This is part three of a five-part series about Virginia’s transition to electric vehicles that examines the government’s role in the process, the private industry’s status, the development of charging infrastructure in the state, EVs’ impact on the electric grid, and how the commonwealth’s workforce may be influenced by the growing industry.
Searching for a new vehicle can be challenging, but not as complex as it is to develop the infrastructure needed to power electric and low-emission vehicles at rest stops, gas stations, homes, workplaces and public areas in Virginia.
To build its EV infrastructure, the state leaned on the federal government’s nationwide plan to install charging stations across major corridors around the country.
In Virginia, those areas are found along Interstates 81, 295 and 495, to name a few. The commonwealth has received $61 million, with a future allocation of $45 million, from the federal government’s Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law, to build out charging stations along interstate highways, with one planned at least every 50 miles, and within one mile of federally identified designated alternative fuel corridors (AFCs). So far, the process has progressed slowly.
“Whenever you put a large amount of new money into a system, meaning deploying EV infrastructure where none previously existed, the startup is going to be very difficult. New processes and procedures need to be established to ensure taxpayer dollars are used appropriately and we minimize the potential for waste, fraud, and abuse,” said Del. David Reid, D-Loudoun, who is a strong supporter of electric vehicles and owns one.
However, homeowners, businesses, and residential and commercial developers could tap into another infrastructure layer soon — or even now, if they have access to a 240-volt outlet.
The state could incentivize Virginians to install chargers at shopping malls, homes and corporate offices through future legislation. Previous efforts have failed due to the lack of support or funding.
Reid said the state needs to build out the charging infrastructure along major highways, but there’s also the potential for existing wiring to support a Level 2 EV charger, which is typical for home, the workplace and public areas such as gas stations.
Divesting from gas stations for charging stations
Virginia’s gas stations and convenience stores are aware of the transition to electric vehicles, but are generally prioritizing their available fossil fuel at the moment. Some, though, are seeing a new business opportunity with government funding to provide EV charging infrastructure.
As of June 30, the Department of Motor Vehicles said there were about 6.9 million vehicles registered in Virginia, with about 311,000 being electric, plug-in hybrid or traditional hybrid. That means at least 6.6 million cars need a gas station to fuel up.
Mike O’Connor, president and CEO of the Virginia Petroleum and Convenience Marketers Association, acknowledged the transition to more electric vehicles is “going to happen regardless of what pressures are brought to bear because there are people that are interested in these vehicles.” O’Connor’s group represents owners or suppliers for the 3,385 gas stations and convenience stores across Virginia.
But given some challenges with adopting electric vehicles, including their difficulty performing in cold weather, O’Connor said for his group, the percentage of new cars sales being electric vehicles likely won’t increase beyond the current 7% rate as fast as previously thought. So they’re not focusing on EV drivers.
“If I’m one of these businesses, I’m doing a long term projection, and you say it’s going to increase by 100% in 10 years — which I think is optimistic given what’s going on — you’re going to go from 7% to 14%,” O’Connor said. “You’re still going to have 14% EVs and 86% internal combustion engines. If I’m making my efforts in planning, I’m focused on the 86% in those locations where I’m operating presently.”
That hold-out philosophy is present in the Shenandoah Valley, where Holtzman Oil is one of the largest suppliers of gas and is keeping with its model based on conversation with retailers.
“Our gut feeling is that fossil fuel has a long and bright future ahead of us,” said Todd Holtzman, general manager of the company’s propane division and a Republican member of the town of Mount Jackson’s council. “[Chargers] are very, very expensive and I think it’s a possibility when the public wants them. Where you see ‘em, I think they’re heavily subsidized and they’re not heavily used.”
Individual gas station owners decide if and when to install EV chargers, O’Connor said, similar to the choice between selling “Coke versus Pepsi.” A separate group of gas stations and convenience stores, ranging from national chains to mom and pop stores that are a part of the Charge Ahead Partnership, ranging from national chains to mom and pop stores, take a fuel-agnostic stance, said Ryan McKinnon, a spokesman for the group.
“If customers want charging, they want to provide it,” McKinnon stated.
But with Level 3 fast chargers costing about $100,000 to install — the type which take about 15 to 20 minutes to charge a battery up to 85% for up to a 300 mile duration, typically — McKinnon said gas stations owners want certainty their investment will provide a return and not be overlooked by a charger built down the street.
