Bill Text: NJ S256 | 2024-2025 | Regular Session | Introduced
Bill Title: Requires electric public utilities to submit new tariffs for commercial customers for BPU approval; regulates non-volumetric electricity fees charged to operators of fast charging electric vehicle chargers.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-01-09 - Introduced in the Senate, Referred to Senate Environment and Energy Committee [S256 Detail]
Download: New_Jersey-2024-S256-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator BOB SMITH
District 17 (Middlesex and Somerset)
SYNOPSIS
Requires electric public utilities to submit new tariffs for commercial customers for BPU approval; regulates non-volumetric electricity fees charged to operators of fast charging electric vehicle chargers.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the provision of electric power to electric vehicle charging stations and supplementing Title 48 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
"Board" means the Board of Public Utilities.
"Direct current fast charging facility" means a location that provides commercial access to a DC fast charger, as that term is defined in section 2 of P.L.2019, c.362 (C.48:25-2).
"Electric public utility" means the same as the term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).
"Load factor" means the quotient of the electrical energy consumed in a designated time period and the hypothetical maximum energy use in that time period, determined by multiplying the peak demand rate by the duration of the time period.
b. No later than 180 days after the effective date of this section, each electric public utility shall file an application with the Board of Public Utilities to establish a tariff for the provision of electricity to commercial customers. The tariff shall be designed to:
(1) utilize alternatives to both traditional demand-based rate structures and capacity demand charges;
(2) establish cost equity between commercial electric vehicle tariffs and residential tariffs;
(3) remain neutral with respect to the various types of electric vehicle charging technology;
(4) accelerate third-party investment in electric vehicle charging infrastructure for light-, medium-, and heavy-duty vehicles; and
(5) promote electric vehicle adoption in the State.
c. A tariff developed pursuant to this section shall include an alternative rate structure, which does not utilize demand charges, for commercial customers who own or operate electric vehicle charging systems. The tariff shall not obligate a customer to furnish additional data collection as a condition of service beyond what can be obtained from the customer's electric meter. Each tariff shall provide predictable effective cost per kilowatt-hour delivered over a range of load factors. Rates for electric distribution in the tariff shall be designed to encourage investment in faster, higher-powered electric vehicle charging facilities and shall include comparable costs per megawatt hour for both higher-power and lower-powered direct current fast charging facilities.
d. The board shall expeditiously review, pursuant to the provisions of section 7 of P.L.1999, c.23 (C.48:3-55) and the rules or regulations adopted pursuant thereto, each application submitted pursuant to this section , and shall approve the application if the board determines that it complies with the requirements of this section and all other applicable laws, rules, and regulations.
e. Notwithstanding the provisions of a tariff in effect on the effective date of this section, commencing 60 days after the effective date of this section, an electric public utility shall not assess a demand charge, subscription charge, or other non-volumetric tariff structure on a direct current fast charging facility, unless the board has approved the utility's tariff application submitted pursuant to this section, and only to the extent that the approved tariff utilizes such a non-volumetric structure.
2. This act shall take effect immediately.
STATEMENT
This bill would require each electric utility in the State to submit a tariff for commercial customers to the Board of Public Utilities (BPU) for approval.
The bill would require the tariffs to be submitted no later than 180 days after the bill's enactment, and to be designed to: (1) utilize alternatives to both traditional demand-based rate structures and capacity demand charges; (2) establish cost equity between commercial electric vehicle tariffs and residential tariffs; (3) remain neutral with respect to the various types of electric vehicle charging technology; (4) accelerate third-party investment in electric vehicle charging infrastructure for light-, medium-, and heavy-duty vehicles; and (5) promote electric vehicle adoption in the State. The tariffs would also be required to include an alternative rate structure, which does not utilize demand charges, for commercial customers who own or operate electric vehicle charging systems, and to satisfy other requirements enumerated in the bill. The BPU would be required to expeditiously review and approve each tariff submitted under the bill, in accordance with the provisions of the "Energy Discount and Energy Competition Act," P.L.1999, c.23 (C.48:3-49 et al.).
The bill would also prohibit an electric utility from charging certain fees to the operators of certain electric vehicle charging stations until the utility receives approval of its tariff from the BPU, pursuant to the bill's provisions. Specifically, beginning 60 days after the bill's enactment, the bill would prohibit an electric utility from imposing a demand charge, subscription charge, or other non-volumetric tariff structure on a direct current fast charging facility, unless the BPU has approved the utility's tariff application under the bill, and only to the extent that the approved tariff utilizes such a rate structure. A "direct current fast charging facility" is defined, by the bill, as a location that provides commercial access to a type of electric vehicle charging station known as a "direct current fast charger," a "DCFC," or "Level 3 charger," which provides at least 50 kilowatts of direct electrical current to a vehicle's battery.
