BILL ANALYSIS �
SENATE JUDICIARY COMMITTEE
Senator Hannah-Beth Jackson, Chair
2013-2014 Regular Session
AB 2565 (Muratsuchi)
As Amended June 16, 2014
Hearing Date: June 24, 2014
Fiscal: No
Urgency: No
NR
SUBJECT
Rental property: electric vehicle charging stations
DESCRIPTION
This bill would require 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. The lessee's written
request must include: (1) terms required by the lessor for the
installation, use, and removal of the charging station and
installation of the infrastructure for the charging station; (2)
a statement acknowledging the lessee's responsibility to cover
all costs associated with the installation, removal, and use of
the charging station; and (3) the requirement that a lessee
maintain a $1,000,000 lessee liability coverage policy. This
bill would not apply to residential rental properties where EV
charging stations already exist for lessees, parking is not
provided as part of the lease agreement, where there are less
than five parking spaces, or the dwelling is subject to
residential rent control.
This bill would render 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. The bill would provide
requirements for lessor approval of a lessee's request to
(more)
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install or use an electronic vehicle charging station and would
require 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.
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 percent 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.
CHANGES TO EXISTING LAW
1.Existing law provides that the California Building Standards
Commission shall adopt, approve, codify, and publish mandatory
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building standards for the installation of future electric
vehicle charging infrastructure for parking spaces in
multifamily dwellings and nonresidential development. (Health
& Saf. Code Sec. 18941.10.)
Existing law 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 electric vehicle (EV) charging
station in an owner's parking space is unenforceable and void.
(Civ. Code Sec. 4745 (a).)
Existing law 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.
(Civ. Code Sec. 4745 (e).)
Existing law 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:
compliance with the architectural standards for
installation;
engaging a licensed contractor to install the station;
providing a certification of insurance that names the
HOA as an additional insured under the homeowner's
insurance policy; and
paying for the electricity usage associated with the
station. (Civ. Code Sec. 4745 (f)(1).)
Existing law provides that if the 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 million dollars and name the
HOA as an additional insured under the policy with a right to
notice of cancellation. (Civ. Code Sec. 4745 (f)(3).)
This bill would require a lessor, for any lease executed,
extended, or 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
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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, as specified;
pay the lessor all costs associated with the
installation of the charging station, as specified, 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.
This bill would require the EV charging station and all
modifications and improvements made to the property to be in
compliance with federal, state, and local law, as specified.
This bill would provide 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
percent 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.
This bill would provide 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.
1.This bill would provide 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 charging station in a parking
space associated with the commercial property is void and
unenforceable.
This bill would not apply to a commercial property where
charging stations already exist in a ratio of 2 for every 100
parking spaces, or a commercial property where there are less
than 50 parking spaces.
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This bill would 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.
This bill would allow 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.
This bill would provide 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.
This bill would provide 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.
COMMENT
1.Stated need for the bill
According to the author:
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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.
2.Extends existing protections afforded to residential property
owners to residential and commercial tenants
A property owner in a common interest development and subject to
a homeowner's association (HOA) is generally able to install an
EV charging station in his or her designated parking space,
subject to reasonable restrictions by the HOA. The owner must
cover the costs of the installation, maintenance, insurance, and
usage of the charging station, and is further obligated to make
disclosures to any individuals who purchase the property in the
future. This bill would similarly allow residential or
commercial tenants, subject to certain exceptions, to install EV
charging stations in designated parking spaces at the tenant's
expense.
ChargePoint, the sponsor of this bill, writes:
In California, EV infrastructure is not keeping up with EV
adoption. In 2013, there were 75,000 EVs registered in
California and 7,542 public charging ports for a ratio of
nearly 10 vehicles for every port causing congestion at
charging stations. While we celebrate the dramatic increase of
EVs in California, the access to EV infrastructure is not
keeping up. In some parts of the state there is an even
higher utilization and in others, residents may not even have
access to EV charging.
Fortunately, individual businesses have realized the financial
and environmental incentives to offering EV charging - it is
good for business. By offering EV charging, an employer can
give employees the equivalent of a 5 percent raise through
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reduced fuel and maintenance costs and time saved through HOV
lane access. Retailers have an incentive to install EV
charging as well - it attracts new customers who stay longer
and spend more money. All businesses should have the right to
install a self-financed EV charging at their property without
restriction from their landlord.
Further, 41 percent 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.
This bill will protect the rights of tenants to install EV
charging. AB 2565 will give businesses and individuals the
right to install a charging station - be it for their personal
use, as a perk to employees, a service to customers, to meet
environmental goals or any other reason. Assuming the tenant
is willing to cover the cost of the station, installation and
upkeep, a landlord cannot prohibit or create unreasonable
barriers.
Arguably, this bill is not too distant from past legislative
requirements mandating the installation of other utilities on
leased property such as telephone wiring or cable television
service, and further supports California's long-term
transportation strategy
to reduce localized pollution and greenhouse gas emissions, save
consumers money, and enable continued economic growth. (See
Executive Order B-16-2012, issued on March 23, 2012.)
3.Protects interests of property owners
The provisions of this bill would differ slightly from the
statutes governing EV charging station installation in CIDs in
that the interests of the lessor, the property owner, are
addressed by exempting certain properties, such as rent
controlled properties and commercial properties with fewer than
50 parking spaces, from the requirements of the bill, and by
allowing the property owners to charge reasonable rent for a
space if the installation of an EV charging station has the
effect of creating a "reserved" parking space where there was
not one before.
The above provisions and other protections extended to property
owners and landlords under this bill represent the author's
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close and continuing work with stakeholders. The bill was
initially opposed by a number of groups, including the
California Business Properties Association, the California
Apartment Association, the Chamber of Commerce, and the
California Grocers Association, all of whom have removed their
opposition since the amendments taken on June 16, 2014. At the
time of writing, this bill has no opposition. In support, the
California Electric Transportation Coalition writes, "we applaud
the author for working with non-residential and residential
property owners and accepting amendments that address their
concerns of rolling back the protections afforded to them.
Their cooperation is essential for our long-term success in
building a zero-emission transportation future and this bill
will set that tone."
Support : California Electric Transportation Coalition;
Schneider Electric
Opposition : None Known
HISTORY
Source : ChargePoint
Related Pending Legislation : None Known
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.
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
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unenforceable.
Prior Vote :
Assembly Floor: (Ayes 51, Noes 26)
Assembly Judiciary Committee (Ayes 7, Noes 3)
Assembly Housing and Community Development Committee (Ayes 4,
Noes 2)
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