BILL ANALYSIS Ó SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: SB 209 SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: Corbett VERSION: 3/22/11 Analysis by: Mark Stivers FISCAL: no Hearing date: March 29, 2011 SUBJECT: Common interest developments: electrical vehicle charging stations DESCRIPTION: This bill provides that a prohibition or restriction on the installation or use of an electrical vehicle charging station in any of the governing documents of a common interest development is void and unenforceable. ANALYSIS: A common interest development (CID) is a form of real estate in which each homeowner has an exclusive interest in a unit or lot and a shared or undivided interest in common area property. Within a CID, exclusive use common area is a part of the undivided common area that is reserved for use by a particular homeowner, such as a parking stall or patio. Condominiums, planned unit developments, stock cooperatives, community apartments, and many resident-owned mobilehome parks all fall under the umbrella of common interest developments. Each CID is governed by a homeowners association board elected by the members. The members of the CID are bound by the covenants, conditions, and restrictions (CC&Rs) that are recorded against each individual unit. In addition, associations adopt articles of incorporation, articles of association, and bylaws for the governance of the CID as well as operating rules that govern the behavior of members and their guests. Collectively, these documents are referred to as the governing documents of the association. Current law voids CID governing documents in a number of instances, such as where they prohibit or restrict solar energy systems, low water-using plants, or displays on non-commerical signs, including the American flag. SB 209 (CORBETT) Page 2 This bill provides that a provision of a CID governing document that effectively prohibits or unreasonably restricts the installation or use of an electrical vehicle charging station is void and unenforceable. The bill further: Allows a CID to impose reasonable restrictions that do not significantly increase the cost of the station or significantly decrease the station's efficiency or performance. Requires the station to meet state and local building and safety standards. Provides that if a CID requires approval of the installation of the charging station, then the CID must approve or deny the application in writing within 60 days, unless the delay is a result of a reasonable request for additional information. For charging stations located in a common area or exclusive use common area, requires the homeowner to agree in writing to: Comply with the CID's design specifications. Engage a licensed contractor. Within 14 days of approval by the CID, provide a certificate of insurance that names the CID as an additional insured on the homeowner's insurance policy. For charging stations located in a common area or exclusive use common area, requires the homeowner and successive homeowners to maintain an insurance policy naming the CID and to be responsible for any maintenance, removal, repair, and replacement costs for the station as well as any damages related to the station. Subjects a CID that willfully violates this bill to actual damages, a civil penalty up to $1000, and attorney's fees. COMMENTS: 1.Purpose of the bill . In order for electric vehicles to proliferate, it is important that early consumers have a positive experience. Installing a home charging station is one of the key elements to electric vehicle ownership, and according to the author, incidences of CIDs blocking the installation of electric vehicle chargers have arisen. If such prohibitions or restrictions become common, Californians living in CIDs will be shut out of driving clean electric vehicles. This bill seeks to eliminate obstacles that SB 209 (CORBETT) Page 3 currently impact or will impact electrical vehicle owners in CIDs. By facilitating home stations, this bill will also encourage off-peak charging for electric vehicles, thereby reducing the impact on the electric grid. 2.Getting ahead of the problem . There are very few plug-in electric vehicles in use in California today. As a result, staff is not aware of any cases in which a CID has prohibited the installation of a charger. The expectation, however, is that the market for plug-in electric vehicles is about to take off with the introduction of vehicles such as the Chevrolet Volt and Nissan Leaf. This bill is intended to prevent future problems in CID by establishing standards for such installations up front. 3.Borrowing from Hawaii . In response to an actual incident, the Hawaii legislature last year enacted a statute voiding prohibitions on the installation of electric vehicle charging stations in that state's version of common interest developments. The provisions of this bill largely mirror those of the Hawaii statute with two major exceptions, both relating to the installation of charging stations in common areas. There are many CIDs, especially those that include attached housing units, in which parking is located in a central area that comprises part of the common area. Individual spaces may be reserved for particular homeowners, in which case the spaces may be considered exclusive use common areas. In instances where a homeowner will need to install an electric vehicle charging station in a portion of the common area in order to be near his or her parking space, both the Hawaii law and this bill establish requirements on the homeowner, including the requirements to maintain insurance, to cover repair, maintenance, and removal costs, and to obtain approval from the association. Unlike the Hawaii statute, however, this bill implies but does not explicitly state that homeowners are required to pay the on-going electricity charges associated with the charger. Secondly, the Hawaii law requires the association to grant consent for the installing of a charging station on common area property if the homeowner agrees to the various conditions. This bill states only that the homeowner must agree to the conditions and obtain the association's approval but does not explicitly state whether or not the association must grant such approval. The committee may wish to consider amendments to explicitly make the homeowner responsible for electricity charges and to require the association to grant SB 209 (CORBETT) Page 4 consent if the homeowner agrees to the enumerated conditions. RELATED LEGISLATION: SB 730 (Kehoe) requires a city or county to make available an online building permit form for residential and nonresidential property owners who seek to install electric vehicle charging equipment, to approve such permits within 24 hours of receipt, and to review the work completed under the permit within seven days. Will be heard in the Senate Transportation and Housing Committee on March 29, 2011. POSITIONS: (Communicated to the Committee before noon on Wednesday, March 23, 2011) SUPPORT: Alliance of Automobile Manufacturers Plug In America OPPOSED: None received.