Everything You Should Know About the National Electric Vehicle Infrastructure Formula Program
The alternative fuel corridors in the U.S. are about to get a major boost from high-speed direct current fast charging. On September 27, the Biden-Harris Administration announced it has approved Electric Vehicle Infrastructure Deployment Plans for all 50 States, the District of Columbia, and Puerto Rico ahead of schedule under the National Electric Vehicle Infrastructure Formula Program (NEVI for short).
This new program, which establishes funding, regulations, and guidelines for states to plan and deploy electric vehicle (EV) charging stations, is unlike any national initiative for EV infrastructure that the U.S. has seen before. It aims to help create an interconnected national charging network and make EV driving more realistic and attainable for all U.S. residents.
Here’s a look at everything you need to know about NEVI and what it means for electricity as a clean transportation fuel in the U.S.
What Is the National Electric Vehicle Infrastructure Formula Program?
The National Electric Vehicle Infrastructure (NEVI) Formula Program is a key component of the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL), which President Biden officially signed into law on Nov. 15, 2021. The law commits up to $7.5 billion toward developing the nation’s light duty EV charging network through a $5 billion allocation for the NEVI program and an additional $2.5 billion for competitive grants.
This NEVI EV charging initiative represents a major step forward for EV adoption by removing a major hurdle in EV acceptance, the lack of a viable fueling infrastructure. And deployment of charging infrastructure through this program will enable states to leverage the federal money to cover up to 80% of the costs of establishing, connecting and operating EV charging stations on their alternative fueled corridors. Its also designed to improve EV charging equity by bolstering investment in installing charging stations in rural and underprivileged areas.
In February 2022, the program established key guidelines and dates. Most notably, in order to receive program funds, all states had to submit their plans of how they would use their NEVI money by Aug. 1. As of Aug. 2, the Biden administration announced that all 50 states, along with Washington, D.C. and Puerto Rico, had submitted their plans. The Federal Highway Administration will review and approve these plans no later than September 30, enabling states to move forward with funding projects.
Establishing a Joint Office and Standard Guidelines
To execute this initiative, the BIL includes $300 million for the U.S. Departments of Transportation (DOT) and Energy to establish a joint office to oversee funding activities. This new office is designed to create program guidelines and provide assistance for states as they implement the program and use funds.
Based on their work together so far, the departments issued new proposed mandatory standards for EV charging stations. These standards cover everything from establishing a minimum number of fast-charging ports and respective power requirements to payment systems and station uptime requirements. These proposed requirements are set for review later in 2022.
How Can NEVI EV Charging Funding Be Used?
Apart from the minimum standards for charging equipment, NEVI already includes numerous guidelines that state projects must meet to use project funds. We can break these down into general project eligibility guidelines and more specific considerations states must make for any stations they install.
Eligible Projects
In general, NEVI funds are restricted to EV charging stations that are open to public use or for commercial fleet operators from multiple companies. The stations must also be installed on federally designated alternative fuel corridors (AFC) to ensure that there is reliable, equitable access to charging stations throughout all 50 states. However, when a state can show that its AFCs are completely built out, it may be able to secure funding for building EV stations in other areas.
As long as projects meet these criteria, states can use NEVI EV charging funds in various ways. These include:
Purchasing and installing new charging stations.
Upgrading or expanding existing stations.
Operating and maintaining stations for up to five years.
Installing traffic control devices and signage on-site and in the right of way around charging stations.
Sharing charging station data.
Community outreach and other development-stage activities.
Analyzing, mapping and planning station locations, particularly as they relate to disadvantaged communities.
For any of the above, states are expected to complete projects within six months of receiving funds, a very aggressive target for larger construction projects.
Key Considerations for Stations
In addition to these project criteria, states must consider several key factors when planning their station installs. These include:
Public EV charging station distance: Stations should typically be no more than 50 miles apart and within 1 mile of interstates and other highways.
Proximity to public amenities: Besides nearness to each other and to highways, stations should generally be near public restrooms, small businesses and other public amenities.
Electrical grid connections: Stations should be planned with reliable, safe connections in mind, with an eye toward utility partnerships.
Rural and underserved communities: In keeping with the federal government’s Justice40 Initiative, a sufficient number of stations - 40% of the funding - must be positioned to serve remote or disadvantaged communities.
Long-term operation and maintenance: Project funds aren’t intended only to get stations up and running but operating for the long haul. Plans and fund requests should factor in these long-term needs.
State and local programs: Many states and municipalities have existing initiatives and funding programs, and those should be tapped in conjunction with the NEVI program.
Private investment opportunities: In addition to other public programs, state EV infrastructure plans should seek out investment from private organizations or private-public partnerships.
Future upgrades: Stations should be designed with the future in mind. Equipment, charging capacity and similar factors must be easy to upgrade as demands change.
The secretary of transportation also has leeway to expand these considerations to include other areas, such as cybersecurity, consumer protection and environmental planning.
NEVI Sets the Stage for a National EV Charging Network
Never before has the U.S. had a comprehensive, nationwide plan for expanding its EV charging infrastructure. The National Electric Vehicle Infrastructure Formula Program provides that, giving states a standard for execution along with the funding and support needed to get the job done.
Under NEVI, a fast charge network for EV fueling will become more accessible for everyone in the U.S. This program represents an exciting development in accelerating the country’s EV initiatives and is a major step toward realizing a connected national charging infrastructure.
Sources
National Institute of Standards and Technology (NIST) - The Future Is Charged: National Electric Vehicle Infrastructure (NEVI) Formula Program
U.S. Department of Energy (DOE) - National Electric Vehicle Infrastructure (NEVI) Formula Program
Electrification Coalition - Top 8 Takeaways From the Federal NEVI Guidance
Federal Highway Administration - Biden-Harris Administration Announces All 50 States, DC and Puerto Rico Have Submitted Plans for National Electric Vehicle Charging Network
Joint Office of Energy and Transportation - About
JD Supra - DOT Proposes First-Ever Mandatory Standards for Publicly Available EV Infrastructure
The White House - Justice40