TX
Texas Senate Bill SB1002

Texas 2023 - 88th Regular

Texas Senate Bill SB1002 Compare Versions

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11 S.B. No. 1002
22
33
44 AN ACT
55 relating to the operation of public electric vehicle charging
66 stations.
77 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
88 SECTION 1. Subtitle B, Title 2, Utilities Code, is amended
99 by adding Chapter 42 to read as follows:
1010 CHAPTER 42. PUBLIC CHARGING OF ELECTRIC VEHICLES
1111 Sec. 42.0101. LEGISLATIVE FINDINGS. (a) The legislature
1212 finds that it is in the best interests of this state to continue the
1313 long-standing policy of supporting private sector investment in
1414 infrastructure by establishing a framework designed to encourage
1515 competitive private sector investment in the deployment of public
1616 electric vehicle charging stations.
1717 (b) The legislature finds that encouraging investment in
1818 the deployment of public electric vehicle charging stations is
1919 essential to foster the rapid installation and widespread use of
2020 public electric vehicle charging stations on property whose owners
2121 or tenants desire to install public electric vehicle charging
2222 stations.
2323 (c) The legislature finds that electric utilities,
2424 transmission and distribution utilities, competitive entities, and
2525 the commission have important roles to fill in supporting the
2626 installation and use of infrastructure for electric vehicle
2727 charging.
2828 (d) The legislature finds that it is necessary to:
2929 (1) implement competitively neutral policies to
3030 encourage competitive private sector investment in public electric
3131 vehicle charging station deployment;
3232 (2) develop and implement competitively neutral
3333 electricity tariffs that are optimized for public electric vehicle
3434 charging stations and based on cost causation principles while
3535 ensuring transparency in pricing and recognizing changing market
3636 needs; and
3737 (3) encourage competitive private investment,
3838 ownership, and operation of public electric vehicle charging
3939 stations, including equipment that allows for fast charging.
4040 Sec. 42.0102. DEFINITIONS. In this chapter:
4141 (1) "Direct-current fast charging station" means a
4242 charging system capable of delivering at least 50 kilowatts of
4343 direct-current electrical power to an electric vehicle's
4444 rechargeable battery at a voltage of 200 volts or greater.
4545 (2) "Electric vehicle" means a vehicle that is
4646 propelled by one or more electric motors using energy stored in the
4747 form of a rechargeable battery.
4848 (3) "Electric vehicle charging provider" means the
4949 owner or operator of a public electric vehicle charging station.
5050 The term does not include an electric utility or transmission and
5151 distribution utility.
5252 (4) "Electric vehicle charging service" means sales
5353 made from a public electric vehicle charging station to the public.
5454 (5) "Level two charging station" means a charging
5555 system capable of delivering at least 3 and not more than 19.2
5656 kilowatts of alternating-current electrical power to an electric
5757 vehicle's rechargeable battery at a voltage of at least 208 volts on
5858 a circuit of at least 40 amperes.
5959 (6) "Make-ready infrastructure" means the electrical
6060 infrastructure required to service a public electric vehicle
6161 charging station's electrical load on the electric utility's or
6262 transmission and distribution utility's side of the point of
6363 delivery. The term:
6464 (A) includes all site-specific electrical
6565 infrastructure required to accommodate engineering, physical,
6666 operational, or other constraints for the public electric vehicle
6767 charging station, regardless of whether the infrastructure is on
6868 the utility's or customer's side of the point of delivery; and
6969 (B) does not include the public electric vehicle
7070 charging station or any utility infrastructure on the customer's
7171 side of the point of delivery, up to and including the meter.
7272 (7) "Public electric vehicle charging station" means
7373 any level two charging station or direct-current fast charging
7474 station that delivers electricity from a source outside an electric
7575 vehicle into an electric vehicle, is separate and distinct from
7676 make-ready infrastructure, and is accessible for commercial use by
7777 the public, or similar vehicle charging equipment capable of
7878 delivering electricity into an electric vehicle faster than a level
7979 two charging station. The term does not include vehicle charging
8080 equipment that is:
8181 (A) used by an electric utility, a transmission
8282 and distribution utility, or an affiliate to charge:
8383 (i) an electric vehicle owned by the
8484 utility or affiliate; or
8585 (ii) as an incident of employment, an
8686 electric vehicle owned by an employee of the utility or affiliate;
8787 or
8888 (B) located on the premises of a customer of an
8989 electric utility, a transmission and distribution utility, or an
9090 affiliate and:
9191 (i) used by the customer or the customer's
9292 tenants, affiliates, or guests; and
9393 (ii) not used commercially for electric
9494 vehicle charging service.
