New Jersey-2022-S2496-Introduced

An Act concerning incentives for the purchase or lease of hydrogen fuel cell vehicles, and amending P.L.2019, c.362 and P.L.2007, c.340.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 2 of P.L.2019, c.362 (C.48:25-2) is amended to read as follows:

2. As used in sections 1 through 11 of P.L.2019, c.362 (C.48:25-1 et seq.):

"Board" means the Board of Public Utilities.

"Charger ready" means the pre-wiring of electrical infrastructure at a parking space, or set of parking spaces, to facilitate easy and cost-efficient future installation of electric vehicle service equipment, including, but not limited to, Level Two EVSE and DC Fast Chargers.

"Charging location" means a publicly accessible parking space or set of parking spaces, with visible signage designating that the parking space or parking spaces are available for use by the public for charging plug-in electric vehicles.

"Community location" means a charging location that is not a corridor location, and that is established in a town center, commercial area, retail center, or near concentrations of multi-family dwellings, to provide vehicle charging services to local plug-in electric vehicle drivers near where they live and work.

"Corridor location" means a charging location located along a travel corridor roadway, or within one mile of that roadway, which is intended to provide access to vehicle charging services for long distance drivers and en route vehicle charging services for local drivers.

"DC Fast Charger" means EVSE that provides at least 50 kilowatts of direct current electrical power for charging a plug-in electric vehicle through a connector based on fast charging equipment standards, and which is approved for installation for that purpose under the National Electric Code through an Underwriters Laboratories Certification or an equivalent certifying organization.

"Department" means the Department of Environmental Protection.

"Electric vehicle service equipment" or "EVSE" means the equipment, including the cables, cords, conductors, connectors, couplers, enclosures, attachment plugs, power outlets, switches and controls, network interfaces, and point of sale equipment and associated apparatus designed and used for the purpose of transferring energy from the electric supply system to a plug-in electric vehicle. "EVSE" may deliver either alternating current or direct current electricity consistent with fast charging equipment standards.

"Eligible vehicle" means a new light duty plug-in electric vehicle that has an MSRP below $55,000, is purchased or leased after the effective date of P.L.2019, c.362 (C.48:25-1 et al.), and is registered in New Jersey, or a new hydrogen fuel cell vehicle that is purchased or leased after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and is registered in New Jersey.

"Fast charging equipment standards" means standards for high power direct current charging, based on the CHAdeMO standard and the Society of Automotive Engineers Combined Charging Standard (CCS), or other non-proprietary standards as may be approved by the board in the future.

["Eligible vehicle" means a new light duty plug-in electric vehicle, with an MSRP of below $55,000, purchased or leased after the effective date of P.L.2019, c.362 (C.48:25-1 et al.)and registered in New Jersey.]

"Hydrogen fuel cell vehicle" means a zero emission vehicle, as defined in section 11 of P.L.2003, c. 266 (C.54:32B-8.55), that is fueled primarily by hydrogen, but which may also have off-vehicle charge capability. "Hydrogen fuel cell vehicle" includes any passenger car, station wagon, or other motor vehicle that is propelled by power derived from one or more cells that convert chemical energy directly into electricity by combining oxygen with hydrogen fuel.

"Hydrogen fuel cell vehicle incentive" means the financial incentive that is made available under the incentive program, pursuant to paragraph (2) of subsection a. of section 4 of P.L.2019, c.365 (C.48:25-4), to encourage consumers to purchase or lease a hydrogen fuel cell vehicle.

"Incentive program" or "program" means the incentive program, established pursuant to P.L.2019, c.362 (C. 48:25-1 et seq.) and expanded pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), which uses financial incentives to encourage consumers in the State to purchase or lease light duty plug-in electric vehicles or hydrogen fuel cell vehicles.

"In-home electric vehicle service equipment" means electric vehicle service equipment used in a person's home to charge a plug-in electric vehicle.

"Level One EVSE" means EVSE that provides single phase 120V AC electricity, presented as either a standard wall plug into which the charging cord provided with a plug-in electric vehicle can be connected, or an EVSE with a standard vehicle plug connector that complies with SAE J1772, or an equivalent standard for 120V AC charging as may be adopted in the future and accepted by the board, and which is approved for installation for this purpose under the National Electric Code through an Underwriters Laboratories Certification or an equivalent certifying organization.

