US Unlocks Frozen EV Charging Funds

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When the current US administration took office in January, one of the first things it did was impound all funds appropriated by Congress for the National Electric Vehicle Infrastructure program, otherwise known as NEVI. The basis for the hold on the funds was stated explicitly as giving the administration time to determine the funds would be spent on projects that were “aligned with the administration’s priorities.”

You don’t need a weatherman to know which way the wind blows and it doesn’t take a Rhodes Scholar to know the priorities of this failed administration include ripping diversity, inclusion, and equity requirements out by the roots and scattering they to the four winds. White males have always been the preferred members of society and anything that disturbs that power structure is anathema to president Stephen Miller Donald Trump.

Another item that stuck in the craw of the MAGAlomaniacs was the requirement in the original program that required contractors being funded by NEVI to pay a prevailing wage to its workers. Well, funk that. If people want to work for less than union wages, they are free to do so, or so the thinking goes.

The Biden administration approved the NEVI program in 2023 and allocated five billion dollars to promote the large-scale expansion of charging infrastructure throughout the United States. However, the states had to submit their plans to the Federal Highway Administration on an annual basis, detailing how they intended to use the funds.

As NPR outlined in June, NEVI program allocations are different from grant money, which involve competition and awards for likely best future practices. Grants would have given the executive branch discretion over whether NEVI funds are distributed or not. Instead, it’s what’s called “formula funding,” which means that Congress allocated it to states based on a calculation. Each state gets a certain percentage of the total NEVI pool, as long as they follow the required steps, including making detailed plans for where they would put chargers and how.

States Challenge NEVI Freeze

After the funds were frozen in February, the action by the administration quickly drew opposition from several interested parties who claimed the freeze was illegal. California, in particular, opposed the withholding of funds. “California will not back down, not from Big Oil, and not from federal overreach,” California Attorney General Rob Bonta said in May.

A coalition of 14 states filed suit in May asking a court to rule that the freeze was illegal and order the government to unfreeze the funds. A court ruled that these states were likely to succeed and issued a preliminary injunction against the government’s spending freeze.

On August 11, the government blinked and decided to release the funds to the states. In addition, it will publish new guidelines to simplify the review process for charging stations. This means that states no longer have to consider consumer and environmental protection measures, emergency plans, and other previously required steps before construction begins.

According to Electrive, the Department of Transportation has also removed the requirement that proposals for the funding “demonstrate how the implementation will promote strong labor, safety training, and installation standards.” The requirement that applicants provide opportunities for minority- and women-owned small businesses to be given priority in how the contracts were awarded has also been removed.

The percentage of charging stations that must be built in rural, underserved, or disadvantaged communities has also been deleted. No money for Black, Brown, or Indigenous people, and none for females or veterans. As long as white men are able to elbow their way to the front of the line, Dicktator Don is satisfied.

“Our revised NEVI guidance slashes red tape and makes it easier for states to efficiently build out this infrastructure,” said Transportation Secretary Sean Duffy in a statement. “While I don’t agree with subsidizing green energy, we will respect Congress’s will and make sure this program uses federal resources efficiently.”

NEVI Can Move The EV Revolution Forward Quickly

Unfreezing the funds will likely bring new momentum to the charging infrastructure sector. Since February, NEVI projects that had already been contracted could continue, but states were not allowed to award new contracts. Under the new framework, states can now decide for themselves how far apart the federally funded fast charging stations on highways should be. Previously, a maximum distance of 50 miles applied for a transport corridor to be considered complete.

TechCrunch reports the Department of Transportation, currently headed by former MTV personality Sean Duffy, criticized the states for taking too long to spend the money. As of May, around 84% of the $5 billion (authorized as part of the Bipartisan Infrastructure Law) was still waiting to be obligated and only a few dozen chargers had been built. Apparently, when you are a big TV star, things like planning and permitting are mere trifles to be swept away with the stroke of a Sharpie pen.

Industry Groups Applaud

The new policy was welcomed by NATSO, an organization that represents truck stops and travel centers, and SIGMA, which represents America’s leading fuel marketers. “We appreciate that the administration is adopting a flexible, consumer oriented approach to implementing the NEVI Program,” said NATSO and SIGMA. “This guidance marks a constructive step toward addressing the ongoing challenges associated with deploying EV charging infrastructure while also ensuring that taxpayer dollars are spent wisely and effectively.”

According to Yahoo Finance, fuel retailers play a leading role in investments in refueling technologies. They are especially appreciative of a key provision in the new guidance by the Transportation Department that encourages the selection of charging locations where the charging station owner is also the site host. NATSO and SIGMA have long advocated for this provision, which they believe will accelerate construction timelines and ensure that investments made with public funds are directed to the ideal site locations. NEVI dollars can go the furthest when they mobilize grant recipients to not only install charging stations, but also to provide an ongoing, positive consumer experience for EV drivers, they maintain.

“Ensuring that charging stations are owned and operated by private entities with a vested interest in the site’s success reduces the risk of stranded assets and minimizes the potential for underutilized or unreliable infrastructure,” NATSO and SIGMA said. “We applaud FHWA and DOT for this pro-consumer policy and encourage the agencies to approve only those state plans that explicitly include this prioritization.”

Perhaps with NEVI back on track, the EV revolution in the US will gain some momentum even as the expiration of EV tax credits takes effect at the end of next month.