By 2030, it  is estimated that there will be more than 26 million light duty electric vehicles (EV) on US roads, accounting for about 10 percent of all light duty vehicles (cars and light trucks)¹. A common concern of current and potential EV owners is the ability to travel long distances and the related need to have dependable recharging stations (likely a mix of DC fast and ultra-fast chargers) at consistent and predictable intervals on the federal and state highway system. Some see the lack of EV recharging infrastructure as a major impediment to wider adoption of EV vehicles. Both the federal and state governments see the need for this infrastructure, as well as the need to coordinate solutions at the national, regional and local level.

Over the next decade, federal formula funding will be leveraged by Indiana and other states to deploy EV charging infrastructure to meet the Federal Highway Administration (FHWA) goals of creating a “convenient, affordable, reliable and equitable charging experience for all users”. Indiana’s EV Infrastructure Deployment Plan (the “Plan”), developed by the Indiana Department of Transportation (INDOT) in partnership with Indiana’s Office of Energy Development (OED), was approved by FHWA on September 27, 2022.

Led by INDOT, Indiana will have access to almost US$100 million to leverage deployment of EV charging stations to meet federal and state priorities. INDOT is now in the process of contracting with partners to implement the Plan and install, operate and maintain these charging stations, including Level 3 DC fast-charging stations along Indiana’s federally designated alternative fuel corridors (AFCs), which will help achieve the national goal of having 500,000 reliable chargers in the US to support EV adoption. Station locations have been determined with federal guidance.

Several other initiatives have also been undertaken to move this process forward and to focus attention on opportunities federal and state funding presents:

• The REV Midwest Coalition (REV Midwest) is a Memorandum of Understanding among Indiana, Illinois, Michigan, Minnesota and Wisconsin. Signed in September of 2021, REV Midwest creates a regional framework to accelerate growth of the electric vehicle recharging grid in the Midwest. Each state has adopted (or is in the process of adopting and obtaining FHWA approval of) an EV Infrastructure Deployment Plan targeting key commercial corridors and interchanges on federal interstate highways and select state highways for placement of EV charging stations on both public and private property.

• Installation of interstate and key state highway charging stations in Indiana using VW Mitigation Settlement funds (overseen by the Indiana Department of Environmental Management) is expected to commence in late 2022, and continue in 2023 and 2024. Site host locations will be near retail and other sites throughout the state that have various amenities, including multiple locations in or near larger metropolitan areas. These sites will kick-start EV charging station deployment and leverage additional public and private EV charging station development.

• The Lake Michigan EV Circuit Tour is being developed by Indiana, Illinois, Michigan and Wisconsin to create reliable light-duty vehicle charging options along the Lake Michigan coastline in key coastal communities and tourism attractions.

These and other initiatives will impact selected interchanges and retail businesses, giving them increased traffic and competitive advantages over non-EV sites. Development of EV charging stations projects will require development of electrical substations and related infrastructure, which may need to exist separately from existing facilities. These projects will present a variety of real estate, utility, land use, economic development, governmental, procurement and (possibly) eminent domain issues. These projects will also require a balancing of competing interests, including assessing the needs and expectations of current stakeholders with the needs of adopters of these developing technologies, utilities and government actors.

We anticipate a range of legal and business issues arising as deployment occurs. Dentons is well positioned to assist our clients in navigating these issues.

1. https://www.eei.org/News/news/All/eei-projects-26-million-electric-vehicles-will-be-on-us-roads-in-2030#:~:text=The%20number%20of%20EVs%20on,on%20U.S.%20roads%20in%202030 ↩