E-Mobility

The NEVI Formula Program: Advancing Electric Mobility Infrastructure in the United States

07 NOVEMBER 2024 • 7 MIN READ

Piotr Majcher

Piotr

Majcher

The NEVI Formula Program

The National Electric Vehicle Infrastructure (NEVI) Formula Program, established by the Bipartisan Infrastructure Law (BIL), represents a key component of the U.S. federal government’s strategy to support a nationwide transition to electric vehicles (EVs). NEVI aims to create a comprehensive, equitable, and accessible EV charging network across the country, addressing gaps in infrastructure while fostering resilience and convenience. With federal funding and guidance, the program is designed to reduce emissions, increase energy security, and provide economic opportunities through EV adoption.

The U.S. eMobility industry has experienced significant growth due to heightened environmental awareness and supportive policies. While EV sales have surged, the supporting infrastructure—especially in rural areas, underserved communities, and critical long-distance travel routes—remains underdeveloped. The NEVI program addresses these needs by enabling states to deploy EV charging infrastructure strategically, helping to eliminate barriers to EV use and ensure a reliable nationwide network for all Americans.

Overview of the NEVI Formula Program

The NEVI Formula Program, launched with the BIL on November 15, 2021, allocates $5 billion over five years to develop a cohesive national EV charging network, with initial focus on Alternative Fuel Corridors (AFCs) along U.S. interstates. This network, particularly critical along interstate routes, aims to enhance the EV user experience by reducing "range anxiety." States are encouraged to work closely with energy agencies, local governments, private sectors, and communities to create infrastructure that is not only efficient but also meets diverse needs and promotes equitable access. The program’s ultimate goal is to ensure that drivers across the U.S. have convenient, reliable access to charging stations, thus enhancing the accessibility and reliability of EVs as a primary transportation option​.

Funding and Match Requirements

The NEVI Formula Program’s $5 billion budget is allocated through an annual, formula-based approach. Federal funds cover 80% of project costs, with states or local entities responsible for the remaining 20%. States have flexibility to meet this match requirement with state funds, private investments, or other approved sources. NEVI also allows states to combine NEVI funds with additional federal programs, such as the Congestion Mitigation and Air Quality (CMAQ) program, to optimize resource use and expand the reach of EV infrastructure. Additionally, a unique aspect of the NEVI program is a 10% annual set-aside of funds that may be directed toward discretionary grants aimed at supporting localities that need extra assistance, thus facilitating targeted support in areas with specific needs​.

State EV Infrastructure Deployment Plans

Each state is required to submit an annual EV Infrastructure Deployment Plan outlining how they intend to use their NEVI allocations. Plans must align with NEVI guidelines and undergo approval from the Federal Highway Administration (FHWA). These plans must address key elements such as the strategic siting of charging stations, coordination with local stakeholders, public engagement, adherence to NEVI standards, and compliance with environmental regulations. Deployment Plans also need to define five-year objectives, including measurable targets for charging stations and deployment timelines, to promote both immediate and sustained growth in EV infrastructure. The latest update emphasizes streamlined plan updates and the inclusion of long-term vision to help meet both state and national goals​.

Project Eligibility and Requirements

To receive NEVI funding, projects must be publicly accessible and meet rigorous technical and operational standards, such as minimum power levels, charger types, and network interoperability. Projects should be located within one mile of designated AFCs until the corridor is certified as fully built out, ensuring widespread access to reliable charging facilities. Additionally, NEVI funds can be used for projects that support accessibility to EV stations, such as signage, traffic control devices, and workforce development initiatives to maintain long-term station functionality. Notably, the guidance specifies detailed technical standards that ensure reliability, efficiency, and interoperability, helping to build a consistent experience for users across the country​.

Program Administration

The NEVI program is overseen by the FHWA in collaboration with the Joint Office of Energy and Transportation. This administration involves providing states with technical support, monitoring program compliance, and tracking outcomes such as fund utilization, station deployment, and accessibility of charging networks. Annual reports on project progress are required from each state to maintain accountability. NEVI also prioritizes data sharing, network interoperability, and cybersecurity to ensure a resilient infrastructure. Furthermore, the program is committed to inclusivity, integrating civil rights considerations to guarantee equal access and opportunities within the EV charging network​.

Technical Assistance and Tools

The Joint Office offers various resources to support states, including data on existing station locations, tools for demand modeling, and templates for public engagement. States are also encouraged to use the Justice40 Initiative screening tool to evaluate potential benefits to disadvantaged communities, ensuring that infrastructure deployment aligns with environmental justice goals. Technical assistance and available tools support states in addressing challenges related to equitable deployment, public engagement, environmental compliance, and the overall sustainability of EV infrastructure, making the NEVI program a comprehensive resource for states in their electrification efforts​.

Alternative Fuel Corridors and Their Role in NEVI

Alternative Fuel Corridors (AFCs) are strategic locations designated by the Federal Highway Administration (FHWA) in accordance with 23 U.S.C. 151. These corridors support the installation of infrastructure for EV charging, as well as hydrogen, propane, and natural gas fueling. The AFC network spans major highways nationwide, addressing key areas for reducing greenhouse gas emissions and improving mobility for both passenger and commercial vehicles utilizing alternative fuels.

The FHWA continuously updates and redesignates these corridors in partnership with state and local officials, responding to changes in technology, market adoption, and infrastructure expansion. Importantly, AFC designations have become increasingly significant under the Bipartisan Infrastructure Law, which ties them directly to funding eligibility for both the NEVI Formula Program and the Charging and Fueling Infrastructure Discretionary Grant Program. This connection enables BIL-funded investments to target the most impactful locations for infrastructure deployment, supporting the U.S. goal of a nationwide network of 500,000 EV chargers. This network will:

  • Accelerate equitable adoption of EVs, benefiting those without reliable home charging options;
  • Lower transportation-related emissions, helping the U.S. achieve net-zero emissions by 2050;
  • Position U.S. industries at the forefront of global transportation electrification while creating union jobs that cannot be outsourced.

By prioritizing AFCs, the NEVI Formula Program ensures that infrastructure development aligns with both immediate needs and long-term national goals, fostering sustainable mobility solutions across diverse regions and communities​.

The NEVI Formula Program is a transformative initiative in the push to expand EV infrastructure across the United States. By providing targeted funding and strategic deployment guidance, NEVI is bridging infrastructure gaps and supporting rapid EV growth across regions and communities. This program aligns with the Biden-Harris Administration's climate objectives, and it helps secure the U.S. position as a global leader in sustainable transportation. Working in tandem with states, local partners, and diverse stakeholders, the NEVI program will enable a cleaner, more resilient transportation network, fostering sustainable and inclusive mobility for all Americans.