TX
Texas House Bill HB3508

Texas 2023 - 88th Regular

Texas House Bill HB3508 Compare Versions

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11 88R19199 CXP-F
22 By: Hernandez H.B. No. 3508
33 Substitute the following for H.B. No. 3508:
44 By: Turner C.S.H.B. No. 3508
55
66
77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to the operation of public electric vehicle charging
1010 stations.
1111 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1212 SECTION 1. Subtitle B, Title 2, Utilities Code, is amended
1313 by adding Chapter 42 to read as follows:
1414 CHAPTER 42. PUBLIC CHARGING OF ELECTRIC VEHICLES
1515 Sec. 42.0101. LEGISLATIVE FINDINGS. (a) The legislature
1616 finds that it is in the best interests of this state to continue the
1717 long-standing policy of supporting private sector investment in
1818 infrastructure by establishing a framework designed to encourage
1919 competitive private sector investment in the deployment of public
2020 electric vehicle charging stations.
2121 (b) The legislature finds that encouraging investment in
2222 the deployment of public electric vehicle charging stations is
2323 essential to foster the rapid installation and widespread use of
2424 public electric vehicle charging stations on property whose owners
2525 or tenants desire to install public electric vehicle charging
2626 stations.
2727 (c) The legislature finds that electric utilities,
2828 transmission and distribution utilities, competitive entities, and
2929 the commission have important roles to fill in supporting the
3030 installation and use of infrastructure for electric vehicle
3131 charging.
3232 (d) The legislature finds that it is necessary to:
3333 (1) implement competitively neutral policies to
3434 encourage competitive private sector investment in public electric
3535 vehicle charging station deployment;
3636 (2) develop and implement competitively neutral
3737 electricity tariffs that are optimized for public electric vehicle
3838 charging stations and based on cost causation principles while
3939 ensuring transparency in pricing and recognizing changing market
4040 needs; and
4141 (3) encourage competitive private investment,
4242 ownership, and operation of public electric vehicle charging
4343 stations, including equipment that allows for fast charging.
4444 Sec. 42.0102. DEFINITIONS. In this chapter:
4545 (1) "Direct-current fast charging station" means a
4646 charging system capable of delivering at least 50 kilowatts of
4747 direct-current electrical power to an electric vehicle's
4848 rechargeable battery at a voltage of 200 volts or greater.
4949 (2) "Electric vehicle" means a vehicle that is
5050 propelled by one or more electric motors using energy stored in the
5151 form of a rechargeable battery.
5252 (3) "Electric vehicle charging provider" means the
5353 owner or operator of a public electric vehicle charging station.
5454 The term does not include an electric utility or transmission and
5555 distribution utility.
5656 (4) "Electric vehicle charging service" means sales
5757 made from a public electric vehicle charging station to the public.
5858 (5) "Level two charging station" means a charging
5959 system capable of delivering at least 3 and not more than 19.2
6060 kilowatts of alternating-current electrical power to an electric
6161 vehicle's rechargeable battery at a voltage of at least 208 volts on
6262 a circuit of at least 40 amperes.
6363 (6) "Make-ready infrastructure" means the electrical
6464 infrastructure required to service a public electric vehicle
6565 charging station's electrical load on the electric utility's or
6666 transmission and distribution utility's side of the point of
6767 delivery. The term:
6868 (A) includes all site-specific electrical
6969 infrastructure required to accommodate engineering, physical,
7070 operational, or other constraints for the public electric vehicle
7171 charging station, regardless of whether the infrastructure is on
7272 the utility's or customer's side of the point of delivery; and
7373 (B) does not include the public electric vehicle
7474 charging station or any utility infrastructure on the customer's
7575 side of the point of delivery, up to and including the meter.
7676 (7) "Public electric vehicle charging station" means
7777 any level two charging station or direct-current fast charging
7878 station that delivers electricity from a source outside an electric
7979 vehicle into an electric vehicle, is separate and distinct from
8080 make-ready infrastructure, and is accessible for commercial use by
8181 the public, or similar vehicle charging equipment capable of
8282 delivering electricity into an electric vehicle faster than a level
8383 two charging station. The term does not include vehicle charging
8484 equipment that is:
8585 (A) used by an electric utility, a transmission
8686 and distribution utility, or an affiliate to charge:
8787 (i) an electric vehicle owned by the
8888 utility or affiliate; or
8989 (ii) as an incident of employment, an
9090 electric vehicle owned by an employee of the utility or affiliate;
9191 or
9292 (B) located on the premises of a customer of an
9393 electric utility, a transmission and distribution utility, or an
9494 affiliate and:
9595 (i) used by the customer or the customer's
9696 tenants, affiliates, or guests; and
9797 (ii) not used commercially for electric
9898 vehicle charging service.
