BILL ANALYSIS �
AB 2565
Page 1
Date of Hearing: May 6, 2014
ASSEMBLY COMMITTEE ON JUDICIARY
Bob Wieckowski, Chair
AB 2565 (Muratsuchi) - As Amended: April 21, 2014
SUBJECT : RENTAL PROPERTY: NEEDED ELECTRIC VEHICLE CHARGING
INFRASTRUCTURE
KEY ISSUE : IN ORDER TO HELP ACHIEVE THE STATE'S LANDMARK
ENVIRONMENTAL PROTECTION GOALS TO INCREASE ELECTRIC VEHICLES ON
CALIFORNIA'S ROADWAYS, SHOULD COMMERCIAL AND RESIDENTIAL TENANTS
BE ALLOWED TO PAY FOR THE INSTALLATION OF NEEDED ELECTRIC
VEHICLE (EV) CHARGING STATIONS ON THE RENTAL PREMISES, SUBJECT
TO REASONABLE RESTRICTIONS IMPOSED BY THE PROPERTY OWNER?
SYNOPSIS
This laudable bill seeks to help address the need to increase
electric vehicle (EV) charging infrastructure in California by
allowing commercial and residential tenants the opportunity to
foot the bill for their installation subject to reasonable
restrictions imposed by the property owner. Under this bill,
the tenant requesting installation of the charger would have to
agree to cover all the costs of installation, maintenance, and
electricity usage, among other things. In exchange for this
helpful investment on the property owners' property, the owners
would appropriately not be allowed to unreasonably restrict the
installation of a charger through provisions in a commercial or
residential lease.
The bill was approved by the Assembly Housing and Community
Development Committee less than three days before this analysis,
reflecting the short time frame for consideration in this
Committee of the many important and complex policy issues raised
by the bill. Although the bill currently in print engendered
earlier opposition from a coalition of commercial property
owners, apartment associations, and the building industry, the
opponents and the author have communicated to the Committee that
they have reached conceptual agreement on the important goals of
the measure and have pledged to continue to work together as the
bill moves forward to finalize amendments to achieve those
laudable objectives. This analysis simply therefore notes some
of the key policy issues the author and stakeholders will
continue to work on as the bill moves forward, should it be
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approved by this Committee as a worthy work-in-progress. The
author has appropriately acknowledged that the bill will come
back to this Committee for another look after further amendments
are added to the measure.
SUMMARY : Seeks to increase electric vehicle (EV) charging
infrastructure in California by allowing commercial and
residential tenants to pay for and install charging stations on
the premises. Specifically, this bill :
1)Makes a term in a lease, contract, security instrument, or
other instrument affecting the lease of a commercial or
residential property void and unenforceable if it prohibits or
unreasonably restricts the installation of an electric vehicle
charging station in a lessee's designated parking space, as
specified.
2)Permits the property owner to impose reasonable restrictions
on the installation, with "reasonable restrictions" defined as
those that do not significantly increase the cost of the
electric vehicle charging station, its installation, or
significantly decrease the charging station's efficiency or
performance.
3)Requires an EV charging station to meet appropriate state and
local health and safety standards and requirements, and all
applicable zoning, land use, or other ordinances or land use
permit requirements.
4)Provides that if the approval of the landlord is required for
installation of an EV charging station the application must be
processed and approved in the same manner as an application
for approval of a lessee modification to the property and must
not be willfully avoided or delayed.
5)Requires the written approval or denial of a lessee's
application to install an EV charging station.
6)Provides that if the application is not denied within 60 days
then the application is deemed approved unless the delay is
the result of a reasonable request for additional information.
7)Provides that if the lessor approval is required and obtained
by the lessee, the lessor shall approve the installation if
the lessee agrees to the following in writing:
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a) Comply with the lessor's reasonable standards for the
installation of the charging station;
b) Engage a licensed contractor to install the charging
station;
c) Within 14 days of approval provide a certificate of
insurance for $1,000,000 that names the lessor as an
additional insured; and
d) Pay for the electricity usage associated with the
charging station.
8)Requires that the lessee is responsible for the following:
a) Costs for damage to property and the charging station
resulting from the installation, maintenance, repair,
removal, or replacement of the charging station;
b) Costs for maintenance, repair, and replacement of the
charging station; and
c) The cost of electricity associated with the charging
station.
9)Requires the lessor to authorize installation of a charging
station, for the exclusive use of the lessee, in a common area
that is not an exclusive use common area, if the lessee's
designated parking space is impossible or unreasonably
expensive to install a charging station and the lessee
satisfies all the requirements above for installing the
charging station.
