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Green Act EV Proposal Discussion

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Might need to ask the mods for a slight title tweak. I'm not sure if this bill is actually part of the green new deal, but is the GREEN act (presumably an acronym?).

But I think we're all relatively sure that these credits are not retroactive to 2019, correct?

That being said, the legislative history of this bill is that it was meant to replace the Driving America Forward Act, which I believe was explicitly retroactive. So maybe there are some language changes yet to come on this draft bill.
 
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The current wording only applies to purchases after the enacting of the act, which creates a time period of Tesla and GM purchases with lesser credit. This is termed the Exclusion Period, where the original wording/ phase out is still in effect:


(1) IN GENERAL.—In the case of any new qualified plug-in electric drive motor vehicle sold after the date of the enactment of the GREEN Act of 2019—

(1) LIMITATION.—The amendment made by subsection (a) shall apply to vehicles sold after the date of the enactment of this Act.​

On the upside, vehicles sold after 200k and before enactment do not count against the 600k phase out trigger threshold.

(C) EXCLUSION OF SALE OF CERTAIN VEHICLES.— ‘(i) IN GENERAL.—For purposes of subparagraph (A), any new qualified plug- in electric drive motor vehicle manufactured by the manufacturer of the vehicle referred to in paragraph (1) which was sold during the exclusion period shall not be included for purposes of determining the number of such vehicles sold.

(ii) EXCLUSION PERIOD.—For purposes of this subparagraph, the exclusion period is the period—
(I) beginning on the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 200,000, and
(II) ending on the date of the 9enactment of the GREEN Act of 2019.​

The base credit itself would be the same at the original bill for the first 200k cars, then $500 less for the vehicles after 200k until phase out.

(A) if such vehicle is sold during the transition period, the amount determined under subsection (b)(2) shall be reduced by $500​

(2) TRANSITION PERIOD.—For purposes of this subsection, the transition period is the period subsequent to the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 200,000.​

The new phase out would be as follows:

the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified4plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 600,000.
(B) APPLICABLE PERCENTAGE.—For purposes of paragraph (1)(B), the applicable percentage is—
(i) 50 percent for the first calendar quarter of the phaseout period, and
(ii) 0 percent for each calendar quarter thereafter.

Which works out to :
Quarter where 600k (not counting exclusion period) is reached - Full Credit
Following quarter - Full Credit
Phase out quarter - 50% credit
Following quarters - 0 credit

A much steeper cut off, but still on a per-manufacturer sales basis.
 
a time period of Tesla and GM purchases with lesser credit. This is termed the Exclusion Period

Hope you can still edit. This is not the meaning of Exclusion Period. Exclusion period is when sales do not count against the official number capped at 600k.

EVs “sold during the exclusion period shall not be included for purposes of determining the number of such vehicles sold.”
 
Watch them figure out a way to not include tax credits on Tesla cars. They already have 250,000 orders for the cybertruck with ZERO tax credits predicted.

I would love me some free FSD.
Running the numbers, it looks like the current bill could allow CTs to get refunds:
If:
Bill took effect the start of Q1, 2020
Cybertruck started production in Q3, 2021
Then:
If the phase out trigger happens in or after Q2, 2021 the first CTs will get full credit.
Say the 400kth US sale occurs at the end of Q2, 2021 (worst case from a minimum rate perspective), that is 6 quarters (minus 2 days) of sales. An average rate of 67k a quarter, 267k annual US sales rate. Seems like it requires a bunch of optimism in terms of US sales to be pessimistic toward CT refund with the current proposal wording.
 
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Hope you can still edit. This is not the meaning of Exclusion Period. Exclusion period is when sales do not count against the official number capped at 600k.

EVs “sold during the exclusion period shall not be included for purposes of determining the number of such vehicles sold.”

Isn't it both? The old phase out kicked in at 200k and will continue until the new proposal is enacted. The new proposal does not count those vehicles toward the total production. Cars in that period are excluded form count and excluded from the the improved rebate levels.

On the upside, vehicles sold after 200k and before enactment do not count against the 600k phase out trigger threshold.
 
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Not a criticism. End result is what you describe. I am only trying to keep the Legal Terms straight so the discussion can be kept somewhat focused:

Cars in that period are excluded form count

because of happening in the Exclusion Period...
and excluded from the the improved rebate levels.
because of happening prior to the Effective Date.

Remember that any one term is subject to redefinition during negotiations! We have to monitor every word (look at Texas, Michigan state law shenanigans for precedent).
 
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Not a criticism. End result is what you describe. I am only trying to keep the Legal Terms straight so the discussion can be kept somewhat focused:



because of happening in the Exclusion Period...
because of happening prior to the Effective Date.

Remember that any one term is subject to redefinition during negotiations! We have to monitor every word (look at Texas, Michigan state law shenanigans for precedent).

Gotcha,
It helped me earlier today to view both effect as part of the same period. Based on the final text, the two could well be independent.
 
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Gotcha,
It helped me earlier today to view both effect as part of the same period. Based on the final text, the two could well be independent.

A Flow Chart might be able to capture all the scenarios... would it be a helpful work product to present to the round thread (to save verbosity) and the TwitterVerse (who desperately need visual aid)?
 
A Flow Chart might be able to capture all the scenarios... would it be a helpful work product to present to the round thread (to save verbosity) and the TwitterVerse (who desperately need visual aid)?

Flow chart could be handy to cover Tesla, GM, and the rest. If only describing the Tesla case, it might be overkill.

Pre 200k, $7,500
200k threshold
Original phase out: one more full quarter of $7,500, two of $3,750, then two of $1,875, then $0
Asychronously: New bill goes into effect: start counting to 400k from 0: $7,000
400k threshold
New phase out: one more full quarter of $7,000 then one quarter of $3,500, then $0

Others (not yet in phase out when new bill takes effect):
Pre 200k : $7,500
200k trigger: $7,000
600k threshold
New phase out: one more quarter of $7,000 then one quarter of $3,500
 
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When is this likely to made law?

It's a discussion draft for the moment. So it doesn't yet have an HR number, and doesn't yet have a timeline for debate, votes, reconcilation, etc.

If each of us write our representatives, though, that could encourage them to expedite the process!

EDIT: a version of this bill that could have made it into the appropriations bill did not end up there: UPDATE 1-Spending deal does not hike EV credit, boosts aviation inspection funds but this bill could still could still be put forward alone, or as a part of the next budget.
 
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