The U.S. state of Texas approved a plan on August 16 local time that requires only companies that incorporate Tesla's technology (the NACS standard) into their electric vehicle charging stations to qualify for federal funding, even though there are still calls for more time to redesign and test charging post equipment.

Texas, the biggest beneficiary of a $5 billion program to electrify U.S. highways, is being closely watched by other states for its decision, which is a step forward in Tesla's plan to make its technology the U.S. charging standard. Tesla's efforts are facing an early test as some states begin to disburse those funds. The company won a series of projects in the first round of funding in Pennsylvania, announced Monday, but did not win any in Ohio last month.

Federal regulations are said to require the provision of CCS, which is the Biden administration's preferred U.S. standard and serves as the minimum to qualify for funding. However, states can add their own requirements to the CCS when allocating federal funds at the local level.

A little more than two months ago, Ford and General Motors announced plans to adopt the Tesla NACS standard, news that caused a furor throughout the auto industry and prompted more automakers and charging companies to embrace the technology. In June, it was reported that the state of Texas would receive and deploy $407.8 million over five years in a plan to mandate companies to install Tesla's plugs. Washington state has discussed a similar program, and Kentucky has made it mandatory.

Florida, another major funding recipient state, recently revised its plan to say it will mandate NACS a year after the Society of Automotive Engineers (SAE International) formally endorsed the technology, which SAE International is reviewing.

A number of charging companies sent a letter to the Texas Transportation Commission objecting to the requirements in the first round of the funding plan, citing concerns about Tesla's connector supply chain and certification, saying it would jeopardize the successful deployment of electric vehicle chargers. That forced Texas to twice delay a vote on the plan as it tried to understand NACS and its implications until Wednesday, when the commission voted unanimously to approve the plan.

In presenting the state's plan to the commission, Texas Department of Transportation Director Humberto Gonzalez said, "The proposed dual-connector approach will help ensure at least 97 percent coverage of the more than 168,000 electric vehicles in the state that currently have fast-charging ports."