Considerations for building an equitable, profitable and reliable EV infrastructure

Electric vehicles (EV) are the way of the future. The Biden administration has set lofty goals to make 50 percent of all new cars sales in the U.S. zero-emissions vehicles by 2030. To make this goal a reality, we must first build out our nation’s EV charging infrastructure to be both stable and functional.

Expanding that infrastructure, though, is not for the faint of heart. It will require strong public-private partnerships and continued investments. With the passing of the Bipartisan Infrastructure Deal (also known as the Infrastructure Investment and Jobs Act or IIJA), funding dedicated to deploying EV charging infrastructure is now available.

Now, it’s up to states and local governments to craft an EV infrastructure deployment plan that will create an equitable and sustainable future in their jurisdictions. Here are four considerations that will help optimize available funds and enable a rapid and successful implementation of EV charging infrastructure.

Proof is in partnerships

Building out the nation’s EV charging infrastructure will require strong public-private partnerships and significant investment from both sectors. Even more important, local governments must understand how to allocate public funding to drive continued and long-term investments from the private sector.

The key here is to use public funding to lay a strong foundation and implement policies that will enable attractive ROI opportunities for the private sector. For example, by investing in the back-end infrastructure, like utility upgrades and grid improvements, you can create a true grid-to-plug program.

Since EV technology is changing at such a rapid pace, the private sector should be encouraged to fund the capital investment in EV chargers so it can absorb costs related to the technology and hardware upgrades that will be necessary to avoid obsolescence.

The private and public sectors should be working in tandem, not against each other, to build out the nation’s EV charging infrastructure. Fostering positive relationships between EV charging companies and utilities or other government entities will help enable successful deployment and implementation of this critical infrastructure.

Reducing barriers to market entry

Since jurisdictions typically don’t provide EV permitting, it can be a struggle to classify different charging stations. Some require electrical permits, while others require building, accessory structure or even signage permits.

Standardizing the classification of EV chargers will help increase speed to market and accelerate deployments. This approach can happen via a statewide permitting program and/or statewide guidance.

Map plans to ensure community penetration

To meet the nation’s EV adoption goals, charging infrastructure must be deployed in all communities, which is where true growth in EV adoption will spur from, not just the affluent ones. In fact, the Biden administration has stipulated that at least 40 percent of the benefits from federal investments (including the IIJA funding) must go to low-to-moderate income (LMI) communities.

Electrification plans should be mapped out to ensure service is extended appropriately and diverse among economic classes with programs created to be inclusive of economic development, low-to-moderate income, and multi-tenant housing. However, commercial entities, driven by ROI and revenue, won’t naturally invest in installing EV chargers in low EV adoption areas without the creation of incentives to offset installation and ongoing operational costs.

Additionally, many EV charging solutions come with secondary revenue sources, like digital out-of-home advertising, mobile integration, and data collection, to help bridge the gap until self-sustaining revenues can be generated from EV charging. These revenue sources should be embraced whenever possible to entice continued commercial investment. Consider addressing any existing laws that may prohibit or hinder these additional revenue streams from being achieved.

Replacing revenue lost from gas tax

The financial transaction among EV drivers is drastically different than what exists with fossil fuels, and as such, local governments must consider how they will replace the lost revenue from gas taxes as drivers migrate to EVs.

To recoup this lost revenue, EV charging solutions must be connected, interconnected, and data rich. An EV charging network can provide a robust revenue stream to the state and transportation authorities. These revenue stream components can include additional vehicle registration fees, transaction or session fees for charging, taxes on the payment mechanism and mileage taxes.

With a once-in-a-century opportunity to shape an entire industry for decades to come, local governments can ensure a smooth ride for all by creating partnerships that address ROI and incentivize equity.

As barriers to permitting and electrification are addressed, states will have opportunities to create an EV charging network to serve all communities and receive new revenue in the process, creating numerous benefits for all.

Jeff Hutchins has more than 25 years’ experience as an executive and innovative leader in the technology delivery space. As co-founder, president and chief strategy officer of EOS Linx, Hutchins is responsible for delivering a monetizable electric vehicle charging network.