S.B. No. 1002
AN ACT
relating to the operation of public electric vehicle charging
stations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 2, Utilities Code, is amended
by adding Chapter 42 to read as follows:
CHAPTER 42. PUBLIC CHARGING OF ELECTRIC VEHICLES
Sec. 42.0101. LEGISLATIVE FINDINGS. (a) The legislature
finds that it is in the best interests of this state to continue the
long-standing policy of supporting private sector investment in
infrastructure by establishing a framework designed to encourage
competitive private sector investment in the deployment of public
electric vehicle charging stations.
(b) The legislature finds that encouraging investment in
the deployment of public electric vehicle charging stations is
essential to foster the rapid installation and widespread use of
public electric vehicle charging stations on property whose owners
or tenants desire to install public electric vehicle charging
stations.
(c) The legislature finds that electric utilities,
transmission and distribution utilities, competitive entities, and
the commission have important roles to fill in supporting the
installation and use of infrastructure for electric vehicle
charging.
(d) The legislature finds that it is necessary to:
(1) implement competitively neutral policies to
encourage competitive private sector investment in public electric
vehicle charging station deployment;
(2) develop and implement competitively neutral
electricity tariffs that are optimized for public electric vehicle
charging stations and based on cost causation principles while
ensuring transparency in pricing and recognizing changing market
needs; and
(3) encourage competitive private investment,
ownership, and operation of public electric vehicle charging
stations, including equipment that allows for fast charging.
Sec. 42.0102. DEFINITIONS. In this chapter:
(1) "Direct-current fast charging station" means a
charging system capable of delivering at least 50 kilowatts of
direct-current electrical power to an electric vehicle's
rechargeable battery at a voltage of 200 volts or greater.
(2) "Electric vehicle" means a vehicle that is
propelled by one or more electric motors using energy stored in the
form of a rechargeable battery.
(3) "Electric vehicle charging provider" means the
owner or operator of a public electric vehicle charging station.
The term does not include an electric utility or transmission and
distribution utility.
(4) "Electric vehicle charging service" means sales
made from a public electric vehicle charging station to the public.
(5) "Level two charging station" means a charging
system capable of delivering at least 3 and not more than 19.2
kilowatts of alternating-current electrical power to an electric
vehicle's rechargeable battery at a voltage of at least 208 volts on
a circuit of at least 40 amperes.
(6) "Make-ready infrastructure" means the electrical
infrastructure required to service a public electric vehicle
charging station's electrical load on the electric utility's or
transmission and distribution utility's side of the point of
delivery. The term:
(A) includes all site-specific electrical
infrastructure required to accommodate engineering, physical,
operational, or other constraints for the public electric vehicle
charging station, regardless of whether the infrastructure is on
the utility's or customer's side of the point of delivery; and
(B) does not include the public electric vehicle
charging station or any utility infrastructure on the customer's
side of the point of delivery, up to and including the meter.
(7) "Public electric vehicle charging station" means
any level two charging station or direct-current fast charging
station that delivers electricity from a source outside an electric
vehicle into an electric vehicle, is separate and distinct from
make-ready infrastructure, and is accessible for commercial use by
the public, or similar vehicle charging equipment capable of
delivering electricity into an electric vehicle faster than a level
two charging station. The term does not include vehicle charging
equipment that is:
(A) used by an electric utility, a transmission
and distribution utility, or an affiliate to charge:
(i) an electric vehicle owned by the
utility or affiliate; or
(ii) as an incident of employment, an
electric vehicle owned by an employee of the utility or affiliate;
or
(B) located on the premises of a customer of an
electric utility, a transmission and distribution utility, or an
affiliate and:
(i) used by the customer or the customer's
tenants, affiliates, or guests; and
(ii) not used commercially for electric
vehicle charging service.
Sec. 42.0103. PUBLIC CHARGING OF ELECTRIC VEHICLES OUTSIDE
OF ERCOT. (a) This section applies only to an electric utility
that operates solely outside of ERCOT.
(b) An electric utility:
(1) may not provide electric vehicle charging service
directly to a customer except as provided by this section;
(2) may be affiliated with an entity that provides
electric vehicle charging service from a public electric vehicle
charging station if the affiliate:
(A) is not subject to regulation by the
commission; and
(B) is subject to prohibitions on market power
abuse, cross-subsidizations, co-branding, and preferential
treatment between regulated and competitive activities described
by Section 39.157(d); and
(3) consistent with the requirements of Subchapter B,
Chapter 38, and Section 39.157(d)(3), shall offer the same
nondiscriminatory rates, terms, and conditions offered to an
affiliate described by Subdivision (2) to other electric vehicle
charging providers in the utility's service area for the operation
of public electric vehicle charging stations.
(c) An affiliate of an electric utility that provides
electric vehicle charging service and is not subject to regulation
by the commission is subject to the same tariffs of the electric
utility that apply to any other entity receiving from the utility
electric service that is used to provide electric vehicle charging
service.
