Key points
- The Federal Highway Administration has instructed states to stop a $5 billion programme
- Plans approved by the Biden administration are now considered suspended
- New obligations may occur under the NEVI formula programme
ISLAMABAD: The Federal Highway Administration has instructed states to stop a $5 billion programme to build fast EV chargers on highways nationwide.
The letter guides state transportation directors — who are given the charge of administering the programme— that any plans accepted and approved by the Biden administration are now considered suspended until the Transportation Department presents new guidelines in the spring, according to the Washington Post.
“Effective immediately, no new obligations may occur under the NEVI formula programme,” the letter reads.
The new order could prove to be a big blow to an industry that has experienced slower-than-expected sales and could lose essential federal tax incentives in the coming months.
Ford’s Losses
On Wednesday, Ford Motor Co. projected it could lose as much as $5.5 billion this year on its EV and software business.
So far, just 55 charging stations have been built, according to data from the analytics firm Paren.
This announcement leads to uncertainty, said Ryan Gallentine, managing director at business association Advanced Energy United, according to CBS News.
“Most of the unawarded money is sitting in state Department of Transportation bank accounts ready to be spent,” Gallentine said in a statement. States are under no obligation to stop these projects based solely on this announcement, he said. “We call on state DOTs and program administrators to continue executing this program until new guidance is finalized.”
