The purpose of the Electric Vehicle Deployment Act of 2010 is to promote the rapid, near-term deployment of plug-in electric drive vehicles in order to reduce dependence on imported oil, to strengthen the national economy, and to reduce greenhouse gas emissions.
With the transportation sector driving approximately 70 percent of the country’s oil demand, powering vehicles from alternative fuel sources is a necessary top priority for reducing the country’s oil dependence. Electric-drive cars and trucks represent the most promising near-term opportunity to reduce our dependence on foreign oil.
The Electric Vehicles Deployment Act aims to accelerate the introduction electric cars and trucks throughout the country by creating a national program to support the deployment of electric vehicles and by identifying and supporting at least 5 and up to 15 electric vehicle deployment communities. The bill offers significant incentives over 5 years to these deployment communities to integrate large numbers of vehicles and the necessary infrastructure. The target is to see the introduction of 700,000 electric vehicles in the selected communities. This will enable communities in different parts of the country and of different sizes to “learn by doing,” by experimenting with different approaches to deploying electric vehicles (including questions of how much charging infrastructure to deploy and how to plan for and manage it). It will also demonstrate how electric vehicles can be deployed relatively rapidly at a high market penetration rate in a community. Deployment communities will provide critical information to other communities about how to efficiently deploy electric vehicles in their own backyards. In addition, the bill extends certain incentives nationally to continue preparing for broad deployment across the country, and it invests in key research and development priorities.
Section 1: Short title
Section 2: Findings
Section 3: Definitions
Section 4: National Electric Drive Vehicle Deployment Program
This section establishes a program in the Department of Energy that will develop a national plan for supporting the deployment of electric drive vehicles, and will provide technical assistance on the deployment of electric drive vehicles to communities throughout the country, with a focus on communities that are not selected in the Targeted Electric Drive Vehicle Deployment Communities Program (section 5) but which are good candidates for electric vehicle deployment.
Section 5: Targeted Electric Vehicles Deployment Communities Program
This section establishes a program within the National Electric Drive Vehicle Deployment Program to competitively select “deployment communities” based on their plans to support the deployment of electric vehicles. Deployment communities will be eligible for additional incentives and they will share information with the Department of Energy that will be used to inform best practices for implementing vehicle electrification.
Selection of deployment communities: State, tribal, or local governments may apply to become a deployment community. The application will describe the community’s plan to encourage the deployment of electric vehicles and related infrastructure, and it should demonstrate buy-in from relevant stakeholders such as public and private utilities, government agencies, and providers of electric drive motor vehicles and charging infrastructure. The Secretary of Energy will choose at least 5 and not more than 15 deployment communities that reflect diverse populations, geography, and models for deploying electric drive motor vehicles. At least one deployment community will have a population of less than 125,000.
Grants and cost sharing: Two billion dollars will be authorized for the Program (note that other sections of the bill provide for other incentives, such as an enhanced tax credit program, that are specific to deployment communities). Communities must provide at least 20 percent of the funding for their proposed electric vehicle deployment program from non-federal sources.
Continuation of program: Phase 1 of the Program will last for 5 years from the date that deployment communities receive their grants. The Secretary of Energy will report to Congress on Phase 1 of the Program and will assess whether the Program should be extended and/or modified, and make suggestions for Phase 2, if warranted.
Section 6: Tax Credits
Tax credit for qualified buyers within deployment communities: Raises the tax credit by $2,500 to a maximum of $10,000 and makes the tax credit refundable and transferrable, so that the tax credit can function like a point-of-sale rebate, for deployment community taxpayers only. Entities that take this enhanced credit may not receive the electric vehicle tax credit available nationwide – no double-dipping.
Nationwide tax credit for qualified buyers and manufacturer’s cap: Maintains the current $7,500 tax credit and raises the number of vehicles that qualify for tax credits from 200,000 to 300,000 vehicles per manufacturer before an incremental phase-out.
Medium- and heavy-duty hybrid vehicles: Extends and expands tax credits for medium- and heavy-duty hybrid and plug-in hybrid and plug-in electric vehicles
Refueling property tax credit: Extends the current 50 percent nationwide tax credit for all electric charging stations, including residential and publicly available) through 2016, subject to current price caps. The tax credit is also made transferrable nationwide.
