North America is one of the world’s leading electric vehicle markets, and businesses can access generous financial support to help deploy the required charging infrastructure. Here’s what you need to know.
Electrification is gaining momentum across North America. There were 3.9 million electric cars in the United States and Canada at the end of 2023, according to the International Energy Agency [1] – that’s six times more than in 2018, and the transition is just getting started.
The US EPA is targeting a 50% CO2 reduction for new light-duty vehicles between 2026 and 2032, while 14 states and the District of Columbia will phase out non-zero-emission cars, trucks and SUVs by 2035 [2]. All new light-duty vehicles sold in Canada must be zero-emission at the tailpipe by the same date [3].
It’s a big change, supported by a package of technologies to help develop a suitable charging infrastructure. The most important policies are outlined below.
How is the United States supporting EV charging?
The Biden Administration is targeting a network of 500,000 “convenient, reliable and user-friendly” EV chargers by 2030. Large-scale deployment since 2020 means the government is on track to reach that goal four years early [4].
EV charging is supported by $7.5B of federal funding, allocated through the Bipartisan Infrastructure Law [5] and split between two schemes.
National Electric Vehicle Infrastructure (NEVI)
The $5bn NEVI program is focused on building a consistent coast-to-coast network of charging hubs located within a mile of the highway. It’s a five-year initiative, providing a rebate of up to 80% towards total project costs, and since July 2024 it has only been available for chargers manufactured in America [6].
NEVI is a federal initiative, but funding is allocated in phases by state departments of transportation and applicants need to meet minimum criteria to qualify. The baseline includes capacity to charge four vehicles simultaneously at 150kW, contactless payments and 97% uptime [7]. Some states have additional demands, such as compatibility with both the North American Charging Standard (NACS) and federally mandated Combined Charging System (CCS) connectors.
Funding also includes 10% allocated to repairing or replacing existing chargers [8] and, as part of the Justice40 initiative, 40% will be invested on sites located in disadvantaged communities – which are either underfunded or overburdened by pollution [9]. Battery storage is also eligible for funding in some states, which reduces the cost of improving electricity capacity on site.
Charging and Fueling Infrastructure (CFI) Discretionary Grant Program
The CFI is broader than NEVI, as it includes hydrogen, propane and natural gas refueling as well as EV charging. It’s a $2.5B program, spread over five years and providing up to 80% towards the total project costs, supporting two complementary initiatives [10].
Community Charging and Fueling Grants are provided for installations in densely populated areas, either on-street or in parking lots, depots, public buildings, schools and parks – and must be available to the public for at least the host’s operating hours. Alternative Fuel Corridor Grants are similar to NEVI funding, and these sites must be available 24/7.
What tax breaks are available for EV charging?
The Inflation Reduction Act (IRA) provides tax credits for installing EV chargers but are only available for applicants in low-income census tracts. Businesses and tax-exempt entities (states, local governments, tribes, territories and non-profits) can claim up to 6%, while individuals are eligible for a 30% credit.
How is the US government supporting electric truck charging?
Announced in March 2024, the National Zero-Emission Freight Corridor Strategy is a phased roll-out of chargers for electric trucks by 2040. The first phase lasts until 2027, focused on ports, the busiest freight corridors will be electrified by 2030 and regional networks will be connected during the following ten years [11]. Hubs will include electric charging and hydrogen dispensers [12].
How is Canada supporting EV charging?
In 2022, the Government of Canada announced plans to build 84,500 chargers and 45 hydrogen stations by 2029. Funding is allocated by Natural Resources Canada, and the latest Zero Emission Vehicle Infrastructure Program (ZEVIP) is in place until 2027 [13].
ZEVIP provides funding for three different project types:
- Creating EV charging corridors within 1.6km (one mile) of the National Highway System. Hosts must provide at least two 100kW chargers per site, or only one if they’re co-located with an existing 50kW or faster unit, and 24/7 access.
- Deploying community charging to fill gaps in the network. Eligibility requires at least two 50kW chargers, or 20 slower units, available to the public within the host’s business hours or 24/7.
- Improving private charging access in multi-unit residential properties, workplaces, fleet depots and workshops. The minimum requirement is two 50kW chargers or 20 slower units, and funding is only available for existing buildings.
Funding is capped at 50% of the total project costs or $5m, with between $5,000 and $100,000 provided per charger (or socket), depending on the speed. Indigenous businesses and communities can claim up to 75%, or between $7,500 and $150,000 per charger, but total funding is capped at $2M.
Requirements have tightened this year, with funding only available for equipment manufactured in countries that have Free Trade Agreements with Canada [14]. ZEVIP applicants hosting public chargers (either in communities or corridors) are also required to publish quarterly reports disclosing uptime and service standards for at least six months [15].
Strategic Implications for Fuel Retailers and Fleet Operators
These initiatives present a unique opportunity for fuel retailers to expand into the EV and hydrogen markets. Establishing recharging and refueling stations at existing fuel stops, particularly along key transport corridors, can help meet the growing demand for alternative fuels. This expansion not only attracts EV users but also future proofs those businesses as demand for fuel diversifies.
Fleet operators need to prepare for a significant shift towards electric and hydrogen-powered vehicles. Planning for infrastructure availability, especially on long-haul routes, will be crucial. Understanding the phased rollout of recharging stations and adapting fleet operations to ensure efficient access to these facilities will be vital for maintaining operational efficiency and reducing emissions.
As the EV market rapidly expands, there's an unparalleled opportunity to integrate charging solutions that drive higher ROI and deliver faster time to value. At Konect, we offer the ultimate turnkey EV charging infrastructure tailored specifically for fuel retailers and fleets like you, enabling a seamless transition into the e-mobility space. This includes:
- Total Solution: Konect provides a complete end-to-end EV charging ecosystem, from site selection and design to funding, installation, and ongoing support. Our solution integrates effortlessly with your existing fuelling, payment, and service offerings, ensuring a smooth experience for both operators and customers.
