Definitely Not "Shovel Ready”

Federally backed EV charging stations won’t be built until next summer

Politicians have been plugging electric vehicle (EV) chargers into cars this week. It has been the “go to” video for “build back better.” The Vice President, the Transportation Secretary, and the Energy Secretary, all demonstrated EV charging for cameras, the classic Washington DC photo-op. The Biden Administration is taking a victory lap over the passage of the infrastructure law which promotes, among other things, electrical vehicles.

The law calls for $7.5 billion in charging station spending. But you may not see a federally-backed charging station popping up anytime soon. I wondered, is all that money for incentives or to actually build stations, and if so, who owns that taxpayer-supported station?

Vice President Harris at a Maryland EV repair and charging facility. (Credit: PBS Newshour)

There were smiles and signatures in mid-November when President Biden signed the bipartisan infrastructure bill. It’s a $1 trillion law but look at the fine print in government releases, and the building of these vehicle charging stations won’t start until next summer. These plans are not “shovel ready.”

SHOVEL READY

The Obama administration coined the term “shovel ready.” In 2008, Barack Obama was preparing to come into office in the middle of the Great Recession and wanted to stimulate the economy. Obama wanted Congress to approve infrastructure spending for projects that had permits, plans, and were ready for shovels to start digging.

The Biden administration is taking a different approach. The White House wants to make EVs and charging, “more accessible and more affordable.” The Vice President unveiled some details as she plugged in an electric car, saying, “the future of transportation, in our nation and around the world, is electric.”

(Credit: PBS Newshour)

A White House Fact Sheet contends that the country is on a, “path to a convenient and equitable network of 500,000 chargers and make EVs accessible to all Americas for both local and long-distance trips.” There are now about 100,000 charging stations, according to the White House.

RULES OF THE ROAD

Before building anything the government is setting up a new bureaucracy and the rules of the road. The Administration just created an office that will coordinate spending and standards between the Department of Energy and the Department of Transportation to create, “one-stop-shop” for resources on EV Charging and related topics.” This, according to the government, is streamlining the process to appropriately spend the money.

Then the feds will set the rules for the states. It is the states that will actually spend the money. The feds have until February 15 to come up with those guidelines. The states then propose projects they want money to build. None of the money goes out until after May. That’s why it will be summer before any stations are built. Building charging stations is not like building a road or an airport terminal. They will go up fast once the feds release the money.

Department of Transportation Secretary Pete Buttigieg and Department of Energy Secretary Jennifer Granholm at an EV charging station talking about the infrastructure law. (Credit: DOT & DOE)

Interesting- the states have a lot of leeway in spending this infrastructure money. When I asked the government if only private enterprise would own the stations I was told this may not be the case. Will Virginia or South Dakota own and run charging stations?

THE UNDERSERVED

Part of this charging station effort is to fill in the gaps in rural and underserved areas where utilities or charging companies might not want to build. Those private companies might get incentives to build in those less lucrative areas.

While those areas may get a charging station, the Vice President also announced an effort to help more Americans afford an electric vehicle. There are tax credits for new EV sales. Now the administration will also offer a $4,000 tax credit when someone buys a used EV (Will Elon Musk like this subsidy?).

The government also promises to bring some uniformity to charging stations. Now there are different plug types and ways to pay. The government promises, “a more uniform approach, provide greater convenience for customers, and offer increased confidence for industry.”

It won’t be fast, but many more charging stations are coming.