As plans for new federal standards and incentives for electric vehicle charging were announced in mid-February, convenience-store and truckstop operators reiterated their need to be supported for providing convenient 24/7 refueling locations with rest rooms and other amenities.
The new standard for EV chargers, which the Department of Transportation and the Department of Energy announced, will force automakers such as Tesla to make their charging systems compatible with non-Tesla vehicles, propelling access to charging stations. “These standards will direct federal dollars to build out a national EV charging network that is user-friendly, reliable and accessible so that charging is as easy as filling up at a gas station,” the Biden administration said.
The administration said over 130,00 public chargers currently are available to serve the 3 million EVs on U.S. roads. President Joe Biden has publicly announced a commitment to building a convenient and reliable national network of 500,000 EV chargers by 2030. Biden also wants half of all vehicle sales to be electric by then.
Initial investments in the Department of Transportation’s National Electric Vehicle Infrastructure (NEVI) program are expected to “electrify” over 75,000 miles of the national highway system. Over time, the $5 billion program aims to “create a coast-to-coast network of electric vehicle chargers focused on major highways that support the majority of long-distance trip,“ the administration said.
But many in the convenience-store industry aren’t aware of how federal incentives for EV charging will be allocated to individual convenience-store and truckstop locations, which are the primary fueling centers on major highways throughout the nation.
"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," said David Fialkov, executive vice president of government affairs for the National Association of Truck Stop Operators (NATSO) and the Society of Independent Gasoline Marketers of America (SIGMA).
Until convenience-store and truckstop operators can rest assured a profitable market exists, the association said its members will continue to offer the kinds of fuels most consumers and commercial drivers want.
"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 told CSP Daily News Wednesday.
The Biden administration’s announcements Wednesday were accompanied by news of the Federal Highway Administration’s (FHWA) forthcoming Charging and Fueling Infrastructure (CFI) grant program, which will provide $2.5 billion in the next five years, including a first round of $700 million for states and localities to install chargers at retailers, libraries and other convenience locations. The DOE also announced $7.4 billion in funds for seven EV charging and hydrogen corridor infrastructure projects in 23 states.
It’s unclear whether the FHWA program will be sufficient for convenience stores and fuel stations to manage the costs of installing new chargers, which they estimate at several hundred thousand dollars. Many competitors, including utilities, have had a head start in securing public funds for installations.
Facts About Biden's EV Plan
The Biden administration said public dollars will supplement private investment in rural and hard-to-reach locations, and over 100,000 EV chargers are expected to be available, including those privately funded. The administration noted the following commitments in a fact sheet released Wednesday:
- A partnership involving Pilot Co., EVgo and General Motors will provide 2,000 350 kW charters at Pilot and Flying J travel centers along U.S. highways coast to coast. The first 200 chargers are expected to be operational this year.
- Hertz and bp plan to install charging hubs for rideshare and taxi drivers, car rental customers and the public at Hertz locations, airports and other high demand areas in Atlanta, Austin, Boston, Chicago, Denver, Houston, Miami, New York City, Orlando, Phoenix, San Francisco, and Washington, D.C. bp has announced a $1 billion investment in U.S. EV charging by 2030, and Hertz wants 25% of its fleet to be electric by the end of 2024.
- TravelCenters of America and Electrify America announced a five-year goal to install about 1,000 EV chargers at 200 highway locations.
- Francis Energy, an EV charge point operator with a focus on Justice40 communities, plans to expand to 40 states this year and install 50,000 EV charging ports by 2030 by working with municipalities, auto dealers, Tribal Nations and private businesses.
Automakers’ Investments
Automakers are behind other investments in EV charging, including:
- Volvo, ChargePoint and Starbucks plan to install 60 fast chargers at 15 locations between Seattle and Denver by the end of this summer.
- Ford said it will install at least one fast charger with two ports at 1,920 Ford dealerships by January 2024.
- General Motors and FLO plan to work with dealers to install 40,000 EV chargers in local communities by 2026, expanding GM’s Ultium Charge 360 network.
- Mercedes-Benz, ChargePoint and MN8 Energy plan to install 2,500 public fast-charging ports in 400 charging hubs in the U.S. and Canada.
The new push to install more EV chargers stems from an understanding that a lack of conveniently placed chargers is the primary reason many consumers haven’t yet joined the EV bandwagon, according to industry research.
Retailers’ Input
Three associations representing the retail motor fuel industry—NATSO, NACS and SIGMA—said Feb. 10 in public comments to the U.S. Environmental Protection Agency that the incentives for manufacturers to produce electric vehicles and batteries has outpaced incentives for EV charging infrastructure at convenient retail locations. Millions of charging ports will be needed if EV is to become widespread nationally.
To date, many publicly supported chargers have been installed in public locations that aren't always the most convenient for EV drivers, according to Morten Jensen, vice president for operations for the Grand Canyon division of Circle K, who wrote an opinion piece for AZCentral.com, part of the USA Today network.
Convenience stores have what EV drivers and their passengers want—convenient locations with food, bathrooms and often 24/7 hours of operation. But many don't have the capital on hand to invest in EV chargers. Jensen said the cost per installation can run into “hundreds of thousands of dollars” per charging sites, and this doesn’t count the monthly demand charges the utility companies impose on top of the price of electricity, he said.
“Private businesses like Circle K, who have played a key role in keeping our communities moving for many years, must invest hundreds of thousands of dollars at every EV charging site,” he said.
The size of the investment is a stumbling block for many companies and has resulted in public installations owned by utilities placed “in the back of remote parking lots or next to government buildings—not exactly the places where a road-tripper or commuter in need of an EV charger would naturally turn, nor the safe and secure locations that our customers on the road are used to,” Jensen said.