That certainty, McKinnon said, can come from giving private companies a right of first refusal to prevent utilities from building, owning and profiting chargers paid for through ratepayer funds within a 12-mile radius of an existing publicly used one, which is what a 2024 bill from Del. Rip Sullivan, D-Fairfax, sought to achieve. Dominion Energy, which McKinnon said has been cooperative with building charging infrastructure, argued against the bill, saying it would have hampered their ability to provide more charging stations.
“This is a pretty big business opportunity,” McKinnon said, adding gas stations can be well lit, attended by people and are close to highways. “We’re uniquely positioned.”
The government’s role
While it can be considered as a subsidy, the government is providing incentives to overcome the funding concerns with building EV chargers, particularly at gas stations.
In 2016, a settlement with Volkswagen for cheating emission tests led to $14 million for charger development, primarily at gas stations in Northern Virginia and the Hampton Roads area. More recently, the Virginia Department of Transportation began doling out National Electric Vehicle Infrastructure funds from the federal government.
Erin Belt, decarbonization program manager with the Virginia Department of Transportation, said the applicants include traditional gas stations and travel centers. The list of applicants also include third party operators running the stations, and those from the tourism industry operating dining establishments, grocery stores and shopping centers.
“We’ve seen pretty good, and I would say better than expected, response from applicants across the state,” said Chris Berg, director of sustainability at VDOT. “I think we had some concern around ‘are there some areas of the state that have lower EV penetration?’ where we may see less interest. But in our first round we saw multiple applications at all of our target areas.”
Sullivan told the Mercury in a phone interview he’s used a charging station much like what the NEVI program is working on.
“I’m in Western New York state right now. I drove up here in my EV,” Sullivan said “My wife and I stopped at a Sheetz in Bedford, Pennsylvania; took 20 minutes to charge our car while we were inside, using the restroom and buying some food for the road. And then we were on our way, not unlike an internal combustion engine vehicle stopping for a gas fill up.”
EV traveling in Virginia
Industry leaders say charging stations along Virginia’s interstates are moving along, but have some challenges amid concerns over car batteries.
In 2022, VDOT said after it received funding for the NEVI program, it would be working through 2026 to expand the network to over 1,000 charging stations.
Berg said it’s the largest investment in the commonwealth’s history. However, VDOT is uncertain when deployment could be completed, due to factors such as whether the program will be reauthorized and what the demand will be in a couple of years.
Supply chain delays could also impact when award recipients complete the installation of charging stations, as could applicants’ need to ensure they understand the federal requirements and obligations.
The program does not cover infrastructure installation in areas beyond Virginia’s interstates, like the commonwealth’s rural regions.
However, some communities are applying for the Charging and Fuel Infrastructure Discretionary Grant Program created under the Bipartisan Infrastructure Law to address those areas. The application process, which closed last month, offers a $2.5 million cut for groups such as local governments and planning organizations in urban and rural communities. The funding will help to deploy EV charging and other alternative vehicle-fueling infrastructure projects in publicly accessible locations.
“The idea behind the CFI funding is to essentially fill in gaps left by the NEVI program,” said Anne Blair, vice president of policy for the Electrification Coalition, a nonprofit organization advocating for electric vehicles.
“While NEVI dictates specific funding every 50 miles, a mile off the interstate, this is designed to really go in areas outside of that, [such as] rural communities (and neighborhoods with)multi-family housing, for instance, that also need assistance in terms of deployment of funding.”
Virginia’s stated goal for the charging network is to create a system that facilitates “convenient, reliable, and equitable access to fast charging stations throughout the commonwealth, while spurring growth in this promising industry.”
Sullivan has introduced a bill three years and counting to make sure “all Virginians” can have access to charging, including rural areas that won’t directly benefit from the NEVI program. Sullivan’s bill attempted to offset some infrastructure costs in less populated, lower income areas, which Republican lawmakers have said is lacking while also largely opposing the clean cars policy seeking to increase the state’s adoption of electric vehicles.
Those rural areas are where state parks typically are, too, said Sullivan.
“We want all of our Virginia citizens to be able to charge electric vehicles. We want people coming into the states, into our beautiful tourist attractions all over the state. We want those people who own electric vehicles to feel confident that they can charge there as well.”
Reid suggested that state involvement could help alleviate any inequities for people who live in places that don’t have garages or dedicated spaces for charging such as apartments and condominiums.
