Report examines potential legal, regulatory hurdles facing EV charging
There is little disagreement that for the electric vehicle market to grow in the U.S., there is a need for more EV charging infrastructure.
But that might not be as straightforward as it sounds, according to a report from law firm Troutman Pepper’s energy and environmental practice.
The report, “Charging Ahead: Legal, Regulatory and Operational Considerations for EV Infrastructure Development,” examines the evolving legal landscape and some significant regulatory hurdles that must be addressed to support the rising practical demands of EVs in America.
“Our report delves into the challenges inherent in developing and operating EV charging infrastructure,” Troutman Pepper partner Chad Warpula said, “providing critical insights into the evolving requirements stakeholders must navigate.”
The difference between laws and regulations at the federal and state levels is among the key issues identified in the report, which noted while the Federal Energy Regulatory Commission (FERC) oversees wholesale electricity sales, states regulate retail sales, leading to inconsistent treatment of charging stations.
That situation is further complicated by the fact states have different approaches to EV charging, with some treating it as a service rather than an energy sale.
Other issues addressed include:
Data privacy and security: EV charging stations collect large amounts of sensitive consumer data, including driver profiles and charging patterns, which means charging station operators must make sure they’re complying with various privacy laws and cybersecurity protocols to protect users’ information and avoid regulatory penalties.
Liability: Operators can be exposed to liability risks stemming from several areas, such as equipment failures or safety issues. Troutman Pepper said contracts and insurance coverage are essential to manage those risks effectively.
Payments and money transmission: Charging operators and e-mobility service providers that facilitate payments for charging services can trigger state and federal money transmission regulations. The report outlines the legal frameworks those companies must navigate to avoid penalties.
Incentives and evolving laws: Federal legislation, including the Bipartisan Infrastructure Law and the Inflation Reduction Act, offer significant incentives to expand charging infrastructure. But that landscape is always shifting, and the report notes stakeholders must stay informed about changing laws and compliance requirements to capitalize on opportunities.
“The rapid expansion of EV adoption is bringing a complex web of regulations to the forefront, impacting every facet of EV charging infrastructure,” Warpula said. “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.”