Where The Infrastructure Plans Stand And Their Impact On Trucking

Infrastructure Plans And Their Impact On Trucking

As we have discussed in our previous articles, there are two bills moving at the same time that are separate from each other, but still connected under Biden’s infrastructure hopes.

First, there is the bipartisan “physical” infrastructure plan that is estimated to cost $1 trillion, down from the $2.3 trillion proposal.

The infrastructure bill is focused primarily on what senators consider “core” infrastructure, including repairing roads, bridges, waterways and airports, as well as expanding access to things like broadband and electric vehicle charging stations.

Senate Majority Leader Chuck Schumer will force a vote next Wednesday on advancing the bipartisan infrastructure package before the August recess. It is not clear whether 10 Republicans will vote to advance the bipartisan bill.

Second, there is the recent partisan budget agreement spending deal that is expected to be around $3.5 trillion that will include much of the $1.8 trillion “human” infrastructure American Families Plan.

The American Families Plan will use about $1 trillion in investments and $800 billion in tax credits over a decade, paid by the richest Americans who make over $400,000, aimed toward children and families. The Biden administration maintains that under the new plan, no one making $400,000 a year or less will see their taxes go up.

Senate Democrats cannot lose a single vote on the reconciliation bill in a Senate split 50-50 by party.

 

How will the infrastructure plan affect the trucking industry?

While the bipartisan plan has not been fully written out yet, Biden’s original proposal can give us a clue.

Transportation = $621B

  • $115B will go towards bridges, highways, roads, and $20B for road safety
    • Will address about 20,000 miles of roads
    • Replace the top 10 most economically significant bridges, and
    • Repair around 10,000 bridges
  • $85B for Public Transportation for new rail cars and transportation to connect cities within and into cities
  • $80B for Amtrak
  • $25B for Airports
  • $17B for Ports, waterways, and ferries

 Electric Vehicles = $174B

  • This will include tax incentives and rebates to push buying American-made cars
  • An estimated 500,000 charging stations by 2030, and
  • Electrifying buses and federal vehicles

 Electric Grid = $100B

  • Make grid more resilient
  • Includes 10-year extension and phase down of an expanded refundable investment tax credit and production tax credit for renewable energy generation and storage
  • Higher labor standards
  • 100% carbon pollution free power by 2035
  • $16B will go towards abandoned mines and gas wells

 Corporate Tax Hikes to include:

  • 15% minimum tax on corporate profits (to prevent businesses like Amazon who may have zero tax on profits currently)
  • Increase corporate tax rate to 28%

Workforce = $100B

  • Workforce development, including apprenticeships and assistance for those who have lost their jobs
  • Create hundreds of thousands of jobs across multiple industries

A recent study on Biden’s infrastructure plan found that commercial truck driver jobs are forecast to make some of the biggest gains from the 15 million infrastructure jobs created or saved over 10 years.

“Transportation and materials moving” make up 60% of the infrastructure related occupations either created or saved by Biden’s plan while jobs for commercial drivers of heavy trucks and light truck/delivery drivers would account for 20% of the 15 million jobs estimated in the report.

The report also forecasts that the infrastructure jobs created or saved would be spread across the country with roughly 20% of the infrastructure jobs would be in Midwestern states and 22% going to states in the Southeast.

 

Change happens. How can I stay compliant?

If these bills get passed, there will be a boom in trucking jobs and freight demand, as well as a rise in new venture trucking startups.

This means carriers will need to smoothly manage the compliance requirements in DQ files, ELD management, drug testing, and more.

At CNS, our DOT Compliance Programs focus on Proactive Safety Management (PSM),a mindset that will ensure your fleet’s safety and compliance is always in order and ahead of the FMCSA.

Our PSM Motor Carrier Program includes:

  • ELD management
  • Driver Qualification File Management
  • New driver on-boarding
  • Driver safety meetings
  • CSA score management
  • Policies and handbooks
  • Vehicle maintenance
  • and more

Learn more about our DOT Compliance Programs

For more information, contact us at 888.260.9448 or info@cnsprotects.com.

Breaking Down Biden’s Second Half $1.8T Infrastructure Plan: American Families Plan

President Joe Biden revealed the second half of his $4 trillion infrastructure plan. The first infrastructure plan, called the American Jobs Plan, is estimated to cost $2.3 trillion. The second half of the infrastructure plan, called the American Families Plan, will cover “human infrastructure” and estimated to cost $1.8 trillion.

