Although electric vehicle (EV) technology has been around since the early 1900s, it has recently gained national attention as a viable alternative to the internal combustion engine. With new models and vehicle types entering the market each year, many federal agencies are beginning to install electric vehicle supply equipment (EVSE) to charge government-owned vehicles (GOVs) and personally owned vehicles (POVs). Although the new EVSE units will support the growing electric fleet as well as the increasing demand for workplace charging, funding for these projects is not always readily available; however, some funding sources have already supported agencies in their electrification efforts.
In 2016, the Defense Intelligence Agency (DIA) began planning to install EVSE units as part of a workplace charging program to support the adoption of EVs. After careful consideration and detailed planning, DIA sought out Electrify America, which was established as part of the Volkswagen Diesel Emissions Settlement Program. The Electrify America mission is to "Promote zero-emission vehicle (ZEV) adoption by offering transformative, customer-centric infrastructure and energy management solutions."
Through its partnership with SemaConnect, Electrify America will provide eight EVSE units to be installed at DIA, covering all infrastructure and construction costs. SemaConnect will also maintain the units and cover network costs until the end of 2026. DIA will determine the amount to charge POVs for the cost of electricity, which will ensure this workplace charging program is executed on a no-cost basis for the federal government.
Due to the distribution of funding and limited resources, Electrify America programs are not always available; however, utility energy service contracts (UESCs) and energy savings performance contracts (ESPCs) may provide alternate financing for federal agencies planning to install EVSE infrastructure.
UESCs were established by the Energy Policy Act of 1992 and authorize agencies to partner with their local utility to provide alternative funding options for energy and water efficiency improvements. In 2018, the Federal Aviation Administration awarded a UESC for the installation of solar photovoltaic carports at Southern California Terminal Radar Approach Control Facilities and the Los Angeles Center. Both projects included the installation of conduit and junction boxes to support the future installation of EVSE. This prepares each site for a quick and low-cost installation of EVSE by eliminating most typical construction costs.
ESPCs may also provide funding for EVSE projects through a capital investment from energy services companies. ESPCs cover the upfront cost of energy efficiency and infrastructure improvements, and the resulting cost savings are used to pay back the energy service company over the life of the contract (approximately 20 years). In 2015, the U.S. Army at Fort Buchanan installed eight EVSE units to support its growing light-duty EV fleet. This work was funded through an ESPC, with assistance from the Federal Energy Management Program.
Additionally, electric utility companies and state governments may provide rebates specifically designed to support EVSE installation. Duquesne Light Company (DLC) out of Pittsburgh, Pennsylvania, offers commercial customers an EV-charging rebate to support costs related to EVSE installation. This program can be partnered with the Driving PA Forward Rebate, offered by the State of Pennsylvania to significantly reduce the cost of these projects.
"Duquesne Light is proud to be leading the charge in Pittsburgh's electric mobility movement," said Sarah Olexsak, DLC's transportation electrification manager. "Through electric vehicle education, incentives, and partnerships, we are creating a more dynamic and sustainable future for our community."
An example provided by DLC considers the construction, installation, and equipment costs for eight public, networked ports (four dual-port units) that would have cost a total of $56,000 to purchase and install without rebates. The cost falls to approximately $16,000 with support from Pennsylvania's program, and the DLC EV Charging Rebate can reduce the overall project cost to only $4,800. This program, as well as many others offered through electric utilities, is summarized in a report from the Edison Electric Institute.[1]
As EVs continue to gain popularity and make up a growing share of vehicles on the road, many agencies and businesses alike will be installing EVSE to support the energy requirements of these vehicles through workplace charging. Such projects can require a significant capital investment, which can be challenging to account for in annual budgets. Therefore, funding sources, such as those offered through Electrify America, local utility companies, and state governments, can be crucial to supporting these projects and ensuring their continued success.
[1] Electric Transportation Biannual State Regulatory Update https://www.eei.org/issuesandpolicy/electrictransportation/Documents/FINAL_ET Biannual State Regulatory Update_May 2019.pdf