By David Shepardson
WASHINGTON (Reuters) - A bipartisan $1.2 trillion infrastructure framework does not contain new money for electric vehicle rebates but would spend $15 billion to boost EV charging stations and buy electric school and transit buses, the White House said in a fact sheet.
President Joe Biden proposed $174 billion on electric vehicles, including $100 billion on electric vehicle consumer rebates. Democrats in Congress still plan to seek funding for EV rebates in other legislation this year. The funding would "accomplish the president’s goal of building 500,000 EV chargers" and "electrify thousands of school and transit buses across the country," the White House said.
Both General Motors Co (NYSE:GM) and Tesla (NASDAQ:TSLA) Inc have hit the manufacturer cap and no longer qualify for consumer $7,500 EV tax credits.
Previously, Biden had sought $15 billion for EV charging stations, The plan also calls for $20 billion for electric school buses and $25 billion for EV transit vehicles.
The fact sheet says the measure could be funded by various ways including sale of crude from the U.S. Strategic Petroleum Reserve, but it does not offer a precise figure. Another funding method would be to reinstate Superfund fees for chemicals.
The deal dropped two funding ideas that had been considered: a per mile fee on electric vehicles and indexing gasoline taxes to adjust for inflation.
Congress has not boosted the 18.4-cents-per-gallon federal gasoline tax since 1993. That tax is now worth just 10.2 cents after adjusting for inflation.