Attorney General Bonta: New Trump Administration Requirements Would Halt Federally Funded Electric Vehicle Charging Deployment

OAKLAND - California Attorney General Rob Bonta today joined a coalition of 20 attorneys general and the state of Kentucky in sending a comment letter to the Federal Highway Administration (FHWA), opposing its unlawful proposal that would effectively block federal funding for electric vehicle charging equipment. The proposal would modify "Buy America" requirements for electric vehicle chargers funded by federal highway funds, effectively prohibiting expenditure of federal funds on electric vehicle chargers with any foreign-made components or materials, despite the fact that many such components are not manufactured in the U.S. In the letter, Attorney General Bonta and the coalition explain that the Trump Administration is once again attempting to disrupt federal funding of electric vehicle charging infrastructure, which will gravely impact American manufacturers and the workforce.

"This proposal is the latest attempt by the Trump Administration to halt electric vehicle charging deployment - this time, by imposing an unachievable standard. Not only does the proposal undermine the intent of Buy America requirements, but it hinders the job growth and investment in American manufacturing that those requirements were designed to create," said Attorney General Bonta. "If implemented, this change will create regulatory uncertainty for American manufacturers, which will cause supply chain disruptions, increase costs, and cede market share to international competitors. I urge the administration to withdraw this proposal immediately."

The FHWA's unlawful proposal would mean that all electric vehicle chargers purchased or installed with federal highway funds must be manufactured with components that are entirely mined, produced, or manufactured in the United States. By statute, an electric vehicle charger is considered "produced in the United States" if final assembly occurs in the U.S. and if the chargers' components that are mined, produced, or manufactured in the United States constitute at least 55% of the charger's total cost. A 100% domestic component cost requirement essentially forbids the use of federal funds to purchase electric vehicle chargers whose manufacturer uses global supply chains, even though some necessary electric vehicle charger components are not manufactured in the U.S. and no electric vehicle charger on the market can comply. If finalized, the 100% requirement would apply to projects whose funding is obligated after publication of a final notice. In California, about $460 million destined for state agencies and localities is at risk. The 100% requirement would effectively freeze FHWA-funded electric vehicle charging projects going forward, even if FHWA resumed all solicitations and processed all outstanding grant applications for electric vehicle grant programs.

No other domestic industry is required to meet this unachievable target, and the FHWA's proposal is the latest effort by Trump Administration to halt federal funding for electric vehicle charging infrastructure despite bipartisan laws requiring it. Attorney General Rob Bonta has partnered with more than a dozen states in litigation challenging freezes of the National Electric Vehicle Infrastructure, Charging and Fueling Infrastructure, and Electric Vehicle Charger Reliability and Accessibility Accelerator programs.

In the letter, the coalition asserts that:

• FHWA's proposal is illegal, as the agency cannot increase the Buy America requirement beyond the 55% level set out by Congress using a "waiver," the procedural mechanism that FHWA purports to use here.
• If implemented, this proposal would be arbitrary and capricious as it is not adequately explained and has no rational connection to the stated objective of helping American manufacturers, as it will effectively block all federal funding for electric vehicle chargers.
• FHWA has not considered reasonable alternatives, like a revision to phase in a more stringent requirement over a more feasible timeline for domestic manufacturers to meet.

In sending the letter, Attorney General Bonta joins the attorneys general of Arizona, Colorado, Delaware, Hawai'i, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia, the District of Columbia, Washington, Wisconsin, and the Governor of Kentucky.