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UNFAIR EV INFRASTRUCTURE EXPANSION/EV TAX CREDIT

BACKGROUND

Currently, the issue of alternative transportation technologies and electric vehicles is being included in the debate on infrastructure and climate change in the House.  The Senate is also considering tax incentives and grant programs for electric vehicles and charging infrastructure.

PMAA believes a balanced approach is needed that considers all forms of energy and provides for a reasonable transition to future energy sources.  Liquid fuels play an important role in lowering vehicle emissions. Liquid fuels store well and transport easily in trucks, ships and by pipeline which allows the most competitive price for motorists.  According to the EPA, between 1970 and 2016, investments in cleaner fuels helped reduce U.S. air pollution by 73 percent, even as total miles driven nearly tripled. Maintaining liquid fuels are integral to the transition to future energy sources and the viability of small business petroleum marketers.  

Meanwhile, PMAA members are concerned with utilities using their rate base to pay for electric vehicle (EV) infrastructure expansion which allows utilities an unfair competitive advantage over petroleum marketers who must economically justify at risk investments in new equipment such as EV charging stations.  PMAA opposes granting a de facto monopoly to utilities unfairly competing in the marketplace which could ultimately put small business petroleum marketers out of business.

FEDERAL AND STATE TRANSPORTATION POLICIES SHOULD:

    • Forbid public and private sector actors from using their monopoly over power generation or supply to impose specific technologies and unfair costs on consumers.
    • Eliminate subsidies that predominantly benefit the wealthiest individuals and households at the expense of lower income consumers.
    • Ensure that transportation energy can be sold in a vibrant, free market.
    • Create a level playing field, in which no single fuel or technology is favored over another.
    • Require that all vehicle owners and operators, no matter what fuel type they choose, pay their fair share for road maintenance and repair.
    • Ensure that consumers and policymakers can make objective decisions about the lifecycle impacts of electric vehicles, and that sound science and data are used to determine and accurately define key legal and regulatory concepts, such as “clean” and “zero emissions.”
    • Require energy and national security considerations in decision-making, recognizing that both may be harmed if we increase our dependence on foreign countries for raw materials and equipment.
    • Maintain public health, safety and environment by ensuring that citizens and governments can effectively respond to accidents, natural disasters and terrorist attacks via a robust energy and transportation infrastructure.

EV TAX CREDIT

PMAA opposes the extension of the lucrative $7,500 electric vehicle (EV) tax credit and supports the “Fairness for Every Driver Act,” (H.R. 1027) and (S. 343):

Specifically, the bills would:

    • Terminate and repeal the federal electric vehicle tax credit up to $7,500 per new electric vehicle purchased for use in the U.S.;
    • Impose a federal highway user fee on alternative fuel vehicles;
    • Require that all user fees be collected with the user’s tax return; and
    • Ensure the transfer of federal highway user fees into the Highway Trust Fund (HTF).

Meanwhile, Senators Debbie Stabenow (D-MI), Lamar Alexander (R-TN), Gary Peters (D-MI), and Susan Collins (R-ME) along with Congressman Dan Kildee (D-MI) introduced the “Driving America Forward Act,” which would expand the EV and hydrogen fuel cell tax credits.  Specifically, the legislation would reduce the $7,500 credit to $7,000 and would lift the tax credit cap from 200,000 to 600,000. Under current law, the tax credit phases out on a per manufacturer basis once that company has sold 200,000 EVs total for use in the United States.  Recently, Tesla and GM reached the 200,000 cap and are now in the phase out period of the credit.

PMAA is concerned that expanding the EV tax credit places the burden on the poor and middle-class ratepayers who are subsidizing the wealthy’s luxury buying power to purchase expensive EVs.  

“THE ASK”

  • Urge your lawmakers to cosponsor the “Fairness for Every Driver Act” (H.R. 1027) (S. 343), introduced by Rep. Jason Smith (R-MO) and Sen. John Barrasso (R-WY), which provides a level playing field for all vehicles by eliminating the electric vehicle tax credit and ensuring alternative fuel vehicle drivers pay into the Highway Trust Fund.
  • Urge your lawmakers to oppose the “Driving America Forward Act,” (S. 1094) which would expand the EV and hydrogen fuel cell tax credits.  

PMAA STAFF CONTACT:  Rob Underwood, Sherri Stone