Biden’s infrastructure plan takes on the problem of EV load inequality

September 1 (Reuters) – The Biden administration has an ambitious $ 7.5 billion plan to expand electric vehicle recharging to underserved areas, but it must first overcome a number of obstacles that have discouraged private investment in more equitable charging networks.

The experience of California, the U.S. state with the largest number of electric vehicles and the most advanced charging infrastructure, demonstrates the challenge it will have to meet the $ 1 trillion infrastructure spending proposal targets that Biden wants to pass in Congress.

California has invested more than $ 2 billion in various EV incentive programs in recent years, which include policies to promote equity in charger distribution. The state has also generated more than $ 25 billion through its carbon credit trading program since 2012, some of which goes to EV and collection projects.

However, California currently has less than 40% of the cargo infrastructure needed to support VE growth projected for 2025, according to a U.S.-wide International Council on Clean Transportation study of cargo differences across the United States.

A February study by researchers at Humboldt State University in California found that lower-income areas of California neighborhoods, mostly black and Hispanic, are significantly less likely to access public chargers.

“For charging station hosts, the economy is extremely difficult since relatively low adoption today,” said John Gartner, senior director of the Center for Sustainable Energy, which manages infrastructure and incentive programs. EV on behalf of six U.S. states. California.

For a graph of load economy: https://tmsnrt.rs/3sPxbsZ

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Gustavo Occhiuzzo, CEO of California-based electric vehicle charging company EVCS, said the level of public support to cover operating and start-up costs is key to decisions about building its network of electric vehicles. recharge in rural and disadvantaged communities.

“We need to be strategic where we invest our time and our money. And for now, California is the only place that provides us with the highest profitability,” said Occhiuzzo, whose company maintains more than 1,500 chargers. in largely disadvantaged Californian communities a benefit.

Most private charging companies, however, such as EVgo (EVGO.O), ChargePoint (CHPT.N) and Blink Charging Co. (BLNK.O), have not yet been profitable. EVgo and ChargePoint executives said government support was needed to extend the burden to ignored communities and create incentives for business owners or homeowners who were considering installing them.

California incentives for disadvantaged communities are gradually increasing. Applications for the low-and-middle-income family state EV bonus program have risen to a quarter so far this year, and about a third of funding for a popular state electric vehicle charging program is aimed at disadvantaged communities.

Replicating California’s programs nationwide will require much more funding than the U.S. government has currently allocated. Read more

Daniel Davenport, senior automotive director at Capgemini Americas, estimates it would require about $ 50 billion to build the U.S. charging network.

Getting more Americans to switch to a battery-powered car by improving access to cargo infrastructure is a key component of Biden’s agenda to combat climate change, as transportation accounts for most of the states ’emissions. Units. Read more

The $ 1 trillion bipartisan infrastructure bill provides for $ 7.5 billion in charge of network investments over a five-year period, with a portion earmarked for rural and low-income areas.

A White House official said the government would also use Department of Energy loan programs and other funding tools, prioritizing public funding for locations that would not necessarily be supported by private capital alone.

“As the administration … develops the guidelines for these new programs, we will emphasize the importance of equity in the location and operation of chargers,” the official said.

USE RATES

State and federal officials face a two-pronged challenge to expand the load beyond high-income zip codes: battery-powered vehicles remain out of reach of many consumers and a charger that is not heavily used it will not recover its costs.

High-speed charging units that can charge the vehicle’s battery in half an hour cost about $ 100,000 to manufacture. Experts estimate that they need to be used for at least 20% of the day to operate profitably at current rates, which causes many cargo providers to place them in areas with higher expected use.

In the future, used electric vehicles could allow less affluent Americans to drive battery-powered vehicles. Currently, used vehicles account for only 0.3% of all used sales from US dealerships, compared to new vehicles which account for 3% of new vehicle sales, according to market research firm JD Power.

“It will be a long time before electric vehicles become an important part of the used market,” said Tyson Jominy, the firm’s vice president of Data & Analytics.

Beyond government agencies, electricity services are emerging as a source of capital to expand charging networks, own stations or collaborate with private companies.

Investor-owned utilities have approved $ 3 billion in investments in electric vehicle charging infrastructure in recent years, according to the Edison Electric Institute, which is dominated by entities in California and New York. A quarter of these funds have been allocated to disadvantaged communities and equity-based funding programs are expected to accelerate in the coming years.

In North Carolina, Duke Energy (DUK.N) has asked state regulators to approve a $ 56 million electric vehicle program, which includes $ 13 million for rural and low-income communities.

“We make sure to reach those low-income rural counties that would probably not be served by the traditional private market, areas that a private company would not select until the adoption of electric vehicles is later,” said Lon Huber, Duke Energy vice president.

Reports from Tina Bellon to Austin, Texas; Edited by Dan Grebler

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