Dive Brief:
- The Trump administration has placed a hold on the $5 billion National Electric Vehicle Infrastructure (NEVI) program. A memo shared with state transportation directors on Thursday stated that “no new obligations may occur” until further guidance is provided.
- NEVI was part of the bipartisan infrastructure law passed in 2021, aimed at boosting electric vehicle adoption. States were expected to create EV charging infrastructure plans to access these funds; however, the Federal Highway Administration (FHWA) has now halted the approval of these plans.
- Although most of the funds have already been allocated to state transportation agencies, according to Ryan Gallentine of Advanced Energy United, the FHWA’s announcement raises significant doubts about the investments being made by states and private companies.
Dive Insight:
Emily Biondi, an associate administrator of FHWA, mentioned in the memo that the new leadership at the Department of Transportation will review the policies related to the NEVI program. As a result, the guidance issued on June 11, 2024, has been rescinded, along with previous versions.
The memo clarified that existing obligations will still be reimbursed to avoid disruption of financial commitments while waiting for new guidance.
As reported by Politico, the FHWA has also removed certain web pages about the $2.5 billion Charging and Fueling Infrastructure grant program.
The Trump administration has previously criticized the use of public money to promote electric vehicle adoption. However, industry experts suggest that more than just a memo would be needed to halt the popular infrastructure initiative.
Gallentine emphasized that “most of the unawarded funds are available in state Department of Transportation accounts, ready to be spent.” He encouraged state DOTs and administrators to keep moving forward with the plans until new guidance is provided.
According to Loren McDonald, a chief analyst, the FHWA may not have the jurisdiction to put a pause on NEVI, and he anticipates legal actions from states could arise soon.
President Biden has set an ambitious target for electric vehicles to make up half of new passenger car sales in the U.S. by 2030. Currently, EVs comprise nearly 9% of the light-duty vehicle sales in the country for the third quarter of 2024, based on data from the U.S. Energy Information Administration.
So far, over 30 states have announced NEVI awards totaling more than $3.2 billion. Ryan McKinnon from Charge Ahead Partnership noted that the NEVI program has stimulated investment in high-speed EV charging stations in various states.
While the NEVI program may not have addressed all challenges facing the EV charging industry, McKinnon views it as a positive step. He expressed hope that the FHWA will use this situation to ensure state plans drive private investment in EV charging while ensuring effective use of federal funds.