Senate Dem Floats $454 Billion EV Incentive Plan

Chuck Schumer, the top Democrat in the U.S. Senate, proposes a $454 billion plan to replace old cars with electric models.

The 10-year scheme would pay owners at least $3,000-$5,000 to scrap cars that are at least 8 years old, and replace them with EVs. Schumer figures the deal would swap out 25% of the U.S. fleet—eliminating some 63 million piston-powered vehicles—by 2030.

The program would create thousands of jobs by stimulating production of EVs in the U.S., according to Schumer. Reuters notes that the proposal comes as both political parties in the U.S. look for ways to woo Midwest auto workers ahead of next year’s presidential election.

The 10-year plan Schumer describes would dispense $392 billion in rebates to consumers, invest $45 billion in EV charging stations and offer carmakers $17 billion in incentives to convert or build factories in the U.S. to make electric vehicles.

It isn’t clear how the program’s funding would work. But Reuters says the package has garnered supportive statements from the Sierra Club and other environmental groups, Ford and General Motors, and the United Auto Workers union.