Overcoming Electric Vehicle Infrastructure and Power Grid Challenges
For companies looking to transition to a more electric future, there are hurdles every company must account for. From challenges with utility infrastructure planning and grid reliability concerns to uncertainty around support for electric vehicles (EV) from the incoming presidential administration, Congress and even state-level legislators, the barriers are very real and vary in complexity. However, that doesn’t mean they cannot be overcome.
Recently, we talked about what the road ahead for EVs looks like in the U.S., with a focus on the infrastructure challenges that companies face. The Infrastructure Investment and Jobs Act (IIJA) from the Biden administration was intended to solve some of those challenges. The IIJA appropriated $5 billion in funding for the National Electric Vehicle Infrastructure (NEVI) program and $2.5 billion for the Charging and Fueling Infrastructure program. While substantial, these investments are not enough to fully solve the infrastructure issues facing companies that want to move more toward an EV future. Further, as discussed in another recent advisory, it’s expected that the second Trump administration will move to eliminate most federal incentives and roll back any other national initiatives from the Biden administration geared toward electrification.
So, what can businesses do to overcome some of these challenges? Here are a handful of steps.
Outline specific goals, priorities and needs
What are the company’s needs today, and how might they shift in the future? Is a transition to an EV future tied to sustainability or ESG goals, an effort to reduce costs or both? How does the current infrastructure in the organization’s operating areas need to change, if at all, to allow it to achieve each of these goals?
Detailing these goals, priorities and needs will make it much easier and more productive when advocating to advance your interests with legislators and regulators.
Get a seat at the lawmaking table
The reality is that it can take years for electric companies to get approvals from federal, state and local governments for all the new substations and infrastructure modernization needed to increase their load capacity. These changes cannot happen overnight. However, the changes we’ve already seen over the past few years to increase funding for EV infrastructure happened only because industry leaders were actively urging lawmakers to invest in this area.
That’s why now, more than ever, companies must have conversations with the lawmakers that matter most. Whether it's in Washington, D.C., or in a state capital such as Harrisburg, legislative and regulatory agendas remain blank slates aside from those more perennial discussions. Lawmakers cannot know what to prioritize in these agendas without knowing the needs of their business constituents, and to move the needle in favor of any organization’s preferred legislative needs or regulatory environment requires more than just an application on a desk. It’s critical for organizations to have an actual in-person seat at the table where decisions are being made and a voice in the ears of legislators and regulators enacting these laws.
With the Trump administration not expected to make EV infrastructure a priority, eyes will also shift to the state level to see what governors and their respective state assemblies are able to accomplish. In some states with progressive governors, they may be able to pressure public utility commissions to hold stakeholder meetings to identify what matters most to businesses in their states.
Working with government relations professionals can move your company from a number to a name and create a personal connection with the lawmakers to let them know what legislative priorities matter most to your business.
Consider alternative project arrangements
Most companies understandably don’t want to foot the bill or fully own infrastructure projects. It simply isn’t feasible financially or logistically. This is where public-private partnerships (PPPs or P3s) come into play. Especially for challenges with EV charging infrastructure, a P3 arrangement is often able to accelerate projects and ensure both the private entities and public agencies are satisfied. In most cases regarding EV infrastructure, they’re necessary to get any project completed.
P3s can be intricate and complex, however. Navigating these partnerships requires close connections with legislators, deep real estate expertise and innovative problem solving.
Identify with the right partners
Challenges surrounding the advancement of infrastructure are real but can only be overcome when businesses take an active role in bringing them to life. Our government relations team is uniquely equipped to help your organization get a seat at the table, build meaningful connections and ensure your business’ priorities are aligned with lawmakers’ and regulators’ legislative agendas.
Our government relations team can help your business have a seat at the table with complex policy advocacy, support key relationship-building, and strategic planning that supports your short and long-term business goals in electrification.