US to detail US$5bil plan to fund EV charging network

By REUTERS | 10 February 2022


WASHINGTON: The Biden administration today plans to detail how it will award nearly US$5 billion over five years to build thousands of electric vehicle charging stations.

Congress approved the funding to states as part of a US$1 trillion infrastructure bill in November.

The White House wants to prod Americans to move away from gasoline-powered vehicles even as efforts to win substantial additional funding for EVs in Congress have stalled.

The administration will make US$615 million available in 2022 but states must first submit plans and win federal approval.

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US Transportation Secretary Pete Buttigieg said funding "will help us win the EV race by working with states, labor, and the private sector to deploy a historic nationwide charging network."

By 2030, Biden wants 50% of all new vehicles sold to be electric or plug-in hybrid electric models and 500,000 new EV charging stations; he has not endorsed phasing out new gasoline-powered vehicle sales by 2030.

The Biden administration said in guidance today that states should first prioritise investments along interstate highways. It also says:

> States should fund DC Fast Chargers; stations should have at least four ports capable of simultaneously charging four EVs.

> States should install EV charging infrastructure every 80km along interstate highways and be located within  1.6km of highways.

> Federal funds will cover 80% of EV charging costs, with private or state funds making up the balance.

The administration anticipates states will generally opt to hire private entities to install and operate EV charging stations.

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The White House endorsed legislation stalled in Congress to increase current US$7,500 EV tax credits to up to US$12,500 for union-made US vehicles, create credits of up to US$4,000 for used EVs and lift the current 200,000-vehicle EV manufacturer tax credit cap, which would make General Motors and Tesla eligible again.

That bill includes a 30% credit for commercial electric vehicles, US$3.5 billion for converting US factories for EV production and US$9 billion for the US Postal Service and federal government to buy EVs and charging stations.

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