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$2.5 billion for EV Charging Infrastructure Grants Announced

March 20, 2023
3 minute read

$2.5 billion for EV Charging Infrastructure Grants Announced

March 20, 2023
3 minute read

Authored By

Mark Bender

Mark C. Bender

Special Counsel

John Clancy

John L. Clancy

Shareholder

Practices

On March 14, 2023, the U.S. Department of Transportation announced a Notice of Funding Opportunity (NOFO) that opens the application period for the Charging and Fueling Infrastructure Discretionary Grant Program (CFI Program).

The CFI program is part of the $7.5 billion set aside in the Bipartisan Infrastructure Law (BIL) to expand electric vehicle (EV) charging infrastructure throughout the United States. BIL provides $2.5 billion over five years for the CFI program, of which $700 million has been allocated for Fiscal Years 2022 and 2023. The $700 million will be divided into two grant categories:

  1. $350 million for the Community Charging and Fueling Program Grants (Community Program), to strategically deploy EV charging infrastructure as well as hydrogen, propane, and natural gas fueling infrastructure located on public roads or in other publicly accessible locations, and
  2. $350 million for the Alternative Fuel Corridor Grants (Corridor Program), to strategically deploy charging and alternative fueling infrastructure located along designated alternative fuel corridors (AFC).

The Community Program requires projects be located on a public road or in a publicly accessible location such as parking facilities at public buildings, public schools, and public parks, or in publicly accessible parking facilities owned or managed by a private entity. Grant awardees may use funds to contract with a private entity to build the project. The minimum award amount is $500,000 and the maximum award is $15 million. Projects must address environmental justice and be accessible to and usable by individuals with disabilities. Projects are also expected to reduce greenhouse gas emissions and to expand or fill gaps in access to publicly accessible infrastructure.

The Corridor Program requires projects be located along a designated AFC, with EV charging projects within 1 mile of an AFC and other alternative fuels within 5 miles of the AFC. Projects must be publicly accessible and must utilize contracts with a private entity for acquisition and installation, or operation, of eligible infrastructure. The minimum award under the Corridor Program is $1 million and there is no maximum award amount. Corridor projects must address environmental justice and be accessible to and usable by individuals with disabilities. Corridor plans should also align with the applicant’s state’s NEVI Deployment Plan.

Eligible entities for either grant include, but are not limited to, states, political subdivisions of states (cities, towns, villages), Tribes, certain authorities, and groups of eligible entities. Applications must be submitted by Tuesday, May 30, 2023. To the extent possible, applications will be considered for both programs. Both the Corridor and Community Programs provide up to 80% federal cost-share.

Godfrey & Kahn has assisted with numerous applications for grants and incentives related to energy programs, as well as financing and development of energy projects that combine tax credit financing, grant funding and other funding sources. We have also assisted numerous organizations, municipalities, and tribes in packaging federal grants with other state and/or utility grants and tax incentives, investment tax credits, new market tax credits, or other private funding to drive down the cost of energy-related projects, often resulting in the construction of projects with no upfront capital costs. Now, with the BIL and the Inflation Reduction Act providing numerous expanded funding opportunities, we can work with you to help potentially fully fund numerous clean energy projects.

Attorneys in our Energy Practice Group would be happy to assist with reviewing eligibility for these grant programs, as well as assisting with the application process. For more information about strategies to utilize these grants to meet your organization’s energy goals, please contact a member of our Energy Practice Group.

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