Bill Overview
Title: Affordable Electric Vehicles for America Act of 2022
Description: This bill extends until after 2025 the requirement that final assembly of vehicles occur within North America for purposes of the clean vehicle tax credit.
Sponsors: Sen. Warnock, Raphael G. [D-GA]
Target Audience
Population: People involved in or purchasing electric vehicles
Estimated Size: 100000000
- The bill requires vehicles assembled in North America to qualify for clean vehicle tax credits, potentially impacting vehicle manufacturing companies in North America and those worldwide.
- Consumers interested in affordable electric vehicles are directly impacted as the bill aims to make electric vehicles more affordable through tax credits.
- Automobile industry workers in North America could see changes in employment patterns due to shifts in manufacturing locations and practices.
- Manufacturers outside North America may lose competitiveness in the US market due to the final assembly requirement.
- The environmental impact as a result of increased electric vehicle adoption could influence public health and policy.
Reasoning
- Population distribution should include a mix of vehicle purchasers, manufacturing workers, and those indirectly affected by the automotive industry.
- Budget limits imply the need for targeted benefits, making vehicles more affordable primarily for middle-income consumers.
- The policy impacts will not be monolithic; some consumers might not be interested in clean vehicles regardless of tax credits, while others may prioritize them.
- Consideration for workers in areas of manufacturing can show job security or anxiety depending on perceived industry shifts.
- Potential environmental improvements might not translate immediately to perceived wellbeing but could have long-term benefits.
Simulated Interviews
Automotive engineer (Detroit, MI)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 15/20
Statement of Opinion:
- I think this policy supports job security in my field as it encourages domestic manufacturing.
- It might make electric cars more affordable, which could increase our orders and workload positively.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 5 |
Software developer (Los Angeles, CA)
Age: 30 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- I support any policy that facilitates more environmental-friendly options.
- This tax credit might bring an electric vehicle within my budget sooner.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 8 |
Truck driver (Dallas, TX)
Age: 55 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I doubt electric trucks could handle my workload; thus policy seems irrelevant to me right now.
- The industry might change, but I’m not sure how it affects me yet.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Graduate student (Seattle, WA)
Age: 25 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- This is fantastic for our planet! Lowering the cost of electric vehicles promotes a healthier future.
- It aligns with my personal values, and my family might consider getting one.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
CEO of a small automotive parts company (Atlanta, GA)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- I worry that increasing electric vehicle adoption could negatively impact our business.
- We'll need to adapt our product line, which is a significant investment.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Environmental activist (Phoenix, AZ)
Age: 48 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- I'm pleased to see policies supporting clean energy becoming a priority.
- Introducing affordable electric vehicles will have a profound impact on reducing emissions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Tech entrepreneur (San Jose, CA)
Age: 35 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- Tax credits boost consumer market readiness, which is good for tech innovation.
- This encourages me to develop new tech solutions targeting electric vehicles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 10 | 8 |
| Year 20 | 10 | 9 |
Stay-at-home parent (Oklahoma City, OK)
Age: 42 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- We are considering buying an electric car, so this policy might help us financially.
- It's a future-conscious decision and economically beneficial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Mechanic (Chicago, IL)
Age: 29 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 11/20
Statement of Opinion:
- It's great for business as more people might afford EVs needing maintenance.
- However, the market shift is gradual, requiring us to adapt training.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 7 | 6 |
Retiree (Rural Idaho)
Age: 60 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 20/20
Statement of Opinion:
- I appreciate cleaner air, but these policies don't really change my day-to-day life.
- I won't be buying a new vehicle any time soon regardless of credits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $800000000 (Low: $700000000, High: $900000000)
Year 2: $850000000 (Low: $750000000, High: $950000000)
Year 3: $900000000 (Low: $800000000, High: $1000000000)
Year 5: $950000000 (Low: $850000000, High: $1050000000)
Year 10: $1000000000 (Low: $900000000, High: $1100000000)
Year 100: $1000000000 (Low: $900000000, High: $1100000000)
Key Considerations
- The fiscal impact of extending tax credits versus the economic benefits from promoting electric vehicles.
- Potential retaliation or trade adjustments from countries impacted by North American assembly requirements.
- The environmental benefits associated with increased prevalence of electric vehicles must be weighed against fiscal costs.
- Long-term competitiveness of the U.S. automobile industry in the global market could be affected.