"Level Two EVSE" means EVSE that provides a plug-in electric vehicle with single phase alternating current electrical power at 208-240V AC, through a standardized plug connector that complies with SAE J1772 standards, or an equivalent wireless power transfer interface, or equivalent standards for 208-240V AC charging as may be adopted in the future and accepted by the board, and which is approved for installation for this purpose under the National Electric Code through Underwriters Laboratories Certification or an equivalent certifying organization.

"Light duty vehicle" means any two-axle, [four-wheel] four-wheeled motor vehicle, including, but not limited to, a car, minivan, sport utility vehicle, cross-over vehicle, or pick-up truck, which is designed primarily for passenger travel or light duty commercial use, and is approved for travel on public roads. ["Light duty vehicle" includes, but is not limited to, any vehicle commonly referred to as a car, minivan, sport utility vehicle, cross-over, or pick-up truck.]

"Light duty plug-in electric vehicle" means a light duty vehicle that has a battery or equivalent energy storage device that can be charged, with an electric plug, from an electricity supply that is external to the vehicle. "Light duty plug-in electric vehicle" includes a light duty plug-in hybrid vehicle.

"Light duty plug-in electric vehicle incentive" means the financial incentive that is made available under the incentive program, pursuant to paragraph (1) of subsection a. of section 4 of P.L.2019, c.365 (C.48:25-4), to encourage consumers to purchase or lease a light duty plug-in electric vehicle.

"Low-income, urban, or environmental justice community" means a community: [(1)] in which at least one half of the households are at or below twice the poverty threshold as determined annually by the United States Census Bureau; [(2)] that is urban, as determined by the Department of Community Affairs, due to the population and development density in the community; or [(3)] that has been burdened with environmental justice issues, as determined by the department, including, but not limited to, exposure to high levels of air pollution, close proximity to major industrial facilities or hazardous waste sites, or other environmental hazards.

"MSRP" means the published manufacturer's suggested retail price, as set by a vehicle's manufacturer, at the time of sale or lease.

["Plug-in electric vehicle" means a vehicle that has a battery or equivalent energy storage device that can be charged from an electricity supply external to the vehicle with an electric plug. "Plug-in electric vehicle" includes a plug-in hybrid vehicle.]

"Plug-in hybrid vehicle" means a vehicle that can be charged from a source of electricity external to the vehicle through an electric plug, but is not exclusively powered by electricity.

"Routine charging" means vehicle charging that takes place where a vehicle is parked for a long period of time, such as at the owner's residence overnight, a hotel, or a workplace during work hours, and which provides the primary and most common form of vehicle charging.

"Seller or lessor [of an eligible vehicle]" means an entity that is licensed to sell or lease an eligible vehicle to a consumer or fleet owner in the State.

"Travel corridor" means any heavily used public [roads] road in the State, as designated by the department, [which shall include] including, but [need] not [be] limited to, the Garden State Parkway, the New Jersey Turnpike, the Atlantic City Expressway, any federal interstate [highways] highway, and the subset of federal or State roads [which] that collectively support the majority of long distance travel through and within the State , as well as the majority of daily travel by local drivers.

(cf: P.L.2019, c.362, s.2)

2. Section 4 of P.L.2019, c.362 (C.48:25-4) is amended to read as follows:

4. a. (1) No later than 180 days after the effective date of P.L.2019, c.362 (C.48:25-1 et al.), the Board of Public Utilities shall establish and implement [a light duty plug-in electric vehicle] an incentive program [for the purpose of encouraging] that provides financial incentives to encourage the purchase or lease of new light duty plug-in electric vehicles by consumers in the State.

(2) No later than 90 days after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Board of Public Utilities shall expand the incentive program established pursuant to paragraph (1) of this subsection so that it additionally provides financial incentives to encourage the purchase or lease of new hydrogen fuel cell vehicles by consumers in the State.

b. The board shall implement the incentive program until June 30th of the 10th year after the program's establishment [of the incentive program] pursuant to paragraph (1) of subsection a. of this section.

c. (1) Any incentive offered pursuant to this section shall take the form of a one-time payment to the purchaser or lessee of an eligible vehicle.

