Fuel Retailers Challenge New Legislation That Threatens EV Charging Investments

Fuel Retailers Concerned About Impact of the RECHARGE Act on EV Charging Investments

In a significant move that has drawn the ire of key players in the fuel retail industry, major organizations like NATSO, SIGMA, and NACS have voiced strong opposition to the RECHARGE Act. This proposed legislation, introduced by Senator Jeff Merkley (D-Ore.), poses a potential threat by amending federal laws that currently prohibit automotive services at rest areas.

David Fialkov, Executive Vice President of Government Affairs for NATSO and SIGMA, articulated the concerns that the RECHARGE Act does not aim to enhance the availability of electric vehicle (EV) charging stations as intended, but rather creates obstacles for the development of a reliable EV charging network. He emphasized the importance of encouraging private investments in EV charging initiatives rather than stifling them with restrictive legislation.

Matt Durand, Deputy General Counsel for NACS, echoed this sentiment, asserting that commercializing rest areas could distort the competitive landscape essential for fostering a robust refueling network. He argued that it could put EV charging operations at a permanent disadvantage, contrary to the bill's purported goals.

For nearly seven decades, there has been a federal restriction on the sale of automotive services and food at state-operated rest areas, promoting competition among private businesses at Interstate exits. This prohibition has played a crucial role in the flourishing economic environment for restaurants, convenience stores, and fuel marketers along highways. The introduction of EV charging stations at these rest areas could create an uneven playing field, undermining private investments in electric fuel by eliminating the need for state-run stations to compete for customers.

The situation comes in the backdrop of the U.S. Department of Transportation's (DOT) release of Interim Final Guidance designed to ensure that state EV charging initiatives remain consumer-focused. This guidance encourages the selection of charging locations where the owners also host the sites, ensuring that public funds are allocated effectively. Fuel retailers have welcomed this flexible approach, which aims to install reliable EV charging infrastructure at optimal locations.

The Infrastructure Investment and Jobs Act has paved the way for collaboration between state transportation departments and private entities to establish a nationwide EV charging network. It explicitly emphasizes the significance of amenities—including food and restroom availability—when designating alternative fueling locations, avoiding provisions that could promote unfair competition with private operators.

A coalition comprising truck stops, convenience stores, restaurants, and local governments has rallied together, sending a letter to Senate lawmakers urging them to reject the RECHARGE Act. The convenience and strategic locations of these establishments, often within a mile of highway exits, make them ideal for fueling options. With the infrastructure for Direct Current (DC) fast chargers at these sites, it instills confidence in consumers considering the transition to EVs.

About the Organizations

NATSO represents America's travel center and truck stop industry, advocating for legislative and regulatory considerations. Founded in 1960, they have become a key source of information regarding the travel center and independent fuel retail industries.

SIGMA, the national trade association for progressive fuel marketers, has been active since 1958. With nearly 250 members, it emphasizes the interests of both branded and unbranded fuel segments, providing valuable support and information to its members.

NACS has served as a vital association for convenience and fuel retailers for over 60 years. With more than 1,000 member companies representing around 200,000 stores globally, it highlights the extensive influence of the convenience store industry, which accounts for significant daily transactions and substantial sales figures.

As the evocations of the RECHARGE Act echo through the halls of Congress, the proactive stance taken by these fuel retailers showcases their commitment to fostering a competitive landscape for EV charging—one that prioritizes both investment and consumer convenience.