Electric Vehicles

The NJBPU recently released an updated version of a proposal to expand the New Jersey Electric Vehicles Infrastructure system. This updated Proposal expands upon its June 2021 Proposal which sought to address larger light-duty fleet charging, as well as the charging of medium and heavy-duty (MHD) vehicles. The NJBPU recognizes that the State needs to create a comprehensive EV charging system with public access on travel corridors and at workplaces. The reasons and objectives underlying the NJBPU Proposal include:

1. 1. Transportation sector accounts for 40% of the CO2 emission in NJ today, which is the largest single section of CO2 emissions. MHD vehicles make up 33% of those emissions. Therefore, BPU has stated electrification of the transportation sector is essential to meet NJ’s clean energy goals by 2050.
   2. Vehicle electrification reduces the cost of meeting NJ’s climate change goal of reducing CO2 emissions by 80% below 2006 levels by 2050. The BPU projects that failing to electrify vehicle fleets increases the cost of decarbonization from 2035 to 2050 by average of $1.6 billion per year.
   3. One of the state’s strategies is for the State to “[i]dentify regulatory, funding and financing mechanisms to convert the MHD vehicles to electric, renewable biodiesel and hydrogen fuel sources.”

The following relevant definitions, among others, are included in the Proposal:

• • “Demand Charges” are an existing feature of many rates whereby large users of electric systems pay for their contribution to the fixed costs of operating the electric system. In most cases, the Demand Charges are set at a customer’s peak annual usage.
  • “EDC” refers to an electric distribution company that the BPU regulates.
  • “EVSE” or “Electric Vehicle Service Equipment” means the equipment designed and used for the purpose of transferring energy from the electric supply system to a plug- EV, which may be deliver either alternating current (“AC”) or direct current (“DC”) electricity. “EVSE” is synonymous with a “Charging Station Infrastructure.”
  • “Make Ready” means the pre-wiring of electrical infrastructure at a parking space or spaces, to facilitate easy and cost-effective further installations of EVSE, including a Level Two EVSE and DC Fast Chargers. “Make Ready” may include expenses related to service panels, junction boxes, conduit, wiring etc., to make a particular location able to accommodate EVSE on a plug and play basis. “Make Ready” is synonymous with “Charge Ready”.
  • “Overburdened Municipality” is a municipality that has over 50% of its population living in an Overburden Community Census Block as defined by the NJDEP pursuant to the NJ’s Environmental Justice Law, N.J.S.A. 13:1D-157; and the municipality has either (1) 35% of its population living under 200% of the poverty level according the U.S. 2019 Census data; or (ii) the municipality is categorized as “distressed” according to the NJ Department of Community Affairs. (Please contact me if you wish to obtain a list of eligible Overburdened Municipalities.)

The Proposal seeks to address the following components of an MHD Charging Program:

1. 1. Roles and Responsibilities of Utilities and Non-Utilities: EDCs would be responsible for the wiring and backbone infrastructure necessary to enable a robust number of MHD Make-Ready locations throughout the State, serving publicly-accessible MHD charging depots, publicly accessible and/or public-serving fleets and Private Fleet Charging Depots located in or primarily operating in Overburdened Municipalities.
   2. Electric Vehicle Service Equipment (“EVSE”) Infrastructure Companies, site owners, and industries using private capital would be primarily responsible for installing, owning and/or operating, and marketing MHD EVSE to customers.
   3. An EDC-Industry working group would be created to address concerns regarding appropriate time varying rates, demand charges, and other technical assistance to address complicated interconnection, local generation and storage, potential wholesale market participation, and other technical issues as related to the MHD EV Eco System.

The Proposal seeks to attract private capital into the EV infrastructure sector by Proposal including the following additions to the June 2021 Proposal:

1. 1. The Proposal adds private fleet charging depots located in or primarily operating in Overburdened Municipalities to those eligible for Make-Ready Incentives;
   2. The Proposal adds technical and planning support for private entities that establish public fast charging sites that exceed 500kW in order to plan ahead for the roll-out of National Electric Vehicle Infrastructure (“NEVI”) funds and larger charging banks.
   3. Private Fleet Charging Depots eligible for Make-Ready funding would be required to meet stringent standards to ensure that they either are located in, or primarily operate in, at least one Overburdened Municipality.

I intend to monitor several technical panels and stakeholder meetings scheduled by the NJBPU Staff shortly after publication of the June 2021 Proposal. I will update this article as more relevant information is released by the NJBPU Staff.

If you require guidance to participate in the New Jersey Electric Vehicles Infrastructure programs, please contact me at afox@capehart.com.