USDOT Proposes Stricter 'Buy America' Rules for EV Chargers

The U.S. Department of Transportation (USDOT) has proposed new requirements for electric vehicle (EV) charging stations to qualify for federal funding under the National Electric Vehicle Infrastructure (NEVI) program. The proposal stipulates that EV chargers must increase their US-made parts content from 55 percent to 100 percent to be eligible for these funds.

NEVI Program Background

The NEVI program, approved as part of the Bipartisan Infrastructure Law, previously faced attempts to freeze its $5 billion in funding. A federal judge subsequently ordered the release of these funds.

Industry and Environmental Groups Raise Concerns

Industry and environmental groups have expressed significant concerns regarding the new requirements. Albert Gore, executive director of the Zero Emissions Transportation Association, stated that the proposal "does not meet industry where it is today and may discourage further investment in the production of U.S.-made EV chargers." He added that it could "hinder the job growth that Buy America is intended to create."

"The proposal 'does not meet industry where it is today and may discourage further investment in the production of U.S.-made EV chargers.'"

Supply Chain Challenges Highlighted

The primary concern is that the supply chain for most EV charging equipment components is currently outside the US, particularly in China, due to significant investment and subsidies in that region. Ingrid Malmgren, policy director at Plug In America, noted that while charger enclosures, cables, and final assembly are often US-built, power modules and advanced electronics are typically sourced globally.

Potential Impact on EV Charging Deployment

Critics, including Katherine Garcia, director of the Sierra Club’s Transportation for All, suggest that these new stipulations could "stall EV charging deployment" and "push the United States further behind." EV advocates generally support incremental increases in domestic content for charging equipment but deem a current 100 percent compliance requirement as unrealistic given existing U.S. manufacturing capabilities. Malmgren described it as "out of touch with U.S. manufacturing capacity."

Impact on States

States, such as Georgia, were beginning to receive their allocated NEVI funds, with Georgia expecting $134 million for new charging stalls, when this proposal was announced.