The rapid growth of electric vehicles (EVs) in the United States has created an urgent need for robust and widespread EV charging infrastructure. This infrastructure is crucial not only to sustain EV adoption but also to address “range anxiety” – the fear of running out of battery, which remains a significant barrier to widespread EV usage.
To guide stakeholders through this evolving landscape, leading law firm Troutman Pepper’s Energy and Environmental Practice has released a new report, “Charging Ahead: Legal, Regulatory, and Operational Considerations for EV Infrastructure Development.” The report delves into the intricate legal and regulatory hurdles that charging operators and industry stakeholders must overcome to support the growing demand for EVs in America.
The report identifies key legal and regulatory issues impacting EV charging infrastructure, including:
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Energy Regulation:
Navigating the complex web of federal and state regulations governing electricity sales is a significant challenge for EV charging companies. The Federal Energy Regulatory Commission (FERC) oversees wholesale electricity sales, while states regulate retail sales, creating inconsistencies in the treatment of charging stations. Further complications arise from differing state approaches, with some treating EV charging as a service rather than an energy sale.*
Data Privacy and Security:
EV charging stations collect a vast amount of sensitive data, including driver profiles and charging patterns. Operators must ensure compliance with stringent privacy laws and cybersecurity protocols to protect user information and avoid regulatory penalties.*
Liability:
Operators of EV charging stations face potential liability risks stemming from equipment failures or safety issues. Comprehensive contracts and insurance coverage are essential for effective risk management.*
Payments and Money Transmission:
Charging operators and e-mobility service providers (eMSPs) that facilitate payments for charging services may trigger state and federal money transmission regulations. The report outlines the legal frameworks these companies must navigate to avoid penalties.*
Incentives and Evolving Laws:
Federal legislation, including the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA), offer substantial incentives to expand charging infrastructure. However, stakeholders must stay informed about changing laws and compliance requirements to capitalize on these opportunities.“The rapid expansion of EV adoption is bringing a complex web of regulations to the forefront, impacting every facet of EV charging infrastructure,” said Chad Warpula, Partner at Troutman Pepper. “As the market grows, it is imperative for all stakeholders to not only understand their regulatory obligations but also to proactively address potential legal risks. Our report delves into the challenges inherent in developing and operating EV charging infrastructure, providing critical insights into the evolving requirements that stakeholders must navigate.”
Troutman Pepper’s market-leading energy and environmental practices help clients with their most important and complex matters throughout the United States. From renewables to conventional and emerging technologies, the firm’s cross-disciplinary team has extensive experience across the energy landscape. The firm regularly advises automobile manufacturers, charging station companies, automotive suppliers, independent power producers, banks, utilities, private equity funds, and large corporations.
About Troutman Pepper:
Troutman Pepper is a national law firm with more than 1,100 attorneys strategically located in 20+ U.S. cities. The firm’s litigation, transactional, and regulatory practices advise a diverse client base, from start-ups to multinational enterprises. The firm provides sophisticated legal solutions to clients’ most pressing business challenges, with depth across industry sectors, including energy, financial services, health sciences, insurance, and private equity, among others.
