ASSEMBLY, No. 4794

STATE OF NEW JERSEY

220th LEGISLATURE

 

INTRODUCED OCTOBER 17, 2022

 


 

Sponsored by:

Assemblyman  DANIEL R. BENSON

District 14 (Mercer and Middlesex)

Assemblyman  RAJ MUKHERJI

District 33 (Hudson)

 

Co-Sponsored by:

Assemblyman Spearman

 

 

 

 

SYNOPSIS

     Requires request for proposal to establish demonstration program to develop electric vehicle charging depots serviced by distributed energy resource charging centers for certain electric vehicle use.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning the establishment of a demonstration program for the development of certain electric vehicle charging depots and supplementing Title 48 of the Revised Statutes.

 

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

 

     1.    As used in P.L.    , c.    (C.        ) (pending before the Legislature as this bill):

     “Authority” means the New Jersey Economic Development Authority established by section 4 of P.L.1974, c.80 (C.34:1B-4).

     “Board” means the Board of Public Utilities or any successor agency.

     “Brownfield” means the same as the term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).

     “Class I renewable energy” means electric energy produced from solar technologies, photovoltaic technologies, wind energy, fuel cells, geothermal technologies, wave or tidal action, small scale hydropower facilities with a capacity of three megawatts or less and put into service after the effective date of P.L.2012, c.24, methane gas from landfills, methane gas from a biomass facility provided that the biomass is cultivated and harvested in a sustainable manner, or methane gas from a composting or anaerobic or aerobic digestion facility that converts food waste or other organic waste to energy.

     “DC fast charger” means the same as the term is defined in section 2 of P.L.2019, c.362 (C.48:25-2).

     “Demonstration program” means the demonstration program authorized in response to a request for proposal developed and issued by the authority pursuant to section 2 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

     “Department” means the Department of Environmental Protection.

     “Distributed energy resource” means an electricity-producing resource or controllable load that is connected to an electric public utility’s infrastructure, or a microgrid that is connected to a utility’s infrastructure.

     “Distributed energy resource charging center” means one or more distributed energy resources consisting of a group of interconnected loads, including at least one electric vehicle charger and distributed energy resources within clearly defined electrical boundaries that act as a single controllable entity with respect to a utility’s infrastructure, which resources can connect to and disconnect from a utility’s infrastructure and can operate both connected to and independent of a utility’s infrastructure.

     “Electric public utility” or “utility” means a public utility, as that term is defined in R.S.48:2-13, that provides electric distribution service in this State.

     “Electric vehicle” means a motor vehicle that is propelled solely by an electric motor or energy storage device, and includes any such fleet, medium, or heavy-duty vehicle.

      “Electric vehicle charging depot” or “depot” means a site where one or more DC fast chargers are installed, along with any electrical equipment needed to connect the chargers to a distributed energy resource charging center, and any other electrical equipment, including energy storage, needed to enhance the reliability and efficiency of the chargers.

      “Low-income, urban, or environmental justice community” means the same as the term is defined in section 2 of P.L.2019, c.362 (C.48:25-2).

      “PJM Interconnection, L.L.C.” or “PJM” means the privately-held, limited liability corporation that serves as a Regional Transmission Organization approved by the Federal Energy Regulatory Commission, or its successor, that manages the regional, high-voltage electricity grid serving all or parts of 13 states, including New Jersey and the District of Columbia, operates the regional competitive wholesale electric market, manages the regional transmission planning process, and establishes systems and rules to ensure that the regional and in-State energy markets operate fairly and efficiently.

      “Request for proposal” or “proposal” means the request for proposal developed and issued by the authority pursuant to section 2 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

      “Successor Solar Incentive program” or “SUSI” means the permanent successor to the solar incentive program established by the Board of Public Utilities pursuant to P.L.2021, c.169 (C.48:3-114 et al.), including the Administratively Determined Incentive and the Competitive Solicitation Incentive subprograms, and any successor programs or subprograms thereto.