(d) This section does not prohibit an electric utility from
subsidizing the costs of make-ready infrastructure through rates or
charges for services provided by the electric utility's regulated
services.
(e) An electric utility may provide electric vehicle
charging service directly to a customer only if:
(1) the public electric vehicle charging station used
to provide electric vehicle charging service is constructed in
compliance with the requirements of this section; and
(2) the rates charged by the utility for electric
vehicle charging service are set by the commission under Subsection
(m).
(f) An electric utility seeking to provide electric vehicle
charging service directly to a customer shall:
(1) file with the commission a proposal identifying
the specific location at which the utility seeks to provide
electric vehicle charging service and a general description of the
public electric vehicle charging station the utility proposes to
construct at the location; and
(2) provide notice of the filing made under
Subdivision (1):
(A) on the utility's Internet website; and
(B) to each dealer to which Chapter 2310,
Occupations Code, applies who offers for retail sale motor fuel at a
site that is located not more than 15 miles from the proposed
location of the public electric vehicle charging station.
(g) A notice provided under Subsection (f)(2) must include:
(1) the date the electric utility filed a proposal to
provide electric vehicle charging service under Subsection (f)(1);
and
(2) the date by which a person may file a proposal to
provide reasonably comparable electric vehicle charging service
under Subsection (h).
(h) The commission shall determine whether the provision of
electric vehicle charging service under a proposal submitted under
Subsection (f)(1) is in the public interest because the service is
adequate for the needs of the area. Not later than the 90th day
after the date the commission determines that the provision of the
proposed electric vehicle charging service is in the public
interest, a person other than the electric utility may notify the
commission that:
(1) the person:
(A) intends to provide electric vehicle charging
service that is adequate for the needs of the area in reasonable
proximity to the proposed location of the public electric vehicle
charging station and request the necessary make-ready
infrastructure from the electric utility; and
(B) is firmly committed to placing into service
equipment necessary to provide the electric vehicle charging
service before the later of:
(i) 18 months after the date the person
submits the notice to the commission; or
(ii) the date of completion of the
installation of the necessary make-ready infrastructure to provide
the electric vehicle charging service; and
(2) the person is capable of:
(A) acquiring the right to use the property at
which the electric vehicle charging service will be provided; and
(B) financing the cost of the equipment described
by Subdivision (1)(B).
(i) The commission shall issue a determination regarding
each notice received under Subsection (h) of whether:
(1) the proposed electric vehicle charging service is
adequate for the needs of the area; and
(2) the person has made the commitment and has the
capabilities described by that subsection.
(j) The commission by rule may establish a distance that
constitutes reasonable proximity to a type of location for the
purposes of Subsection (h). The commission may also issue an order
establishing a distance other than one authorized by rule that
constitutes reasonable proximity to a location for purposes of
Subsection (h) for a specific electric utility. In establishing
distances that constitute reasonable proximity to a location, the
commission shall:
(1) consider population density and site access;
(2) establish the reasonable proximity between two
locations on an interstate highway for the purposes of Subsection
(h) as not more than 10 miles; and
(3) consider the Texas Department of Transportation's
designation by category of nearby roads other than interstate
highways when establishing the reasonable proximity between two
locations at which electric vehicle charging service will be
provided on roads other than interstate highways.
(k) An electric utility that files a proposal under
Subsection (f) may proceed with construction of the public electric
vehicle charging station and the provision of electric vehicle
charging service unless the commission determines, based on the
information submitted under Subsection (h), that:
(1) the electric vehicle charging service proposed
under Subsection (h) in response to the utility's proposal is
adequate for the needs of the area and that the person who submitted
the notice under Subsection (h) has made the commitment and has the
capabilities described by that subsection; or
(2) the electric vehicle charging service proposed
under Subsection (f) by the utility unreasonably duplicates:
(A) electric vehicle charging service provided
by another person; or
(B) a facility under construction that another
person will use to provide electric vehicle charging service.
(l) An electric utility authorized to proceed with the
construction of a public electric vehicle charging station under
Subsection (k) shall notify the commission that the utility intends
to proceed with the construction and may construct and operate the
proposed public electric vehicle charging station after the 120th
day after the date the utility files the notice of intent under this
subsection.
(m) On application by an electric utility, the commission
shall set in a manner authorized under Chapter 36 the rates the
utility may charge for electric vehicle charging service. The
rates must be reasonable and ensure that competition is not
impaired. The commission may set rates differently for different
locations and times of day and for different types of electric
vehicle charging service.
(n) The commission shall permit an electric utility
authorized to construct and operate a public electric vehicle
charging station under this section to recover, using the rate of
return on investment established in the commission's final order in
the utility's most recent base rate proceeding, reasonable and
necessary costs incurred for the construction, financing,
operation, and maintenance of that public electric vehicle charging
station.