10)Requires the lessor to enter into a licensing agreement with
the lessee if a charging station is installed in a common area
that is not an exclusive use common area for the exclusive use
of the lessee.
11)Allows the lessee or the lessor to install an EV charging
station in the common area for the use of all the lessees of
the lessor in which case the lessor must establish appropriate
terms for the charging station.
12)Allows the lessor to create a new parking space where one did
not previously exist to facilitate the installation of the EV
charging station.
13)Provides that a lessor that willfully violates these
provisions is liable to the lessee applying for the EV
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charging station for actual damages, and must pay a civil
penalty to the lessee in an amount not to exceed $1,000 plus
an award of reasonable attorney's fees to the prevailing
plaintiff.
EXISTING LAW :
1)Requires DGS and Caltrans to develop and implement advanced
technology vehicle parking incentive programs, to the extent
feasible, in public parking facilities of 50 spaces or more
operated by DGS and park-and-ride facilities owned and
operated by Caltrans to incentivize the purchase and use of
alternatively fueled vehicles in the state. (Public Resources
Code Section 25722.9.)
2)Makes void and unenforceable any covenant, restriction or
conditions contained in any deed, contract, security
instrument, or other instrument in a common interest
development (CID) that prohibits or restricts the installation
of an EV charging station with respect to the installation of
EV charging stations in CIDs. (Civil Code Section 4745(a).)
3)Defines "reasonable restrictions" as those that do not
significantly increase the cost of the EV charging station or
decrease its efficiency or performance. (Civil Code Section
4745(a).)
4)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. (Civil Code Section
4745(e).)
5)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 all the following:
a) Comply with the architectural standards for
installation;
b) Engage a licensed contractor to install the station;
c) Within 14 days of approval provide a certification of
insurance that names the HOA as an additional insurer under
the homeowner's insurance policy; and,
d) Pay for the electricity usage associated with the
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station. (Civil Code Section 4745(f)(1).)
6)Provides that if the EV charging station is to be placed in a
common area or an exclusive use common area, the homeowner and
each successive homeowner must maintain an umbrella liability
coverage policy for $1 million and name the HOA as an
additional insured under the policy with a right to notice of
cancellation. (Civil Code Section 4745(f)(3).)
FISCAL EFFECT : As currently in print this bill is keyed
non-fiscal.
COMMENTS : This laudable bill seeks to help address the need to
increase electric vehicle (EV) charging infrastructure in
California by allowing commercial and residential tenants the
opportunity to foot the bill for their installation subject to
reasonable restrictions imposed by the property owner. Under
this bill, the tenant requesting installation of the charger
would have to agree to cover all the costs of installation,
maintenance, and electricity usage, among other things. In
exchange for this helpful investment on the property owners'
property, the owners would appropriately not be allowed to
unreasonably restrict the installation of a charger through
provisions in a commercial or residential lease.
The Bill's Recent Approval In Its First Committee -- Parties
Commit To Continue To Work Together : The bill was approved by
the Assembly Housing and Community Development Committee less
than three days before this analysis, reflecting the short time
frame for consideration in this Committee of the many important
and complex policy issues raised by the bill. Although the bill
currently in print engendered earlier opposition from a
coalition of commercial property owners, apartment associations,
and the building industry, the opponents and the author have
communicated to the Committee that they have reached conceptual
agreement on the important goals of the measure and have pledged
to continue to work together as the bill moves forward to
finalize amendments to achieve those laudable objectives. This
analysis simply therefore notes some of the key policy issues
the author and stakeholders will continue to work on as the bill
moves forward, should it be approved by this Committee as a
worthy work-in-progress. The author has appropriately
acknowledged that the bill will come back to this Committee for
another look after further amendments are added to the measure.
AB 2565
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Purpose Of The Bill : According to the author, "In order to
address the lack of EV infrastructure, AB 2565 seeks to remove
an impediment to EV 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 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."
In addition to attempting to facilitate EV infrastructure in
commercial properties, the bill also applies to residential
rental property. The author notes that "41% of California
residents live in multi-family housing. Without the ability to
charge at home, Californians are unlikely to purchase EVs and
therefore don't get the benefits which include saving thousands
on gas and maintenance costs and helping the environment."
Background On Electric Vehicle Charging In California:
According to ChargePoint, a leading network of
independently-owned EV charging stations and the sponsor of this
bill, EV infrastructure is not keeping up with EV adoption in
California. In 2013, there were 75,000 EVs registered in the
state and 7542 public charging ports for an untenable ratio of
nearly 10 vehicles for every port, causing unacceptable
congestion at charging stations and suppressing enthusiasm for
EV's at the very time we need to maximize it.