 

      2.   a.  The New Jersey Economic Development Authority, in consultation with the Board of Public Utilities and the Department of Environmental Protection, shall develop a request for proposal to determine eligibility for the establishment of a demonstration program involving the development of electric vehicle charging depots for electric vehicle use.  Each electric vehicle charging depot shall be serviced by one or more distributed energy resource charging centers, and the electric vehicle charging depots shall be located within six regionally diverse locations within the State, except that at least one electric vehicle charging depot, including the distributed energy resource charging center servicing the depot, shall be located within the service territory of each electric public utility operating within this State.  The proposal shall describe, in detail, the requirements for the provision of electric vehicle
charging depots for electric vehicle charging, which depots shall, at a minimum, be capable of supporting very high, coincident peak vehicle electric loads.  Within the proposal, the authority shall provide a list and brief description of any State or local incentives and support programs available to an approved applicant.

     b.    Upon developing the request for proposal, the authority shall issue the proposal in a form and manner determined by the authority.  The authority shall establish guidelines for the approval, designation, operation, reporting, and re-designation of a demonstration program in a manner determined by the authority.  The authority may approve the development of more than one electric vehicle charging depot within any of the six locations, provided that the total number of approved programs satisfies the requirements of subsection a. of this section.

     c.     The authority, in cooperation with the board and the department, shall oversee, coordinate, and assist the demonstration program approved and established pursuant to P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

 

     3.    a.  A request for proposal shall require an applicant intending to establish a demonstration program to submit information to the authority, which information shall include, but not be limited to:

     (1)   a statement of purpose for the proposed demonstration program, which shall include, but not be limited to, the development of electric vehicle charging depots serviced by distributed energy resource charging centers to create infrastructure for the very high coincident load charging of electric vehicles;

     (2)   a validation of the cost-saving, time-saving, and resilience metrics associated with the use of electric vehicle charging depots serviced by distributed energy resource charging centers, as compared to the traditional capital investment approach to electric public utility grid replacement for the establishment of electric vehicle charging depots not serviced by distributed energy resource charging centers for use by electric vehicles;

     (3)   a description of the proposed electric vehicle charging depots, including any distributed energy resource charging center servicing the depots, and a clear explanation and map conveying the physical boundaries of each proposed site;

     (4)   a statement from the applicant attesting that each distributed energy resource charging center shall:

     (a)   allow for clean or renewable energy-sourced electric power generation and energy storage provided on-site or on property contiguous to the distributed energy resource charging center, in addition to the ability to charge electric vehicles; and

     (b)   comply with any electric vehicle charging infrastructure plan established by the department in which distributed energy resource charging center infrastructure is needed to get the most benefit for electric vehicle charging; and

     (5)   a statement that the applicant will enter into an agreement with an electric public utility or PJM, as applicable, where, upon receiving board approval, the utility or PJM will make any necessary upgrades to its transmission or distribution infrastructure at locations proposed by the applicant to prepare the location for the operation of a distributed energy resource charging center.

     b.    If an electric public utility makes any capital investment to upgrade its transmission or distribution infrastructure to prepare a location for the operation of a distributed energy resource charging center under the demonstration program, the board shall allow the utility to include the costs of such investments, as well as any other costs related to supporting the demonstration program, in its rate base for rate recovery.

     c.     When a distributed energy resource charging center includes Class 1 renewable energy resources and storage, and such storage is charged by electricity generated from the Class 1 renewable energy resource and electricity supplied by PJM, including electricity generated from non-renewable energy sources, the distributed energy resource charging center may sell excess electricity generation to PJM at the wholesale price of electricity. 

     d.    Notwithstanding the provisions of any law or regulation to the contrary, when Class 1 renewable energy resources are included in a distributed energy resource charging center, these resources shall be eligible for the incentives provided by the board under the Successor Solar Incentive Program’s Administratively Determined Incentive subprogram.

 

     4.    The authority shall give preference to any application made pursuant to section 3 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) for a demonstration program that:

     a.     is located within a brownfield;

     b.    provides an environmental justice net public benefit, as determined by the authority, within a low-income, urban, or environmental justice community;

     c.     provides job creation and job training for disadvantaged persons, as determined by the authority; or

     d.    results in an expansion of the State’s manufacturing base for an emerging clean transportation economy and demonstrates a collaboration with a State-certified educational training entity.

