Nebraska Law Clarifies How Commercial Electric Vehicle Charging Stations Must Source Their Electricity

Recent demand and tax incentives in the electric vehicle industry have driven commercial interest in building charging stations nationwide.[1]  Such a station charges electric vehicles and plug-in hybrid vehicles for a fee.

This has prompted legal questions about state regulation of the electricity for those charging stations.  The Nebraska Legislature recently adopted legislation prohibiting “commercial electric vehicle charging stations” from directly receiving electricity from generation facilities.[2]

Effective on April 24, 2024, Legislative Bill 1317 requires those stations to “receive electric energy solely from an electric supplier with the right to serve the location of the commercial electric vehicle charging station.”  Stations must also comply with the electric supplier’s interconnection requirements, electric rates and service regulations.[3]

This legislation maintains public power districts’ monopoly over retail electric service in Nebraska.[4]  Electric supplier means an authorized “entity supplying, producing or distributing electricity within the state for sale at wholesale or retail.”[5]

An electricity generator thus may not directly supply electricity to a commercial electric vehicle charging station.  However, it may generate electricity for an electric supplier and then receive credit for that electricity through a virtual power purchase agreement.  Nebraska law also permits anyone to charge their own vehicle or charge others’ vehicles without a usage fee.[6]

Attorneys at Baird Holm specialize in various subject matter areas including energy development and regulation.  Please contact us if you have questions.