- Higher ROI: By enabling multiple profit pools across the energy value chain, Konect enhances your revenue streams while boosting site ROI for fuel retailers. Our state-of-the-art, ultra-fast chargers are designed to maximize uptime and user satisfaction, driving consistent revenue growth.
- Faster Time to Value: With Konect, you can quickly realize value from your investment. Our AI-driven site selection tools and dedicated funding support significantly reduce upfront costs and expedite your entry into the EV market. Moreover, our CPO-as-a-Service model simplifies the management process, allowing you to focus on your core business while we take care of the rest.
Choosing Konect means opting for a future-proof, profitable, and reliable EV charging solution. Let’s connect and explore how we can accelerate your transition to e-mobility. Learn more at Konect.
REFERENCES:
[1] Federal Highway Administration. (2023). Charging and Fueling Infrastructure Discretionary Grant Program. [online] Available at: https://www.fhwa.dot.gov/bipartisan-infrastructure-law/charging.cfm [Accessed 10 Sept. 2024].
[2] California Air Resources Board (n.d.). States That Have Adopted California’s Vehicle Regulations. [online] Available at: https://ww2.arb.ca.gov/our-work/programs/advanced-clean-cars-program/states-have-adopted-californias-vehicle-regulations [Accessed 10 Sept. 2024].
[3] Transport Canada. (2024). Canada’s Zero-Emission Vehicle Sales Targets. [online] Available at: https://tc.canada.ca/en/road-transportation/innovative-technologies/zero-emission-vehicles/canada-s-zero-emission-vehicle-sales-targets [Accessed 10 Sept. 2024].
[4] The White House. (2024). Fact Sheet: Biden-Harris Administration Announces New Actions to Cut Electric Vehicle Costs for Americans and Continue Building Out a Convenient, Reliable, Made-in-America EV Charging Network. [online] Available at: https://www.whitehouse.gov/briefing-room/statements-releases/2024/01/19/fact-sheet-biden-harris-administration-announces-new-actions-to-cut-electric-vehicle-costs-for-americans-and-continue-building-out-a-convenient-reliable-made-in-america-ev-charging-network/ [Accessed 10 Sept. 2024].
[5] The White House. (2023). Full Charge: The Economics of Building a National EV Charging Network. [online] Available at: https://www.whitehouse.gov/briefing-room/blog/2023/12/11/full-charge-the-economics-of-building-a-national-ev-charging-network/ [Accessed 10 Sept. 2024].
[6] The White House. (2023). Fact Sheet: Biden-Harris Administration Announces New Standards and Major Progress for a Made-in-America National Network of Electric Vehicle Chargers. [online] Available at: https://www.whitehouse.gov/briefing-room/statements-releases/2023/02/15/fact-sheet-biden-harris-administration-announces-new-standards-and-major-progress-for-a-made-in-america-national-network-of-electric-vehicle-chargers/ [Accessed 10 Sept. 2024].
[7] Federal Register. (2023). National Electric Vehicle Infrastructure Standards and Requirements. [online] Available at: https://www.federalregister.gov/documents/2023/02/28/2023-03500/national-electric-vehicle-infrastructure-standards-and-requirements [Accessed 10 Sept. 2024].
[8] Federal Highway Administration. (n.d.). Environmental Justice and the National Electric Vehicle Infrastructure Program. [online] Available at: https://www.fhwa.dot.gov/environment/nevi/evc_raa/ [Accessed 10 Sept. 2024].
[9] The White House. (n.d.). Justice40 Initiative. [online] Available at: https://www.whitehouse.gov/environmentaljustice/justice40/ [Accessed 10 Sept. 2024].
[10] Federal Highway Administration. (n.d.). Charging and Fueling Infrastructure Discretionary Grant Program Round 2 Q&A. [online] Available at: https://www.fhwa.dot.gov/environment/cfi/cfi-round2-qa.pdf [Accessed 10 Sept. 2024].
[11] U.S. Department of Energy. (n.d.). Clean Cities: Federal and State Laws and Incentives. [online] Available at: https://afdc.energy.gov/laws/13413 [Accessed 10 Sept. 2024].
[12] Federal Highway Administration. (2024). Biden-Harris Administration Releases First-Ever National Strategy to Accelerate Deployment. [online] Available at: https://highways.dot.gov/newsroom/biden-harris-administration-releases-first-ever-national-strategy-accelerate-deployment [Accessed 10 Sept. 2024].
[13] Natural Resources Canada. (2024). Zero Emission Vehicle Infrastructure Program. [online] Available at: https://natural-resources.canada.ca/energy-efficiency/transportation-alternative-fuels/zero-emission-vehicle-infrastructure-program/21876 [Accessed 10 Sept. 2024].
[14] Natural Resources Canada. (2024). New Measures and Incentive Eligibility for the Zero Emission Vehicle Infrastructure Program. [online] Available at: https://natural-resources.canada.ca/energy-efficiency/transportation-alternative-fuels/zero-emission-vehicle-infrastructure-program/zero-emission-vehicle-infrastructure-program/new-measures-incentive-eligibility/26208 [Accessed 10 Sept. 2024].
[15] Natural Resources Canada. (2024). Zero Emission Vehicle Infrastructure Funding: Frequently Asked Questions. [online] Available at: https://natural-resources.canada.ca/energy-efficiency/transportation-alternative-fuels/zero-emission-vehicle-infrastructure-funding/frequently-asked-questions/26027 [Accessed 10 Sept. 2024].