EV Infrastructure Has Funding – When Will There Be Stations?
Three years ago, under the Bipartisan Infrastructure Law, Congress allocated $5 billion in federal funding to establish the National Electric Vehicle Infrastructure (NEVI) Program. This initiative aims to develop charger networks across each state to support electric vehicles (EVs). Of this funding, $110 million was earmarked for Michigan, covering the period through fiscal year 2026. However, the state has not yet seen the installation of any new power stations. As part of this effort, Red E Charging LLC – an EV infrastructure developer and charging network based in Detroit – has been awarded several NEVI contracts to install and manage in Michigan and a number of other states. SBN Detroit interviewed Red E Charging Founder Abass El-Hage about the timeline, barriers, and factors specific to Michigan regarding power station installation. Q: Since the announcement in 2021 of the $5 billion in federal funding just 11 EV stations have been installed across seven states, with none in Michigan to date. From your perspective, why is this? A: There are several reasons. First, this is a new process and it took time to get organized, generate RFPs, and kick it off. RFPs were published at the end of last year and contracts were awarded early this year. Setting up the necessary paperwork is tedious and time-consuming, and around public funds, there is just a lot of due diligence required. There are also multiple and varied requirements around bonding that can take another six months to sort out. Identifying appropriate locations for the charging stations with the right amenities on the property that’s willing to host can be time-consuming. On top of that, regardless of how long the paperwork takes, working with the utilities and getting the right equipment and resources in place can take six months to a year. It’s simply an arduous process that takes time. Q: Do the requirements vary from state to state? A: Yes. Every state is different when it comes to execution under NEVI. In Texas and New Mexico, the NEVI process is pretty straightforward, but Texas has issues with utilities that can slow things down. I would say Michigan is the middle of the road. And the biggest hurdle here is the strict bonding requirements. Not every state requires bonding, but Michigan requires a five-year bond that’s not run of the mill. Q: Outside of NEVI projects, is every state different? A: Yes. Incentives are different in every state. Utilities are different. In Michigan, we are lucky to have DTE and Consumers Energy. They have been helpful and proactive, and they facilitate a lot. EGLE (Michigan Department of Environment, Great Lakes, and Energy) and the EPA have been helpful in Michigan as well, helping to create infrastructure in off-highway locations that are still easily accessible at reasonable rates. Q: In Michigan, are the challenges different in the Upper Peninsula compared with the Lower Peninsula? A: Yes. With every project there are financials, and in the UP there are fewer people, there is less traffic, and therefore less charger usage. It’s harder to justify a project when you don’t make the money back as fast. Additionally, utilities in the Upper Peninsula impose demand charges, which are flat fees added to the electric bill. These charges can be quite substantial. When considering these costs, the financial viability of a project often becomes questionable. Q: How do you view the transition from gas to electric vehicles being understood and received by the public? A: It’s a mixed bag. I think there is still a stigma around charging and how difficult and inconvenient it could be. It’s a misconception in my opinion. I drive from Detroit to Chicago regularly and along that route, I can stop to charge just like stopping for gas. Also, I think there’s been mixed messaging to the public by the auto industry – especially here in Detroit. When there are recalls, or if an automaker commits to building x amount of EVs and then scales back, this sends mixed signals to the public. Q: How many contracts in Michigan has Red E Charging been awarded and what is the status? A: We’ve been awarded 12 NEVI contracts all over the state and an additional 60 fast charger projects across the state for EGLE and utilities. As I explained, the paperwork along with bonding requirements plus environmental approvals, site checks, and more make this a slow process. But we have notice to proceed and are moving forward with the first few now, so these will be underway. The actual installation takes just about two weeks. We were also awarded a project outside of NEVI with the City of Detroit to install public-facing chargers throughout the city. Q: Michigan aims to have enough infrastructure for 2 million EVs on the roads by 2030. Do you think this is possible? A: Yes, I think it can happen. DTE and Consumers Energy are very helpful when it comes to single-family and multifamily homes. It’s cost-effective to have a charger at your home. That drive from Chicago to Detroit I talked about … I think by the end of the year there will be chargers every 20 miles or so, eliminating any planning needed because people will feel confident they can stop whenever they need a charge. I think in the near future the logistics involved in an EV experience will be no different than driving a gas-powered vehicle. It’s just a different thing fueling the car. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Detroit 2030 District is Promoting Carbon-Free, High-Performance Built Environments