(2) [For the first year an incentive is offered, the] The amount of [the] each incentive made available, pursuant to paragraph (1) of subsection a. of this section, for the purchase or lease of a light duty plug-in electric vehicle, shall, during the first year of the program's operation pursuant to P.L.2019, c.362 (C.48:25-1 et seq.), be equal to $25 per mile of EPA-rated electric-only range, up to a maximum of $5,000 per eligible light duty plug-in electric vehicle. For each subsequent year [an incentive is offered] of program operation, the board may, after consideration of stakeholder input, change the amount of the incentive offered for eligible light duty plug-in electric vehicles and the manner in which [an] the incentive is calculated, provided that no incentive offered for light duty plug-in electric vehicles shall exceed $5,000 per eligible vehicle. The amount of each incentive made available, pursuant to paragraph (2) of subsection a. of this section, for the purchase or lease of a hydrogen fuel vehicle, shall be calculated in a manner deemed appropriate by the board, provided that no incentive offered for hydrogen fuel cell vehicles shall exceed $5,000 per eligible vehicle. The board shall publish, on its Internet website, the amount of any incentives [on its Internet website] offered pursuant to this section.

(3) The board may limit the number of [plug-in electric vehicle] incentives that it issues to a single person under this section.

(4) The board may establish other requirements and parameters for the incentive program as it deems necessary and reasonable to further the goals of P.L.2019, c.362 (C.48:25-1 et al.) and P.L. , c. (C. ) (pending before the Legislature as this bill).

d. The board shall monitor the disbursement of incentives under the incentive program[,] and annually reassess the design and implementation of the incentive program. Provided the board's action is consistent with the provisions of subsection c. of this section, the board may:

(1) revise the incentive program, any aspect of the incentives provided thereunder, or the related implementation procedures or processes; and

(2) develop additional incentives, consistent with the goals of P.L.2019, c.362 (C.48:25-1 et al.), in order to ensure efficient and equitable electrification of transportation in the State.

e. Notwithstanding any other provision of law to the contrary, a light duty plug-in hybrid vehicle shall not [qualify] be eligible for [an] a light duty plug-in electric vehicle incentive under the [light duty plug-in electric vehicle] incentive program if purchased or leased after December 31, 2022.

(cf: P.L.2019, c.362, s.4)

3. Section 5 of P.L.2019, c.362 (C.48:25-5) is amended to read as follows:

5. a. The seller or lessor of an eligible vehicle shall offer the light duty plug-in electric vehicle incentive or the hydrogen fuel cell vehicle incentive, as applicable, in conjunction with, and in addition to, any other incentive offered by the seller or lessor of an eligible vehicle.

b. A seller or lessor of an eligible vehicle shall provide a purchaser or lessee the option to have the amount of the light duty plug-in electric vehicle incentive, or the amount of the hydrogen fuel cell vehicle incentive, as the case may be, deducted from the final negotiated and agreed upon sale or lease price of the eligible vehicle, in which case the [full] amount of the incentive shall be passed through to the purchaser or lessee in full, and payment thereof shall be effective immediately at the time of the final sale or lease and transfer of the eligible vehicle to the purchaser or lessee. The board shall establish a process for reimbursing a seller or lessor of an eligible vehicle the cost of an incentive provided by the seller or lessor pursuant to this subsection.

c. The board shall require each seller or lessor of an eligible vehicle to provide [to] the board, upon the final sale or lease and transfer of an eligible vehicle to a purchaser or lessee, with the eligible vehicle's make, model, [and] battery size as applicable, and any other information [as] the board determines to be relevant.

(cf: P.L.2019, c.362, s.5)

4. Section 7 of P.L.2019, c.362 (C.48:25-7) is amended to read as follows:

7. a. There is established in the Board of Public Utilities a special, nonlapsing fund to be known as the [Plug-in Electric] Zero Emission Vehicle Incentive Fund. The fund shall be administered by the board and shall be credited with:

(1) moneys deposited into the fund by the board pursuant to subsection b. of this section;

(2) moneys that are appropriated by the Legislature; and

(3) any return on investment of moneys deposited in the fund.

b. (1) The board shall deposit into the fund, each year, $30 million of moneys received from the societal benefits charge established pursuant to section 12 of P.L.1999, c.23 (C.48:3-60), moneys made available to the board pursuant to the implementation of the Regional Greenhouse Gas Initiative and P.L.2007, c.340 (C.26:2C-45 et seq.), and moneys made available from other funding sources, as determined by the board, to make disbursements for light-duty plug-in electric vehicle incentives and hydrogen fuel cell vehicle incentives made available under the [light duty plug-in electric vehicle] incentive program [established pursuant to paragraph (1) of section 4 of P.L.2019, c.362 (C.48:25-4)] .

(2) The board may deposit into the fund, each year, such additional amounts from the societal benefits charge, as the board deems necessary, to make disbursement under an incentive program for in-home electric vehicle service equipment established pursuant to section 6 of P.L.2019, c.362 (C.48:25-6).

c. Moneys in the fund shall be used by the board solely for the purpose of disbursing the incentives established pursuant to sections 4 and 6 of P.L.2019, c.362 (C.48:25-4 and C.48:25-6). The board shall recover any administrative costs incurred in connection with P.L.2019, c.362 (C.48:25-1 et al.) separately from moneys received from the societal benefits charge.

d. The board shall provide no less than $30 million in disbursements under the [light duty plug-in electric vehicle] incentive program, each year for 10 years following the enactment of P.L.2019, c.362.

(cf: P.L.2019, c.362, s.7)

5. Section 7 of P.L.2007, c.340 (C.26:2C-51) is amended to read as follows:

7. a. The agencies administering programs established pursuant to this section shall maximize coordination in the administration of the programs to avoid overlap between the uses of the fund prescribed in this section.

b. Moneys in the fund, after appropriation annually for payment of administrative costs authorized pursuant to subsection c. of this section, shall be annually appropriated and used for the following purposes:

(1) Sixty percent shall be allocated to the New Jersey Economic Development Authority to provide grants and other forms of financial assistance to commercial, institutional, and industrial entities to support end-use energy efficiency projects and new, efficient electric generation facilities that are state of the art, as determined by the department, including but not limited to energy efficiency and renewable energy applications, to develop combined heat and power production and other high efficiency electric generation facilities, to stimulate or reward investment in the development of innovative carbon emissions abatement technologies with significant carbon emissions reduction or avoidance potential, to develop qualified offshore wind projects pursuant to section 3 of P.L.2010, c.57 (C.48:3-87.1), and to provide financial assistance to manufacturers of equipment associated with qualified offshore wind projects. The authority, in consultation with the board and the department, shall determine: (a) the appropriate level of grants or other forms of financial assistance to be awarded to individual commercial, institutional, and industrial sectors and to individual projects within each of these sectors; (b) the evaluation criteria for selecting projects to be awarded grants or other forms of financial assistance, which criteria shall include the ability of the project to result in a measurable reduction of the emission of greenhouse gases or a measurable reduction in energy demand, provided, however, that neither the development of a new combined heat and power production facility, nor an increase in the electrical and thermal output of an existing combined heat and power production facility, shall be subject to the requirement to demonstrate such a measurable reduction; and (c) the process by which grants or other forms of financial assistance can be applied for and awarded including, if applicable, the payment terms and conditions for authority investments in certain projects with commercial viability;

(2) Twenty percent shall be allocated to the board to support programs that are designed to reduce electricity demand or costs to electricity customers in the low-income and moderate-income residential sector with a focus on urban areas, including efforts to address heat island effect and reduce impacts on ratepayers attributable to the implementation of P.L.2007, c.340 (C.26:2C-45 et al.) [or], efforts to support the [light duty plug-in electric] vehicle incentive program established pursuant to P.L.2019, c.362 (C. 48:25-1 et seq.) and expanded pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), and efforts to support the incentive program for in-home electric vehicle service equipment established pursuant to [sections 4 and] section 6 of P.L.2019, c.362 ([C.48:25-4 and] C.48:25-6). For the purposes of this paragraph, the board, in consultation with the authority and the department, shall determine the types of programs to be supported and the mechanism by which to quantify benefits to ensure that the supported programs result in a measurable reduction in energy demand or accomplishment of the plug-in electric vehicle goals established pursuant to section 3 of P.L.2019, c.362 (C.48:25-3);

