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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!

Register for our next federal policy update on November 19th »

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!

For analysis and an update join the League for a federal policy update on Friday, November 19th at 3pm. You can register here.

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:

  • Removal and mitigation of barriers that divide communities
  • Reconnects community with bike/ped access
  • Addresses urban heat island effect
  • Funds local capacity building
  • Requires 40% be allocated to low income communities

Yes

$4 billion

$4 billion 

Traffic Safety Clearinghouse

Funds a clearinghouse to:

  • Research on ending racial profiling in enforcement while promoting traffic safety
  • Promote and disseminate best practices

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

  • Offers 30% tax rebate on the purchase of an e-bike at the point of purchase
  • Full discount available to people making $75,000 or less

Under debate 

$5 billion

approx $5 billion

Bicycle Commuter Benefit

  • Reinstates and improves Bicycle Commuter Benefit
  • Commuters can use up to $81 a month pre-tax on costs for purchase of bike. Bikeshare, maintenance, etc. 
  • Available in combination with transit benefit
  • Easier to use for Employers

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.