U.S. Earmarks $5 Billion to Create National EV Charging Network

What you'll learn:

Where will the funds be allocated?
What is the NEVI Formula Program?
Determining distance between charging stations on highways, etc.

The U.S. Departments of Transportation and Energy announced that nearly $5 billion will be made available to build out a national electric-vehicle (EV) charging network, an important step toward making EV charging accessible to all Americans.

This is the largest-ever U.S. investment in EV charging. Of these funds, $4.75 billion will be distributed by formula to states. An additional $2.5 billion will be distributed through a competitive grant program that will support innovative approaches and ensure that charger deployment meets a number of priorities. These include supporting rural charging, improving local air quality, and increasing EV charging access in disadvantaged communities.

The nationwide network of EV charging stations would place new or upgraded ones every 50 miles (80 km) along interstate highways.

“A century ago, America ushered in the modern automotive era; now America must lead the electric vehicle revolution,” said Transportation Secretary Pete Buttigieg, who added that the Infrastructure Law “will help us win the EV race by working with states, labor, and the private sector to deploy a historic nationwide charging network that will make EV charging accessible for more Americans.”

U.S. Secretary of Energy Jennifer Granholm and U.S. Secretary of Transportation Pete Buttigieg announced a memorandum of understanding to create a Joint Office of Energy and Transportation to support deployment of a national electric-vehicle charging network. Secretaries Buttigieg and Granholm arrived in an electric Ford Mustang Mach-E with Buttigieg behind the wheel.

The program will help states create a network of EV charging stations along designated Alternative Fuel Corridors, particularly along the Interstate Highway System that nearly every state has designated over the past six years of this program. These corridors will be the spine of the new national EV charging network.

NEVI Formula Program

The total amount available to states in Fiscal Year 2022 under the National Electric Vehicle Infrastructure (NEVI) Formula Program is $615 million. States must submit an EV Infrastructure Deployment Plan before they can access these funds. A second, competitive grant program designed to further increase EV charging access in locations throughout the country, including in rural and underserved communities, will be announced later this year.

The new program will put the country on a path to a nationwide network of 500,000 EV chargers. This national network is intended to:

Accelerate equitable adoption of EVs, including for those who cannot reliably charge at home.
Reduce transportation-related greenhouse gas emissions and help put the U.S. on a path to net-zero emissions by no later than 2050.
Position U.S. industries to lead global transportation electrification efforts and help create jobs that cannot be outsourced.

Under this program, each State is required to submit an EV Infrastructure Deployment Plan that describes how the State intends to use its apportioned NEVI Formula Program funds in accordance with this guidance. No NEVI Formula Program funds shall be obligated by a State until the Federal Highway Administration (FHWA) approves that State’s plan, although staffing and other activities related to the development of a plan will be eligible for reimbursement.

Plans must be submitted to the Joint Office of Energy and Transportation no later than August 1, 2022, and the FHWA will approve eligible plans by September 30, 2022. States that submit plans before August 1, 2022 will be approved by FHWA on a rolling basis.

The $5 billion NEVI Formula Program will provide dedicated funding to States to strategically deploy EV charging infrastructure and establish an interconnected network to facilitate data collection, access, and reliability.

From Alternative Fuel Corridors to Public Roads

Initially, funding under this program is directed to designated Alternative Fuel Corridors for electric vehicles to build out this national network, particularly along the Interstate Highway System. When the national network is fully built out, funding may be used on any public road in other publicly accessible locations. Approximately 10% of the NEVI Formula Program will be set aside each fiscal year for the Secretary of Transportation to provide discretionary grants to help fill gaps in the national network.

“We are modernizing America’s national highway system for drivers in cities large and small, towns and rural communities, to take advantage of the benefits of driving electric,” said U.S. Secretary of Energy Jennifer M. Granholm.

The Joint Office of the U.S. Departments of Transportation and Energy will play a key role in implementing the NEVI Formula Program. They will provide direct technical assistance and support to help states develop their plans before they are reviewed and approved by the Federal Highway Administration, which administers the funding.

The new Joint Office will assist with planning and implementation of a national network of EV chargers and zero-emission fueling infrastructure as well as zero-emission transit and school buses. Initially, the Joint Office will work with states and key stakeholders to build capacity for EVs, plan for charging infrastructure, and implement approved state plans. Additional support is provided for deploying electric school buses and electric transit buses.

