The Davis-Stirling Common Interest Development Act defines and regulates common interest developments, which include community apartment projects, condominium projects, planned developments, and stock cooperatives. The act provides that any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a common interest development, or any provision of the governing documents of a common interest development, that effectively prohibits or restricts the installation or use of an electric vehicle (EV) charging station in an owners designated parking space is void and unenforceable. The act authorizes an association, as defined, to impose reasonable restrictions on those stations, as specified, and imposes requirements with respect to an associations approval process for those stations. If the station is to be placed in a common area or an exclusive use common area, the act requires the homeowner to pay for the electricity usage associated with the charging station and to be responsible for various costs associated with maintaining and repairing the station, as well as costs for damage to common areas and adjacent units resulting from installation and maintenance of the station. Existing law requires the owner and each successive owner of the charging station to, at all times, maintain a homeowner liability coverage policy in the amount of $1,000,000 and name the association as a named additional insured. Existing law requires the award of reasonable attorneys fees to a prevailing plaintiff in an action to enforce these provisions.

This bill would, with respect to an EV charging station placed in a common area or an exclusive use common area, require the homeowner to agree to pay the costs associated with the installation of the charging station. The bill would instead require the owner of the charging station, wherever located within the common interest development, to maintain a liability coverage policy, and provide the association with a corresponding certificate of insurance, as specified. The bill would instead require the award of those fees to a prevailing plaintiff in an action by a homeowner requesting to have an EV charging station installed.

The bill would also provide that any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a common interest development, or any provision of the governing documents of a common interest development, that effectively prohibits or restricts the installation or use of an electric vehicle charging station within an owners unit or of an EV-dedicated TOU meter, as defined, is void and unenforceable. This bill would extend specified existing authorizations and requirements to these meters and certain wiring and would require the award of reasonable attorneys fees to a prevailing plaintiff in an action by a homeowner requesting to have an EV-dedicated TOU meter installed and seeking to enforce compliance with those requirements.

The Davis-Stirling Common Interest Development Act defines and regulates common interest developments, which include community apartment projects, condominium projects, planned developments, and stock cooperatives. The act provides that any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a common interest development, or any provision of the governing documents of a common interest development, that effectively prohibits or restricts the installation or use of an electric vehicle (EV) charging station in an owners designated parking space is void and unenforceable. The act authorizes an association, as defined, to impose reasonable restrictions on those stations, as specified, and imposes requirements with respect to an associations approval process for those stations. If the station is to be placed in a common area or an exclusive use common area, the act requires the homeowner to pay for the electricity usage associated with the charging station and to be responsible for various costs associated with maintaining and repairing the station, as well as costs for damage to common areas and adjacent units resulting from installation and maintenance of the station. Existing law requires the owner and each successive owner of the charging station to, at all times, maintain a homeowner liability coverage policy in the amount of $1,000,000 and name the association as a named additional insured. Existing law requires the award of reasonable attorneys fees to a prevailing plaintiff in an action to enforce these provisions.

This bill would, with respect to an EV charging station placed in a common area or an exclusive use common area, require the homeowner to agree to pay the costs associated with the installation of the charging station. The bill would instead require the owner of the charging station, wherever located within the common interest development, to maintain a liability coverage policy, and provide the association with a corresponding certificate of insurance, as specified. The bill would instead require the award of those fees to a prevailing plaintiff in an action by a homeowner requesting to have an EV charging station installed.

The bill would also provide that any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a common interest development, or any provision of the governing documents of a common interest development, that effectively prohibits or restricts the installation or use of an electric vehicle charging station within an owners unit or of an EV-dedicated TOU meter, as defined, is void and unenforceable. This bill would extend specified existing authorizations and requirements to these meters and certain wiring and would require the award of reasonable attorneys fees to a prevailing plaintiff in an action by a homeowner requesting to have an EV-dedicated TOU meter installed and seeking to enforce compliance with those requirements.

