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Infrastructure Groundhog Day
Update on November 3, 2022: the latest version of the Build Back Better reconciliation bill includes the e-bike benefit, which we had been advocating to remain in the bill after some opposition. The latest version of the e-bike benefit would offer a 30% tax rebate (up to a maximum of $900) to consumers at the point-of-purchase on e-bikes up to a maximum cost of $4000. The rebate is still means tested to a modified adjustable gross annual income of $75,000. We still have work to do to ensure the e-bike benefit remains in the final bill, but this is good news. The e-bike benefit will help more Americans drive less and bike more — something world leaders should be encouraging with further incentives.
Is this infrastructure week? Congress keeps promising to finish both the Bipartisan Infrastructure bill and the Build Back Better Reconciliation bill. They are making progress, but there is still some work to do!
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The good news is that work is happening, and the bill is getting closer to final- the bad news is that much of that work is cutting out programs. Here’s an update on how League priorities for the reconciliation bill are faring as of Monday, November 1 – things may change by the time you read this!
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INFRASTRUCTURE FUNDING
The Build Back Better bill released last week included $57 billion for transportation and infrastructure. That has been cut by over $18 billion, mostly through cuts to non-surface transportation programs including ports, funding for resiliency, upgrades to the Coast Guard and to public buildings, clean water improvements, etc. On the surface transportation side, additional funds to tribal governments were cut. Here’s how the League priorities fared.
Program |
What it does |
Still in bill? |
Original Funding |
Current Funding |
|
Community Climate Incentive Grant |
Funds DOT to establish a GHG performance measure (with teeth) and grants for states and local governments |
Yes |
$4 billion |
$4 billion |
|
Neighborhood equity and access |
Funds:
|
Yes |
$4 billion |
$4 billion |
|
Traffic Safety Clearinghouse |
Funds a clearinghouse to:
|
Yes, but cut |
$100 million |
$50 million |
|
AV and Mobility Innovation Clearinghouse |
Funds a clearinghouse to research and best practices on secondary and societal effects of automated vehicles including safety, equity, land use, local government budgets etc. |
No |
$8 million |
$0 |
|
Local Transportation priorities |
Earmarks from the House INVEST in America Act |
No |
$6 billion |
$0 |
|
Access to Affordable Housing |
Discretionary grant (US DOT to disperse) for transit and transit access |
Yes, but changed |
$10 billion |
$10 billion |
TAX INCENTIVES
Program |
What it does |
Still in the bill? |
Original Funding |
Current Funding |
|
Ebike refundable tax credit |
|
Under debate |
$5 billion |
approx $5 billion |
|
Bicycle Commuter Benefit |
|
Yes |
$200 million |
$200 million |
|
Tax Credit for micromobility charging |
Included in larger credit for charging stations |
Yes |
Part of larger program/ can’t be broken down |
|
|
Improved financing tool for rail-trail projects |
Allows use of municipal “Buy America Bonds” to be used for railbanking (leasing trail property) |
Yes |
Part of larger program/ can’t be broken down |
|
NEXT STEPS FOR THE BILL
1. All the Democrats — the President and the moderates and the progressives — must agree on the content.
2. The Senate Parliamentarian will have to review the entire bill and make a ruling on if all of the programs are allowable under reconciliation, i.e. are these all primarily budget issues and not policy. The thing I worry about most in terms of League priorities at this step is the greenhouse gas performance measure.
3. Democrats will have to change, adjust or drop any programs that don’t fit the rules. Once those changes are made and all Democrats are once again on board, it can go for a vote.
LEAGUE ADVOCACY
The League and allies are still fighting for the e-bike tax benefit, which is currently under debate in Congress. This has been an up and down battle for the last several weeks, with threats to zero out the benefit being followed by real world improvements to the benefit (including a ‘dealer transfer’) and new support from delivery worker unions.
Those questioning the benefit raise concerns over the cost of the legislation, and whether or not the benefit brings the same climate and equity benefits as other provisions with the same price tag. The e-bike benefit has an estimated cost of $5 billion, and the hope is that the incentive would increase the overall share of bike trips from 1% of all trips to 5% of all trips. Car trips make up roughly 85% of all trips, and we think an e-bike benefit could turn more of those trips into bike trips. Plus, e-bikes are more affordable than cars so they are a win-win on affordable and sustainable transportation.
As Congress continues to debate what stays in the final framework and what gets cut, the League is fighting against old stereotypes about who will ride, who will benefit, whether bike trips can ever replace car trips at a high enough level to make a difference, etc. Especially as the world turns its attention to the UN climate conference, e-bikes should be a key part of the global shift towards reduced emissions. And at the end of the day, we believe any measure that gets more people on bikes is worth investing in.