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Summary of the EV Charging Action Plan Under the Infrastructure Investment and Jobs Act (IIJA)

Summary of the EV Charging Action Plan Under the Infrastructure Investment and Jobs Act (IIJA)

Summary of the EV Charging Action Plan Under the Infrastructure Investment and Jobs Act (IIJA)

The recently enacted Infrastructure Investment and Jobs Act (IIJA) authorizes up to $7.5 billion through two new programs designed to facilitate the installation of up to 500,000 electric vehicle (EV) chargers across the country. These funding programs, the key elements of which are summarized below, are being administered pursuant to the Administration’s EV Charging Action Plan. The Plan will direct monies for EV Supply Equipment (EVSE) and other charging equipment, for charging-related installation and for related activities over five years to state and local governments through federal funding formulas (similar to how highway funds are otherwise allocated) and through competitive grants. Implementation of IIJA funding will involve and be assisted by various public and private sector stakeholders. Careful implementation of IIJA funds should help incentivize new EV sales.

IIJA funds will not be directly available to assist dealerships with the installation of private chargers at their facilities, however dealers will have opportunities to work with states and localities on how best to use IIJA funds for EV charging. For example, while many dealers have engaged in partnerships on EV education and charging, the Community Grants program, summarized below, will provide new opportunities for dealers to partner directly with grant recipients.
The Administration will issue guidance for states/localities as soon as February 11, 2022.
The first round of funds is expected to be deployed around mid-2022.

The information is initial background information on the IIJA’s funding for EV charging and the Administrations’ EV Charging Action Plan.

A $2.5 Billion Charging and Refueling Grant Program (Section 11401)
This Program authorizes $2.5b over five years for the following two separate grant programs for the installation of EV and other alternative fuel infrastructure. Funds have been authorized, but have not yet been fully appropriated, for fiscal years 2022-2026.

- $1.25 Billion EV and Alternative Fuel Infrastructure Grant Program
  - Grants will be designated to fund the acquisition and installation of publicly accessible EV charging and alternative fuel infrastructure along alternative fuel corridors.
  - Eligible grantees include states and political subdivisions, metropolitan planning organizations, local governments, special purpose districts or public authorities with transportation functions (including ports), Indian tribes, U.S. territories, an authority, agency, or instrumentality of, or an entity owned by one or more of the entities listed above, or a group of such entities.
  - Grantees must use the funds to contract with private entities for the acquisition and installation of publicly accessible EV charging and alternative fuel infrastructure. Funds may also be used to procure operating services from private entities for the first five years of a project’s operation.

- $ 1.25 Billion Community Grant Program

- - Grants will be designated to fund projects designed to reduce greenhouse gas (GHG) emissions and to expand or fill gaps in access to publicly accessible EV charging and alternative fuel infrastructure, with a priority for rural areas, low- and moderate-income neighborhoods, and communities with a low ratio of private parking to households or a high ratio of multi-unit dwellings to single-family homes.
  - Eligible grantees include those listed above plus state or local authorities with ownership of publicly accessible transportation facilities.
  - Eligible projects include development phase and preconstruction activities, and the acquisition and installation of electric vehicle charging and alternative fuel infrastructure on any public road or in other publicly accessible locations, such as parking facilities at public buildings, public schools, and public parks, or in publicly accessible parking facilities owned or managed by a private entity.
  - Grants may be for up to $15,000,000. Also, up to five percent of each grant may be used for educational and community engagement activities and to develop and implement education programs through partnerships with schools, community organizations, and vehicle dealerships to support the use of EVs and associated infrastructure.
A $5 Billion National EV Formula Program (Division J—Appropriations, Title VIII)

- Provides funding to states to deploy EV charging infrastructure. The IIJA reprogramed existing DOT funds and made them available until expended for FY 2022-2026. Funds will be allocated to states proportionately as for other federal highway funds.
- Formula funding is to primarily be used for costs associated with the acquisition, installation, network connection, data sharing, and operation and maintenance of eligible EV charging infrastructure. Eligible projects must be directly related to the charging of vehicles, and only for EV infrastructure that is accessible to the general public or to authorized commercial motor vehicle operators from more than one company and must be located along designated alternative fuel corridors.

The Federal Highway Administration (FHWA) has requested comments on the development of guidance for electric vehicle charging infrastructure deployment.

IIJA Deadlines and Other Provisions of Note
The IIJA contains several other statutory milestones demonstrating Congress’ intent that the EV Charging Action Plan be implemented quickly.
- January 2022: DOT required to update and re-designate alternative fuel corridors to help determine where chargers will be installed.
- February 2022: DOT required to publish guidance for states and cities.
- April 2022: DOT and the Department of Energy required to develop minimum standards and requirements related to the installation, operation and maintenance of charging infrastructure.
- May 2022: DOT required to issue standards for EV chargers in the national network.

- Advisory Committee on Electric Vehicles (Sec. 25006)
  The IIJA calls for an Advisory Committee which includes a designated slot for an automotive dealer representative. It must be formed within one year of enactment, but the Administration is expected to appoint members in the first quarter of 2022. NADA will work the Administration to identify an appropriate dealer representative nominee.
- A $6.42 Billion Climate Reduction Program (Sec. 11403)
  States may invest in EV charging and advanced technologies under this Program. By November 2023, states must establish carbon reduction strategies which may include EV charging and the purchase or lease of zero emissions commercial construction equipment and vehicles. Future appropriations will be necessary to fully fund the program for fiscal years 2022-2026.

- A $5 Billion Clean School Bus Program (Sec. 71101)
  Authorizes $1 billion per year for five years for the Environmental Protection Agency (EPA) to implement a school bus change-out program to reduce GHG emissions and improve air quality. Eligible grantees include state and local governments, eligible contractors and nonprofit school transportation associations. Half of the funds are for up to 100 percent of the cost of zero- and low-emission alternative fuels buses. Funds may be prioritized for rural or low-income communities and entities that have matching funds. Existing funds were repurposed for this program, making additional appropriations unnecessary.

Helpful Resources on the EV Charging Action Plan

Electrification Coalition

Requests for Information (RFI) on EV Provisions of the IIJA

Other

Federal Highway Administration’s (FHWA) PowerPoint overview
Atlas analysis of the EV sections in IIJA