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Legislation to boost the number of charging stations for
electric vehicles (EVs) and hydrogen refueling stations was
introduced in the US Senate 25 March.
The "Securing America's Clean Fuels
Infrastructure Act" would achieve that end by extending the
federal tax credit, which was due to expire at the end of 2021, by
another eight years to 31 December 2029 and by increasing the cap
for business investments from $30,000 to $200,000.
This means any installation installed by 31 December 2029 would
be eligible for the tax credit, and that it would apply to "any
such item" on the property, meaning it can applied to individual
charging or refueling units instead of the property as a whole.
The bill now heads to the US Senate Finance Committee, which is
headed by Senator Ron Wyden, Democrat-Oregon, who has written and
backed legislation to extend tax credits for renewable energy
sources.
If passed in both chambers of the US Congress, the bill would
help with President Joe Biden's plans to decarbonize the
nation's economy as well as near his stated goal of installing
500,000 EV charging outlets by the end of 2030.
Currently, there about 90,000 EV charging outlets across the US,
according to a 19 March Credit Suisse equity research note that
focused on EV development in the US. To reach Biden's goal, Credit
Suisse said congressional support is needed.
There are just under 100 hydrogen refueling stations, most of
them in California.
Breaking down financial obstacles
"The Securing America's Clean Fuels Infrastructure Act will
break down the financial obstacles to building the hydrogen
refueling and electric charging stations we need across our
country," US Senator Tom Carper, Democrat-Delaware, the bill's
coauthor, said in a statement.
Carper was joined by Democratic colleagues Catherine Cortez
Masto of Nevada, Debbie Stabenow of Michigan, and Republican
Richard Burr of North Carolina to introduce the bill, which would
amend the US Internal Revenue code that applies to the Alternative
Fuel Vehicle Refueling Property Tax Credit, commonly known as a
"30C" credit.
The 30C credit applies to clean-burning fuels, which include
electricity. It also applies to fuels containing at least 85% by
volume of hydrogen, ethanol, natural gas—compressed and
liquefied—and compressed petroleum gas.
"For our automakers to be globally competitive and to meet our
climate goals, we need millions more electric and fuel cell
vehicles on our roads in the next decade. By bringing down
investment costs, our bill will ensure our nation starts building
the necessary charging and clean vehicle refueling stations today,"
Carper, who chairs the Senate Environment and Public Works
Committee and is a senior member of the Senate Finance Committee,
said in a statement accompanying the bill.
Burr who also sits on the finance committee, agreed, saying the
bill "incentivizes" private sector investment in aging
infrastructure by "expanding renewable, clean fuel choices for
American drivers."
The bill was introduced a day after Stephane Pollack, acting
administrator for the Federal Highway Administration, said the
agency would look at how to use existing rights-of-way to place charging
stations for EVs.
'Game changer'
Thomas Maslin, associate director with IHS Markit North American
Power & Renewable Power, called the bill "a game changer" much
like investment tax credits were for solar and wind energy.
What's more important, the increase in business investment cap
to $200,000 would allow the construction of much larger commercial,
fast-charging stations than is the case right now, Maslin said, who
specializes in EVs and solar, and distributed energy resources.
"This makes sense and would align with Biden's 500,000 EV goal
and the goals of many other states," Maslin said.
The bill has broad support from Ford, Honda, General Motors,
Volkswagen, the Alliance for Automotive Innovation, the Electric
Drive Transportation Association, the Fuel Cell and Hydrogen
Association, Stellantis, Duke Energy, Volta Charging, ChargePoint,
EV Box Group, and the Hydrogen Energy Association. Also backing the
bill are a number of environmental groups, including the Union of
Concerned Scientists, Sierra Club, and the National Wildlife
Federation.
Posted 25 March 2021 by Amena Saiyid, Senior Climate and Energy Research Analyst
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