White House rolls out $5 billion funding plan to states for electric vehicle chargers

White House rolls out $5 billion funding plan to states for electric vehicle chargers

Via CNBC.com:

The Biden administration this week rolled out a plan to allocate $5 billion to states to fund electric vehicle chargers over five years, as part of the bipartisan infrastructure package that includes $7.5 billion to build a sprawling network of EV charging stations across the country.

The investment is part of the administration’s broader agenda to combat human-caused climate change and advance the clean energy transition. The Biden administration has touted EVs as more affordable for Americans than gas-powered cars and has pledged that half the vehicles sold in the U.S. will be electric or plug-in hybrids by 2030.

The new guidance will help states build a network of EV charging stations along designated alternative fuel corridors on the national highway system, senior administration officials said during a press briefing on Wednesday.

Despite a rise in EV sales in the U.S. in recent years, the transportation sector is still one of the largest contributors to U.S. greenhouse gas emissions, comprising roughly one-third of emissions each year.

Roughly 24% of new vehicles sold worldwide are likely to be fully electric by 2030, according to forecasts from consulting firm Alix Partners. The U.S. is the world’s third-largest market for EVs behind China and Europe.

The program to build out charging stations could save an average driver who uses an electric vehicle up to $1,000 each year on gasoline, the president said. Tritium, an Australian company that makes EVs chargers, is set to build a manufacturing facility in Tennessee that will produce up to 30,000 chargers each year and create 500 local jobs.

Under the plan, entitled the National Electric Vehicle Infrastructure Formula Program, states must submit their EV infrastructure deployment plans to the Joint Office of Energy and Transportation by Aug. 1. The Federal Highway Administration will approve eligible plans by Sep. 30.

Transportation Secretary Pete Buttigieg and Energy Secretary Jennifer Granholm are set to give remarks in Washington, D.C., on Thursday about the guidance.

“It’s going to help ensure that America leads the world on electric vehicles,” the president said during a speech earlier this week to promote American companies expanding EV infrastructure in the U.S.

“China has been leading the race up to now, but this is about to change,” Biden said. “Because America is building convenient, reliable, equitable national public charging networks. So wherever you live, charging an electric vehicle will be quick and easy.”

Officials during the call on Wednesday said they will unveil guidance on the other $2.5 billion for EV charging stations as part of the bipartisan infrastructure plan later this year. That funding will involve discretionary grants for corridor and community EV charging.

The administration has previously proposed an EV incentive package that would allocate additional money for consumers who bought electric vehicles built by unionized workers. The administration has also committed to replace its federal fleet of 600,000 cars and trucks to electric power by 2035.