9595 Sec. 42.0103. PUBLIC CHARGING OF ELECTRIC VEHICLES OUTSIDE
9696 OF ERCOT. (a) This section applies only to an electric utility
9797 that operates solely outside of ERCOT.
9898 (b) An electric utility:
9999 (1) may not provide electric vehicle charging service
100100 directly to a customer except as provided by this section;
101101 (2) may be affiliated with an entity that provides
102102 electric vehicle charging service from a public electric vehicle
103103 charging station if the affiliate:
104104 (A) is not subject to regulation by the
105105 commission; and
106106 (B) is subject to prohibitions on market power
107107 abuse, cross-subsidizations, co-branding, and preferential
108108 treatment between regulated and competitive activities described
109109 by Section 39.157(d); and
110110 (3) consistent with the requirements of Subchapter B,
111111 Chapter 38, and Section 39.157(d)(3), shall offer the same
112112 nondiscriminatory rates, terms, and conditions offered to an
113113 affiliate described by Subdivision (2) to other electric vehicle
114114 charging providers in the utility's service area for the operation
115115 of public electric vehicle charging stations.
116116 (c) An affiliate of an electric utility that provides
117117 electric vehicle charging service and is not subject to regulation
118118 by the commission is subject to the same tariffs of the electric
119119 utility that apply to any other entity receiving from the utility
120120 electric service that is used to provide electric vehicle charging
121121 service.
122122 (d) This section does not prohibit an electric utility from
123123 subsidizing the costs of make-ready infrastructure through rates or
124124 charges for services provided by the electric utility's regulated
125125 services.
126126 (e) An electric utility may provide electric vehicle
127127 charging service directly to a customer only if:
128128 (1) the public electric vehicle charging station used
129129 to provide electric vehicle charging service is constructed in
130130 compliance with the requirements of this section; and
131131 (2) the rates charged by the utility for electric
132132 vehicle charging service are set by the commission under Subsection
133133 (m).
134134 (f) An electric utility seeking to provide electric vehicle
135135 charging service directly to a customer shall:
136136 (1) file with the commission a proposal identifying
137137 the specific location at which the utility seeks to provide
138138 electric vehicle charging service and a general description of the
139139 public electric vehicle charging station the utility proposes to
140140 construct at the location; and
141141 (2) provide notice of the filing made under
142142 Subdivision (1):
143143 (A) on the utility's Internet website; and
144144 (B) to each dealer to which Chapter 2310,
145145 Occupations Code, applies who offers for retail sale motor fuel at a
146146 site that is located not more than 15 miles from the proposed
147147 location of the public electric vehicle charging station.
148148 (g) A notice provided under Subsection (f)(2) must include:
149149 (1) the date the electric utility filed a proposal to
150150 provide electric vehicle charging service under Subsection (f)(1);
151151 and
152152 (2) the date by which a person may file a proposal to
153153 provide reasonably comparable electric vehicle charging service
154154 under Subsection (h).
155155 (h) The commission shall determine whether the provision of
156156 electric vehicle charging service under a proposal submitted under
157157 Subsection (f)(1) is in the public interest because the service is
158158 adequate for the needs of the area. Not later than the 90th day
159159 after the date the commission determines that the provision of the
160160 proposed electric vehicle charging service is in the public
161161 interest, a person other than the electric utility may notify the
162162 commission that:
163163 (1) the person:
164164 (A) intends to provide electric vehicle charging
165165 service that is adequate for the needs of the area in reasonable
166166 proximity to the proposed location of the public electric vehicle
167167 charging station and request the necessary make-ready
168168 infrastructure from the electric utility; and
169169 (B) is firmly committed to placing into service
170170 equipment necessary to provide the electric vehicle charging
171171 service before the later of:
172172 (i) 18 months after the date the person
173173 submits the notice to the commission; or
174174 (ii) the date of completion of the
175175 installation of the necessary make-ready infrastructure to provide
176176 the electric vehicle charging service; and
177177 (2) the person is capable of:
178178 (A) acquiring the right to use the property at
179179 which the electric vehicle charging service will be provided; and
180180 (B) financing the cost of the equipment described
181181 by Subdivision (1)(B).
182182 (i) The commission shall issue a determination regarding
183183 each notice received under Subsection (h) of whether:
184184 (1) the proposed electric vehicle charging service is
185185 adequate for the needs of the area; and
186186 (2) the person has made the commitment and has the
187187 capabilities described by that subsection.