“Americans need to know that they can purchase an electric vehicle and find convenient charging stations when they are using interstates and other major highways,” said Deputy Federal Highway Administrator Stephanie Pollack. “The new EV formula program will provide states with the resources they need to provide their residents with reliable access to an EV charging station as they travel.”

The Joint Office of Energy and Transportation also launched a new website at DriveElectric.gov. There, officials can find links to technical assistance, data and tools for states, and careers. To join the Joint Office and support a future where everyone can ride and drive electric, individuals are encouraged to apply to be an EV charging fellow.

Use of NEVI Funds

Program guidance is available for implementation of these investments in EV charging infrastructure that will put the U.S. on a path to a nationwide network of 500,000 EV chargers by 2030. In general, NEVI Formula Program funds may be used for:

The acquisition and installation of EV charging infrastructure to serve as a catalyst for the deployment of such infrastructure and connect it to a network to facilitate data collection, access, and reliability. This includes upgrades to existing public charging stations to meet NEVI Formula Program considerations and requirements or resulting expansions to station charging capacity needed to meet overall network demand. This further includes on-site distributed energy resources (e.g., solar arrays, energy storage).
Operating assistance for costs allocable to operating and maintaining EV charging infrastructure acquired or installed under this program, for a period not to exceed five years. It is anticipated that such operating assistance may be needed at some locations with lower utilization but that are key to having a contiguous, national network as well as address equity issues in both rural and urban areas where current levels of EV ownership make such lower utilization more likely. Funding decisions should be reviewed as the network matures.
Development phase activities relating to the acquisition of stations and equipment as well as installation of EV charging infrastructure. Development phase activities include planning (including the development of the plan), feasibility analysis, revenue forecasting, environmental review, preliminary engineering and design work, and other preconstruction activities.
Traffic-control devices and on-premises signs to provide information about EV charging infrastructure acquired, installed, or operated. This includes accessible signage that directs drivers to an EV charging station location and signage that provides information at the EV charging station location.
Data sharing about EV charging infrastructure to ensure the long-term success of investments. This includes, to the extent practicable, costs related to the specific data-sharing requirements of this program as well as costs of data sharing on all chargers and charging activities on the EV network. The acquisition or installation of traffic-control devices located in the right-of-way to provide directional information to EV charging infrastructure acquired, installed, or operated under the NEVI Formula Program.

Distance Between Publicly Available EV Charging Infrastructure

According to the plan, EV charging infrastructure should be conveniently and safely located as close to Interstate Highway System and highway corridors as possible, and in general, no greater than 1 mile from interstate exits or highway intersections along designated corridors. The 1 mile should be measured as the shortest driving distance from the Interstate Highway System exit or highway intersection to the proposed station at the time of the proposal.

Stations on public lands in close proximity to the corridor (including federal lands) may be prime siting locations and should be considered in a plan. Exceptions from the “no greater than 1 mile from the Interstate Highway System or highway” requirement may be made where there’s no electrical service or business activity within 1 mile of the interstate exit or highway.

New EV charging infrastructure locations should be spaced a maximum distance of 50 miles apart along designated corridors (including planned stations and existing stations, with both conforming to NEVI Formula Program minimum standards and requirements), unless a discretionary exception is granted.

Each station would need to have at least four fast-charger ports, which enable drivers to fully recharge their vehicles in about an hour.

The infrastructure bill, under which the EV charging station program is funded, also allocates $3 billion in competitive grants to accelerate the development of a North American battery supply chain. Furthermore, an additional $3 billion in grants is aimed at expanding the United States’ battery-manufacturing capabilities as well as establishing battery-recycling facilities.

The need for consistent charging access throughout the country is essential to enable widespread EV adoption. Public charging infrastructure investments represent a critical gap, though, since the direct revenue from providing these services often doesn’t cover the costs of installation and operation of the equipment. A 2021 analysis by Atlas Public Policy, a Washington D.C.-based policy firm, shows that to achieve 100% passenger EV sales by 2035 and put the nation on the path to full electrification, over $87 billion in investments in charging infrastructure will be needed over the next decade, including $39 billion for public charging.