Biden lays out cash-for-clunkers policy in presidential bid

Presidential hopeful Joe Biden has made electric vehicles a centrepiece of his $US2 trillion climate and energy package, including the re-instatement of the full federal EV tax incentive and also giving US drivers cash to turn in their old fossil-fuelled clunkers.

The wide-reaching environmental plan includes a vision to create millions of jobs for Americans, whom have been sorely stung by the Covid-19 pandemic, by kickstarting a new era of clean jobs with the electric vehicle transition as a key piece to the clean and green puzzle.

Under the plan, Biden – the presumptive Democrat candidate who is currently leading President Donald Trump in opinion polls by a wide margin – wants to see the struggling US auto industry given an electric vehicle boost.

One is by encouraging demand for US-made electric vehicles via 3 million government fleet purchases, as well as setting a target for 100% US-made electric buses by 2030, including converting 500,000 school buses to electric drivetrains.

The plan would also see 500,000 more EV charging stations installed to help alleviate range anxiety, supported by training program such as the Electric Vehicle Infrastructure Training Program to upskill Americans in EV infrastructure.

Supporting local battery development, and ensuring robust fuel economy standards are also at the heart of the plan.

Notably, Biden also wants to reinstate the full federal tax incentive, which has been phased down from a peak of $US7,500 for EVs sold per car maker. For the top selling Tesla this has now been totally phased out, while for Chevrolet it is down to $US1,875.

While a proposal to expand the EV tax credit was put to the White House in December according to Green Car Reports, it was knocked back by the Trump White House.

But out of all the pieces in Biden’s clean automotive policy plan, it is the so-called “Cash for Clunkers” that is attracting media attention.

“Biden will build on their leadership by providing consumers rebates to swap old, less-efficient vehicles for these newer American vehicles built from materials and parts sourced in the United States,” said Biden in his policy statement.

“These rebates will be accompanied by significant new targeted incentives for manufacturers to build or retool factories to assemble zero-emission vehicles, parts, and associated infrastructure here at home.”

The policy is similar to one that has been put forward in Australia by the Australian Automotive Dealers Association, which in May proposed that as new data shows the age of Australia’s fleet is older than the global average, the Australian government should focus on renewing the national vehicle fleet.

“The Government should design policies which assist in renewing the fleet,” said AADA CEO James Voortman at the time, noting that the instant asset write-off is helping with local car sales but not enough.

“In other parts of the world governments are currently developing significant stimulus packages for their automotive industries in recognition of the sector’s economic importance, but also as a way of lowering the age of their vehicle fleets and achieving the associated benefits of a younger fleet,” he said.

While the nuts and bolts of Biden’s proposed Cash for Clunkers policy is as yet an unknown, first step of course would be to see the presidential candidate win the November election.