NEVI Funding: Why you can't afford to wait.

Time, money, and geographic limitations make now the time to apply for NEVI funding.

Electric vehicles are here to stay.

Travel down any highway or pull into any parking lot, and you’ll encounter a reality where electric vehicles (EVs) blend seamlessly with hybrid, gasoline, diesel and other alternative fuel vehicles

Consider these numbers:

• In 2023, a record 1.2M electric vehicles were sold in the U.S. – the first time over 1 million were sold in a calendar year
• By 2035, electric vehicles are expected to account for 45% of the automobile market
• Lexus and Cadillac introduced their first EVs in 2023, while BMW, Audi, Mercedes, and Chevrolet all introduced new additions to their EV lines

As the push for a cleaner and greener planet continues, it’s clear that electric vehicles will play a pivotal role in our transportation future. Consumer interest is rising, and as a result, so too is automaker investment. The last piece of the puzzle has also fallen into place: government funding.

The Biden Administration aims to have 50% of all new vehicle sales be electric by 2030. To facilitate more EVs on the road and make EV ownership more appealing to drivers, the government enacted the National Electric Vehicle Infrastructure Formula Program (NEVI) as part of the Bipartisan Infrastructure Bill, also known as the Infrastructure Investment and Jobs Act (IIJA), passed in 2021.

The goal of NEVI is to create a national, interconnected network of 500,000 fast-charging stations by 2030. This network will make EV charging accessible and reliable for EV drivers throughout America, thereby lessening driver apprehension and spurring a larger and faster migration to electric vehicles.

The NEVI program will award 5.4 billion dollars from 2022 to 2027 to individual states to help build NEVI-compliant charging stations in designated locations called Alternative Fuel Corridors (AFCs) around the country. Retailers and businesses in every state can apply for NEVI funding.

For eligible private businesses, NEVI funding can cover up to 80% of total building costs, including the acquisition, installation, networking, and ongoing maintenance (up to 5 years) of EV infrastructure.

For traditional gas station, c-store, and rest stop owners, NEVI funding offers an outstanding opportunity to future-proof your business and mitigate the potential loss of fossil-fuel-vehicle drivers in the years ahead. It also enables you to serve a new and growing group of target customers (EV drivers) while contributing to a greener and more sustainable planet.

However, business owners and stakeholders must be aware that a finite amount of time, money, and geographic availability is attached to the NEVI funding program. The program ends in 2027, has an established budget and target number of charging stations. In other words, there’s only so much to go around. With that in mind, it’s critical for businesses to initiate NEVI planning and compliance now or risk being left behind.

You Can’t Stand Still

In December 2023, Ohio opened the first charging station funded through NEVI. New York followed suit a week later, with 12 more stations upcoming in 2024. Vermont and Maine have broken ground on their first NEVI stations, and Utah has 15 sites scheduled for completion by the end of 2024.

All in all, every state, plus Washington D.C. and Puerto Rico, has approved NEVI plans, and NEVI-funded activity is occurring in all parts of the U.S.

For businesses in the retail-fueling vertical, adopting a sense of urgency about NEVI compliance is not only appropriate but also necessary.

“The EV revolution is here. To make the most of it, we must ensure that everyone, from the largest cities to the most rural communities, has access to reliable EV charging infrastructure,” said U.S. Transportation Secretary Pete Buttigieg

Becoming NEVI Compliant

As you can imagine, building an interconnected network of electric chargers from coast to coast is no simple task. To ensure compatibility and a similar quality of experience from Baltimore to Bakersfield, states and private entities must meet specific criteria when applying for funding.

First, each state must submit its annual plan to the federal government outlining how it will distribute NEVI funds to create strategically located charging infrastructure along Alternative Fuel Corridors, which mirror the country’s interstate highway system.

Private businesses submit their own NEVI plans at the state level detailing their objectives and compliance. Part of a state’s criteria in allocating funds is equitable deployment to ensure that rural and disadvantaged communities are well represented.