188188 (j) The commission by rule may establish a distance that
189189 constitutes reasonable proximity to a type of location for the
190190 purposes of Subsection (h). The commission may also issue an order
191191 establishing a distance other than one authorized by rule that
192192 constitutes reasonable proximity to a location for purposes of
193193 Subsection (h) for a specific electric utility. In establishing
194194 distances that constitute reasonable proximity to a location, the
195195 commission shall:
196196 (1) consider population density and site access;
197197 (2) establish the reasonable proximity between two
198198 locations on an interstate highway for the purposes of Subsection
199199 (h) as not more than 10 miles; and
200200 (3) consider the Texas Department of Transportation's
201201 designation by category of nearby roads other than interstate
202202 highways when establishing the reasonable proximity between two
203203 locations at which electric vehicle charging service will be
204204 provided on roads other than interstate highways.
205205 (k) An electric utility that files a proposal under
206206 Subsection (f) may proceed with construction of the public electric
207207 vehicle charging station and the provision of electric vehicle
208208 charging service unless the commission determines, based on the
209209 information submitted under Subsection (h), that:
210210 (1) the electric vehicle charging service proposed
211211 under Subsection (h) in response to the utility's proposal is
212212 adequate for the needs of the area and that the person who submitted
213213 the notice under Subsection (h) has made the commitment and has the
214214 capabilities described by that subsection; or
215215 (2) the electric vehicle charging service proposed
216216 under Subsection (f) by the utility unreasonably duplicates:
217217 (A) electric vehicle charging service provided
218218 by another person; or
219219 (B) a facility under construction that another
220220 person will use to provide electric vehicle charging service.
221221 (l) An electric utility authorized to proceed with the
222222 construction of a public electric vehicle charging station under
223223 Subsection (k) shall notify the commission that the utility intends
224224 to proceed with the construction and may construct and operate the
225225 proposed public electric vehicle charging station after the 120th
226226 day after the date the utility files the notice of intent under this
227227 subsection.
228228 (m) On application by an electric utility, the commission
229229 shall set in a manner authorized under Chapter 36 the rates the
230230 utility may charge for electric vehicle charging service. The
231231 rates must be reasonable and ensure that competition is not
232232 impaired. The commission may set rates differently for different
233233 locations and times of day and for different types of electric
234234 vehicle charging service.
235235 (n) The commission shall permit an electric utility
236236 authorized to construct and operate a public electric vehicle
237237 charging station under this section to recover, using the rate of
238238 return on investment established in the commission's final order in
239239 the utility's most recent base rate proceeding, reasonable and
240240 necessary costs incurred for the construction, financing,
241241 operation, and maintenance of that public electric vehicle charging
242242 station.
243243 (o) This section does not prohibit a person who is not an
244244 electric utility or an affiliate of an electric utility from
245245 entering into an agreement with an electric utility for the utility
246246 to own or operate a public electric vehicle charging station on the
247247 person's property if:
248248 (1) the utility does not:
249249 (A) provide electric vehicle charging service
250250 using the public electric vehicle charging station; or
251251 (B) brand or market the public electric vehicle
252252 charging station as owned or operated by the utility, including by
253253 presenting the utility's name, logo, or any other distinguishing
254254 mark to indicate that the utility owns or operates the public
255255 electric vehicle charging station;
256256 (2) the person solely determines:
257257 (A) physical access to and use of the public
258258 electric vehicle charging station necessary to carry out
259259 responsibilities associated with ownership and operation of the
260260 public electric vehicle charging station; and
261261 (B) prices for the electric vehicle charging
262262 service; and
263263 (3) the person pays for all electric utility-related
264264 costs under a tariff approved by the commission that provides for
265265 full recovery of the costs of the public electric vehicle charging
266266 station from the person, including incremental revenues paid by the
267267 person to the utility associated with the electric vehicle charging
268268 service.
269269 (p) The commission shall:
270270 (1) require each electric utility for which the
271271 commission has approved a tariff under Subsection (o) to offer
272272 service under the terms of the tariff to other persons seeking
273273 agreements in the utility's service area on a nondiscriminatory
274274 basis; and
275275 (2) ensure that revenue collected by an electric
276276 utility under an agreement under Subsection (o) allows the utility
277277 to recover the costs of owning, constructing, financing, operating,
278278 and maintaining the public electric vehicle charging station from
279279 the person and not the utility's other customers.
280280 (q) A public electric vehicle charging station operated
281281 under an agreement under Subsection (o) is not subject to the
282282 requirements of Subsections (f)-(l).
