On November 15th, President Biden signed the long awaited bipartisan infrastructure bill. Although the language of the infrastructure bill is broad, it reaffirms the Biden Administration’s commitment to decarbonizing the transportation sector in the United States.
The infrastructure bill makes historic investments in the EV sector by increasing charging station accessibility, enabling EV drivers to top up their batteries while on the go, and removing barriers to further EV adoption nationwide. The $1.2 trillion bill reauthorizes federal surface transportation programs for five years, upgrading the nation’s infrastructure, while adding millions of jobs over the coming decade.
The Infrastructure Investment and Jobs Act (IIJA) will invest billions of dollars and create new opportunities to further catalyze growth in the electric vehicle (EV) sector. With $550 billion in new spending, here’s a breakdown of what the infrastructure measure will do to significantly reframe the future of infrastructure in the US, most notably for the EV industry.
Electric Vehicles and EV Charging
The bill includes $7.5 billion to help accelerate EV adoption and build a nationwide network of EV charging stations that will increase charging availability and promote long-distance travel. This funding will include the National Electric Vehicle Formula Program, which is established to provide states with $5 billion to strategically deploy EV charging infrastructure over five years.
The bill also includes an additional $5 billion to help state and local governments, eligible contractors, and nonprofit school transportation associations adopt low-carbon and zero-emission school buses.
Another $65 billion will fund an investment in clean energy and renewables for the nation’s electricity grid and promises to create a more resilient system. Funds will also funnel to various clean energy technology projects.
The Industry Now and Into the Future
This federal support will provide a tremendous impact to the EV industry in the coming years. Congress is working to further maximize EV deployment by attempting to pass the Build Back Better Act (BBBA), which would extend and expand access for EV tax credits, both for infrastructure and consumers. Combined with additional program funding from the utilities and state agencies, the tailwinds for the EV Charging infrastructure industry are encouraging.
To learn more, see the White House Fact Sheet: The Biden-Harris Electric Vehicle Charging Action Plan.
The White House— Fact Sheet: The Bipartisan Infrastructure Deal
Ernst & Young— At a glance: What’s in the Infrastructure Bill?