LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 3102
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: JULY 6, 2023
SUMMARY
Synopsis: Establishes uptime requirement for electric vehicle charging station
incentive programs.
Type of Impact: Annual State expenditure increase.
Agencies Affected: Board of Public Utilities, Department of Environmental Protection,
and Department of Transportation.
Office of Legislative Services Estimate
Fiscal Impact Year 1 Year 2 and Thereafter
State Expenditure Increase $80,000 - $140,000 $80,000 - $120,000
The Office of Legislative Services (OLS) determines that the bill would result in a one-time
State expenditure increase for the Board of Public Utilities, the Department of Environmental
Protection, the Department of Transportation, and other State agencies providing electric
vehicle service equipment incentives. Each State agency subject to the bill would need to
establish a system, rather than a process, to monitor and enforce compliance with the site-wide
uptime requirement. This shift may require additional resources and funding to develop and
maintain robust monitoring systems.
The bill requires the State agencies to engage in comprehensive and public stakeholder
engagement processes when developing the compliance monitoring system and periodically
reviewing and modifying the site-wide uptime requirement. These stakeholder engagements
could involve costs associated with gathering input, organizing meetings, and incorporating
feedback.
The OLS notes aligning the minimum uptime requirement with the federal standard under the
National Electric Vehicle Infrastructure Formula Program may necessitate ongoing
adjustments and updates to ensure consistency between State and federal requirements. This
regular review and modification of the minimum uptime requirement may entail administrative
efforts and potential costs.
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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The OLS also notes that the bill directs the Board of Public Utilities, the Department of
Environmental Protection, and the Department of Transportation to monitor and enforce
compliance with the requirements of the bill. Due to the number of charging stations that will
need to be monitored in the State on an annual basis, the board may require an additional staff
member, with an estimated annual compensation in the range of $80,000 to $120,000.
BILL DESCRIPTION
This bill would direct the Board of Public Utilities, the Department of Environmental
Protection, the Department of Transportation, and any other State agency that offers an incentive
for the installation of electric vehicle service equipment, pursuant to P.L.2019, c.362 or any other
State law, to require compliance with a minimum uptime requirement as a condition of granting
such incentive. Electric vehicle service equipment is the equipment, including the cables, cords,
conductors, connectors, couplers, enclosures, attachment plugs, power outlets, switches and
controls, network interfaces, and point of sale equipment and associated apparatus, that is designed
and used for the purpose of transferring energy from the electric supply system to a plug-in electric
vehicle.
Specifically, the bill would require the Board of Public Utilities or any other State agency, as
a condition of issuing a State-level electric vehicle service equipment incentive payment, to require
the equipment for which the incentive is granted, together with all other incentivized equipment
installed at the same site, to remain operational at least 97 percent of the time, not including any
period of exempted downtime, and except as otherwise provided by the bill, as measured on an
annual and site-wide basis.
The bill would require State agencies to regularly review the site-wide uptime requirement
being established by the bill, on at least a biennial basis, in order to ensure that it is consistent with
the minimum uptime requirement that is applicable to recipients of federal funds under the
National Electric Vehicle Infrastructure Formula Program, established pursuant to the federal
Infrastructure Investment and Jobs Act.
Each State agency, which is subject to the bill, would be directed to develop and implement a
process to monitor compliance with, and to enforce, the site-wide uptime requirement established
and modified under the bill. The bill would further require each State agency, when reviewing or
modifying the site-wide uptime requirement, or when developing and implementing the
compliance monitoring and enforcement system required by the bill, to engage in a comprehensive
and public stakeholder engagement process and to review and consider the most recent standards,
guidelines, and requirements related to electric vehicle service equipment uptime, downtime, and
exempted downtime, which are applicable to federal funding recipients under the National Electric
Vehicle Infrastructure Formula Program.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
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OFFICE OF LEGISLATIVE SERVICES
The OLS determines that the bill would result in a one-time State expenditure increase for the
Board of Public Utilities to develop and implement a process that would monitor the compliance
of electric vehicle service equipment. Specifically, it would require that the electric vehicle service
equipment are operational at least 97 percent of the time, as measured on an annual basis. In
addition, the OLS notes that the bill directs the board to monitor and enforce compliance with the
requirements of the bill. Due to the number of charging stations that will need to be monitored in
the State on an annual basis, the board may require an additional staff member, with an estimated
annual compensation in the range of $80,000 to $120,000.
The OLS determines that the bill would result in a marginal annual State expenditure increase
for Board of Public Utilities, the Department of Environmental Protection, the Department of
Transportation, and other State agencies providing electric vehicle service equipment incentives.
Each State agency subject to the bill would need to establish a system to monitor and enforce
compliance with the site-wide uptime requirement. This shift may require resources and funding
to develop and maintain robust monitoring systems.
The OLS notes aligning the minimum uptime requirement with the federal standard under the
National Electric Vehicle Infrastructure Formula Program may necessitate ongoing adjustments
and updates to ensure consistency between State and federal requirements. This regular review
and modification of the minimum uptime requirement may entail administrative efforts and
potential costs.
Many times electric vehicle charging stations are operated by a private company known as a
charge point operator. A charge point operator provides services for the owner of the charging
station including charging station service management. The management could include radar
sensors to know if a car occupies a charging station, if a vehicle occupying a station is charging or
not, and if any issues arise with the hardware, the software, or any other electric vehicle service
equipment. The data from these sensors frequently goes to a platform that can be accessed by the
owner of the charging station. Thus, the Board of Public Utilities could require the owner of a
charging station to have a system set in place to monitor the operational status of the electric
vehicle service equipment at a charging station and require reports to be sent electronically to the
board. This would likely mitigate the enforcement costs of the bill. However, the OLS notes that
each owner of a charging station may manage their charging station differently.
The OLS determines that to accomplish the monitoring and compliance under this bill, there
will be an annual expenditure increase from hiring an additional full-time staff member. The OLS
notes that there will be an increasing number of charging stations over the next several years.
Thus, there will be more electric vehicle service equipment to monitor for compliance.
Specifically, pursuant to P.L.2019, c.362, the State’s goal is that there is to be at least 400 chargers
available for public use at no fewer than 200 charging locations in the State by December 31, 2025,
at least 1,000 chargers available for public use across the State by December 31, 2025, at least 15
percent of all multi-family residential properties in the State be equipped with charging stations
for residents by December 31, 2025, and 20 percent of all franchised overnight lodging
establishments be equipped with charging stations by December 31, 2025. The Board of Public
Utilities is currently providing incentives for the installation of electric vehicle chargers in multi-
family residential properties, overnight lodging establishments, and local and State government
entities. Incentives available under the program range from $4,000 to $6,000 depending on the
type of charging station and location of the charging station. Currently, 40 applicants have
received approximately $1 million in incentives for the installation of charging stations in multi-
family residential properties. As the board would only be required to monitor the compliance of
chargers at those multi-family residential properties or other facilities for which an incentive was
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awarded, the costs incurred by the board may be mitigated based on the number of charging
stations installed by the recipients of the incentives. In addition, it is unknown how many charging
station installations will be provided with State incentives in future years. The board is authorized
to develop additional incentives beyond those currently authorized. If fewer incentives are
provided, this too will mitigate the costs for the board.
The bill requires the State agencies to engage in comprehensive and public stakeholder
engagement processes when developing the compliance monitoring system and periodically
reviewing and modifying the site-wide uptime requirement. These stakeholder engagements could
involve costs associated with gathering input, organizing meetings, and incorporating feedback.
Section: Environment, Agriculture, Energy, and Natural Resources
Analyst: Neha Patel
Senior Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).