Section 7. Electric Vehicle Refueling Property Bonds and Loan Guarantees
Creates a new qualified tax credit bond that can be issued by governmental bodies, public power providers, or electric cooperatives to fund qualified electric vehicle refueling properties. This cannot be used if the tax credit is used. This section also clarifies that electric vehicle charging infrastructure is eligible for loan guarantees under Title XVII of the Energy Policy Act of 2005.
Section 8. Utility Planning for Plug-in Electric Vehicles
Requires electric utilities to consider the potential levels of plug-in penetration that they might expect to see on their systems in the near term, investigate the potential impacts on their transmission and distribution infrastructure, and plan for the deployment of electric vehicles in their service area. Any utility that does not anticipate meaningful electric vehicle penetration on their system can request that this requirement be waived. The bill also asks State Utility Commissions to participate in any local plan for deploying charging infrastructure, require infrastructure interoperability, consider how it interacts with smart grid, and start to consider rate recovery for utility plans.
Section 9. Federal Fleets
Electricity as a fuel: Directs the federal government to count electricity used to refuel a plug-in electric drive motor vehicle as an alternative fuel.
Report on electric vehicle potential in federal fleets: Directs the Federal Energy Management Program and the General Services Administration to compile a report on how many plug-in electric drive vehicles could be deployed in federal fleets based on needed functionality and costs. Federal agencies are to request funding for these vehicles in their annual budget requests.
Pilot program: Directs the Administrator of the General Services Administration to acquire and deploy plug-in electric drive vehicles to be used in a pilot program in federal fleets and authorizes funds to cover incremental costs.
Section 10. Advanced Batteries for Tomorrow Prize
Directs the Secretary of Energy to establish a competition for the development of a 500-mile vehicle battery.
Section 11. Research and Development
Research and Development: Establishes an R&D program in DOE to work on all aspects of the development, production, and deployment of electric vehicles.
Secondary use applications program: Establishes a research, development, and demonstration program in the Department of Energy to identify and assess possible uses for vehicle batteries at the end of their useful life in a vehicle. Provides grants for selected demonstration projects.
Materials recycling program: Directs the Secretary of Energy to carry out a study on recycling materials from electric vehicles and batteries.
Section 12. Study on the Supply of Raw Materials
Directs the Secretary of the Interior to conduct a study identifying the raw materials needed to manufacture plug-in electric vehicles, batteries, and other components, to describe the known sources of these materials and the risk associated with their supply, and to identify ways to secure the supply chain of critical raw materials.
Section 13. Plug-in Electric Drive Vehicle Technical Advisory Committee
Establishes a technical advisory committee to advise the Secretary of Energy on matters relating to plug-in electric drive vehicles. The committee is to coordinate with the Hydrogen and Fuel Cells Technical Advisory Committee and the Biomass Research and Development Technical Advisory Committee.
Section 14. Plug-in Electric Drive Vehicle Interagency Task Force
Establishes an Interagency Task Force, chaired by the Secretary of Energy, to coordinate federal actions related to plug-in electric drive vehicles and infrastructure.
Section 15. Prohibition on Disposing of Advanced Batteries in Landfills
Batteries from plug-in electric drive motor vehicles must be disposed of in accordance with the Mercury-Containing and Rechargeable Battery Management Act.
Section 16. Loan Guarantees for Advanced Battery Purchases for Use in Stationary Applications
Provides loan guarantees for eligible entities that purchase more than 200 qualified automotive batteries in a calendar year for use in nonautomotive applications. This program will help attract battery manufacturing facilities to the U.S. while plug-in electric drive vehicle production is still ramping up.
Section 17. Model Updating Building Codes, Permitting and Inspection Processes, and Zoning or Parking Rules
Directs the Secretary of Energy to develop and publish model building codes that include charging infrastructure, model construction and permitting codes that allow for expedited installation of charging infrastructure, and model zoning, parking rules, or other local ordinances that apply to publicly available charging infrastructure.
Section 18. Workforce Training
Provides grants for training first responders, electricians, contractors, and engineers who will be installing infrastructure, code inspection officials, dealers, mechanics, and others. Provides grants for programs in designing plug-in electric drive motor vehicles and associated components and infrastructure.
See also: Electric Vehicle Deployment Act of 2010