How gas stations are winning the electric car era

Your guide to the political forces shaping the energy transformation
Apr 04, 2024 View in browser
 
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By Arianna Skibell

Photo collage of a truck at a gas pump on one side and EV car at a charging station on the other with money raining down between them

POLITICO illustration/Photos by iStock

Gas stations are gearing up to stay relevant as the nation shifts to electric vehicles.

After initially resisting electric vehicle charging stations, some of the nation’s biggest sellers of fossil fuels are now using their lobbying strength and financial might to win federal dollars to support installations, writes David Ferris. Sheetz, Circle K, Wawa and other big names in the service station industry are all hoping to be the place where you charge your new electric vehicle.

In fact, more than half of new charging stations funded by the 2021 infrastructure law are being built at truck stops and gas stations, according to an analysis by data company EVAdoption. Other winners from the law’s $7.5 billion pot for charging include banks, hotels, casinos, malls and restaurants like Arby’s and Waffle House.

In many ways, gas stations turned EV charging hubs make perfect sense.

“They’re safe. They’re well lit. They have bathrooms on site. They have restaurants and stores. They check a lot of the boxes,” Loren McDonald, the founder of EVAdoption, told David.

Even environmental groups — many of whom have fiercely battled the fossil fuel companies that stand to benefit from the charging ports — seem to agree.

“It’s not a bad thing we’re seeing the deployment of fast chargers at those locations,” Joe Halso with the Sierra Club told David. “They are recognizing, whether they admit it or not, that electricity is the fuel of the future.”

But not everyone is happy about the transition from highway gas station to EV charging spot. Rural areas in need of economic stimulus stand to lose out, some environmentalists say. With chargers headed to 24/7 fueling centers near the highway, electric vehicle drivers are less likely to stop and spend money in rural downtowns.

“I had some hopes about bringing some rural economic development and community benefits, but it’s not as obvious to me that those things are being pursued rigorously” by the administration, said Sam Houston with the Union of Concerned Scientists.

Another pitfall is that the price of electricity can skyrocket when businesses use a lot of it at one time, which would happen if many EVs need to charge. But what companies lose in upfront costs, they could regain from drivers.

Unlike gasoline customers, who leave after five minutes or less, EV drivers tend to stick around for 20 to 25 minutes, giving them plenty of time to purchase food and drinks.

“You’ve got to think of it as a place you refuel body, mind and car,” McDonald said.

 

It's Thursday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net.

 

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Listen to today’s POLITICO Energy podcast

Today in POLITICO Energy’s podcast: Zack Colman breaks down the Biden administration announcement that it will award $20 billion to eight groups to spur clean energy in places long overlooked.

innovation

Angel Dias, an independent contractor, works in a greenhouse with guayule plants at the Bridgestone farm.

Angel Dias, an independent contractor, works in a greenhouse with guayule plants at the Bridgestone farm Feb. 5 in Eloy, Arizona. | Ross D. Franklin/AP

For more than a decade, the global tire company Bridgestone has been developing a desert shrub that can produce the latex needed for rubber with just a fraction of the water that most irrigated crops require, writes Marc Heller.

With a $35 million grant from the Biden administration in hand, Bridgestone and the University of Arizona are now encouraging more farmers to grow guayule (pronounced why-OO-lee) as a way to save water in an era of climate change-fueled drought.

You could say, Bridgestone's 300-acre guayule farm between Tucson and Phoenix is where the rubber meets the climate road.

Power Centers

EPA Administrator Michael Regan speaks on Capitol Hill.

EPA Administrator Michael Regan speaks on Capitol Hill on Sept. 27, 2023, in Washington. | Mark Schiefelbein/AP

Here comes Biden's 'green bank'
The Biden administration announced recipients of a new $20 billion effort to transform community lending and green the U.S. economy, writes Jean Chemnick.

The Environmental Protection Agency will award eight initial grants under the Greenhouse Gas Reduction Fund, ranging in size from $400 million to almost $7 billion. A senior administration official called the fund "a first-of-its-kind national network" to "finance tens of thousands of climate and clean energy projects."

EU sees carbon pollution drop
Carbon dioxide pollution from power plants and industrial sites in the European Union dropped 15.5 percent last year, writes Zia Weise.

The record decline comes as solar and wind power production soared and fossil-fuel use dropped sharply. Power sector greenhouse gas emissions fell 24 percent compared with 2022.

 

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That's it for today, folks! Thanks for reading.

 

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