283283 (r) Notwithstanding any other provision of this section, a
284284 municipality that is a customer of an electric utility may enter
285285 into an agreement with the utility under which:
286286 (1) the utility owns and operates a public electric
287287 vehicle charging station and provides electric vehicle charging
288288 service on the municipality's property; and
289289 (2) none of the costs of constructing, financing,
290290 operating, or maintaining the public electric vehicle charging
291291 station described by Subdivision (1) are recovered from the other
292292 customers of the utility.
293293 Sec. 42.0104. PUBLIC CHARGING OF ELECTRIC VEHICLES INSIDE
294294 ERCOT. (a) A transmission and distribution utility:
295295 (1) may not directly own, operate, or provide electric
296296 vehicle charging service from a public electric vehicle charging
297297 station;
298298 (2) may not include costs of a public electric vehicle
299299 charging station for recovery through rates approved by the
300300 commission;
301301 (3) may be affiliated with a competitive affiliate
302302 that provides electric vehicle charging service from a public
303303 electric vehicle charging station through a separate entity or
304304 third party only if:
305305 (A) the affiliate:
306306 (i) is not subject to regulation by the
307307 commission; and
308308 (ii) is subject to prohibitions on market
309309 power abuse, cross-subsidizations, co-branding, and preferential
310310 treatment between regulated and competitive activities described
311311 by Section 39.157(d); and
312312 (B) the alternative fuels data center map
313313 maintained by the United States Department of Energy does not show
314314 that a public electric vehicle charging station owned or operated
315315 by an electric vehicle charging provider and used to provide
316316 electric vehicle charging service is located less than 50 miles
317317 from the location where the affiliate proposes to provide electric
318318 vehicle charging service; and
319319 (4) consistent with the requirements of Subchapter B,
320320 Chapter 38, and Section 39.157(d)(3), shall offer the same
321321 nondiscriminatory rates, terms, and conditions offered to the
322322 affiliate described by Subdivision (3) to other electric vehicle
323323 charging providers in the transmission and distribution utility's
324324 service area for the operation of public electric vehicle charging
325325 stations.
326326 (b) An affiliate described by Subsection (a)(3) shall
327327 maintain for at least two years documentation of the alternative
328328 fuels data center map that is available on the date on which the
329329 installation of the public electric vehicle charging station
330330 begins.
331331 (c) An affiliate of a transmission and distribution utility
332332 that provides, owns, operates, or maintains public electric vehicle
333333 charging stations and is not subject to regulation by the
334334 commission may not be subsidized by any rate or charge for any
335335 regulated services provided by the transmission and distribution
336336 utility.
337337 (d) This section does not prohibit a transmission and
338338 distribution utility from constructing, owning, or operating
339339 make-ready infrastructure on the transmission and distribution
340340 utility's side of the point of delivery that is funded through rates
341341 or charges for services under the transmission and distribution
342342 utility's tariffs.
343343 (e) Notwithstanding Subsection (a), a transmission and
344344 distribution utility may own, operate, lease, install, or otherwise
345345 procure service from a public electric vehicle charging station on
346346 the utility's premises for the sole purpose of serving the utility's
347347 vehicles.
348348 (f) The commission shall permit a transmission and
349349 distribution utility to recover, using the rate of return on
350350 investment established in the commission's final order in the
351351 utility's most recent base rate proceeding, reasonable and
352352 necessary costs incurred for the construction or installation of
353353 make-ready infrastructure on the utility's side of the point of
354354 delivery.
355355 SECTION 2. (a) Sections 42.0104(a)(3)(B) and 42.0104(b),
356356 Utilities Code, as added by this Act, apply only to electric vehicle
357357 charging service provided on or after January 1, 2026.
358358 (b) Section 42.0104(c), Utilities Code, as added by this
359359 Act, applies only to a rate or charge imposed after January 1, 2024.
360360 SECTION 3. This Act takes effect September 1, 2023.
361361 ______________________________ ______________________________
362362 President of the Senate Speaker of the House
363363 I hereby certify that S.B. No. 1002 passed the Senate on
364364 April 12, 2023, by the following vote: Yeas 30, Nays 0.
365365 ______________________________
366366 Secretary of the Senate
367367 I hereby certify that S.B. No. 1002 passed the House on
368368 May 3, 2023, by the following vote: Yeas 99, Nays 34, one present
369369 not voting.
370370 ______________________________
371371 Chief Clerk of the House
372372 Approved:
373373 ______________________________
374374 Date
375375 ______________________________
376376 Governor