(3) Ten percent shall be allocated to the department to support programs designed to promote local government efforts to plan, develop and implement measures to reduce greenhouse gas emissions, including but not limited to technical assistance to local governments, and the awarding of grants and other forms of assistance to local governments to conduct and implement energy efficiency, renewable energy, and distributed energy programs and land use planning where the grant or assistance results in a measurable reduction of the emission of greenhouse gases or a measurable reduction in energy demand. For the purpose of conducting any program pursuant to this paragraph, the department, in consultation with the authority and the board, shall determine: (a) the appropriate level of grants or other forms of financial assistance to be awarded to local governments; (b) the evaluation criteria for selecting projects to be awarded grants or other forms of financial assistance; (c) the process by which grants or other forms of financial assistance can be applied for and awarded; and (d) a mechanism by which to quantify benefits; and

(4) Ten percent shall be allocated to the department to support programs that enhance the stewardship and restoration of the State's forests and tidal marshes that provide important opportunities to sequester or reduce greenhouse gases.

c. (1) The department may use up to four percent of the total amount in the fund each year to pay for administrative costs justifiable and approved in the annual budget process, incurred by the department in administering the provisions of P.L.2007, c.340 (C.26:2C-45 et al.) and in administering programs to reduce the emissions of greenhouse gases including any obligations that may arise under subsection a. of section 11 of P.L.2007, c.340 (C.26:2C-55).

(2) The board may use up to two percent of the total amount in the fund each year to pay for administrative costs justifiable and approved in the annual budget process, incurred by the board in administering the provisions of P.L.2007, c.340 (C.26:2C-45 et al.) and in administering programs to reduce the emissions of greenhouse gases including any obligations that may arise under subsection a. of section 11 of P.L.2007, c.340 (C.26:2C-55).

(3) The New Jersey Economic Development Authority may use up to two percent of the total amount in the fund each year to pay for administrative costs justifiable and approved in the annual budget process, incurred by the authority in administering the provisions of P.L.2007, c.340 (C.26:2C-45 et al.) and in administering programs to reduce the emissions of greenhouse gases.

d. The State Comptroller shall conduct or supervise independent audit and fiscal oversight functions of the fund and its uses.

(cf: P.L.2019, c.362, s.12)

6. This act shall take effect immediately.

STATEMENT

State law at P.L.2019, c.362 (C.48:25-1 et seq.) currently authorizes the Board of Public Utilities (BPU) to offer financial incentives to consumers in the State to encourage their purchase or lease of light duty plug-in electric vehicles. This bill would expand this existing incentive program in order to additionally authorize the BPU to make financial incentives available to consumers to encourage their purchase or lease of hydrogen fuel cell vehicles. The bill defines "hydrogen fuel cell vehicle" as a zero emission vehicle, as defined in section 11 of P.L.2003, c. 266 (C.54:32B-8.55), that is fueled primarily by hydrogen, but that may also have off-vehicle charge capability. The term would include any passenger car, station wagon, or other motor vehicle that is propelled by power derived from one or more cells that convert chemical energy directly into electricity by combining oxygen with hydrogen fuel.

Under the bill's provisions, incentives offered for hydrogen fuel cell vehicles are to be limited to a maximum amount of $5,000 per eligible vehicle and are to be calculated in a manner deemed appropriate by the board. Like the light duty plug-in electric vehicle incentives currently offered under the State's vehicle incentive program, the new hydrogen fuel cell vehicle incentives are to be made available under the program until June 30 of the tenth year following the original date of the program's establishment under P.L.2019, c.362.

In addition to the new incentives established in the bill, receipts from the sale of hydrogen fuel cell vehicles are also exempt under existing law, from the State Sales and Use Tax, pursuant to the current exemption for zero emission vehicles established by section 11 of P.L.2003, c.266 (C.54:32B-8.55).