Charging Plan
New details on building EV infrastructure- Short of 500,000 stations?
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We now know the rules of the road for spending billions of dollars in taxpayer money that will help build the electric charging stations meant to fuel the move to electric vehicles (EVs).
The Biden administration has told states how much money they will get this year and how they will be required to spend it. The bottom line is that the Federal government wants charging stations on the interstates and transportation corridors first. California, Texas, and Florida top the list in dollars.
A Tesla charging station along a California interstate highway.
The plan, says the administration, will help build 500,000 new charging stations by 2030 with the $7.5 billion that was included in the $1 trillion dollar infrastructure law. That money is divided into two buckets. The biggest bucket is $5 billion. That’s what’s being doled out now for high-volume highways. Energy Secretary Jennifer Granholm called this, "the spine," of the effort to build charging stations.
TWO BUCKETS
The smaller bucket of $2.5 billion is for charging stations in underserved or disadvantaged communities. Guidelines for that money won’t be announced until later this year.
Energy Secretary Jennifer Granholm explains the two efforts to fun charging station construction and operation. (Credit: DOT)
Here are the requirements for states to get their share of this first $5 billion:
-Charging stations should be built every 50 miles along highways. Those stations should be no more than a mile off the highway.
-The charging stations should be DC fast chargers (DCFC). The direct current chargers can get a vehicle to 80% charge in about 30 minutes. Each station should be able to charge at least four vehicles at a time.
-The federal money can be used for 80% of the cost of a station with the state or private enterprises paying the remainder.
-The stations must be open to the general public. If fleet operators are served, more than one company must be signed up.
States have until August 1st to submit a plan for how they will spend the money.
DOT Secretary Pete Buttigieg discusses role of states in development of charging infrastructure. (Credit: DOT)
The government told each state how much they will receive. Texas tops the list of states. It will get more than $60 million dollars. California, which has the most charging stations as of today, will see about $56.8 million. Florida gets about $20 million.
ACTUAL SPEND THIS YEAR
While the administration is touting the $5 billion spend, that money is spread-out over the next five years. In fact, only $615 million will be spent this year. Why not a billion dollars?
Well, $300 million is being set aside to set up a joint office between the Department of Transportation and the Department of Energy which will help spend all the money. Then there is the $15 million dollars that is set aside for “administration and operations,” of the Federal Highway Administration (FHWA). That is $315 million designated to set up the bureaucracy to spend the $4.6 billion or so left.
Will these billions of dollars do what the Biden administration claims? Maybe not. The consultant group ICF just published a report suggesting that the only way to hit that goal of 500,000 new stations is by building what are called Level 2 chargers. Those chargers deliver a charge much slower. It’s what you might buy to put in your garage and would take 5 hours or so to give you the same charge as a DCFC (Level 3) in 30 minutes.
(Credit: Electrify America)
Since the government is requiring states to build DCFC stations, ICF says both buckets of money, the full $7.5 billion (minus administration costs), will build just 73,000 charging stations. ICF's report came before the guidance that the government would only fund 80% of the projects. Under the government formula, ICF agrees that would equal about 100,000 stations.
That’s progress, but not what sounded like the promise.
I asked DOT for comment. The department is looking at the ICF report.
(Cover photo credit: themanufacturer.com)
UPDATE FROM DOT:
Let's call this my mistake. Every release by the Biden Administration talks about the $7.5 billion for EV charging will help the US to reach the goal of 500,000 stations by 2030. DOT has now told me what this really means. I was pointed to a statement by the Energy Secretary which says the first chunk of money ($5 billion) should help build 500,000 ports, not chargers. That means the government will help fund 500,000 plugs.
The DOT/DOE guidance says each charging station should have four plugs. I guess that means 125,000 stations. We are getting closer to ICF's estimate of how many stations will actually be built by the infrastructure law. I was also provided this statement from a DOT official that the funding will serve as, "a powerful catalyst to achieve the President's goal of a nationwide network of 500,000 chargers by 2030 ." The hope is that country will have that many stations by then, with the help of private enterprise and local governments.