P3s key to electric vehicle charging program, states say

States want spending flexibility and public-private partnership guidance when it comes to implementing the $7.5 billion electric vehicle charging network, one of the most high-profile programs in the Infrastructure Investment and Jobs Act.

The states, along with cities, industry groups and other public entities, made the recommendations to the Federal Highway Administration’s Request for Information for development of guidance for the $7.5 billion program, one of the Biden Administration's top priorities.

The funding features $5 billion in formula grants for states and $2.5 billion in competitive grants for EVC infrastructure.

“The most important thing for states is making sure that the department is as flexible as possible with its allowable uses,” said Ben Husch, federal affairs advisor of Natural Resources and Infrastructure at the National Conference of State Legislatures.
National Conference of State Legislatures

The U.S. Department of Transportation, which is overseeing the program with the Department of Energy, expects to release guidance by Feb. 11. The program aims to create a national network of 500,000 charging stations.

The administration's goal is to have electric vehicles account for 50% of all vehicle sales by 2030. Currently, electric vehicles account for about 2.6% of U.S. vehicle sales, with the number projected by the Edison Electric Institute to reach more than 20% by 2030, with a total of 18.7 million of EVs on the road by then. Eliminating so-called range anxiety is considered key to increasing the number of EV sales.

“The most important thing for states is making sure that the department is as flexible as possible with its allowable uses,” said Ben Husch, federal affairs advisor of natural resources and infrastructure at the National Conference of State Legislatures. NCSL was one of 182 respondents to the FHWA’s request for information, which was posted on Nov. 28 and closes Friday.

In its letter, NCSL notes that “states are at the forefront of this transformation,” with at least 47 states and the District of Columbia already offering incentives to support deployment of EVs and supporting infrastructure, either through legislation or private utility incentives within the state.

NCSL, like other state groups, asked FHWA for “maximum flexibility” to implement “a range of complementary strategies” to build out the networks.

Husch said public-private partnerships will be key to accomplishing an effective national charging network.

“A key piece of the EVC puzzle is the involvement of the private sector,” Husch said, noting that states don’t own gas stations. “There are provisions in the law that get at allowing private entities to cover the nonfederal cost share of the program, so we are eagerly anticipating the rules and guidance that take those provisions and further flesh them out.”

The American Association of State Highway and Transportation Officials, which represents state DOTs, said states want a coordinated approach to P3s when it comes to spending the formula funds.

“State DOTs need the ability to contract with private sector companies to deploy, operate, and maintain charging infrastructure. We would appreciate guidance on utilities and private sector entities eligible for partnering,” the group said, adding it would also like guidance on partnering with private entities that want to partner in high-use areas but are uninterested in rural or underserved areas.

Like several rural states, AASHTO also asked for flexibility with the proposal that the charging stations be spaced at 50-mile intervals along designated Alternative Fuel Corridors.

“In some rural areas it will be difficult to meet the 50-mile spacing requirements, as less traveled secondary roads have different needs and complicating factors to consider, such as grid accessibility,” AASHTO said, suggesting that routes connecting national parks or other state and federal lands should be considered.

The DOTs of Wyoming, South and North Dakota, Idaho and Montana warned that it may be difficult to locate EV charging equipment that complies with federal Buy America requirements.

The states noted that the federal government has said it’s not aware of any EV chargers that are currently able to meet applicable Buy America requirements for steel and iron. “We strongly support U.S. workers and businesses,” the states said. “However, if Buy America compliant EV chargers prove not to be available, or not available in sufficient quantities to achieve program implementation, FHWA must move quickly if there is to if there is to be a functioning EV charging formula program.”

Most states and cities, including Detroit and Seattle, highlighted the need for charging states in disadvantaged communities.

“Providing access to publicly available EV charging infrastructure in these types of communities provides greater equity in the electrification of transportation for residents that may not currently have access to home charging options, even if the vehicles are cost competitive,” said a trio of New Jersey state agencies in a letter.

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