President Biden’s ambitious plan to construct a nationwide electric vehicle (EV) charging network, funded by his trillion-dollar infrastructure package, has been met with delays and skepticism as dealers question the demand for EVs. The 2021 Infrastructure Investment and Jobs Act (IIJA) allocated $7.5 billion for electric vehicle chargers, but only a fraction of the funds have been distributed, and construction on just two projects has begun.
The IIJA earmarked $5 billion for the National Electric Vehicle Infrastructure (NEVI) Formula Program and an additional $2.5 billion in discretionary funds for charging and fueling infrastructure. The goal was to expand EV ownership and reduce carbon emissions by building a network of 500,000 chargers and awarding $5 billion within five years. However, progress has been slow, with just $101.5 million distributed and only two projects underway in Ohio and Pennsylvania.
Critics argue that the lack of demand for EVs and the technological shortcomings of the vehicles are key factors contributing to the slow implementation of the program. Car dealers have expressed concerns about waning interest in EVs, noting that their lots are full of unwanted electric vehicles. Manufacturers are also reevaluating their EV strategies, raising questions about the viability of the charging network.
Daren Bakst, the director of the Competitive Enterprise Institute’s Center for Energy and Environment, called for Congress to defund the NEVI program, citing the lack of demand and potential waste of taxpayer money. Bakst highlighted market realities and the rural nature of many states as obstacles to successful implementation.
Despite the challenges, developing a robust EV charging network is crucial for President Biden’s goal of ensuring that 50% of car purchases are electric by 2030. The administration argues that the funding provided under the IIJA will enable the construction of a convenient and reliable national charging network. They point to a 70% increase in charging ports since Biden took office and the ongoing efforts of states like Ohio and Pennsylvania to build federally funded chargers.
However, there are concerns about the affordability and range of EVs compared to traditional gas-powered vehicles. Average transaction prices for electric cars remain higher than gas-powered vehicles, even with tax credits factored in. Additionally, the average range of EVs falls significantly short of gas-powered vehicles, which could deter potential buyers.
While some progress has been made with the NEVI program, there is a growing call for faster implementation. Advocates like the Electrification Coalition urge states to accelerate their work and collaborate with vendors to expedite the creation of a national charging network.
In conclusion, President Biden’s trillion-dollar EV charging plan faces challenges in terms of demand, technological limitations, and implementation. Critics argue that the lack of interest in EVs, combined with market realities and federal requirements, hinders the success of the program. Despite ongoing efforts, there is a need for faster progress to achieve the administration’s goals and ensure the widespread adoption of electric vehicles.
