Senate Republicans agree to just 2% of Biden's EV infrastructure spending

US Senate Republicans have made a small concession allowing some spending for electric vehicles as part of the massive infrastructure package, but their $4 billion EV proposal is only 2% of what the Biden administration wants to spend to electrify transportation.

Accelerating EV adoption would curb the largest US source of greenhouse gas emissions and cut US gasoline demand, which the Energy Information Administration projects will average 8.7 million b/d in 2021.

The latest GOP counteroffer, announced May 27, calls for $928 billion in spending over eight years, up from $568 billion over five years in their first proposal.

The EV concession and $14 billion for improving the resilience of infrastructure to extreme weather are a recognition of Democrats' focus on addressing climate change, although Republicans continue to argue that the package should stick to traditional infrastructure projects, like roads, bridges, and ports.

"We were explicit that policies unrelated to physical infrastructure do not fit in this package," the six Republican senators involved in White House negotiations said May 27 in a joint letter to President Joe Biden. "This is not because we do not value these important issues. We simply believe that these policies should be addressed in separate legislation that does not dilute our shared objective of passing this package."

EV market share

White House Press Secretary Jen Psaki called the latest proposal proof of the talks' progress, but said the administration remains concerned that the plan provides no substantial new funds for job creation, such as the clean-energy programs in Biden's American Jobs Plan.

Psaki said the White House would keep working with Republican leaders next week with an aim of advancing the legislation when Congress returns the week of June 7.

Biden's $2.7 trillion plan calls for investment in technologies aimed at cutting carbon emissions, with more than $500 billion earmarked for clean energy and climate-related objectives. It calls for $174 billion for EV infrastructure, including new charging stations, grants, and incentives; $126 billion for building energy-efficient housing units; $100 billion for power infrastructure improvements; and $46 billion to support clean energy manufacturing; $35 billion for climate change research; and $400 billion in clean energy tax credits.

S&P Global Platts Analytics said US sales of plug-in EVs showed record growth in March, albeit from a weak base, surging 159% year on year to 46,000 units compared with a 28% increase in light-duty vehicle sales over the same period.

PEVs accounted for 3.6% of total US sales in March, up from 1.8% in February 2020 and the highest US market share to date, Platts Analytics said.