(EV) charging stations is about to get an infusion of cash. The Biden Administration recently announced that $5 billion in funds under the National Electric Vehicle Infrastructure (NEVI) Formula Program from the new bipartisan federal infrastructure law will be available to states over the next five years.
States will use the money to build new electric vehicle charging stations every 50 miles along the nation’s interstate highway system.
Transportation Secretary Pete Buttigieg, and other Biden Administration officials made the announcement on Feb. 10, 2022 in front of the Transportation Department.
The electric vehicle dream
President Biden has a goal to have the nation’s economy be net zero carbon emissions by 2050, and to have half of all
The Administration is looking to create a cohesive network of EV charging stations to encourage drivers to go electric, and reduce carbon emissions.
This initial step will start “the spine” of the EV charging network that should eventually spread across the entire country, according to Energy Secretary Jennifer Granholm. These alternative fuel corridors, as they have been dubbed, will be “the necessary infrastructure for drivers across America to save money and go the distance,” said Granholm, according to a statement from the
, rural areas don’t have to be a “valley of death” for EV drivers.
He went on to say, “Many might think of [EVs] as a luxury item. The reality is nobody benefits more from EVs in principle than those who drive the longest distances, often our rural Americans."
The Transportation Department is requiring states to submit EV Infrastructure Deployment plans to the federal government for a network of EV charging stations along highway routes first, as opposed to neighborhoods or commercial areas.
Every station would have strict requirements, including at least four fast-charger ports, which would allow an EV to fully recharge in about an hour, and up to 80% battery power in around 30 minutes or so.
These chargers cost about between $40,000 and $100,000 each. After the federal government certifies that states have implemented the plan along highway routes, states can get the go-ahead to build EV charging stations in cities and neighborhoods with federal money.
The financials
To meet the Biden Administration’s goal of 500,000 charging stations nationwide by 2030, the original financial cost estimate was $15 billion. The initial $5 billion is far below the total amount needed, so to get the entire network going, it may require private investment and other forms of financing.
The total amount allocated in the first year will be $165 million, according to the U.S. Dept of Transportation Federal Highway Administration. An additional $2.5 billion in competitive local grants are in the works for later in 2022, specifically targeted to rural areas and underprivileged communities.
, EVs made up less than 3% of new vehicle sales in the country in 2021, but experts believe this is about to increase rapidly in the next few years.
Many consumers are interested in buying an EV, but are concerned about the lack of charging stations. This new plan, plus the exciting new EVs on the market, could change all that.
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