MIAMI BEACH, Fla. — The auto industry and U.S. policymakers are signaling to consumers that the future of transportation is electric. For example, since 2021, companies have invested nearly $85 billion in manufacturing electric vehicles (EVs), batteries and EV chargers in the United States, and the number of EVs sold in the U.S. has tripled since January 2021.
Meanwhile, the Inflation Reduction Act (IRA) approved by Congress and President Joe Biden provides tax credits for consumers who purchase new or used EVs, money to retool existing facilities and build new manufacturing in the United States. It also provides grants to deploy zero-emission heavy-duty vehicles.
The program that will make the most significant impact on the EV landscape, however, is the National Electric Vehicle Infrastructure (NEVI) program. The Infrastructure Investment and Jobs Act (IIJA) invests $7.5 billion to build a national network of 500,000 EV fast chargers through the NEVI program.
Many states will prioritize EV-charging funds for sites with access to amenities and other services.
Also, each state received a specific number of NEVI dollars to build out its network of chargers. For instance, Texas was allocated the most funding with $404 million, while Hawaii received $17 million. State governments were required to submit NEVI plans to the U.S. Department of Transportation by August 1, which every state did, and on Sept. 14, 33 states’ NEVI plans were approved.
Accessing NEVI Benefits
Convenience stores are ideal partners for the EV-charging industry because NEVI requires that chargers be located every 50 miles along a state’s Alternative Fuel Corridor and within one travel mile of the interstate. Further, many states’ NEVI plans will prioritize sites with access to amenities and other services. If a site already has an existing fast charger, NEVI funds can be used to upgrade existing stations or build new charging stations. Upgrading existing infrastructure and adding to locations where fast chargers already exist is a great way for states to spend funds efficiently.
Two prime examples:
- California NEVI plan requires that applicants are responsible for locating NEVI-compliant sites and for negotiating site agreements with each host to use the site for a specified minimum amount of time defined by the request for proposal.
- Ohio’s NEVI plan states that the Ohio Department of Transportation does not intend to fund EV charging on state-owned land, rather it will seek to build out the infrastructure on third-party property.
As each state plan is different, understanding a particular state’s goals is important. Partnering with an EV-charging provider to be a NEVI site host is a great way to join the EV revolution.
Considering Options
There is not a one-size-fits-all solution regarding EV charging. Fueling operators, restaurants and convenience stores will play a significant role in ensuring the transition to EVs is successful. A site owner may decide to purchase an EV charger, but what happens when that charger encounters a problem or the site owner decides it is not worth the headache to fix? A site host would be better off utilizing an owner-operator model. Since the charging company often owns the chargers, it is in the best interest of that company to encourage the use of a particular charging station and bring EV drivers to a site host’s location.
Another advantage of partnering with a company offering an owner-operator model is that when paired with a grant, the site host can generate guaranteed revenue for that spot.
The income from the charging stations provides a consistent revenue stream to the site host, regardless of the stations’ profitability. Additionally, a retail site host can still benefit from offering a charging station as an amenity, attracting new customers or enticing existing customers to spend more time at a location because of access to an EV charger.
What Comes Next?
As 33 state NEVI plans have already been approved, and the remainder will be approved before Sept. 30, current or potential site hosts should begin making plans for NEVI-funded chargers. Each state’s department of transportation will soon begin a procurement process with funds not expected to reach site hosts until 2023.
That makes now a great time for retailers to begin planning and partnering with EV-charging companies for the future of transportation.
David Soens is vice president of grants operations, Blink Charging, Miami Beach, Fla. Contact him at DSoens@BlinkCharging.com.