According to the California Electric Vehicle Collaborative (PEV
Collaborative), the market for electric vehicles is growing
stronger each year. They note that national sales for EVs hit
100,000 in 2013, with roughly 40% of those vehicles being sold
in California. To support these increasing numbers of EV on our
roadways, the PEV Collaborative and other key EV stakeholders
agree that increasing available charging infrastructure will
allow EV drivers to extend their range of electric miles driven
and encourage owners of conventional fuel vehicles to purchase
EVs. (Assembly Transportation Committee analysis of AB 1696
(4/28/2014).)
While most PEV owners rely primarily on home charging to fuel
their vehicles, using home charging alone can restrict EV
driving to a limited range. When charging is available in
public places and at work, EV drivers are able to "top off" or
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fully replenish their charge conveniently which allows them to
travel more all-electric miles with a concomitant reduction in
GHG emissions. EV advocates suggest that workplace and public
charging benefits include building range confidence (reducing
range anxiety), increasing cost savings associated with
extending the all-electric use, and facilitating longer-distance
commuting using in EVs. (Id.)
In 2012, the Governor issued an Executive Order (EO) directing
ARB, the California Energy Commission, the Public Utilities
Commission, and other relevant agencies working with the Plug-in
Electric Vehicle Collaboration and the Fuel Cell Partnership to
develop benchmarks to help support and facilitate the rapid
commercialization of zero-emission vehicles. The order directed
these agencies to establish benchmarks to help the state's
zero-emission vehicle infrastructure support 1.5 million
electric vehicles by 2025.
In furtherance of this goal, the Office of Planning and Research
and the State Architect published guidelines to address physical
accessibility standards and design guidelines for the
installation of plug-in electric vehicle charging stations
throughout California. These guidelines are voluntary and apply
to public and private sites and eventually could become
regulations within California Building Code Chapter 11B:
Accessibility to Public Buildings, Public Accommodations,
Commercial Buildings and Public Housing.
Last year, AB 1092 (Levine) Ch. 410 Stats. 2012, required the
California Building Standards Commission (CBSC) 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
triennial edition of the California Building Standards Code
(Title 24 of the California Code of Regulations). The first
drafts of these guidelines were recently released and are
expected to be adopted in 2015.
Policy Considerations To Be Addressed As The Measure Moves
Forward : As discussed previously, proponents and opponents of
the bill agree on the important policy objectives of the bill to
increase EV charging infrastructure, and therefore have pledged
to continue to work together as the bill moves forward to
finalize amendments to achieve those objectives. The
stakeholders may wish to consider the following issues, among
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many others, as the bill moves forward:
1)Installation of an EV charging station may involve physical
changes to the property that will require thoughtful,
coordinated planning in order to maintain compliance with the
Americans with Disabilities Act (ADA).
2)The bill requires the lessee to comply with a lessor's
reasonable restrictions and standards for installing an EV
charging station. Reasonable restrictions and standards are
defined as restrictions or standards that do not significantly
increase the cost of the EV charging station or installation
or significantly decrease the charging station's efficacy or
performance. Stakeholders may wish to consider a broader,
more holistic definition of the "reasonable" standard to
account for concerns other than the cost and performance of
the charger itself.
3)How will the tenant be billed for the electricity for the
charging station? Will there need to be a process for master
metering, and how might sub-metering best be accomplished?
4)What happens to the EV charging station if the tenant moves
out? Is the tenant responsible for taking the charging
station out? Who pays for the maintenance of the charging
station once a tenant moves out?
5)Since the property owner will receive increased value to his
or her property by being able to attract future tenants who
require EV charging capability, and will also inherently get
to retain the benefit of the underlying electrical capacity
(e.g. the 220-volt wall outlet) when a tenant moves from the
premises, might it not be more reasonable and appropriate for
the measure to somehow apportion the costs associated with the
initial installation of such chargers on rental properties to
reflect that continued future benefit to the property owner?
6)What if any requirements in this context may be appropriate
for commercial lessees but not for residential leases, and
vice versa?
REGISTERED SUPPORT / OPPOSITION :
Support
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ChargePoint (sponsor)
Advanced Energy Economy
California Energy Storage Alliance
CALSTART
National Electrical Manufacturers Association
Powertree Services, Inc.
Plug In America
San Francisco BAYLeafs (Nissan LEAF Owners Association)
Oppose (unless amended as the bill moves forward)
California Business Properties Association
Building Owners and Managers Association of California
California Apartment Association
California Building Industry Association
California Chamber of Commerce
California Grocers Association
California Retailers Association
International Council of Shopping Centers
NAIOP of California
Analysis Prepared by : Anthony Lew and Drew Liebert / JUD. /
(916) 319-2334