ASSEMBLY TRANSPORTATION AND INDEPENDENT AUTHORITIES COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4624

with committee amendments

STATE OF NEW JERSEY

DATED:  SEPTEMBER 19, 2024

The Assembly Transportation and Independent Authorities Committee reports favorably and with committee amendments Assembly Bill No. 4624.

      As amended and reported, this bill requires each electric public utility (utility) in the State to submit a tariff for commercial customers to the Board of Public Utilities (BPU) for approval.

      The bill requires the tariffs to be submitted no later than 180 days after the bill's enactment and to be designed to: (1) utilize alternatives to both distribution demand charges and capacity demand charges; (2) establish cost equity between commercial electric vehicle tariffs and residential tariffs; and (3) remain neutral with respect to the various types of electric vehicle charging technology, provided that this neutrality would not have the effect of discouraging innovation.  Under the bill, the tariffs are required to include an alternative rate structure, which does not utilize capacity or distribution demand charges, for commercial customers who own or operate electric vehicle charging systems and to satisfy other requirements enumerated in the bill.  Pursuant to the bill, the BPU is required to expeditiously review and approve each tariff submitted by a utility, in accordance with the provisions of the "Energy Discount and Energy Competition Act."

      The bill permits the BPU to require a customer, as a condition of utilizing an alternative rate structure developed pursuant to the bill, to provide the BPU with quarterly data in accordance with federal National Electric Vehicle Infrastructure program rules.

      The bill also prohibits provides that, beginning 180 days after the bill's enactment, electric public utilities are to, unless the BPU approves the utilities tariff application: (1) discontinue assessing capacity and distribution demand charges on direct current fast charging facilities; or (2) implement an operating cost relief mechanism that utilizes demand charge alternatives, is technology neutral, accelerates third-party investment in electric vehicle charging infrastructure, and promotes electric vehicle adoption in the State.

      The bill requires the BPU to develop a phase-in-period for demand charges on direct current fast charging facilities to be applied to commercial customers and to ensure the demand charges on direct current fast charging facilities are reintroduced gradually and only when economically justified.

      The bill defines a "direct current fast charging facility" as a location that provides commercial access to a type of electric vehicle charging station known as a “direct current fast charger,” a “DCFC,” or “Level 3 charger,” which provides at least 50 kilowatts of direct electrical current to a vehicle's battery.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1) add definitions for "capacity demand charge" and "distribution demand charge" and clarify the definition of "load factor";

      (2) clarify that tariffs required to be developed under the bill must utilize alternatives to distribution demand charges instead of alternatives to traditional demand-based rate structures;

      (3) remove requirements for tariffs to accelerate third-party investment in electric vehicle charging infrastructure and to promote electric vehicle adoption in the State;

      (4) require that tariffs remain neutral with respect to the various types of electric vehicle charging technology only if the neutrality would not discourage innovation;

      (5) provide that the BPU may require customers who participate in an alternative rate structure developed under the bill to provide certain data to the BPU;

      (6) provide that the BPU is to retain discretion to review, modify, and lead the process for setting non-volumetric rates and ensuring fairness in rate structures for all stakeholder;

      (7) require the BPU to develop a gradual reintroduction phase-in period for demand charges on direct current fast charging facilities to be applied to commercial customers when economically justified, as determined by the BPU;

      (8) remove a provision that prohibits utilities from assessing subscription charges and other non-volumetric tariff structures on direct current fast charging facilities unless the BPU has approved the utility's tariff submitted pursuant to the bill; and

      (9) require, commencing 180 days (rather than 60 days) after the bill's enactment, electric public utilities to either discontinue assessing capacity and distribution demand charges on direct current fast charging facilities or to implement an operating cost relief mechanism unless the BPU has approved the utility’s tariff application submitted pursuant to the bill.