The Davis-Stirling Common Interest Development Act defines and regulates common interest developments, which include community apartment projects, condominium projects, planned developments, and stock cooperatives. The act provides that any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a common interest development, or any provision of the governing documents of a common interest development, that effectively prohibits or restricts the installation or use of an electrical electric vehicle (EV) charging station in an owners designated parking space is void and unenforceable. The act authorizes an association, as defined, to impose reasonable restrictions on those stations, as specified, and imposes requirements with respect to an associations approval process for those stations. If the station is to be placed in a common area or an exclusive use common area, the act requires the homeowner to pay for the electricity usage associated with the charging station and to be responsible for various costs associated with maintaining and repairing the station, as well as costs for damage to common areas and adjacent units resulting from installation and maintenance of the station. Existing law requires the owner and each successive owner of the charging station to, at all times, maintain a homeowner liability coverage policy in the amount of $1,000,000 and name the association as a named additional insured. Existing law requires the award of reasonable attorneys fees to a prevailing plaintiff in an action to enforce these provisions.

This bill would, with respect to an EV charging station placed in a common area or an exclusive use common area, require the homeowner to agree to pay the costs associated with the installation of the charging station. The bill would instead require the owner of the charging station, wherever located within the subdivision, to maintain a homeowner liability coverage policy, and provide the association with a corresponding certificate of insurance, as specified. The bill would instead require the award of those fees to a prevailing plaintiff in an action by a homeowner requesting to have an EV charging station installed.

The bill would also provide that any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a common interest development, or any provision of the governing documents of a common interest development, that effectively prohibits or restricts the installation or use of an electric vehicle charging station within an owners unit or of an EV-dedicated TOU meter, as defined, is void and unenforceable. This bill would extend specified existing authorizations and requirements to these meters and certain wiring and would require the award of reasonable attorneys fees to a prevailing plaintiff in an action by a homeowner requesting to have an EV-dedicated TOU meter installed and seeking to enforce compliance with those requirements.

The Davis-Stirling Common Interest Development Act defines and regulates common interest developments, which include community apartment projects, condominium projects, planned developments, and stock cooperatives. The act provides that any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a common interest development, or any provision of the governing documents of a common interest development, that effectively prohibits or restricts the installation or use of an electrical vehicle (EV) charging station in an owners designated parking space is void and unenforceable. The act authorizes an association, as defined, to impose reasonable restrictions on those stations, as specified, and imposes requirements with respect to an associations approval process for those stations. If the station is to be placed in a common area or an exclusive use common area, the act requires the homeowner to pay for the electricity usage associated with the charging station and to be responsible for various costs associated with maintaining and repairing the station, as well as costs for damage to common areas and adjacent units resulting from installation and maintenance of the station. Existing law requires the award of reasonable attorneys fees to a prevailing plaintiff in an action to enforce these provisions. the owner and each successive owner of the charging station to, at all times, maintain a homeowner liability coverage policy in the amount of $1,000,000 and name the association as a named additional insured. Existing law requires the award of reasonable attorneys fees to a prevailing plaintiff in an action to enforce these provisions.

This bill would instead require the award of those fees to a prevailing plaintiff in an action by a homeowner requesting to have an electric vehicle charging station installed and seeking to enforce compliance with the above-described provisions. With would, with respect to an electric vehicle EV charging station placed in a common area or an exclusive use common area, the bill would require the homeowner to agree to pay the costs associated with the installation of the charging station. The bill would instead require the owner of the charging station, wherever located within the subdivision, to maintain a homeowner liability coverage policy, and provide the association with a corresponding certificate of insurance, as specified. The bill would instead require the award of those fees to a prevailing plaintiff in an action by a homeowner requesting to have an EV charging station installed.

The bill would also provide that any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a common interest development, or any provision of the governing documents of a common interest development, that effectively prohibits or restricts the installation or use of an electric vehicle charging station within an owners unit or of an EV-dedicated TOU meter, as defined, is void and unenforceable. This bill would extend specified existing authorizations and requirements to these meters and certain wiring and would require the award of reasonable attorneys fees to a prevailing plaintiff in an action by a homeowner requesting to have an EV-dedicated TOU meter installed and seeking to enforce compliance with those requirements.

The Davis-Stirling Common Interest Development Act defines and regulates common interest developments, which include community apartment projects, condominium projects, planned developments, and stock cooperatives. The act provides that any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a common interest development, or any provision of the governing documents of a common interest development, that effectively prohibits or restricts the installation or use of an electrical vehicle charging station in an owners designated parking space is void and unenforceable. The act authorizes an association, as defined, to impose reasonable restrictions on those stations, as specified, and imposes requirements with respect to an associations approval process for those stations. If the station is to be placed in a common area or an exclusive use common area, the act requires the homeowner to pay for the electricity usage associated with the charging station and to be responsible for various costs associated with maintaining and repairing the station, as well as costs for damage to common areas and adjacent units resulting from installation and maintenance of the station. Existing law requires the award of reasonable attorneys fees to a prevailing plaintiff in an action to enforce these provisions.

This bill would, with would instead require the award of those fees to a prevailing plaintiff in an action by a homeowner requesting to have an electric vehicle charging station installed and seeking to enforce compliance with the above-described provisions. With respect to an electric vehicle charging station placed in a common area or an exclusive use common area, the bill would require the homeowner to agree to pay the costs associated with the installation of the charging station. The

The bill would also provide that any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a common interest development, or any provision of the governing documents of a common interest development, that effectively prohibits or restricts the installation or use of an electric vehicle charging station within an owners unit or of an EV-dedicated TOU meter, as defined, is void and unenforceable. This bill would extend existing authorizations and requirements to these meters and certain wiring. wiring and would require the award of reasonable attorneys fees to a prevailing plaintiff in an action by a homeowner requesting to have an EV-dedicated TOU meter installed and seeking to enforce compliance with those requirements.

The Davis-Stirling Common Interest Development Act defines and regulates common interest developments, which include community apartment projects, condominium projects, planned developments, and stock cooperatives. The act provides that any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a common interest development, or any provision of the governing documents of a common interest development, that effectively prohibits or restricts the installation or use of an electrical vehicle charging station in an owners designated parking space is void and unenforceable. The act authorizes an association, as defined, to impose reasonable restrictions on those stations, as specified, and imposes requirements with respect to an associations approval process for those stations. If the station is to be placed in a common area or an exclusive use common area, the act requires the homeowner to pay for the electricity usage associated with the charging station and to be responsible for various costs associated with maintaining and repairing the station, as well as costs for damage to common areas and adjacent units resulting from installation and maintenance of the station.

This bill would would, with respect to an electric vehicle charging station placed in a common area or an exclusive use common area, require the homeowner to agree to pay the costs associated with the installation of the charging station. The bill would also provide that any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a common interest development, or any provision of the governing documents of a common interest development, that effectively prohibits or restricts the installation or use of an electric vehicle charging station within an owners unit or of an EV-dedicated TOU meter, as defined, is void and unenforceable. This bill would extend existing authorizations and requirements to these meters and certain wiring.

The Davis-Stirling Common Interest Development Act defines and regulates common interest developments, which include community apartment projects, condominium projects, planned developments, and stock cooperatives. The act provides that any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a common interest development, or any provision of the governing documents of a common interest development, that effectively prohibits or restricts the installation or use of an electrical vehicle charging station in an owners designated parking space is void and unenforceable. The act authorizes an association, as defined, to impose reasonable restrictions on those stations, as specified, and imposes requirements with respect to an associations approval process for those stations. If the station is to be placed in a common area or an exclusive use common area, the act requires the homeowner to be responsible for various costs associated with maintaining and repairing the station, as well as costs for damage to common areas and adjacent units resulting from installation and maintenance of the station.

This bill would provide that any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a common interest development, or any provision of the governing documents of a common interest development, that effectively prohibits or restricts the installation or use of an electric vehicle charging station within an owners unit or of an EV-dedicated TOU meter, as defined, is void and unenforceable. This bill would extend existing authorizations and requirements to these meters and certain wiring.

