Last Wednesday, U.S. Senate Majority Leader Chuck Schumer and Senator Joe Manchin released a statement agreeing to move forward with legislation titled the Inflation Reduction Act of 2022. This legislation would be the single largest clean mobility investment in the country’s history. The reconciliation plan would fund several clean mobility projects and incentive programs including the following:
- Extension of the light-duty EV tax credit, with additional modifications including fuel cell electric vehicles, eliminating the cap on vehicles sold per manufacturer, and requiring certain percentages of American-made and sourced battery materials
- Extension of the Alternative Fuel Refueling Property Tax Credit
- New used EV tax credit
- New commercial clean vehicle program
- $60 million for the Diesel Emission Reduction Act program
- $2 billion for the Domestic Manufacturing Conversion Grant program
- $3 billion for the Advanced Technology Vehicle Manufacturing program
- A long-term extension of the Advanced Manufacturing Production Credit
- $600 million for a Clean Heavy-duty Vehicle Grant Program
- $2.25 billion to reduce air pollution at ports through deploying zero-emission technology
- A strong Environmental and Climate Justice Block Grant program
- Decarbonized hydrogen tax credit
- Tax credits for biodiesel, renewable diesel, and sustainable aviation fuels
This bill still needs to pass in the Senate and the House of Representatives before being signed into law. A bill that had similar provisions for clean mobility, called the Build Back Better Act, passed in the House last year.
Last month, Clean Fuels Michigan sent a letter to Michigan’s federal legislators urging them to support clean transportation policies. This letter was signed by 27 members and partners, representing alternative fuel and electric vehicle automakers, electric vehicle charging station companies, environmental advocates, health advocates, electric utilities, alternative fuel trade organizations, and more. Every one of our requests in the letter is included in the Inflation Reduction Act of 2022. We are thrilled to see our priorities included and eager to continue our advocacy so that clean mobility thrives in Michigan and beyond.
