New federal funds to the tune of $2.5 billion will be deployed over the next five years to local governments and tribes to install electric-vehicle chargers, the Federal Highway Administration said Thursday, and some in the convenience-store industry view the government program as funding new competition for their businesses.
Applications opened Tuesday for the first $700 million in funds from the U.S. Department of Transportation’s Charging and Fueling Infrastructure (CFI) Discretionary Grant Program, established by the Bipartisan Infrastructure Law, the Federal Highway Administration said Thursday.
Expected to be released later this year are the first $2.5 billion of the $5 billion National Electric Vehicle Infrastructure (NEVI) Formula Program, earmarked to build a national network of charging stations along highways and alternative fuel corridors.
“By helping bring EV charging to communities across the country, this administration is modernizing our infrastructure and creating good jobs in the process,” said U.S. Transportation Secretary Pete Buttigieg. “With today’s announcement, we are taking another big step forward in creating an EV future that is convenient, affordable, reliable, and accessible to all Americans.”
Justice40 Goal
Companies like Volta Inc., which makes a charging stall with a content display and has a network of over 3,000 public charging stall, are expected to benefit from the new public funds. Shell USA has agreed to acquire the San Francisco-based technology firm, which has supported the Biden-Harris administration'sJustice40 goal of directing 40% of certain federal programs for EV charging into disadvantaged communities. The $169 million acquisition is subject to shareholder and regulatory approval. Volta'sCharging For All initiative also seeks to ensure all Americans have access to affordable and easy-to-use public charging, the company said.
But other c-store operators would like to see more support for private investment in the real estate locations they’ve invested in for the public’s benefit. They are aware of how other companies are entering the space.
“The best use of public money is to bring the private sector to the table so it can invest. If the money is spent with that in mind, it can be very effective. But if it’s used to create government- and utility-run chargers in unattractive places without the amenities that drivers expect, the money will be wasted on equipment that people won’t use,” said Morten Jensen, vice president of operations at Circle K–Grand Canyon.
Urban and Rural
Cities, counties and other local governments can apply to use the CFI funds for EV charging and other alternative fueling infrastructure projects in publicly accessible urban and rural locations and along designated Alternative Fuel Corridors (AFCs). A portion is designed to be used for chargers in underserved and disadvantaged communities.
Some see these funds as fueling new competition for convenience stores and established fueling stations.
Most convenience-store and fueling-station operators want to serve customers by offering options in fueling, which might require adding EV chargers to the mix of fossil fuels and biofuels.
“As fuel retailers and marketers, our members want to sell whatever fuel our customers want to buy at the lowest possible price. Our industries have invested in biodiesel and other renewable fuels for decades,” said David Fialkov, executive vice president of government affairs for NATSO and the Society of Independent Gasoline Marketers of America (SIGMA), NATSO is a national organization representing travel plaza and truckstop owners and operators.
C-Store Interest
The EV movement has spurred retailers like 7-Eleven to jump into EV charging. The company announced this week it intends to build one of the “largest and most compatible” EV fast-charging networks of any retailer in North America. It has launched chargers called 7Charge in several locations in Florida, Texas, Colorado and California.
But other c-stores and fuel stations might not be among the first to market with EV charging because of the capital investment required and the Biden administration’s decision to fund charging stations constructed by local governments.
“Our members are eager to invest in myriad alternative and emerging fueling technologies, including electric-vehicle charging, but need to ensure a return on those investments in order to put capital at risk,” Fialkov said.
“Existing liquid fuels, including biodiesel and renewable diesel that operate commercial trucks, will serve as a necessary bridge for the foreseeable future until truck technology is further developed and until the market for other fueling technologies, including electric trucks, hydrogen, natural gas, etc., is firmly established and profitable,” Fialkov said.
The CFI Discretionary Grant Program is different from the $5 billion National Electric Vehicle Infrastructure (NEVI) Formula Program, earmarked to build a national network of charging stations along highways and alternative fuel corridors.
For the NEVI program, the Federal Highway Administration in February published finalized minimum standards designed to ensure the chargers will work with all EVs. NEVI’s first round of $2.5 billion in competitive grants for EV charging stations across the country hasn’t opened yet.
“The Joint Office in its first year has worked closely with DOT, FHWA and DOE, as well as states, communities and stakeholders across the country to make sure that the Biden Administration’s goal to build a network of 500,000 chargers is reliable, equitable, and frictionless for the public to use,” said Joint Office Executive Director Gabe Klein. “We will continue to support the NEVI Formula Program, while also working to support the successful implementation of the $2.5 billion CFI Grant Program, the $5 billion EPA Clean School Bus Program, and the $5.6 billion FTA Low No Vehicle Program so we can create a future where everyone can ride and drive electric.”