When President Joe Biden signed into law the Infrastructure Investment and Jobs Act, more commonly known as the Bipartisan Infrastructure Law (BIL), on November 15, 2021, it committed $7.5 billion in federal funding to build out a nationwide network of 500,000 public electric vehicle (EV) chargers by 2030. It also created the National Electric Vehicle Infrastructure (NEVI) Formula Program, which will distribute $5 billion of this funding in five rounds for States to strategically deploy EV charging infrastructure and establish an interconnected charging network to facilitate data collection, access, and reliability.
The remaining $2.5 billion of funding will be distributed over five years through the U.S. Department of Transportation’s new Charging and Fueling Infrastructure (CFI) Discretionary Grant Program to a wide range of applicants, including cities, counties, local governments, and Tribes. The CFI Discretionary Grant Program will award competitive grants to fill gaps in the national charging and alternative-fueling network as well as build out charging in underserved communities.
Specific to NEVI, the goals are to create a predictable and reliable charging experience, ensure chargers are working when drivers need them, make it easy for drivers to find a charger, avoid requiring drivers to use multiple mobile apps to charge, and provide charger support to meet drivers’ needs well into the future. Initial NEVI funding will be directed to EV charging station projects located within one mile from designated Alternative Fuel Corridors (AFCs), which are typically interstate highways.
How will NEVI impact businesses?
The most recent NEVI guidance prioritizes the installation of Direct Current (DC) Fast Chargers or DCFCs. Most fast chargers can recharge the battery of an EV from 10% to 80% in 30 minutes. This is enough time to use the restroom, stretch the legs or grab a bite to eat while on a long road trip, making them ideal for businesses such as restaurants, convenience stores, strip malls, and travel centers.
As more drivers switch to EVs, businesses that offer EV charging can:
- Strengthen existing customer relationships
- Attract new customers
- Encourage longer customer visits
- Create a new source of revenue
- Support/showcase the company’s sustainability efforts
How can my business take advantage of NEVI funding?
According to a 2019 study from the International Council on Clean Transportation, the cost of a single port 150kW DC fast charger is $75,000. Based on SWEPCO’s own findings, installation costs can be upwards of $50,000. Factors that impact the total cost include the kW charging capacity, the brand of fast charger, sitework necessary for installation and local labor rates. Approximate installation costs increase significantly based on the kW charging capacity of the stations.
To be eligible for NEVI funding of up to 80% of the project cost, charging locations must:
- Be within one mile of established Alternative Fuel Corridors (AFCs)
- Accommodate the power requirements for DC fast charging solutions
- Have enough ports to charge four vehicles at 150 kW at the same time
- Cover remaining total project costs
For more information about how these funds will be distributed in your state, please visit the following webpages:
SWEPCO is ready and available to assist interested customers in completing NEVI funding applications. One of the application requirements is a will-serve letter from the relevant electric utility that outlines the cost to serve the proposed fast charging station. While we cannot submit applications on behalf of our customers, it’s important for applicants to coordinate with us during the site selection process since our cost to serve potential sites will likely impact the final location of the charging station. The earlier we can be involved in the planning process, the better. The first round of funding is expected to open soon.
Finally, there is also a federal tax credit of up to 30% of the cost to purchase and install an EV charger. It does not include a stipulation on location, so the charging station can be located anywhere. We always suggest you contact a tax professional to see if your project is eligible. Here is the link to IRS Form 8911 for the Alternative Fuel Vehicle Refueling Property Credit: https://www.irs.gov/pub/irs-pdf/i8911.pdf.
Please contact SWEPCO Alternative Energy Resource Manager Jeff Thigpen at 318.673.3372 or jdthigpen@aep.com if you would like to start the process of identifying a location for a DC fast charger at your business. Let’s get your business on the EV charging station map!
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