The coolest parts of Biden's expansive infrastructure plan
Hey, everybody! President Joe Biden has unveiled his first infrastructure proposal and … hot damn.
The eight-year "American Jobs Plan" would spend $2.25 trillion on a huge range of initiatives, from highways to the energy grid, water systems, airports, transit systems, broadband, energy R&D, and — paging a Sen. Joe Manchin — abandoned coal mine clean-up.
This is an amazing document. Yes, there’s stuff in it that I would take out (some highway spending) and stuff I would add (more transit spending). Yes, a serious transition to sustainability would probably take closer to $10 trillion. Yes, there’s a very good chance the plan gets cut or compromised on the way to passage, if it passes at all, which is far from certain.
Still. As presented by the Biden team, it represents not only an enormous total investment, but some really smart investments, in areas where the positive knock-on effects for the clean energy transition could be enormous. There were some true-blue energy wonks involved in writing this thing.
I’ll just quickly go over the parts that are most exciting to me and then mention a couple of benefits that are getting underplayed.
Transportation
The plan would put $174 billion toward a plan to “win the EV market,” which is on the verge of enormous growth. Biden wants to create a domestic supply chain for batteries and EVs (something that is virtually nonexistent today) and domestic manufacturing capacity to make the EVs, all of which will create domestic jobs.
It would offer point-of-sale rebates to purchasers of domestic-made EVs, “while ensuring that these vehicles are affordable for all families and manufactured by workers with good jobs.”
It would offer grants and incentives to state and local governments and private businesses to install EV charging stations, with the goal of 500,000 up and running by 2030.
And I love this, though I wish it were much bigger: “Replace 50,000 diesel transit vehicles and electrify at least 20 percent of our yellow school bus fleet through a new Clean Buses for Kids Program at the Environmental Protection Agency, with support from the Department of Energy.” This will put us on “a path to 100 percent clean buses.”
I have sung the praises of electric city buses; see Vox’s Kelsey Piper on electric school buses. Not only do they save money over time, but they generate immediate air quality benefits for some of the most vulnerable populations — kids and low-income and POC communities, who bear the brunt of diesel pollution. The benefits wildly outweigh the costs. (On the campaign trail, Bernie Sanders proposed $407 billion just for electric buses, which is more like it.)
Finally, oh, by the way: the plan “will utilize the vast tools of federal procurement to electrify the federal fleet, including the United States Postal Service.” Whaaat?
As Sarah Kaplan reported in The Washington Post in January:
There are some 645,000 vehicles in the federal fleet. They include roughly 200,000 passenger vehicles, 78,517 heavy-duty trucks, 47,369 vans, 847 ambulances and three limousines.
That’s a lot of vehicles.
As for electrifying the 225,000 Postal Service vehicles, I have written at great length about what a fantastic idea that is. This part of the plan is honestly like a present to me. Thank you, Joe Biden.
It’s not all about cars and trucks, though. The plan also has $85 billion for public transit (“to modernize existing transit and help agencies expand their systems to meet rider demand”), which would double existing federal investment in transit, and at least $80 billion for rail (“to address Amtrak’s repair backlog; modernize the high traffic Northeast Corridor; improve existing corridors and connect new city pairs; and enhance grant and loan programs that support passenger and freight rail safety, efficiency, and electrification.”)
As for transportation infrastructure, there’s $20 billion for “a new program that will reconnect neighborhoods cut off by historic investments and ensure new projects increase opportunity, advance racial equity and environmental justice, and promote affordable access” and $25 billion “for a dedicated fund to support ambitious projects that have tangible benefits to the regional or national economy but are too large or complex for existing funding programs.”
In my dream world I would spend much more on transit and rail, but this is a huge improvement over previous infrastructure bills, even from Democrats.
Transmission
Readers of Transmission Month know that long-distance transmission is very much needed for national decarbonization and currently very difficult to build.
The big news in the plan is that Sen. Martin Heinrich’s federal transmission investment tax credit (ITC) made it in. The fact sheet doesn’t specify the size of the ITC, but Heinrich’s proposal is 30 percent. The idea is to spur “the buildout of at least 20 gigawatts of high-voltage capacity power lines and mobilize tens of billions in private capital off the sidelines.”
And remember my post on using existing rail and road rights-of-way to site long-distance transmission? Get this: “President Biden’s plan will establish a new Grid Deployment Authority at the Department of Energy that allows for better leverage of existing rights-of-way – along roads and railways – and supports creative financing tools to spur additional high priority, high-voltage transmission lines.”
Hell yes.
Innovation
I have also written a great deal about the importance of concerted, well-funded clean-energy innovation policy. The US currently spends about $150 billion a year on R&D, of which about half goes to the Department of Defense and a paltry $8 billion goes to energy research. Biden’s plan calls for $180 billion of research money for the “technologies of the future.”
It would spend $50 billion on the National Science Foundation (NSF) to create a technology directorate that would coordinate advanced-tech research across agencies, $30 billion on R&D to spur job creation in rural areas, and $40 billion on upgrading research labs across the country. Half of that lab money would go to “Historically Black Colleges and Universities (HBCUs) and other Minority Serving Institutions, including the creation of a new national lab focused on climate that will be affiliated with an HBCU.”
A climate lab in an HBCU is a nice touch. Good stuff.
Speaking of climate change, the plan would put $35 billion specifically toward tech research and innovation focused on the climate crisi
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