 UNFINISHED BUSINESS  

Bill No: SB 1016

Author:

:

Vote:

SENATE TRANS. & HOUSING COMMITTEE: 11-0, 3/20/18

AYES: Beall, Cannella, Allen, Dodd, Galgiani, McGuire, Morrell, Roth, Skinner, Wieckowski, Wiener

NO VOTE RECORDED: Gaines, Vidak

SENATE JUDICIARY COMMITTEE: 7-0, 4/10/18

AYES: Jackson, Moorlach, Anderson, Hertzberg, Monning, Stern, Wieckowski

SENATE FLOOR: 38-0, 4/23/18 (Consent)

AYES: Allen, Anderson, Atkins, Bates, Beall, Berryhill, Bradford, Cannella, De León, Dodd, Fuller, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mitchell, Monning, Moorlach, Newman, Nguyen, Nielsen, Pan, Portantino, Roth, Skinner, Stern, Stone, Vidak, Wieckowski, Wiener, Wilk

NO VOTE RECORDED: Morrell

ASSEMBLY FLOOR: 74-4, 8/30/18 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST:

This bill prohibits any unreasonable restriction that effectively prohibits or restricts the installation or use of an EV (electric vehicle)-dedicated time-of-use (TOU) meter, as defined, in common interest developments (CIDs).

Assembly Amendments

replace the requirement in current law that the owner of an EV charging station in a CID maintain a $1 million liability policy with a requirement that the owner of an EV charging station simply maintain a liability policy.

ANALYSIS: Existing law prohibits any unreasonable restriction in a CID on the installation or use of an EV charging station within an owner’s parking space.

This bill prohibits any unreasonable restriction that effectively prohibits or restricts the installation or use of an EV-dedicated TOU meter, as defined.

Background

1. Zero emission vehicles (ZEVs). Recognizing that the transportation sector emits half of California’s greenhouse gas emissions, Governor Brown has issued two Executive Orders supporting widespread adoption of ZEVs. The first, Executive Order B-16-12 issued in March 2012, called for 1.5 million ZEVs on California roads by 2025. The second, Executive Order B-48-18 issued in January 2018, called for 5 million ZEVs on California roads by 2030. To reach that goal the Governor has established a goal of installing 250,000 ZEV chargers by 2025.

Five million ZEVs may seem out of reach, especially given that there are only 350,000 ZEVs on the road now. But if one considers that most major auto manufacturers are bringing to market many more models with greater range and decreasing prices, that goal does not seem too far-fetched. On an operating cost basis, EVs are already less expensive than other vehicles because of low fuel and maintenance costs. Global auto markets will also strongly encourage EV sales as the European Union, China and India take supportive industrial and regulatory policy action. The rise of autonomous vehicles may also spur EV deployment. ^[1]

There are 25 million automobiles on the road today in California. Five million ZEVs are 20%. Already 5% of new car sales/leases are ZEV; getting to 20% in 13 years doesn’t seem unreasonable in light of these trends, if adequate EV charging infrastructure is available.

Unlike conventional cars, filling up the “tank” of an EV takes hours. For example, using a 220V Level 2 charger, fully charging an empty Chevy Bolt can take 10 hours. This lends itself to charging overnight at home.

1. TOU. Electricity prices vary by the time of the day, which reflects the varying cost of producing the electricity. During peak times in the summer, expensive and rarely used plants must be activated; during late evenings in the spring renewable, energy from wind plants is abundant. Varying electric rates by time of day is an economic encouragement to consumers to shift their usage. Peak rates can be as much as three and four times the off-peak rate. Because EVs will typically be garaged in the evening, and evenings and early mornings are typically times of surplus energy, TOU rates are often favorable to EV charging.
2. Single-Family/Multi-Family. Policy needs to focus on EV charging infrastructure in multi-unit housing as one-third of California homes are multi-unit, which includes some homeowner associations. Residents in multi-unit housing are often renters, which raises specific economic issues. As with many energy efficiency programs, there is little incentive for landlords to make investments into EV charging stations as they receive no benefit. There is no incentive for renters to make that investment, even if they could afford it, as they can’t take that investment with them when they move.

A study funded by the California Energy Commission examined additional barriers to installing EV charging infrastructure in multi-unit dwellings.^[2] The study noted that EV charging station installation costs in multi-unit dwellings were very expensive compared to single-family home installations^[3], and that the costs were directly related to the distance between the electric panel and the EV parking spot. However, the cost per charging station can be greatly reduced if multiple charging stations are installed in a given location.

