California Injects Another $1 Billion Into EV Charging

The infrastructure program will be funded by the state’s public utilities commission.

November 21, 2022

SACRAMENTO—California Gov. Gavin Newsom has announced the state plans to invest another $1 billion in building out an electric-vehicle charging infrastructure to support the state’s phaseout of gas-powered trucks and cars, reports Bloomberg.

The charging program will be funded by the state’s investor-owned utilities. The program will direct 70% of funding to charging for medium-and heavy-duty vehicles and will offer rebates for customer electric vehicle infrastructure investments in businesses, factories and apartments. Higher rebates will be available for projects in underserved, disadvantaged and tribal communities.

The California Public Utilities Commission said it has approved more than $1.8 billion in ratepayer funding for transportation-electrification infrastructure over the past six years.

The California Air Resources Board (CARB) also approved a $2.6 billion investment plan to support a wide range of zero-emission-vehicle (ZEV) projects, with 70% of the funds directed to disadvantaged and low-income communities, the state’s largest-ever investment in the equitable expansion of clean transportation, according to a statement by the governor.

Components of the plan include $2.2 billion for clean trucks and buses and off-road equipment, $381 million for clean transportation equity projects and support for low-income consumers looking to purchase an electric car. These consumers can receive up to $15,000 in incentives for new electric vehicles without having to scrap an older vehicle and up to $19,500 for those who have an older car to scrap—an increase of $3,000 from current incentive levels.

In August, the California Air Resources Board passed a plan that requires all new passenger cars and light trucks sold in the state to be electric vehicles or plug-in electric hybrids by 2035. Currently, 16% of all new car sales in California are zero-emission vehicles.

NACS, along with other stakeholders, filed a petition in a federal court in Washington, D.C., challenging the Environmental Protection Agency’s waiver that would allow California to implement a zero-emission vehicle mandate.

California independent gas station owners recently told the Los Angeles Times that California’s zero-emission vehicle mandate will expedite the demise of their businesses. According to NACS data, there are more than 5,000 single-store operators in the state of California.

The Convenience Matters podcast, “Where Do EVs Make the Most Sense?” examines the findings from a Fuels Institute study looking at life-cycle emissions for EVs and fuel-powered vehicles. NACS also has a topics page on electric vehicles.

NACS created an EV Charging Calculator to help retailers assess the cost and profitability of offering EV chargers at their sites. The calculator focuses on what retailer utility costs associated with EV recharging are and what the corresponding revenue must be to recover those costs after allowing for potential ancillary in-store visits and purchase profitability.