The second half of Biden’s infrastructure plan will go towards social/human infrastructure to include expanding the child tax credit, school infrastructure, free community college, universal pre-kindergarten, helping the underserved communities, and more. 

The American Families human infrastructure plan will use about $1 trillion in investments and $800 billion in tax credits over a decade, paid by the richest Americans who make over $400,000, aimed toward children and families. The Biden administration maintains that under the new plan, no one making $400,000 a year or less will see their taxes go up.

Biden delivered the new spending plan before a joint session of Congress just before his 100th day in office that focused on handling the COVID-19 pandemic crisis.

 

“First, access to a good education.”

Free Universal Preschool = $200 billion

  • This will go towards free universal preschool for all 3- and 4-year-olds, offered through a national partnership with states

Free Community College and Other College Incentives = $295 billion

  • $109 billion will go towards ensuring two years of free community college for all students
  • $85 billion will go towards Pell Grants, and increasing the maximum award by about $1,400 for low-income students
  • $62 billion will go towards a grant program to increase college retention and completion rates
  • $39 billion program will give two years of subsidized tuition for students from families earning less than $125,000 enrolled in a four-year historically Black college or university, tribal college or university, or minority-serving institution

 

“Second, provide access to quality, affordable child care.”

High-quality Child Care = $225 billion

  • This will go toward high-quality childcare and ensure families pay below 14% of their income toward child-care services

 

“Third, provide up to 12 weeks of paid family and medical leave.”

Paid Family and Medical Leave = $225 billion

  • This will go to create a national comprehensive paid family and medical leave program

 

“Fourth, put money directly into the pockets of millions of families.”

Child Nutritional Needs = $45 billion

  • This will go towards expanding access to the summer EBT program, which helps some low-income families with children buy food outside the school year

Lowering Health Insurance Premiums = $200 billion

  • This will make permanent the $1.9 trillion Covid stimulus plan’s provision lowering health insurance premiums for those who buy coverage on their own

Additionally, Biden wants to extend through 2025, and making permanently fully refundable, the child tax credit expansion that was included in the Covid relief bill; making permanent the recent expansion of the child and dependent care tax credit; and making permanent the earned income tax credit for childless workers.

For a few more details of the American Families Plan, you can check out the White House Fact Sheet on the proposed plan.


First Heavy-duty Electric Truck Charging Site Opens In Oregon

First Heavy-duty Electric Truck Charging Site Opens In Oregon
(Image Courtesy: DTNA – Daimler Trucks North America)

The charging station will allow both Portland General Electric and Daimler to study energy management, charger use and performance, and Daimler vehicles charging performance.

First announced in December 2020, “Electric Island” in Portland, Oregon represents the first location specifically designed for medium- and heavy-duty trucks and has eight vehicle charging stations for electric cars, buses, box vans and semi-trucks.

In collaboration with the West Coast Clean Transit Corridor Initiative (WCCTCI), with nine electric utilities and two government agencies, this is a part of the plan to electrify 1,300 miles of I-5 across the three West Coast states to provide publicly available charging for freight and delivery trucks.

Additional plans include on-site energy storage, solar power generation, and a product and technology showcase building.  Electric Island aims to address the intersection of vehicles and the grid, creating new opportunities for future EV drivers and utility customers.

“In Oregon, we are committed to taking action to address climate change, and we know that the future of transportation is electric. Today, the charging station at Electric Island, the first known freight charging station on the I-5 corridor, shows that Oregon is the ideal place to innovate and develop 21st-Century transportation infrastructure,” said Oregon Governor Kate Brown. “Thanks to the partnership of Portland General Electric and Daimler Trucks North America, we are working together towards our goal of creating a West Coast Electric Highway.”

Read more: Electric and autonomous semi-trucks beyond 2020

Charging site will eventually achieve five Megawatts of power

Currently the highest power unit installed at the Swan Island charging site is 150 Kilowatts, but it can go up to 350 kilowatts.

To compare, Tesla Superchargers can deliver 72 kilowatts of power, even if another Tesla begins charging in an adjacent stall, with an average Supercharging session lasting around 45-50 minutes in city centers.

