Earlier this week, Clean Fuels Michigan sent a letter to Michigan’s federal legislators urging them to support clean transportation policies. This letter was signed by 27 members and partners, representing alternative fuel and electric vehicle automakers, electric vehicle charging stations, environmental advocates, health advocates, electric utilities, alternative fuel trade organizations, and more.
Clean Fuels Michigan is hopeful that legislators will consider these policies as a down payment on Michigan’s future. We remain dedicated to our efforts to advocate for cleaner transportation that stands to benefit Michigan and beyond. View the letter below:
Dear Michigan Congressional Delegation,
Thank you for your leadership and dedication to the people of Michigan. Clean Fuels Michigan is a nonprofit trade association dedicated to advancing clean mobility in Michigan and beyond. The signatories to this letter include 27 of our members and partners, representing alternative fuel and electric vehicle automakers, electric vehicle charging stations, environmental advocates, health advocates, electric utilities, alternative fuel trade organizations, and more. Now is the time to support clean transportation policies that will benefit all Michiganders.
The auto industry is rapidly changing. Michigan-based automakers are setting their sights on an all-electric vehicle future and putting billions of dollars behind their commitments. Bold, equitable, and cohesive national policy is needed to bring sustained tailwinds to vehicle electrification in Michigan and the nation.
The Infrastructure Investment and Jobs Act offers historic investments in infrastructure and the economy. Michigan will receive billions of dollars to fix roads and bridges, replace lead pipes, and more, including substantial investments in clean mobility solutions such as $1 billion to improve public transportation and another $110 million to build electric vehicle charging stations. These investments will benefit Michiganders and the clean mobility industry. Still, more is needed to safeguard Michigan’s jobs, natural resources, and public health.
Cleaner transportation will benefit all Michiganders by reducing harmful emissions while also reducing fuel and maintenance costs. At the same time, more than 20% of Michigan jobs are tied to the transportation industry. The transition to cleaner, more innovative mobility technologies will require a shift not only in the way Michiganders and our visitors get around the state, but in the way we are employed. There are several policies that can help Michigan and the nation meet the unique moment we are in to invest in solutions that give back to our communities. Now is the time for these policies because:
- With global tensions increasing, domestic manufacturing is as important as ever, and Michigan can play a vital role with the right investments.
- A historic agreement between General Motors, Ford, Stellantis, and the UAW set a goal of electric vehicles making up 40-50% of vehicle sales by 2030.
- The nationwide buildout of electric vehicle charging stations to meet federal goals of 500,000 DC Fast Chargers installed by 2030 will require an additional 28,950 jobs each year across the nation.
- Automakers are actively investing in and looking for new locations to make clean vehicles and the batteries that power them.
We urge you to take action by implementing the following policy proposals. These policies will support domestically produced fuels, invest in public fleets, leverage public-private partnerships, and deploy clean vehicles in increasing numbers.
- Reform the Passenger Electric Vehicle Tax Credit: The current federal tax credit offers up to $7,500 towards purchasing a battery-electric or plug-in hybrid vehicle, with a cap on how many vehicles are eligible for the credit from each automaker. This means that General Motors and Tesla vehicles no longer qualify. Toyota and Ford could also hit the cap by the end of the year. The credit should be eligible for any electric vehicle, no matter what automaker.
- Implement a Tax Credit for Commercial Alternative Fuel and Zero-Emission Vehicles: This would create a new 45Y tax credit for commercial alternative fuel vehicles, covering up to 30% of the cost of the vehicle, or the incremental cost compared to a similar internal combustion engine vehicle. This will help offset the higher upfront costs associated with alternative fuel vehicles.
- Fund the Clean Heavy-Duty Vehicles Program: This is a new $5 billion program at the EPA to electrify class 6 and 7 vehicles, with $2 billion designated specifically for nonattainment areas. Funding would go towards replacing vehicles, infrastructure, and workforce development and training. According to the Union of Concerned Scientists, medium and heavy-duty vehicles only make up 10% of vehicles on the road, but they account for over 28% of greenhouse gas emissions. Thus, transportation decarbonization must include a focus on medium and heavy-duty vehicles.
- Invest in Federal Fleet Electrification: Provide nearly $6 billion to acquire electric vehicles and support infrastructure for the United States Postal Service. Federal leadership will be impactful in encouraging greater electric vehicle adoption. Plus, Postal Service vehicles are an ideal use case for electric vehicles since they can charge during off-peak hours.
- Expand the Tax Credit for Alternative Fuel Vehicle Refueling Property: Extend and expand the 30C Alternative Fuel Vehicle Refueling Property Credit to an uncapped 20% investment tax credit after the first $100,000 in investment (the initial $100,000 invested already receives a 30% tax credit).
Additionally, federal investments in programs and grants related to workforce development, job retention, and research and development will encourage businesses to locate and expand their facilities domestically, keeping transportation jobs in our communities.
- Fund Domestic Manufacturing Conversion Grants: Provide $3.5 billion in grants relating to domestic production of plug-in electric hybrid, battery-electric, and hydrogen fuel cell vehicles.
- Expand the Tax Credit for Manufacturing Investment: Expand the 48C Tax Credit, which currently reduces the cost of developing new facilities that produce clean energy technologies, to include facilities that manufacture commercial alternative fuel and zero-emission vehicles and electric vehicle charging stations.
We urge you to consider these policies, and we are eager to answer any questions you may have.
Thank you again for your continued leadership.
Clean Fuels Michigan
Center for Climate and Energy Solutions (C2ES)
Fontaine Modification Company
ITC Holdings Corp.
MI Air MI Health
Glenn Stevens, Jr.
Michigan Association for Pupil Transportation
Maggie Striz Calnin
Michigan Clean Cities Coalition
Elizabeth (Lisa) Del Buono, MD
Michigan Clinicians for Climate Action
Michigan Electric Vehicle Alliance (MEVA)
Michigan Energy Innovation Business Council
Rhombus Energy Solutions, Inc.
Sierra Club Michigan Chapter