To receive up to 80% of project funding, businesses must build charging stations that meet the following specifications:

EV charging stations must be non-proprietary
Stations must allow for open-access payment methods
Stations must be publicly available 24/7
Stations must be located along designated Alternative Fuel Corridors (AFCs)

What’s an Alternative Fuel Corridor?

Charging accessibility is at the heart of the NEVI program. For that reason, all NEVI-funded stations must be located in predictable locations along designated Alternative Fuel Corridors. These locations must be within 1 mile of an interstate highway and no more than 50 miles from another AFC charging station.

Once a state has filled out its designated AFC network, it can use NEVI funds to build chargers in other locations. (*Non-AFC locations are subject to different requirements and rules.)

With this strategic and calculable deployment of chargers along America’s most traveled highways, EV drivers can travel longer distances with confidence.

Check With Your State

It’s important to note that states can add their own NEVI requirements to the ones mandated by the federal government. To find your state’s standards, access its dedicated NEVI website here.

What Does NEVI Funding Cover?

As stated directly on the U.S. Dept. of Transportation’s website, NEVI funds are for the “acquisition, installation, network connection, operation, and maintenance of EV charging stations, as well as long-term EV charging station data sharing.”

Essentially, NEVI funds can be used for every facet of the infrastructure-building process. After 80% of total costs are covered by NEVI funds, individual states and private interests are responsible for the remainder. Some states have funding and grant opportunities to assist with this obligation. Find your state’s website here.

Selecting NEVI-Compliant Infrastructure

Fast, reliable charging is a pillar of the NEVI program. To ensure a consistent and desirable charging experience anywhere in the country, the NEVI program has national standards that all NEVI-funded stations and chargers must meet. They are as follows:

Stations must have fast chargers capable of charging up to 4 vehicles simultaneously at 150 kW
Chargers must deliver a minimum 97% uptime
Chargers located in an Alternative Fuel Corridor must have 24/7 availability
Charging infrastructure must be maintained for a minimum of 5 years

Under the Build America, Buy America Act, all EV chargers funded through the NEVI program must be built in the United States. Currently, all steel and iron finishing components must come from the U.S., and as of July 2024, 55% of the total cost of all components will need to be purchased from the U.S.

The Kempower Satellite Charging System is a solution that’s fast, powerful, and NEVI-compliant. Making the right charging choice for your NEVI plan is critical – we can also make it much more manageable. See our NEVI Compliant solutions here.

A Government-Funded Path Forward

“If you build it, they will come.”

People of a certain age will recognize this famous line from the movie Field Of Dreams.

Since then, the line has been adopted and used in all kinds of areas and contexts. For our purposes, it neatly explains the philosophy behind the federal government’s NEVI program.

If you build 500,000 standardized electric charging stations across the country and electrify 75,000 miles of American roadways, as the NEVI plan aims to do, electric vehicle charging becomes easier, more accessible, and predictable. Range anxiety significantly decreases. Long wait times and inconsistent experiences dissipate. And consumer confidence grows. More drivers will come.

Add the positive environmental and emotional impacts of switching from fossil fuel to an electric vehicle, and there’s a good chance they’ll come in droves.

This is especially true when considering what’s currently happening in the EV industry, even without a national charging network in place. To review:

Over 1 million EVs sold in 2023 for the first time
New makes and models introduced from Lexus, Mercedes, Audi, and others
Governments at all levels committing money and resources to subsidize the electrification of America’s automobile fleet

You Don’t Need A Crystal Ball

If you’re a business owner in the fuel-service industry, you have a fantastic idea of what the future holds: more electric vehicles and electric vehicle drivers – and more opportunity to drive consumers into your stores to increase sales. With this insight in hand, it’s the ideal time to put yourself in position to take advantage.

NEVI funding offers a tremendous opportunity to prepare for and thrive in a clean transportation future, without making a tremendous financial commitment right now.

Once a credible national charging network exists, more EV drivers will be on the roads.

Proactive business owners who act accordingly will be ready and waiting to capitalize.

Kempower has the experience, expertise, and equipment to navigate the NEVI process successfully. If you’re not NEVI compliant, we can help you get there.

Get in touch so we can tell you how.

See Kempower’s NEVI Compliant Solution