(o) This section does not prohibit a person who is not an
electric utility or an affiliate of an electric utility from
entering into an agreement with an electric utility for the utility
to own or operate a public electric vehicle charging station on the
person's property if:
(1) the utility does not:
(A) provide electric vehicle charging service
using the public electric vehicle charging station; or
(B) brand or market the public electric vehicle
charging station as owned or operated by the utility, including by
presenting the utility's name, logo, or any other distinguishing
mark to indicate that the utility owns or operates the public
electric vehicle charging station;
(2) the person solely determines:
(A) physical access to and use of the public
electric vehicle charging station necessary to carry out
responsibilities associated with ownership and operation of the
public electric vehicle charging station; and
(B) prices for the electric vehicle charging
service; and
(3) the person pays for all electric utility-related
costs under a tariff approved by the commission that provides for
full recovery of the costs of the public electric vehicle charging
station from the person, including incremental revenues paid by the
person to the utility associated with the electric vehicle charging
service.
(p) The commission shall:
(1) require each electric utility for which the
commission has approved a tariff under Subsection (o) to offer
service under the terms of the tariff to other persons seeking
agreements in the utility's service area on a nondiscriminatory
basis; and
(2) ensure that revenue collected by an electric
utility under an agreement under Subsection (o) allows the utility
to recover the costs of owning, constructing, financing, operating,
and maintaining the public electric vehicle charging station from
the person and not the utility's other customers.
(q) A public electric vehicle charging station operated
under an agreement under Subsection (o) is not subject to the
requirements of Subsections (f)-(l).
(r) Notwithstanding any other provision of this section, a
municipality that is a customer of an electric utility may enter
into an agreement with the utility under which:
(1) the utility owns and operates a public electric
vehicle charging station and provides electric vehicle charging
service on the municipality's property; and
(2) none of the costs of constructing, financing,
operating, or maintaining the public electric vehicle charging
station described by Subdivision (1) are recovered from the other
customers of the utility.
Sec. 42.0104. PUBLIC CHARGING OF ELECTRIC VEHICLES INSIDE
ERCOT. (a) A transmission and distribution utility:
(1) may not directly own, operate, or provide electric
vehicle charging service from a public electric vehicle charging
station;
(2) may not include costs of a public electric vehicle
charging station for recovery through rates approved by the
commission;
(3) may be affiliated with a competitive affiliate
that provides electric vehicle charging service from a public
electric vehicle charging station through a separate entity or
third party only if:
(A) the affiliate:
(i) is not subject to regulation by the
commission; and
(ii) is subject to prohibitions on market
power abuse, cross-subsidizations, co-branding, and preferential
treatment between regulated and competitive activities described
by Section 39.157(d); and
(B) the alternative fuels data center map
maintained by the United States Department of Energy does not show
that a public electric vehicle charging station owned or operated
by an electric vehicle charging provider and used to provide
electric vehicle charging service is located less than 50 miles
from the location where the affiliate proposes to provide electric
vehicle charging service; and
(4) consistent with the requirements of Subchapter B,
Chapter 38, and Section 39.157(d)(3), shall offer the same
nondiscriminatory rates, terms, and conditions offered to the
affiliate described by Subdivision (3) to other electric vehicle
charging providers in the transmission and distribution utility's
service area for the operation of public electric vehicle charging
stations.
(b) An affiliate described by Subsection (a)(3) shall
maintain for at least two years documentation of the alternative
fuels data center map that is available on the date on which the
installation of the public electric vehicle charging station
begins.
(c) An affiliate of a transmission and distribution utility
that provides, owns, operates, or maintains public electric vehicle
charging stations and is not subject to regulation by the
commission may not be subsidized by any rate or charge for any
regulated services provided by the transmission and distribution
utility.
(d) This section does not prohibit a transmission and
distribution utility from constructing, owning, or operating
make-ready infrastructure on the transmission and distribution
utility's side of the point of delivery that is funded through rates
or charges for services under the transmission and distribution
utility's tariffs.
(e) Notwithstanding Subsection (a), a transmission and
distribution utility may own, operate, lease, install, or otherwise
procure service from a public electric vehicle charging station on
the utility's premises for the sole purpose of serving the utility's
vehicles.
(f) The commission shall permit a transmission and
distribution utility to recover, using the rate of return on
investment established in the commission's final order in the
utility's most recent base rate proceeding, reasonable and
necessary costs incurred for the construction or installation of
make-ready infrastructure on the utility's side of the point of
delivery.
SECTION 2. (a) Sections 42.0104(a)(3)(B) and 42.0104(b),
Utilities Code, as added by this Act, apply only to electric vehicle
charging service provided on or after January 1, 2026.
(b) Section 42.0104(c), Utilities Code, as added by this
Act, applies only to a rate or charge imposed after January 1, 2024.
SECTION 3. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1002 passed the Senate on
April 12, 2023, by the following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1002 passed the House on
May 3, 2023, by the following vote: Yeas 99, Nays 34, one present
not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor