This announcement comes after a long planning and approval process that began back in November 2021, when the Bipartisan Infrastructure Law was signed, designating $7.5 billion to buildout a national network of electric vehicle charging stations. The National Electric Vehicle Infrastructure (NEVI) Program lays the groundwork for formula funding designation and use for electric vehicle charging infrastructure throughout the country. You can learn more about the NEVI Program in our December 29, 2021, and January 19, 2021, posts.
As required by the NEVI Program, Wisconsin created its NEVI implementation plan (called the WEVI Plan) in 2022, which was updated for 2023and submitted to the Federal Highway Administration (FHWA) for approval. The FHWA approved the plan on September 29, 2023, making Wisconsin eligible to receive approximately $78 million in NEVI federal funds over five years, beginning in federal fiscal year 2023.
Following NEVI Program guidance, which outlines standards and requirements for projects under the program,WisDOT selected 53 sites to receive NEVI funds to build charging stations. These sites are dispersed across the state throughout the identified Alternative Fuel Corridor (AFC) system, which runs through the state of Wisconsin. The AFC includes interstate highways as well as other major highways that traverse the state. Furthermore, NEVI requires stations to be installed every 50 miles along each state's identified AFC.
The new charging stations will help increase both the efficiency and speed of electric vehicle (EV) infrastructure around the state. The NEVI Program mandates a minimum of 150 kWh minimum per port, with each station hosting at least four ports. These advanced charging stations will all be classified "level three" and can deliver a full charge to certain vehicles in less than 30 minutes, according to Ben Behlke of RENEW Wisconsin. Many of the selected WEVI locations will feature additional amenities such as pull-through parking and canopies and will include a variety of charging station models and manufacturers ranging from Aliptronic America to Tesla. The increasedfrequency of charging stations along major highways, combinedwith the enhanced charging speed, should bolster consumer confidence for people contemplating purchasing an EV as their next car.
Over 260 applications were submitted in this first round of funding, according to WisDOT, with only 53 sites selected. The selected sites span a variety of businesses, including gas stations convenience stores, hotels, and other easily accessible businesses. Although these first-round awardees will receive a total of over $23.3 million in federal funds, the NEVI Program requires that recipients match the grant money with private investments equal to 20% or more of the total cost of a project. These outside private investments will total approximately $10.5 million, according to the WisDOT.
Many of the awarded businesses could implement layered financing structures to develop the charging stations, using NEVI federal funding alongside private investment (which, as noted, must equal at least 20% of the total project costs), and Section 30C tax credits. This layered financing approach would maximize the investment and production of new charging stations across the state. You can read more about Section 30C tax credits for the installation of EV charging stations in our August 25, 2022 post. This attractive financial structure should undoubtedly incentivize more applications to be submitted for the remaining two rounds of funding which are poised to allocate the nearly $55 million of federal funding remaining.
Looking ahead, the success of this initial round of awardees sets a promising precedent for the next two rounds of funding. As Wisconsin continues to implement its WEVI Plan, the state's transportation sector in the state is well positioned for a greener, more interconnected future, accompanied by expanding opportunities for investing in renewable energy. Similar approaches to NEVI implementation are being deployed across the country, opening up substantial infrastructure and economic opportunities in the energy transition landscape.
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