BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2565|
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THIRD READING
Bill No: AB 2565
Author: Muratsuchi (D)
Amended: 6/16/14 in Senate
Vote: 21
SENATE JUDICIARY COMMITTEE : 6-1, 6/24/14
AYES: Jackson, Corbett, Lara, Leno, Monning, Vidak
NOES: Anderson
ASSEMBLY FLOOR : 51-26, 5/29/14 - See last page for vote
SUBJECT : Rental property: electric vehicle charging stations
SOURCE : ChargePoint
DIGEST : This bill requires a lessor of a dwelling to approve
a written request of a lessee to install an electric vehicle
(EV) charging station at the lessee's designated parking space
if the EV charging station and all modifications and
improvements made to the leased premises meet all applicable
health and safety standards, and complies with the lessor's
procedural approval process for modification to the property.
This bill renders void any term in a lease renewed or extended
on or after January 1, 2015, that conveys any possessory
interest in commercial or residential property that either
prohibits or unreasonably restricts the installation or use of
an EV charging station in a parking space associated with the
commercial or residential property. This bill provides
requirements for lessor approval of a lessee's request to
install or use an electronic vehicle charging station and
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requires that a lessor approve a request to install a charging
station if the lessee agrees in writing to do specified acts,
including paying for various costs associated with the charging
station and maintaining insurance naming the lessor as an
insured.
ANALYSIS : Existing law:
1.Provides that the California Building Standards Commission
shall adopt, approve, codify, and publish mandatory building
standards for the installation of future electric vehicle
charging infrastructure for parking spaces in multifamily
dwellings and nonresidential development.
2.Provides that any covenant, restriction, or condition
contained in any deed, contract, security instrument, or other
instrument in a common interest development (CID) that
prohibits or unreasonably restricts the installation or use of
an EV charging station in an owner's parking space is
unenforceable and void.
3.Requires a homeowners association (HOA) to process and approve
a request to install an EV charging station in the same manner
as an architectural modification to the property and to not
willfully delay or avoid approval.
4.Provides that if an EV charging station is to be placed in the
common area of a CID or an exclusive use common area, the
owner must obtain approval to install the EV charging station,
and the homeowner must agree in writing to specified
requirements.
5.Provides that if an EV charging station is to be placed in a
common area or an exclusive use common area, the owner must
obtain approval to install the EV charging station, and the
homeowner must agree in writing to maintain a liability
coverage policy for $1,000,000 and name the HOA as an
additional insured under the policy with a right to notice of
cancellation.
This bill:
1.Requires a lessor, for any lease executed, extended, or
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renewed after July 1, 2015, to approve a written request of a
lessee to install an EV charging station at the lessee's
designated parking space if the written request includes the
lessee's consent to enter into a written agreement to:
Comply with the lessor's requirements for the
installation, use, maintenance, and removal of the charging
station, and provide a financial analysis of the scope of
work regarding the installation;
Pay the lessor all costs associated with the
installation of the charging station, and any cost for
damage, maintenance, repair, removal, and replacement of
the charging station;
Pay, as part of rent, the costs of the electrical usage
from the charging station; and
Maintain a general liability coverage insurance policy
in the amount of $1,000,000, naming the lessor as an
additional insured.
1.Requires the EV charging station and all modifications and
improvements made to the property to be in compliance with
federal, state, and local law.
2.Provides that the above provisions do not apply to a
residential rental property where any of the following apply:
EV charging stations already exist for lessees in 10% or
more of the parking spaces;
Parking is not provided in the lease agreement;
The property has less than five parking spaces; or
The dwelling is subject to residential rent control.
1.Provides that a lessor shall not be obligated to provide an
additional parking space to accommodate an EV charging
station, and may be able to charge a monthly rental fee for
the parking space if the effect of the station is to create a
"reserved" parking space.
2.Provides that any term in a commercial lease that is executed,
renewed, or extended on or after July 1, 2015, that prohibits
or unreasonably restricts the installation or use of an EV
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charging station in a parking space associated with the
commercial property is void and unenforceable.
3.Does not apply to a commercial property where charging
stations already exist in a ratio of two for every 100 parking
spaces, or a commercial property where there are less than 50
parking spaces.
4.Does not apply to provisions that impose reasonable
restrictions, as defined, on the installation of EV charging
stations, or to properties where no parking spaces are
allotted, or where the number of parking spaces are limited,
as specified.
5.Allows the property owner, if the effect of installing an EV
charging station is to grant the leaseholder a reserved
parking space, to charge a reasonable monthly rent for the
space.
