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.
Automotive Leaders Discuss Navigating the Shift to Mobility
Automotive always has been a technology-driven industry, but in the next ten years, there is likely to be more change in the industry than there has been in the last hundred. And much of that change will be taking place in Michigan. That shift – which moves automotive toward becoming a more sustainable industry – was the topic of a Sept. 15, 2023, breakfast, “Navigating the Shift to Mobility – With Detroit as a Leader,” hosted by Inforum, a nonprofit focused on accelerating women’s careers. The themes included diversity, new opportunities that come with and from young and emerging talent, the power of partnerships, and the future of mobility. Panelists were: Aruna Anand, President and CEO, Automotive Group Sector; head of architecture and networking, Continental North America Kristen Tabar, group vice president, Advanced Mobility Research & Development, Toyota North America Paul Thomas, president, Mobility in Americas, Bosch (effective Jan. 1, 2024), and Alan Wexler, senior vice president, strategy, and innovation, General Motors Justine Johnson, chief mobility officer for the State of Michigan, moderated the discussion. Our takeaways follow: Thomas: When you look for talent, look for talent that looks different from you. Different countries, beliefs, and perspectives, you have to look for talent that has diverse opinions on solutions. The world isn’t as simple as you think it is sometimes. Taber: When students look for a job, remember that it is not a one-and-done deal. You may think this is your passion and you work in this space, but what we see is that people evolve. That cross-pollination and common way to move throughout your career and experience different aspects of this new mobility solution. It’s a completely different landscape that requires different skill sets and backgrounds. Anand: We need to see ourselves in those positions that we are aspiring to be. If you do not have representation, then you don’t know what it’s like and you don’t have the confidence to do something because it is not done. We need to increase the pipeline. Then you understand the reasons why you can’t do this or what else you can do to fix it. Wexler: We see a world with zero crashes, zero emissions, zero congestion. Taber: It is about the products that we put out, how we operate our businesses, and the ripple effect on our supply chains. We need very clear, measurable methods so we are using similar yardsticks. Thomas: We want to invest in communities, we invest in Detroit and the Midwest very heavily to bring mobility people into our companies. We are also always on the diversity journey. You will never know when you are done because diversity is something that you always must work on. Anand: We tend to want to be perfect before we try new things. We find reasons to not be good at things. What is stopping us? We need that coaching, mentoring, role models, all of that together to build that pipeline better. Wexler: (Talent recruitment) really starts with the “why.” … We need skillsets from other industries. We’re becoming more technology-oriented … we pioneer the innovations that move and connect people to what matters, so it’s who wants to be part of that purpose and do something impactful. Taber: We have to understand that none of us is going to be able to move the technology forward by ourselves. It is going to take partnerships that we probably wouldn’t have thought of ever before. Anand: If we can provide an environment that is flexible, then the talents will be able to grow. Thomas: The ecosystem is so large and the opportunities to do different things are available to each one of you in the room. There is so much information out there on how to get involved in mobility. Wexler: There isn’t another industry that has the same opportunity to heal the planet. Experience the full event here. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
A New Boulevard for Social Justice, Connectivity, and Economic Impact
The development of I-375, the extension of I-75 that runs into downtown Detroit, leveled the Black Bottom residential neighborhood and the Paradise Valley entertainment district when it was constructed in the late 1950s and early 1960s with economic impact displacing 130,000 people, hundreds of small businesses, churches, and more. The city has been divided by the highway for over 70 years. Now, the Michigan Department of Transportation (MDOT) is funneling $104,657,051 from the President’s Bipartisan Infrastructure Law that passed last year to replace the one-mile-long freeway and develop a lower-speed urban boulevard with the impetus to recognize the wrongdoing of the past and get it right for the future. The project proposes three elements of study, design, and research. The first is understanding the urban design profile … how this area is developed to reconnect Downtown Detroit and the riverfront to the surrounding neighborhoods. Second is the final boulevard design, which is intended to enhance the urban experience based on City of Detroit design standards and offer new economic opportunities via business development. Finally, the framework will determine how diversity, equity, and inclusion can be used to create opportunities for Detroiters, taking the history of the land into consideration. This is the first of a two-part article that will cover the project’s social justice, connectivity, and economic impacts. In this article, MDOT Director Paul C. Ajegba talked to SBN Detroit about this ‘very unique and challenging project.’ With more than 31 years of experience at MDOT, Ajegba established the position of chief culture, equity, and inclusion officer at the deputy director level within his leadership team. This followed his work to establish MDOT’s Historically Black Colleges and Universities (HBCU) Transportation Diversity Recruitment Program (TDRP). The program is a partnership between MDOT, the Federal Highway Administration (FHWA), the American Council of Engineering Companies of Michigan (ACEC), and Michigan colleges and universities, offering on-the-job training to minority undergraduate students pursuing degrees in engineering. Ajegba is a member of the Conference of Minority Transportation Officials (COMTO) and serves on the following boards: the American Association of State Highway and Transportation Officials (AASHTO) (vice president), chair of the AASHTO Council on Public Transportation, ITS America, Mcity, the University of Michigan Civil and Environmental Engineering Friends Association (board president), the Engineering Society of Detroit, and the . Q: What is the impetus behind the I-375 project? A: It is a way for us to recognize that things were not done right in the past, and it is our opportunity to get them right. In the early ‘50s, Black Bottom was a large community with many thriving African American residents and businesses. In those days we did not have the community engagement that we do now. City planners decided that the best use of the area was to build a freeway and they did it, causing the displacement of thousands of residents and many successful businesses. So, the impetus behind this project is to take a step back and rethink the way we plan and design, build our infrastructure and then build it with the users, stakeholders, businesses, and residents in mind. It is the opportunity to conduct a 360-degree review of all areas of impact and make decisions that are right for everyone. The equity and inclusion piece of this is huge. We are being meticulous and methodical in how we plan to make sure the community is engaged every step of the way. Q: What is the narrative around the topic of equity? A: We need to bring equity into our transportation infrastructure. We cannot erase the mistakes of the past, but what we can do is make sure we look through and operate through a lens of equity going forward. Several different uses of this area have been on the table. We engaged with the community and together decided that creating a boulevard that will attract new development and connect neighborhoods is the best use of the corridor. Q: How will this project honor the history of Black Bottom and Paradise Valley? A: We are currently in the design process and considering all different ways to do this and we are hiring a historian to help with this aspect. Recognizing and honoring what took place here will be built into the aesthetics of the whole corridor. You will see this reflected in the project overall. Q: Is this project part of a larger shift toward building state infrastructure with equity in mind? A: I think there is a big shift taking place not only in Michigan but across the country to rethink inclusivity when it comes to building infrastructure. There is a substantial focus on developing walkable communities, making sidewalks wider, incorporating bike lanes, and connecting neighborhoods with greenways. The walkable aspect gives local businesses in the area more foot traffic and access opportunity. I believe this is an equity issue, an economic issue and also a health issue. Making areas accessible for walks and bike rides and connectivity and movement is important. Q: How did this project originate? A: Discussions began eight years ago. The bridges and roadways have required repair and are at the end of their useful service life. So instead of simply repairing them, we began to look at rethinking the freeway and asking ourselves – Is this the right thing for the city? Extensive research was conducted with a Planning and Environmental Linkage (PEL) study to identify and evaluate alternatives for the corridor that would meet the transportation needs of all users and improve connectivity. This led to the determination that the transformation from a freeway to a boulevard was feasible. This then led to an Environmental Assessment (EA) study to document the human and natural impacts associated with any proposed improvements. What we landed on is a street-level boulevard that will begin south of the I-75 interchange and continue to the Detroit River (Atwater Street), effectively using the city grid to disperse and collect traffic, opening additional connections to the riverfront, Eastern Market, and Brush Park, and creating