9999 Sec. 42.0103. PUBLIC CHARGING OF ELECTRIC VEHICLES OUTSIDE
100100 OF ERCOT. (a) This section applies only to an electric utility
101101 that operates solely outside of ERCOT.
102102 (b) An electric utility:
103103 (1) may not provide electric vehicle charging service
104104 directly to a customer except as provided by this section;
105105 (2) may be affiliated with an entity that provides
106106 electric vehicle charging service from a public electric vehicle
107107 charging station if the affiliate:
108108 (A) is not subject to regulation by the
109109 commission; and
110110 (B) is subject to prohibitions on market power
111111 abuse, cross-subsidizations, co-branding, and preferential
112112 treatment between regulated and competitive activities described
113113 by Section 39.157(d); and
114114 (3) consistent with the requirements of Subchapter B,
115115 Chapter 38, and Section 39.157(d)(3), shall offer the same
116116 nondiscriminatory rates, terms, and conditions offered to an
117117 affiliate described by Subdivision (2) to other electric vehicle
118118 charging providers in the utility's service area for the operation
119119 of public electric vehicle charging stations.
120120 (c) An affiliate of an electric utility that provides
121121 electric vehicle charging service and is not subject to regulation
122122 by the commission is subject to the same tariffs of the electric
123123 utility that apply to any other entity receiving from the utility
124124 electric service that is used to provide electric vehicle charging
125125 service.
126126 (d) This section does not prohibit an electric utility from
127127 subsidizing the costs of make-ready infrastructure through rates or
128128 charges for services provided by the electric utility's regulated
129129 services.
130130 (e) An electric utility may provide electric vehicle
131131 charging service directly to a customer only if:
132132 (1) the public electric vehicle charging station used
133133 to provide electric vehicle charging service is constructed in
134134 compliance with the requirements of this section; and
135135 (2) the rates charged by the utility for electric
136136 vehicle charging service are set by the commission under Subsection
137137 (m).
138138 (f) An electric utility seeking to provide electric vehicle
139139 charging service directly to a customer shall:
140140 (1) file with the commission a proposal identifying
141141 the specific location at which the utility seeks to provide
142142 electric vehicle charging service and a general description of the
143143 public electric vehicle charging station the utility proposes to
144144 construct at the location; and
145145 (2) provide notice of the filing made under
146146 Subdivision (1):
147147 (A) on the utility's Internet website; and
148148 (B) to each dealer to which Chapter 2310,
149149 Occupations Code, applies who offers for retail sale motor fuel at a
150150 site that is located not more than 15 miles from the proposed
151151 location of the public electric vehicle charging station.
152152 (g) A notice provided under Subsection (f)(2) must include:
153153 (1) the date the electric utility filed a proposal to
154154 provide electric vehicle charging service under Subsection (f)(1);
155155 and
156156 (2) the date by which a person may file a proposal to
157157 provide reasonably comparable electric vehicle charging service
158158 under Subsection (h).
159159 (h) The commission shall determine whether the provision of
160160 electric vehicle charging service under a proposal submitted under
161161 Subsection (f)(1) is in the public interest because the service is
162162 adequate for the needs of the area. Not later than the 90th day
163163 after the date the commission determines that the provision of the
164164 proposed electric vehicle charging service is in the public
165165 interest, a person other than the electric utility may notify the
166166 commission that:
167167 (1) the person:
168168 (A) intends to provide electric vehicle charging
169169 service that is adequate for the needs of the area in reasonable
170170 proximity to the proposed location of the public electric vehicle
171171 charging station and request the necessary make-ready
172172 infrastructure from the electric utility; and
173173 (B) is firmly committed to placing into service
174174 equipment necessary to provide the electric vehicle charging
175175 service before the later of:
176176 (i) 18 months after the date the person
177177 submits the notice to the commission; or
178178 (ii) the date of completion of the
179179 installation of the necessary make-ready infrastructure to provide
180180 the electric vehicle charging service; and
181181 (2) the person is capable of:
182182 (A) acquiring the right to use the property at
183183 which the electric vehicle charging service will be provided; and
184184 (B) financing the cost of the equipment described
185185 by Subdivision (1)(B).