The station will eventually bring five megawatts of power from the grid with both 400-Volt and 800-Volt charging available, and some of the units will go to 1,000 volts.

Nate Hill, head of charging infrastructure for Daimler, said “this level of charging capability will be necessary to recharge the larger battery packs that are planned to power Daimler’s new line of Class 6/7 and Class 8 semi-trucks that will be produced here in Portland.”

Daimler plans to begin production of the eCascadia semi-truck in late 2022, and the eM2 box truck about six months later in 2023. With a range of 230-250 miles on a charge, both models are designed for urban and regional use, rather than cross-country applications.

Read More: Breaking Down Biden’s First Half $2.3T Infrastructure plan



Proactive DOT Compliance

At CNS, our DOT Compliance Programs focus on Proactive Safety Management (PSM),a mindset that will ensure your fleet’s safety and compliance is always in order and ahead of the FMCSA.

Our PSM Motor Carrier Program includes:

  • ELD management
  • Driver Qualification File Management
  • New driver on-boarding
  • Driver safety meetings
  • CSA score management
  • Policies and handbooks
  • Vehicle maintenance
  • and more

Learn more about our DOT Compliance Programs

For more information, contact us at 888.260.9448 or info@cnsprotects.com.

Breaking Down Biden’s First Half $2.3T Infrastructure plan: American Jobs Plan

Biden Infrastructure plan

We break down the plan that will likely affect the trucking and transportation industries the most

President Joe Biden revealed the first half of his $4 trillion infrastructure plan. The plan announced, called the American Jobs Plan, is estimated to cost $2.3 trillion. The second half of the infrastructure plan, called the American Families Plan, will cover “human infrastructure” and estimated to cost $1.8 trillion.

According to Biden, the American Jobs Plan is a 15-year vision that will generate 3-5 million new jobs and spend the $2 trillion over the next 8 years to improve our “crumbling infrastructure,” currently ranked 13th in the world.

The plan focuses on a balance between current transportation, roads, and household issues while preparing for a more electrified future.

While Biden wants the plan to be bipartisan, as he will bring in Republicans to the White House to discuss the details, he also wants to get this done. It is estimated that a version of this plan will potentially pass around August or September and may go through budget reconciliation to get passed.

We break down the plan that will likely affect the trucking and transportation industries the most.

Transportation = $621B

  • $115B will go towards bridges, highways, roads, and $20B for road safety
    • Will address about 20,000 miles of roads
    • Replace the top 10 most economically significant bridges, and
    • Repair around 10,000 bridges
  • $85B for Public Transportation for new rail cars and transportation to connect cities within and into cities
  • $80B for Amtrak
  • $25B for Airports
  • $17B for Ports, waterways, and ferries

 Electric Vehicles = $174B

  • This will include tax incentives and rebates to push buying American-made cars
  • An estimated 500,000 charging stations by 2030, and
  • Electrifying buses and federal vehicles

 Electric Grid = $100B

  • Make grid more resilient
  • Includes 10-year extension and phase down of an expanded refundable investment tax credit and production tax credit for renewable energy generation and storage
  • Higher labor standards
  • 100% carbon pollution free power by 2035
  • $16B will go towards abandoned mines and gas wells

 Corporate Tax Hikes to include:

  • 15% minimum tax on corporate profits (to prevent businesses like Amazon who may have zero tax on profits currently)
  • Increase corporate tax rate to 28%

Workforce = $100B

  • Workforce development, including apprenticeships and assistance for those who have lost their jobs
  • Create hundreds of thousands of jobs across multiple industries

The bill will also include a trillion dollars to go towards manufacturing, broadband, carbon capture, clean water, households, and schools/children incentives.

The second half of Biden’s infrastructure plan will go towards social/human infrastructure to include expanding the child tax credit, school infrastructure, free community college, universal pre-kindergarten, helping the underserved communities, and more. 

The American Families human infrastructure plan will use about $1 trillion in investments and $800 billion in tax credits over a decade, paid by the richest Americans who make over $400,000, aimed toward children and families. The Biden administration maintains that under the new plan, no one making $400,000 a year or less will see their taxes go up.

Biden delivered the new spending plan before a joint session of Congress just before his 100th day in office that focused on handling the COVID-19 pandemic crisis.

For a few more details of the American Jobs Plan, you can check out the White House Fact Sheet on the proposed plan.