Pieces of Federal EV Charging Vision Coming Together

Two crucial pieces of Federal support for electric vehicle (EV) charging are being implemented to expedite the installation of EV infrastructure for all types of vehicles. The first is the announcement of Charging and Fueling Infrastructure Grant Program awards—$623 million representing the first two years of the program’s budget—which provides funding for EV charging and other alternative fueling stations along highway corridors and in communities. The second is guidance from Treasury Department and the Internal Revenue Service on the Alternative Fueling Infrastructure Tax Credit, which makes installing EV charging more affordable for both individual drivers and businesses.

I have been eagerly anticipating the first round of Charging and Fueling Infrastructure Grant Program awards and the tax credit guidance for some time. This support for EV charging, and by extension, EV ownership among individuals and businesses, is crucial for accelerating the electrification of the transportation sector. This is necessary to make progress on reducing greenhouse gas emissions and local air pollution from transportation. These are two big steps towards a zero-tailpipe emissions future.

Charging and Fueling Grant Projects Bring Support for Various EV Projects

Let’s talk about what each of these incentives are, starting with the Charging and Fueling Infrastructure Discretionary Grant Program, or CFI Program for short. That program is one of the two programs in the Bipartisan Infrastructure Law (BIL) that targets EV charging infrastructure, along with the National EV Infrastructure (NEVI) Program. Both programs are set to run for five years. At $2.5 billion, the CFI Program is the smaller of the two, but still represents a significant investment that can fund EV charging from the BIL. Unlike the NEVI Program, in which states administer the program after each receives funding according to a pre-determined formula, the CFI program is awarded on a competitive basis by the Federal Highway Administration. There are also two key eligibility differences between the NEVI and CFI Programs, namely that infrastructure for several designated “alternative fuels” (not just EV charging) are eligible and that community sites (not just highway corridors) are eligible locations for the CFI Program grants.

The CFI Program awards will fund charging at locations across the country, including in rural and disadvantaged communities, helping more people make the switch to EVs. I found a number of details about the awardee projects notable, including:

• EVs win the day: The awardee projects lean overwhelmingly to EV charging infrastructure and do not include infrastructure for alternative fuels such as propane or natural gas. This is a positive development to help us in our goal to phase out fossil fuels.
• From micro to mega: The projects provide support across vehicle segments from electric cars to electric big rig trucks, as well as for shared electric bikes and scooters. Other projects note considerations for transit-oriented development as part of infrastructure deployment.
• Community and corridor balance: Roughly half of the funding went to community sites, while half went to corridor locations, indicating that community and corridor deployment must advance concurrently.
• Grid-smart strategies: Several projects mention solar canopies, on-site battery storage, or both, to reduce the need for electric grid upgrades and help charging operators manage their electricity costs.
• Filling gaps where need is greatest: A number of project descriptions emphasize providing access and economic or workforce development in historically disadvantaged, rural, and/or tribal communities as the focus of infrastructure deployment.

EV Tax Credit Guidance Provides Clarity on Credit Eligibility

We knew a few details about the updated alternative fuel infrastructure tax credit from the Inflation Reduction Act (IRA). However, it wasn’t clear at the time how all of the updates would play out in practice, especially when it comes to the geographic eligibility criteria. The Treasury and IRS guidance defines non-urban census tracts as those in which at least 10 percent of the census blocks are not designated as urban. This inclusive solution reduces the number of households and businesses in rural census blocks that might otherwise be excluded from eligibility. The White House estimates this definition translates to two-thirds of people in the US living in credit-eligible areas.

Alternative fuel infrastructure tax credit geographic eligibility is crucial for the long-term federal support for EV charging deployment. The other credit eligibility criteria are quite broad, making it applicable to infrastructure that can serve any segment of vehicle and for any charging installer. Focus on non-urban and low-income census tracts makes sense for the same reasons it was important to see many of the CFI Program grants going to such areas—these are areas that have the greatest need for charging infrastructure support.

More Pieces of the Federal Charging Vision Happening or Coming Soon

The CFI Program grants and tax credit guidance are not the only news on EV charging coming out of Federal programs. Additional pieces of Federal support for EV charging are happening or on the horizon. For example, NEVI program stations are beginning to come online, and grants to improve the reliability of existing charging stations are also on the way. It’s a lot to keep track of, but we have a great team at UCS keeping us informed of the next big steps towards a zero-tailpipe emissions future.

Courtesy of Union of Concerned Scientists, The Equation. By Samantha Houston, Senior Vehicles Analyst

Featured photo by Kyle Field | CleanTechnica