186186 (i) The commission shall issue a determination regarding
187187 each notice received under Subsection (h) of whether:
188188 (1) the proposed electric vehicle charging service is
189189 adequate for the needs of the area; and
190190 (2) the person has made the commitment and has the
191191 capabilities described by that subsection.
192192 (j) The commission by rule may establish a distance that
193193 constitutes reasonable proximity to a type of location for the
194194 purposes of Subsection (h). The commission may also issue an order
195195 establishing a distance other than one authorized by rule that
196196 constitutes reasonable proximity to a location for purposes of
197197 Subsection (h) for a specific electric utility. In establishing
198198 distances that constitute reasonable proximity to a location, the
199199 commission shall:
200200 (1) consider population density and site access;
201201 (2) establish the reasonable proximity between two
202202 locations on an interstate highway for the purposes of Subsection
203203 (h) as not more than two miles; and
204204 (3) consider the Texas Department of Transportation's
205205 designation by category of nearby roads other than interstate
206206 highways when establishing the reasonable proximity between two
207207 locations at which electric vehicle charging service will be
208208 provided on roads other than interstate highways.
209209 (k) An electric utility that files a proposal under
210210 Subsection (f) may proceed with construction of the public electric
211211 vehicle charging station and the provision of electric vehicle
212212 charging service unless the commission determines, based on the
213213 information submitted under Subsection (h), that:
214214 (1) the electric vehicle charging service proposed
215215 under Subsection (h) in response to the utility's proposal is
216216 adequate for the needs of the area and that the person who submitted
217217 the notice under Subsection (h) has made the commitment and has the
218218 capabilities described by that subsection; or
219219 (2) the electric vehicle charging service proposed
220220 under Subsection (f) by the utility unreasonably duplicates:
221221 (A) electric vehicle charging service provided
222222 by another person; or
223223 (B) a facility under construction that another
224224 person will use to provide electric vehicle charging service.
225225 (l) An electric utility authorized to proceed with the
226226 construction of a public electric vehicle charging station under
227227 Subsection (k) shall notify the commission that the utility intends
228228 to proceed with the construction and may construct and operate the
229229 proposed public electric vehicle charging station after the 120th
230230 day after the date the utility files the notice of intent under this
231231 subsection.
232232 (m) On application by an electric utility, the commission
233233 shall set in a manner authorized under Chapter 36 the rates the
234234 utility may charge for electric vehicle charging service. The
235235 rates must be reasonable and ensure that competition is not
236236 impaired. The commission may set rates differently for different
237237 locations and times of day and for different types of electric
238238 vehicle charging service.
239239 (n) The commission shall permit an electric utility
240240 authorized to construct and operate a public electric vehicle
241241 charging station under this section to recover, using the rate of
242242 return on investment established in the commission's final order in
243243 the utility's most recent base rate proceeding, reasonable and
244244 necessary costs incurred for the construction, financing,
245245 operation, and maintenance of that public electric vehicle charging
246246 station.
247247 (o) This section does not prohibit a person who is not an
248248 electric utility or an affiliate of an electric utility from
249249 entering into an agreement with an electric utility for the utility
250250 to own or operate a public electric vehicle charging station on the
251251 person's property if:
252252 (1) the utility does not:
253253 (A) provide electric vehicle charging service
254254 using the public electric vehicle charging station; or
255255 (B) brand or market the public electric vehicle
256256 charging station as owned or operated by the utility, including by
257257 presenting the utility's name, logo, or any other distinguishing
258258 mark to indicate that the utility owns or operates the public
259259 electric vehicle charging station;
260260 (2) the person solely determines:
261261 (A) physical access to and use of the public
262262 electric vehicle charging station necessary to carry out
263263 responsibilities associated with ownership and operation of the
264264 public electric vehicle charging station; and
265265 (B) prices for the electric vehicle charging
266266 service; and
267267 (3) the person pays for all electric utility-related
268268 costs under a tariff approved by the commission that provides for
269269 full recovery of the costs of the public electric vehicle charging
270270 station from the person, including incremental revenues paid by the
271271 person to the utility associated with the electric vehicle charging
272272 service.
