9 Jun, 2022

Biden administration proposes new standards for nationwide EV charging network

SNL Image

Under a new Biden administration proposal, states would be required to follow a common set of standards in building out a nationwide electric vehicle charging network.
Source: Aranga87/Getty Creative via Getty Images

The Federal Highway Administration proposed new standards June 9 for a nationwide electric vehicle charging network as the Biden administration pursues a goal of ensuring 50% of new vehicles sold in 2030 are electric.

A bipartisan infrastructure law passed in November 2021 included $7.5 billion for EV charging infrastructure, funding what the White House hopes will help produce 500,000 chargers throughout the country.

The proposed standards would require charging facilities built with that funding to be accessible, user-friendly and interoperable, administration officials said.

On a call with reporters, U.S. Transportation Secretary Pete Buttigieg said the proposed rule would require EV charging stations every 50 miles along interstate highways and within one mile of the interstate. Exceptions could be granted in certain cases for states with sparsely populated transportation corridors.

SNL Image

The proposed rule would require real-time information on pricing and location so that drivers can better plan their trips, Buttigieg said.

Charging stations would need adapters for "all vehicle models" and at least four 150-kW direct-current fast-charging ports per facility, the secretary added.

The standards would also prohibit relevant charging stations from establishing membership programs as a prerequisite for use.

"No matter where you live or where you're headed, everyone should be able to count on fast charging, fair pricing and easy-to-use payment for their EVs," Buttigieg said.

A catalyst for private investment

The proposed standards cover two separate programs established by the $1.2 trillion Infrastructure Investment and Jobs Act.

The law included $5 billion in formula funding to states for a nationwide charging network, as well as $2.5 billion in competitive grants for alternative fuel corridors for underserved and overburdened communities.

Transportation experts agreed that far more money is needed to build out a nationwide charging network. But the White House framed the two programs as ways to attract additional capital from the private sector.

"These federal charging programs were designed to catalyze additional private sector investments that complement the build-out of a user-friendly, cost-saving and financially sustainable national EV charging network," the White House said in a June 9 fact sheet.

U.S. Energy Secretary Jennifer Granholm told reporters that the White House will continue to press U.S. lawmakers to pass legislation that reduces the cost of EV ownership.

A sweeping budget reconciliation package unveiled by congressional Democrats in 2021 would have provided up to $7,500 in federal tax credits for electric vehicles, with an additional $4,500 in credits for cars and trucks assembled in the U.S. by union workers.

However, that legislation failed, largely due to opposition from U.S. Sen. Joe Manchin, D-W.Va., a coal-state lawmaker who has recently been engaged in negotiations on a slimmer package. Those talks are now running up against a fast-approaching August congressional recess and the November midterm elections.

"I really want to underscore that we need the additional tax credits for EVs and batteries and other clean technologies in President Biden's agenda, which we have asked Congress to pass to make electric vehicles affordable for everyone," Granholm said on the press call.

The Federal Highway Administration's proposed rule is expected to be published in the Federal Register sometime next week.

S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.