Use of electric vehicles (EV’s) is growing
According to a spokesman for Governor Brown, California has more electric vehicles on its roads than anywhere else. In 2012 the Governor issued an Executive Order identifying a long-term target of 1.5 million Zero Emission Vehicles on California roads by 2025. In its last session, the Legislature passed a package of laws designed to get to the 1 million electric vehicle mark in the next seven years. With this increase in electric vehicle (EV) ownership comes an increase in demand for EV charging stations where the owners of those vehicles work and live.
EV charging stations for multi-family housing
Beginning this year, many residential landlords will find their properties subject to a new “electric vehicle charging station” law designed to make it easier for tenants to own and maintain electric vehicles. For a residential lease “executed, extended, or renewed” after June 30, 2015, a landlord must approve a written request from a tenant to install an electric vehicle charging station.
The law does not apply to residential properties with fewer than five parking spaces, where parking is not provided as part of the lease agreement, or where the landlord has already provided EV charging for at least 10 percent of the designated parking spaces. It also places most of the costs and other burdens on the tenant, so it seems unlikely that many will be interested.
EV charging stations for commercial properties
There is also a new law in effect for EV charging stations at commercial properties with more than 50 parking spaces. Unless 2% of the parking spaces already provide for EV charging, any term in a commercial lease that is executed, renewed or extended on or after January 1, 2015, that prohibits or unreasonably restricts the installation or use of an electric vehicle charging station in a parking space associated with the commercial property, or that otherwise conflicts with the provisions of the new law, is void and unenforceable. A commercial tenant may now install an EV charging station at each space allotted under its lease or, if no specific parking spaces are allotted, on a number of spaces pursuant to a formula based on the total rentable square feet at the property. Commercial tenants must also incur most costs and responsibilities for installing and maintaining their charging stations but, since commercial tenants are usually significantly more invested in their space leases than residential tenants, they are also likely to be more interested in investing in EV doing so.
The new statutes are found in Sections 1947.6 (residential) and 1952.7 (commercial) of the California Civil Code.
Your Next Steps
Landlords will want to know and understand these new laws. Both landlords and prospective tenants should consider the impacts of the new legislation during lease negotiations. Landlords with property that is not exempt from the legislation may want to think through the potential installation of EV charging stations, including locations within parking areas suitable to installation, and consider possible new lease provisions, rules, and parking regulations regarding the installation, maintenance, operation, and surrender of tenant-installed EV charging stations.
Should you have any questions, please feel free to contact me.
Marcus J. Kocmur, Partner
805.966.7000
