Stop what you’re doing.
That’s the directive from the Federal Highway Administration (FHWA) to state departments of transportation overseeing federally funded projects to deploy new electric-vehicle charging infrastructure.
A Feb. 6 letter titled “Suspending Approval of State Electric Vehicle Infrastructure Deployment Plans” informed state officials of a decision to halt funding from the National Electric Vehicle Infrastructure (NEVI) formula program, a byproduct of the 2021 Bipartisan Infrastructure Law that made $5 billion in federal grants available to states to build fast charging stations along US highways. The program covers up to 80% of costs.
Experts say the move, communicated via a memo rather than implemented through the federal rulemaking process or via an act of Congress, may be outside the FHWA’s authority. They’ve expressed concerns that it will further stall interest in EVs, given consumers’ well-documented misgivings around charging and range.
The directive aligns with the Trump administration’s broader efforts to rescind the Biden administration’s policies in support of EVs.
But it’s causing confusion for state officials, some of whom opted to pause their NEVI-funded programs in light of this development.
“You can’t do something like that just by sending a letter,” Ryan Gallentine, managing director of business association Advanced Energy United, told Tech Brew. “But that’s what’s happened.”
What we know: The communication from FHWA points to a specific aspect of the NEVI program, which requires states to submit their plans for using program funds each year. The federal government then must sign off on those plans.
It goes on to say that US Department of Transportation leaders have decided to rescind existing guidance for the program ahead of the implementation of new rules. DOT officials expect to have new draft rules ready for public comment in the spring.
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“As [a] result of the rescission of the NEVI Formula Program Guidance, FHWA is also immediately suspending the approval of all State Electric Vehicle Infrastructure Deployment plans for all fiscal years,” the letter states. “Therefore, effective immediately, no new obligations may occur under the NEVI Formula Program until the updated final NEVI Formula Program Guidance is issued and new State plans are submitted and approved.”
That means that even previously approved plans submitted by state DOTs could be at risk, although FHWA said it would still reimburse states for expenses related to contracts that had already been finalized.
Gallentine said the letter is causing confusion and uncertainty about how to proceed for state departments of transportation that have projects in various stages of work. Traditionally, such changes would be subject to the federal rulemaking progress before being implemented, he said.
“What we’re saying to states is that until such point as the guidance has gone through…states need to just continue using the old guidance,” Gallentine said. “That’s how this has always worked in the history of our country.”
Progress halted: The Washington Post reported that, in the wake of the memo’s release, some states have paused their programs, while others are moving ahead. The Vermont Agency of Transportation, for example, suspended its program after building only one NEVI-funded charging station. It put 11 in-progress projects on hold.
All told, widely cited data from analytics firm Paren indicates that some $3.3 billion in NEVI funding has been allocated to states, but only $616 million has been awarded and only approximately 55 charging stations have been installed.