SBN Detroit interviews the executive director of the Detroit 2030 District, Connie Lilley. Connie has been working within the commercial built environment for over 25 years, with the last 16 years focusing on energy efficiency and sustainability. She has served on many industry trade groups, including past vice chair for the U.S. Green Building Council, Detroit Regional Chapter, where she implemented the popular My Green School Art Contest that runs annually throughout Michigan. Connie has received two awards from the National Women in Construction Detroit Chapter for being a green/sustainable leader. She has also volunteered for BOMA, IFMA, and the City of Detroit Green Task Force. Connie is a LEED AP, O & M (accredited professional, operations and maintenance) and has an MBA focusing on corporate sustainability. Q: Please tell me about Detroit 2030 District and your role. A: I am the executive director of the Detroit 2030 District, which is a nonprofit working with building owners and managers to help them reduce energy and water consumption and transportation emissions to and from their buildings. The movement promotes a carbon-free future, high-performance buildings, economic development, and environmental justice. The District is one of twenty-four 2030 Districts across North America, with three in Michigan – Grand Rapids, Detroit, and Ann Arbor. The Detroit 2030 District Is the fourth-largest District in the network, with over 51 million square feet committed. The District has 40 local nonprofit partners and 42 local businesses that support the program. The Detroit District was launched in 2017 with the support of the Michigan Department, of Environment, Great Lakes, and Energy. Q: Please elaborate on the work you are currently doing. A: We offer our building members resources and a robust calendar of educational opportunities to learn how to reduce energy and water consumption, transportation emissions, and operating expenses. We have three best practice groups, including houses of worship, venues, and museums, and multifamily. We assist our members in many ways, including helping them start an Energy Star Portfolio Manager Account to measure and track energy and water consumption and work towards reducing them. We also run many pilots on new technologies at member buildings, allowing our members to see if the technology is suitable for their buildings. We run webinars on relevant topics, including funding mechanisms, grant opportunities, renewables, green infrastructure, solar, etc. Q: You were instrumental in bringing a District to Detroit in 2017. What prompted this and what was the process of bringing this to Detroit? A: My industry colleague, Peggy Matta, and I talked for many years about the benefits of this type of program. We knew that Detroit had many aging buildings that would need renovation in the coming years. If Detroit were to make a comeback, healthy buildings and communities would be significant to the process and help to spur economic development. We both know it is best to consider energy efficiencies and other high-performance building techniques before a building is built or renovated. We felt we would be more successful in helping to rebuild Detroit if we educated many building owners at a time instead of one at a time. We had heard of the 2030 District Network and how it works. We thought it would be great to bring a District to Detroit. After working for several years with many volunteers and an exploratory committee, we became an Emerging 2030 District. After a lot of groundwork, and collaboration with municipalities, businesses, and nonprofits, our movement began to grow and finally became a full District in 2017. Peggy became the founder and Chair of the organization and is still very involved. Q: Are you pleased with the progress and impact you’ve been able to make? A: While there have been many ups and downs, including the pandemic, flooding, stormwater issues, and the political environment, we have made it through. Never in my wildest dreams did I think we would have 51 million square feet signed into our program. When we were first touting the benefits of reducing carbon emissions from the built environment, the conversation about the impact of climate change on the built environment was challenging. Many people didn’t understand the economic and health benefits of reducing a building’s carbon footprint. Since our inception, we have helped hundreds of building owners and facility managers understand how to measure, track and work to reduce energy and water consumption. Many building owners don’t have an energy manager or a sustainability professional who understands how to combat issues with climate challenges. We have implemented several successful programs, including a Museum Best Practice Group, which has gone national across all 2030 Districts. Our unique House of Worship Best Practices Group includes over 20 local congregations. This program partners with 15 different local businesses and the EPA for Congregations and has crafted a collaboration opportunity for all denominations. One of the District’s strengths is bringing together groups of people from different entities and organizations to collaborate on strategies. Our program provides various events and workshops that bring people together that may not have had the opportunity to meet before. Facility managers across the city can now collaborate and work together instead of in a silo. Sharing best practices reduces the time and effort a building owner/manager must put into understanding climate challenges and overcoming them. We launched the Detroit Energy Challenge along with the City of Detroit and the Michigan Battle of the Buildings. Our first awards breakfast took place this June. We will also be adding awards in the future for internal water consumption reduction. This competition is an excellent opportunity for us to recognize facility managers who have done a fantastic job reducing energy consumption and carbon footprint Our organization also supports a future benchmarking ordinance for the City of Detroit. We are hopeful to see this pass soon as it will allow building owners to benchmark their buildings. We have made great strides and relationships with the local utilities, including DTE and Detroit thermal. We work to understand their goals and missions