The US will need to build 28 million electric vehicle charging ports sited at homes and businesses around the country to meet the government’s projections for EV charging demand by by 2030. And roughly 1.8 million of those ports will need to be available for private charging at offices or publicly available charging facilities.
Meeting those goals will require an almost unprecedented investment in new infrastructure, since the US has only installed 164,236 charging connectors at 61,693 charging stations nationwide as of February 2024.
To encourage the development of this charging infrastructure, the federal government, workting through the Department of Energy, the Department of Transportation, the Bureau of Land Management and others have created a number of incentives to lower the cost of investment for private industry and derisk some of these charging projects.
Federal Funding Opportunities
- National Electric Vehicle Infrastructure (NEVI) Formula Program: Offers formula funding to States, D.C., and Puerto Rico to build out charging infrastructure along highway corridors. The Federal share of eligible project costs is 80%, with state and private funds covering the remaining cost-share .
- Congestion Mitigation and Air Quality Improvement Program (CMAQ): Provides flexible funding to State and local governments for transportation projects that reduce congestion and improve air quality. EV charging infrastructure is considered eligible under this program, and the funding is allocated annually .
- Charging and Fueling Infrastructure Discretionary Grant Program: A competitive grant program focusing on deploying publicly accessible EV charging as well as alternative fueling infrastructure along designated Alternative Fuel Corridors or other publicly accessible locations. It includes a community grant program with a priority for projects in rural areas, low- and moderate-income neighborhoods, and communities with a low ratio of private parking spaces .
- Federal Lands Access Program (FLAP): Provides funds for projects on or adjacent to Federal lands. States, Tribes, and local governments can apply for FLAP funding for EV charging infrastructure among other transportation planning and development projects .
- Grants for Buses and Bus Facilities Programs: Offers funding for transit agencies and State, local, or Tribal government agencies to purchase, rehabilitate, and replace buses and related equipment, including those that produce low or no emissions, which supports the electrification of public transportation services .
State Support and Additional Programs
Several states have their own set of programs and initiatives to support the development of EV charging infrastructure. Some states offer additional incentives or matching funds to complement federal programs. States are required to develop and submit EV Infrastructure Deployment Plans to access certain federal funds, ensuring a coordinated approach to expanding the EV charging network.
Leveraging Other Federal Agencies and Programs
Besides the Department of Transportation (USDOT) and the Department of Energy (DOE), other federal agencies like the Environmental Protection Agency (EPA), Department of Housing and Urban Development (HUD), Department of Agriculture (USDA), Small Business Administration (SBA), and Department of Commerce (DOC) offer programs that, while not exclusively focused on EV infrastructure, can support its development through broader sustainability, economic development, and innovation initiatives.
Funds Continue to Flow
In the last few months, the Department of Energy and Department of Transportation have released significant new funds to expand charging infrastructure across the country.
- $623 Million in Grants Announced in January 2024: This funding aims to deploy chargers in communities and along major travel corridors. It will support the construction of approximately 7,500 EV charging ports across 22 states and Puerto Rico. The initiative is funded by the Bipartisan Infrastructure Law’s Charging and Fueling Infrastructure (CFI) Discretionary Grant Program.
- $150 Million to Upgrade Nearly 4,500 Public EV Chargers: In another initiative, nearly $150 million was awarded to 24 grant recipients in 20 states to enhance the reliability of existing EV charging infrastructure. This effort focuses on repairing or replacing almost 4,500 existing EV charging ports to improve the current network’s reliability and accessibility .
- Specific Large Awards:
- A $63.8 million corridor grant, went to the New Mexico Department of Transportation for building two EV charging centers for medium- and heavy-duty commercial vehicles on Interstate-10.
- A $56 million corridor award to the San Joaquin Valley Unified Air Pollution Control District in California for constructing two truck charging sites, including 90 DC fast chargers for passenger vehicles and 85 DC fast chargers for medium- and heavy-duty trucks.
These are examples of financing opportunities to help accelerate the development of vitally needed infrastructure to decarbonize what cacounts for nearly one-third of American greenhouse gas emissions.
To see how Energy Transition Finance can help you reach your decarbonization objectives, please reach out to us.