By LSN Partners on October 4, 2022
Last week the United States Department of Transportation (DOT) announced that it had approved all 50 states’ plans to build electric vehicle (EV) charging infrastructure. With this approval, all states now have access to fiscal year (FY) 2022 and FY2023 NEVI funding, totaling more than $1.5 billion to build a network of EV charging stations covering approximately 75,000 miles of highway across the country. All approved plans are available on the FHWA website.
The NEVI (National Electric Vehicle Infrastructure) Funding Program, established under the Bipartisan Infrastructure Law, provides $5 billion to build out the nation’s EV charging infrastructure over five years. In addition, the 5-year funding plan for the NEVI Formula program is available here.
With the approval of EV charging plans for all 50 States, the District of Columbia, and Puerto Rico, each entity can use their NEVI funding for a variety of projects directly related to the charging of a vehicle, including the upgrade of existing and construction of new EV charging infrastructure, operation and maintenance costs of these charging stations, installation of on-site electrical service equipment, community and stakeholder engagement, workforce development activities, EV charging station signage, data sharing activities, and related mapping analysis and exercises.
Furthermore, DOT will set aside 10% of NEVI funding each fiscal year for discretionary grants to help fill gaps in the national charging network. This $2.5 billion Discretionary Grant Program will ensure that charger deployments meet the Biden Administration’s priorities, such as equity commitments to increase EV charging access in rural, underserved, and overburdened communities.
For example, Florida’s deployment plan aims to achieve at least 40% distribution of benefits to disadvantaged communities. The estimation is that by 2030, Florida’s population will be 23% minority groups, one in four residents will be 65 years or older, and 90% of the population growth will be due to migration. Given Florida’s unique composition, its plan directs the Florida Department of Transportation (FDOT) to engage heavily with rural and disadvantaged communities to determine their specific needs. Florida will likely receive almost $200 million through NEVI between now and FY2026.
Another example is the Big Apple. New York will receive over $175 million of NEVI funding over the five years; federal dollars will complement a host of well-funded state EV charging programs. These include the New York State EV Make-Ready Program, a utility-funded incentive program with a budget of $800 million to build EV charging infrastructure. Another program, Evolve NY, managed by the New York Power Authority, is investing up to $250 million to build 800 EV charging stations along major travel corridors statewide.
Furthermore, California will receive over $380 million of NEVI funding over the five-year period. The state plans to designate the initial $134 million toward constructing light-duty passenger connectivity stations. However, California is actively searching for ways to use NEVI funding toward stations that can also serve heavier vehicle classes with higher-powered chargers or pull-through charging sites.
EVs are rapidly rising in popularity across the United States with new models and government incentives enticing drivers away from traditional internal combustion engine-powered transportation. These trends will continue in the coming years as additional federal and state initiatives come online.