273273 (p) The commission shall:
274274 (1) require each electric utility for which the
275275 commission has approved a tariff under Subsection (o) to offer
276276 service under the terms of the tariff to other persons seeking
277277 agreements in the utility's service area on a nondiscriminatory
278278 basis; and
279279 (2) ensure that revenue collected by an electric
280280 utility under an agreement under Subsection (o) allows the utility
281281 to recover the costs of owning, constructing, financing, operating,
282282 and maintaining the public electric vehicle charging station from
283283 the person and not the utility's other customers.
284284 (q) A public electric vehicle charging station operated
285285 under an agreement under Subsection (o) is not subject to the
286286 requirements of Subsections (f)-(l).
287287 (r) Notwithstanding any other provision of this section, a
288288 municipality that is a customer of an electric utility may enter
289289 into an agreement with the utility under which:
290290 (1) the utility owns and operates a public electric
291291 vehicle charging station and provides electric vehicle charging
292292 service on the municipality's property; and
293293 (2) none of the costs of constructing, financing,
294294 operating, or maintaining the public electric vehicle charging
295295 station described by Subdivision (1) are recovered from the other
296296 customers of the utility.
297297 Sec. 42.0104. PUBLIC CHARGING OF ELECTRIC VEHICLES INSIDE
298298 ERCOT. (a) A transmission and distribution utility:
299299 (1) may not directly own, operate, or provide electric
300300 vehicle charging service from a public electric vehicle charging
301301 station;
302302 (2) may not include costs of a public electric vehicle
303303 charging station for recovery through rates approved by the
304304 commission;
305305 (3) may be affiliated with a competitive affiliate
306306 that provides electric vehicle charging service from a public
307307 electric vehicle charging station through a separate entity or
308308 third party only if:
309309 (A) the affiliate:
310310 (i) is not subject to regulation by the
311311 commission; and
312312 (ii) is subject to prohibitions on market
313313 power abuse, cross-subsidizations, co-branding, and preferential
314314 treatment between regulated and competitive activities described
315315 by Section 39.157(d); and
316316 (B) the alternative fuels data center map
317317 maintained by the United States Department of Energy does not show
318318 that a public electric vehicle charging station owned or operated
319319 by an electric vehicle charging provider and used to provide
320320 electric vehicle charging service is located less than 50 miles
321321 from the location where the affiliate proposes to provide electric
322322 vehicle charging service; and
323323 (4) consistent with the requirements of Subchapter B,
324324 Chapter 38, and Section 39.157(d)(3), shall offer the same
325325 nondiscriminatory rates, terms, and conditions offered to the
326326 affiliate described by Subdivision (3) to other electric vehicle
327327 charging providers in the transmission and distribution utility's
328328 service area for the operation of public electric vehicle charging
329329 stations.
330330 (b) An affiliate described by Subsection (a)(3) shall
331331 maintain for at least two years documentation of the alternative
332332 fuels data center map that is available on the date on which the
333333 installation of the public electric vehicle charging station
334334 begins.
335335 (c) An affiliate of a transmission and distribution utility
336336 that provides, owns, operates, or maintains public electric vehicle
337337 charging stations and is not subject to regulation by the
338338 commission may not be subsidized by any rate or charge for any
339339 regulated services provided by the transmission and distribution
340340 utility.
341341 (d) This section does not prohibit a transmission and
342342 distribution utility from constructing, owning, or operating
343343 make-ready infrastructure on the transmission and distribution
344344 utility's side of the point of delivery that is funded through rates
345345 or charges for services under the transmission and distribution
346346 utility's tariffs.
347347 (e) Notwithstanding Subsection (a), a transmission and
348348 distribution utility may own, operate, lease, install, or otherwise
349349 procure service from a public electric vehicle charging station on
350350 the utility's premises for the sole purpose of serving the utility's
351351 vehicles.
352352 (f) The commission shall permit a transmission and
353353 distribution utility to recover, using the rate of return on
354354 investment established in the commission's final order in the
355355 utility's most recent base rate proceeding, reasonable and
356356 necessary costs incurred for the construction or installation of
357357 make-ready infrastructure on the utility's side of the point of
358358 delivery.
359359 SECTION 2. (a) Sections 42.0104(a)(3)(B) and 42.0104(b),
360360 Utilities Code, as added by this Act, apply only to electric vehicle
361361 charging service provided on or after January 1, 2026.
362362 (b) Section 42.0104(c), Utilities Code, as added by this
363363 Act, applies only to a rate or charge imposed after January 1, 2024.
364364 SECTION 3. This Act takes effect September 1, 2023.