adoption by supporting the retrofitting of factories, reducing reliance on foreign supply chains, boosting the local EV market, and providing job opportunities to develop EV batteries and electric vehicles.
The plan would provide tax incentives and point-of-sale rebates to make zero-emission vehicles more affordable as well as incentive programs and grants to support the development of a network of 500,000 EV chargers by 2030. The Biden administration has already pledged to replace its entire fleet of vehicles with EVs, prioritizing American-made models. The White House has also stated that one of its top priorities is expanding the tax credits EVs are already entitled to.
On top of electrifying the entire federal fleet, Biden’s infrastructure plan would see 50,000 gas-powered transit vehicles replaced with electric models. It would also provide funding for the electrification of 20% of America’s fleet of school buses. Finally, $15 billion has been designated for projects in carbon capture, utility-scale energy storage solutions and rare earth element separations, while $50 billion will be used to fortify the nation’s infrastructure against extreme weather events.
The electric vehicle industry is predictably happy with the infrastructure plan. Fred Krupp, president of the Environmental Defense Fund, notes that zero-emission electric buses and trucks are key to achieving the nation’s climate goals.
The federal infrastructure plan comes at just the time when the EV industry is waiting to see what the planned merger between Mullen Technologies and Net Element (NASDAQ: NETE) has to offer the electric vehicle sector that is evolving rapidly to meet motorists’ needs of today and years to come.
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