BILL ANALYSIS �
AB 2565
Page 1
ASSEMBLY THIRD READING
AB 2565 (Muratsuchi)
As Amended April 21, 2014
Majority vote
HOUSING 4-2 JUDICIARY 7-3
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|Ayes:|Chau, Gordon, Brown, |Ayes:|Wieckowski, Alejo, Chau, |
| |Yamada | |Dickinson, Garcia, |
| | | |Muratsuchi, Stone |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Beth Gaines, Maienschein |Nays:|Wagner, Gorell, |
| | | |Maienschein |
| | | | |
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SUMMARY : 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 (EV) charging station in a lessee's designated
parking space. 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 EV charging
station in a lessee's designated parking space including, but
not limited to:
a) An assigned parking space,
b) A parking space in a common area; and
c) A parking space that is specifically designated for use
by a particular lessee.
1)Defines "electric vehicle charging station" or "charging
station" to mean a station that is designed in compliance with
the California Building Standards Code and delivers
electricity from a source outside an EV into one or more EVs.
2)Defines "reasonable restrictions" or "reasonable standards" as
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restrictions or standards that do not significantly increase
the cost of the EV charging station, its installation, or
significantly decrease the charging station's efficiency or
performance.
3)Requires an EV 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:
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.
1)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,
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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.
1)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.
2)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.
3)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.
4)Allows the lessor to create a new parking space where one did
not previously exist to facilitate the installation of the EV
charging station.
5)Provides that a lessor that willfully violates this bill is
liable to the lessee applying for the EV charging station for
actual damages, and must pay a civil penalty to the lessee in
an amount not to exceed $1,000.
6)Provides the prevailing party in an action to enforce the
provisions of this bill shall be awarded reasonable attorney's
fees.
FISCAL EFFECT : None
COMMENTS :
According to a 2012 study completed by the California Center for
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Sustainable Energy in coordination with the California Air
Resources Board (ARB), Californians own more than 12,000 plug-in
EVs, roughly 35% of all plug-in vehicles in the United States.
Approximately 1,000 new plug-in vehicles are being sold in the
state every month.
In 2012, the Governor issued an Executive Order directing ARB,
the California Energy Commission, the California 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
EVs 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 EV 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), Chapter 410, Statutes of 2012,
required the California Building Standards Commission to adopt
mandatory standards for the installation of EV 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.
SB 209 (Corbett), Chapter 121, Statutes of 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). The bill
specified conditions for the installation of an EV charging
station in the common area of a CID. This bill is modeled after
SB 209 but it applies to rental commercial or residential
properties. SB 209 prohibited an HOA from unreasonably
restricting an owner's right to install an EV charging station.
Whereas in a CID the members have a shared ownership of the
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common space in a commercial or residential tenant has no
ownership of the common space.
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."
Arguments in support: According to ChargePoint, the sponsor of
the bill, EV charging infrastructure is not keeping up with
electric vehicle adoption. In 2013, there were 75,000 EVs
registered in California and 7,542 charging ports for a ratio of
nearly 10 vehicles for every port causing congestion to charging
stations. The sponsor states that individual businesses have
realized the financial and environmental incentive of offering
EV charging. By offering EV charging, an employer can give
employees the equivalent of a 5% raise through reduced fuel and
maintenance costs and time saved through HOV lane access.
Further, 41% of California residents live in multi-family
housing. The sponsor contends that without the ability to
charge at home, Californians are unlikely to purchase EVs and
therefore do not get the benefits which include saving thousands
on gas and maintenance costs and helping the environment.
Arguments in opposition: Opponents of this bill have both broad
policy as well as operational concerns with the bill. According
to opponents, "AB 2565 uses the language from SB 209 (Corbett)
in an attempt to give a lessee of a commercial or residential
property the ability to install an EV charging station.
However, SB 209 was written to assure that homeowners (property
owners) would be able to install EV charging stations at their
residence over any "unreasonable" objections made by the HOA.
This makes sense: a homeowner should be able to make this
decision for their property. But simply transferring the
language to commercial and residential rental environment
creates a significant change in that it reverses the roles and
gives the power to the party that does not own the property."
In addition, the opponents have concerns with the bill's use of
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the term "unreasonable" to judge as to whether or not a property
owner is in compliance with its provisions. "Even though the
bill's intent is to include all costs of installing and
maintaining an EV charger we are not sure that a future
interpretation of the unreasonable standard would actually
include all costs."
Policy issues to be considered:
1)Installing an EV charging station could involve ripping up
concrete that may be part of the travel path for other tenants
and could create Americans with Disability Act (ADA) issues.
This would create liability for the owner and may require
coordination outside of the tenant's control. It may be more
appropriate to have the owner of the property control the
installation of the infrastructure to support the EV charging
station.
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. There is going to be a lack of uniformity in
application throughout the state and even within an individual
jurisdiction on what is a reasonable restriction. A charging
station that is functional may cost significantly less than
one that is both functional and esthetically pleasing. Beyond
just the need to agree to a standard, if a landlord and tenant
disagree on the correct approach, and the landlord denies the
tenant's request to install, then the landlord may be seen as
unreasonable. If a landlord violates this standard they are
subject, to a $1,000 fine.
3)How will the tenant be billed for the electricity for the
charging station? Will there need to be a process for master
metering?
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?
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Analysis Prepared by : Lisa Engel / H. & C.D. / (916) 319-2085
FN: 0003345