Around $20 billion of the package would go to a project to "support the goal of transitioning 85 percent of America's new motor vehicles to non-petroleum-based fuels within 20 years."
The package comes in the wake of stunning losses sustained by the Detroit 3 and general concern about America's automotive future. The package itself consists of several key ideas, including $7.5 billion to encourage the development of alternative fuel vehicles, as well as another $7.5 billion to allow manufacturers to "re-tool and re-equip" in order to make alternative fuel vehicles.
In addition to this, tax incentives would also be provided to the tune of $7,500 for every consumer purchasing a vehicle that primarily runs on non-petroleum fuel, as well as $2,500 to those who modify their current vehicles to run on alternative fuels. Other tax incentives have also been proposed in order to encourage the growth of necessary infrastructure to support alternative fuel vehicles.
There will also be a $500 million grant for innovations that improve fuel efficiency in areas other than powertrains, such as lighter materials, as well as $2.5 billion component for researching biofuels and implementing the necessary infrastructure to make them viable.