Social Governance

US Commits to $5 Billion to Fund EV Charging Network

Published on: 14 February 2022 07:55 PM
by KnowESG

A Brief Summary

The US administration allocated $5 billion to fund the activity of establishing electric vehicle charging stations across the highway networks in the country. The new funding helps facilitate the transition to electrified transport and achieve net-zero targets.

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In November last year, Congress approved the funding to states as part of a $1 trillion infrastructural fund. The White House wants to encourage Americans to drive away from gasoline-powered vehicles and move towards electrically charged vehicles to scale down pollution and carbon emissions.

The states must have to submit plans and get federal approval first before the administration makes $615 million available in 2022.

"We're not going to dictate to the states how to do this, but we do need to make sure that there are meet basic standards," U.S. Transportation Secretary Pete Buttigieg said at a press conference.

According to reports, the United States have several EV-related challenges in rural and urban areas.

President Biden is on a mission to sell 50% of all new vehicles by 2030 to be electric or plug-in hybrid electric models and wants 5,00,000 new EV charging stations. However, the president did not endorse phasing out new gasoline-powered vehicle sales by 2030.

The following are the guidelines from the Biden administration:

  • Federal funds shall cover 80% of EV charging costs.

  • States shall install EV charging infrastructure every 50 miles along interstate highways.

  • States shall fund DC fast chargers and stations shall have at least four ports capable of charging four EVs simultaneously.

The White House has approved legislation that would expand the existing $7,500 EV tax credit to up to $12,500 on union-made U.S. automobiles and create $4,000 credits for used EVs, which has been stuck in Congress.

The package contains a 30% credit for commercial electric cars, $3.5 billion for switching U.S. manufacturers to EV manufacturing, and $9 billion for the USPS and the federal government to purchase EVs and charging stations.