Operating and improving EV charging in Virginia
Some consumers considering the idea of transitioning to electric are looking to businesses, legislators and local and state governments to make finding charging stations easier.
In some parts of Virginia, electric and low emission vehicle owners have already taken steps to install chargers at their homes. In some cases, a homeowner is required to have an electrical permit to install a charger. Experts say most EV charging is done at home.
In Prince William, an electrical permit is required when a circuit or feeder is added or extended to supply the vehicle charging system or if the system is hard wired. A permit is not required if the charging system is cord-and-plug connected to an existing circuit that meets the requirements of the manufacturer’s installation instructions.
EV and hybrid owners also use chargers at shopping malls and at workplaces as the more effective charging stations become available.
Lawmakers attempted to increase the number of charging stations and home chargers during the previous three sessions.
In 2021, the Virginia legislature passed the first EV Rebate Program providing tax incentives for consumers to purchase a new or used electric vehicle. However, the program was never funded by the legislature.
Reid said the state’s EV Rebate Program lost support because some interpreted it as a means to support the wealthy purchasing expensive EVs; others balked because of the cost to support the program. He said the commonwealth has a “finite amount of money,” and the legislature has to make some “very difficult decisions” about priorities, some of which have been neglected for decades, such as increasing teacher pay, disability waivers and law enforcement pay.
“I don’t fault anyone for that, but it was one of those unfortunate things that we were able to pass the legislation, but we had different priorities when we got to the budget,” Reid said.
In 2023, legislation to give localities the option to require developers to include charging infrastructure in their proposals failed, which he said was supported by localities in Northern Virginia. A similar bill in 2024 would have convened a workgroup to evaluate the technical requirements for building EV charging infrastructure.
Sen. Jennifer Boysko, D-Fairfax, said she supports localities having the flexibility “in certain areas” to require developers to include charging infrastructure in their proposals, especially multi-family dwelling unit construction proposals.
“We have to keep up with the times and with the technology and giving localities another tool in the toolbox to make some decisions for themselves, knowing their communities better than anybody else, I think it’s a reasonable thing,” Boysko said.
Blair from the coalition acknowledged that it’s been “a fairly controversial issue for the building community, because it’s another thing on their list to include in their standards.” But it’s “vastly less expensive to do it when you’re building a new apartment complex than to retrofit a property after it’s already been built,” she said.
Without Boysko’s bill passing, the city of Alexandria has been using “Standard Conditions” to encourage developers to agree to include charging infrastructure as they submit building proposals.
“Virtually all development projects incorporate some degree of EV infrastructure into their project,” said Amy Posner, EV planner for the city of Alexandria. “We typically see at least 2% of the parking spaces on a project will have Level 2 EV chargers. The latest update to the Standard Conditions raised that to 5% of parking spaces to better align with EV adoption rates in Alexandria.”
The city also wants to provide the chargers in areas like city parks and libraries, but costs are a challenge.
To get around that, the city is offering up their locations to developers who would own, operate and profit from charging stations, but “ideally” enter a revenue sharing agreement with the city. Grants that Alexandria receives could also go toward building chargers. It’s similar to a program Virginia Beach is doing, Posner said, “to really accelerate the public charging that we know we need to make it easier for folks to make the switch.”
Stuart Gardner, executive director of Generation 180, which provides consumer education on switching to electric, said a way the organization is helping to spur interest is working with businesses in developing charging stations, and encouraging localities to apply for federal grants.
Last January, Henrico County became the recipient of a $1.4 million discretionary grant from the Charging Fuel Infrastructure Grant Program for developing stations at seven county facilities including at two libraries and a recreational center. The second round of applications closed last month.
“Generation 180 and a coalition of partners reached out to localities across the state to say ‘hey, let’s not leave money on the table.’ They’re going to award these grants, so let’s make sure that money is in Virginia,” Gardner said.
For Virginians unable to charge at home, businesses like Dominion are making it possible at the workplace.The company also announced last Thursday that it would provide a one stop shop for qualifying residents who want to add chargers at home by connecting them with electricians at no cost. To participate, there are income thresholds that can’t be exceeded; for example, a family of four’s income can’t be more than $88,000 a year.
“This program eliminates a significant barrier to EV ownership by simplifying the process to purchase and install a home charger,” said Nathan Frost, General Manager of New Business & Customer Solutions for Dominion Energy. “We are excited to help empower our customers to reduce their fuel costs and their emissions at the same time.”