Our last quarterly EV Roundup checked in on states’ efforts to deploy a national network of EV charging infrastructure under the National Electric Vehicle Initiative (“NEVI”) and highlighted industry moves to facilitate a cohesive charging experience across that national network through the adoption of the Tesla-developed North American Charging Standard (“NACS”) connector.

A year ago, the United States appeared to be heading towards a bifurcated EV fast charging network: one comprised of two different and incompatible charging technologies – the NACS connector and the Combined Charging System (“CCS”) connector. Now, partnerships between Tesla and automakers to enable the widespread use of the NACS connector appear to be driving the need for the Biden Administration to consider whether the Federal Highway Administration’s (“FHWA”) minimum standards and requirements for electric vehicle (“EV”) charging stations are keeping pace with the market. 

While access to charging and the cost of EVs continue to pose hurdles to widespread EV adoption, analysts stated that in fact, EV sales may not pose as gloomy a picture as some news media has reported. Even as EV sales slowed in 2023 compared to prior years, global sales are still rising, and domestic sales are reportedly on track to meet the Biden administration’s goal for EVs to make up half of all new vehicle sales by 2030 and to achieve carbon-neutral electricity supply by 2035. All said, EV sales in 2023 came in at the top end of the range of post-Inflation Reduction Act (“IRA”) projections. 

This update provides a quick look at where states now stand in their NEVI efforts; several federal and state policy updates that reflect where the federal minimum standards for charging may be heading; and more to come in the EV market in 2024. 

U.S. Government Policy News

• The Joint Office of Energy and Transportation reported that as of Q1 2024, there are now more than 170,000 public charging ports across the country, with an average of 900 new chargers opening each week. 
• The FHWA issued a Request for Information (“RFI”) on updating its minimum standards and requirements for EV charging stations to implement the NACS (also known as the J3400 EV charging connector standard). Through the RFI, the FHWA, in coordination with the Joint Office of Energy and Transportation, seeks to better understand how the introduction and adoption of the NACS connector by auto manufacturers will impact the EV charging industry, automakers, EV charging consumers, and the need to consider updates to FHWA’s minimum standards at 23 CFR Part 680. Comments are due April 5, 2024. 
• On March 12, 2024, the Joint Office of Energy and Transportation released the National Zero-Emission Freight Corridor Strategy (the “Strategy”) to advance the deployment of zero-emission medium- and heavy-duty vehicle fueling infrastructure across the United States by 2040. The Strategy aims to deploy a national fueling network along the National Highway Freight Network and other key roadways, including both EV charging and hydrogen refueling stations. 
• A bipartisan tax package is working its way through Congress in response to concerns over the 45X tax credit provided by the Inflation Reduction Act for domestically produced clean energy components. Proposed guidance released by the Treasury Department to implement the tax credit received support from the clean energy industry, but it failed to win support from the electric vehicle sector or mining companies, who argued the tax credit should cover the cost of securing raw materials. Whether the cost of mining should go into the tax credit calculation has spurred much debate, particularly in light of the environmental impact and national defense concerns associated with expanding domestic production of critical minerals. 

• As of Q1 2024, 33 states have released solicitations for their NEVI programs, 16 of which have awarded contracts and begun installing charging stations. States like Hawaii, Ohio, New York, and Pennsylvania have opened their first NEVI-funded charging stations to the public.
• The California Energy Commission (“CEC”) launched its “Responsive, Easy Charging Products with Dynamic Signals” (“REDWDS”) Program. The REDWDS Program will study next-generation smart-charging options to alleviate the stress on California’s grid from increasing numbers of EVs. Last month, the CEC awarded $9 million in grants to projects that included home smart charging, vehicle-to-grid services, and electric truck and tractor charging, to test how deploying easy-to-use charging products can help customers manage EV charging and respond to dynamic grid signals. The CEC plans to award up to $300 million in second-phase grants later this decade for projects that show success.
• On March 15, 2024, the New York Department of Public Service announced the initiation of the Electric Vehicle (EV) Infrastructure Interconnection Working Group (“EVIIWG”). The EVIIWG has been formed to identify, discuss, and resolve the technical barriers and challenges associated with the EV interconnection process, including queue management and EV-specific standardized interconnection requirements (“SIR”). The goal of the EVIIWG is to streamline identified difficulties and barriers that affect the interconnection of EVs and building electrification.

• A majority of automakers have now announced that they will adopt the J3400 standard, enabling the use of the Tesla-developed NACS connector. 
• Revel announced that it will develop the nation’s largest airport EV fast charging station adjacent to LaGuardia Airport. The charging station will feature 48 200kW charging stalls that will be available to the public and are expected to be operational in the first half of 2025. 
• Toyota announced that it will invest $1.3 billion at its factory in Georgetown, KY to enable production of a new three-row electric SUV to be sold in the U.S. While the company is yet to announce details about the new SUV, its price, or when consumers will begin to see the SUV in showrooms, the company touts that the additional investment will enable its goal of selling 1.5 – 1.8 million electric or hybrid vehicles in the U.S. by 2030. 
• The Treasury Department issued rules on domestic and free-trade partner manufacturing requirements in March 2024 that effectively narrowed the list of vehicles eligible for the Section 30D tax credit. The Section 30D tax credit provides up to $7,500 for purchasing a new, qualified plug-in EV or fuel cell electric vehicle. The Treasury Department’s rules would make about 20 all-electric and plug-in hybrid models, out of more than 100 for sale in the U.S., eligible for the tax credit.