6.Provides that if lessor approval is required, the lessee shall
first agree in writing to do all of the following:
Comply with the lessor's reasonable standards for the
installation of the charging station;
Engage a licensed contractor to install the charging
station; and
Within 14 days of approval, provide a certificate of
insurance, as specified.
1. Provides that the lessee is responsible for all of the
following:
Costs for maintenance, repair, and replacement of the
charging station;
Costs for damage to property and the charging station
resulting from the installation, maintenance, repair,
removal, or replacement of the charging station;
The cost of electricity associated with the charging
station; and
Liability coverage in the amount of $1,000,000 naming
the lessor as an additional insured under the policy, as
specified, and property insurance covering any damage or
destruction caused by the charging station.
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Background
According to a 2012 report by the California Center for
Sustainable Energy in coordination with the California Air
Resources Board, Californians own more than 12,000 plug-in
electric vehicles, which represent approximately 35% of all
plug-in vehicles in the United States. Nearly 1,000 new plug-in
vehicles are being sold in California every month. (California
Plug-in Electric Vehicle Owner Survey < http://
energycenter.org/sites/default/files/docs/nav/transportation/cvrp
/survey-results/California_PEV_Owner_Survey_Report.pdf> (as of
June 21, 2014).)
The Legislature has steadily been responding to the state's need
for a more robust electric vehicle (EV) charging infrastructure.
SB 209 (Corbett, Ch. 121, Stats. 2011) prohibited the governing
documents of an association from denying or restricting the
installation of an EV charging station by an owner in a common
interest development (CID), and specified the conditions for the
installation and maintenance of an EV charging station in a CID.
Last year, AB 1092 (Levine, Ch. 410, Stats 2013) required the
California Building Standards Commission to adopt mandatory
standards for the installation of electric vehicle charging
infrastructure for parking spaces in newly constructed
multifamily dwellings and nonresidential development in the next
edition of the California Building Standards Code.
This bill, which is similar to SB 209, seeks to allow a
commercial or residential tenant to install an EV charging
station in his or her parking space, at the tenant's expense,
and subject to the reasonable restrictions of the lessor.
Prior Legislation
AB 1092 (Levine, Chapter 410, Statutes of 2013) required the
Building Standards Commission to include mandatory building
standards for the installation of electric vehicle charging
infrastructure in multifamily dwellings and non-residential
development.
SB 880 (Corbett, Chapter 6, Statutes of 2012) specified that the
governing documents of a common interest development may not
prohibit the installation of an electric vehicle charging
station in an owner's designated parking space.
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SB 209 (Corbett, Chapter 121, Statutes of 2011) provided 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 6/26/14)
ChargePoint (source)
Advanced Energy Economy
California Electric Transportation Coalition
California Energy Storage Alliance
Cities Association of Santa Clara County
City of Cupertino
City of Santa Monica
City of West Hollywood
Greenlots
Plug In America
Powertree Services Inc.
Schneider Electric
ARGUMENTS IN SUPPORT : According to the author:
Electric Vehicle (EV) infrastructure is not keeping up with
EV adoption? An ideal statewide ratio is three EVs for
every public charging port. This ratio should allow for an
EV charging port to be available to any driver who needs
it. In order to address the lack of EV infrastructure, AB
2565 seeks to remove an impediment to charging station
installation. Property owners may refuse to allow the
installation of a charging station even if the tenant is
willing to pay for the installation and operation of the
station. AB 2565 would remove this impediment by stating
that a property owner cannot unreasonably deny a tenant the
ability to install a charging station if the tenant is
willing to pay for all expenses related to the installation
and operation of the station.
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ASSEMBLY FLOOR : 51-26, 5/29/14
AYES: Achadjian, Alejo, Ammiano, Bloom, Bocanegra, Bonilla,
Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,
Chesbro, Cooley, Dababneh, Daly, Dickinson, Eggman, Fong, Fox,
Frazier, Gatto, Gomez, Gonzalez, Gordon, Gray, Hall, Holden,
Jones-Sawyer, Levine, Lowenthal, Medina, Mullin, Muratsuchi,
Nazarian, Pan, Perea, John A. Pérez, V. Manuel Pérez, Quirk,
Rendon, Rodriguez, Skinner, Stone, Ting, Weber, Wieckowski,
Williams, Yamada, Atkins
NOES: Allen, Bigelow, Chávez, Conway, Dahle, Donnelly, Beth
Gaines, Garcia, Gorell, Grove, Hagman, Harkey, Jones, Linder,
Logue, Maienschein, Mansoor, Melendez, Nestande, Olsen,
Patterson, Quirk-Silva, Salas, Wagner, Waldron, Wilk
NO VOTE RECORDED: Roger Hernández, Ridley-Thomas, Vacancy
AL:nl 6/26/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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