Texas gave the green light to a plan requiring electric vehicle (EV) charging stations deployed in the state to incorporate Tesla’s technology in order to qualify for federal funding. The decision was made despite requests for additional time to redesign and evaluate the connectors.

As the largest beneficiary of a $5 billion initiative aimed at electrifying America’s highways, Texas’s decision is under close scrutiny by other states. the decision by the Lone Star state gives significant momentum to Tesla CEO, Elon Musk’s ambition to make Tesla’s North American Charging Standard (NACS), the EV charging standard in the U.S.

The initiative, however, faces early challenges, as some states have already begun allocating funds for EV charging stations deployments. Tesla was successful in winning numerous projects in Pennsylvania’s initial funding round, but failed to secure any in Ohio last month.

Federal guidelines stipulate that companies must at least offer the rival Combined Charging System (CCS) to be eligible for federal funding. Despite the rules, individual states are permitted to impose additional requirements beyond CCS.

Texas’s move follows announcements from Ford Motor Company, General Motors, Mercedes-Benz, among others, that they would adopt NACS, a decision that caused a stir in the industry. The state is set to receive $407.8 million over the next five years, has previously stated its intention to require Tesla’s connectors on EV chargers installed in the state. Washington and Kentucky have indicated similar intentions.