 

     5.    Upon approval by the authority of an application to conduct a demonstration program, the authority shall require the approved applicant to enter into an agreement with the authority, which agreement shall contain, but not be limited to:

     a.     a signed statement of cooperation and a description of the roles and relationships of each entity involved in the demonstration program;

     b.    a clearly identified list of goals, performance standards, benchmarks, or milestones for the proposed demonstration program, with approximate dates as to when the goals, performance standards, benchmarks, or milestones will be achieved, and a description of how these measures will be evaluated, including a requirement that the approved applicant shall report to the authority on the status of the applicant’s achievement of these goals, performance standards, benchmarks, or milestones;

     c.     a complete budget of the proposed demonstration program, including a description and proof, as applicable, of any secured funds, pending funds, and potential future funding sources;

     d.    a list of the approved applicant’s assets and resources, organizational experience, including capabilities, related experience, facilities, techniques, resources, or any combinations thereof, that are integral factors for achieving the proposed objective of establishing an electric vehicle charging depot serviced by a distributed energy resource charging center; and

     e.     the expectations for job development and business creation upon the establishment and operation of an electric vehicle charging depot serviced by a distributed energy resource charging center.

 

     6.    Within six months of the first approval for an application for a demonstration program, and every six months thereafter, the authority shall report to the department and the board on the progress of each approved applicant in establishing the demonstration program.  The authority shall annually post the information from these reports on the authority’s Internet website.  The board shall incorporate any applicable information on the establishment of the demonstration program in the Energy Master Plan, or any update thereto.  The authority shall report, five years after the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill), to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, on the results of the demonstration programs and post a copy of the report on the authority’s Internet website.

 

     7.    The authority may seek and accept gifts, donations, grants, or loans from private or public sources, including, but not limited to, any federal funding to be provided for the purposes of the demonstration program, except that the authority shall not accept a gift, donation, grant, or loan that is subject to conditions that are inconsistent with any other law of this State.

 

     8.    This act shall take effect immediately.

STATEMENT

 

     This bill requires the New Jersey Economic Development Authority (EDA), in consultation with the Board of Public Utilities (BPU) and the Department of Environmental Protection (DEP), to develop a request for proposal (RFP) to determine eligibility for the establishment of a demonstration program (program).  Under the program, approved applicants would develop electric vehicle charging depots, serviced by one or more distributed energy resource charging centers (charging centers), which would be used to charge electric vehicles. 

     Under the bill, the electric vehicle charging depots would be developed within six regionally diverse locations within the State, except that at least one deport is required to be developed within the service territory of each electric public utility operating in the State.  However, the EDA may approve the development of more than one electric vehicle charging depot within any one service territory.  The bill also requires the RFP to describe, in detail, the requirements for the provision of electric vehicle charging depots; however, at a minimum, each depot is required to be capable of supporting very high, coincident peak vehicle electric loads.  The EDA would also be required to establish guidelines for the approval, designation, operation, reporting, and re-designation of the program.

     Under the bill, applicants intending to establish a program would be required to submit certain information to the EDA.  The bill also requires the EDA to give preference to applications for a program that: (1) is located within a brownfield; (2) provides an environmental justice net public benefit within a low-income, urban, or environmental justice community; (3) provides job creation and job training for disadvantaged persons; or (4) results in an expansion of the State’s manufacturing base for an emerging clean transportation economy, and demonstrates collaboration with a State-certified educational training entity.  Upon approval by the EDA, the bill requires approved applicants to enter into agreements with the EDA, which agreements contain certain information set forth in the bill.

     Within six months of the first approval for an application for a demonstration program, and every six months thereafter, the EDA would be required to submit a report to the DEP and BPU concerning the progress made by approved applicants.  The bill also requires the EDA to annually post information from these reports on its Internet website.  Additionally, the bill requires the BPU to incorporate any applicable information from these reports in the State’s Energy Master Plan.  Five years after the effective date of the bill, the EDA would also be required to submit a report to the Governor and the Legislature concerning the results of the establishment of the program.

     Under the bill, the EDA may seek and accept gifts, donations, grants, or loans from private or public sources, including, but not limited to, any federal funding provided for the purposes of the demonstration program.  However, the EDA may not accept a gift, donation, grant, or loan that is subject to any conditions that are inconsistent with any other law of this State.