Comments

1. Author’s statement. “SB 1016 will help California meet our climate and clean transportation goals by eliminating obstacles that could prevent condo owners from accessing EV charging stations. Residents belonging to Homeowner Associations (HOAs) and condominium complexes find it particularly difficult to make the switch to an EV because unlike single family homeowners, these residents need to use common area spaces to install the needed infrastructure to charge their vehicles, including the TOU meters that allow the resident to benefit from the reduced overnight electricity rates offered by utilities. Most meters for HOAs are located in the ‘common area’ (including exclusive use common areas), which means permission must be obtained from the HOA. Current law already prohibits the HOA from unreasonably hindering the residents’ ability to install a charging station. This bill removes a remaining hurdle by prohibiting the HOA from restricting the resident from installing the accompanying meter infrastructure.”
2. More to Do. This bill removes a potential barrier to the installation of EV charging infrastructure in HOAs by extending the protections against unreasonable restrictions on the installation of EV charging stations to the meters which are necessary for the EV charging station to function. However, for California to meet the five million ZEV goal, much more supportive EV charging infrastructure policies will need to be enacted for HOAs and other multi-unit housing, including subsidies and, perhaps, installation requirements. The Governor’s recent Executive Order recognizes this and directs state agencies to focus on ways to make EV charging infrastructure more accessible.
3. Lowering the insurance requirement. Existing law, Civil Code Section 4745(f)(3), provides that in order to install an EV charging station, 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. According to the author and proponents, this insurance requirement was enacted in 2011, before EV charging stations were commonplace, and implementation of the statute since has proven that the requirement serves little useful purpose other than to act as an obstacle to installation of charging stations. The Electric Vehicle Charging Association writes:

Not only is $1,000,000 higher than normal for a homeowner liability policy, but the insurance market itself has failed to follow through in offering this kind of coverage. This has left residents without options for insurance coverage, preventing them from installing an EV charging station at their home in a multi-unit dwelling.

Assembly amendments to the bill instead require the owner to, at all times, simply maintain a homeowner liability coverage policy and provide the association with the corresponding certificate of insurance within 14 days of approval of the application, and annually thereafter. According to the author's office, insurance companies consulted with expressed reluctance to issue these unusual policies, particularly because homeowners liability insurance was intended to protect the homeowners' property but not the property of another party, like the HOA named as an additional insured. Proponents contend that removing the requirement that the HOA is a named insured, as well as eliminating the statutory minimum of $1 million coverage, will help remove a key existing barrier to EV charging stations, while still maintaining some liability coverage for protection.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 8/30/18)

ChargePoint

Electric Vehicle Charging Association

Environment California

OPPOSITION: (Verified 8/30/18)

None received

ASSEMBLY FLOOR: 74-4, 8/30/18

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Quirk, Quirk-Silva, Reyes, Rivas, Rodriguez, Rubio, Salas, Santiago, Mark Stone, Thurmond, Ting, Voepel, Weber, Wood, Rendon

NOES: Travis Allen, Harper, Mathis, Waldron

NO VOTE RECORDED: Patterson, Steinorth

Prepared by:

8/30/18 20:54:32

**** END ****

1. The other ZEV technology is hydrogen, but that deployment for passenger vehicles lags far behind EVs. Until hydrogen is produced from renewable resources, there is little greenhouse gas reduction benefit. ↑

2. “Overcoming Barriers to Electric Vehicle Charging in Multi-unit Dwellings; A South Bay Case Study”; California Energy Commission, May 2016: CEC-ARV-14-305. ↑

3. The cost to install an EV charging station in a single family home averaged $1,500. In a multi-unit setting the cost averaged $5,400 with the lowest-priced installation costing $1,800. ↑

SENATE THIRD READING

STR Bill Id:SB 1016

Author:(Allen)

As Amended Ver:August 20, 2018

Majority vote

SENATE VOTE: 38-0

SUMMARY: 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 or use of an Electric Vehicle (EV)-dedicated TOU meter. Specifically, this bill:

1. Defines an "EV-dedicated TOU meter" to mean an electric meter supplied and installed by an electric utility that is separate from and in addition to any other electric meter and is devoted exclusively to the charging of electric vehicles and that tracks the time of use (TOU) when charging occurs. Includes any wiring or conduit necessary to connect the electric meter to an electric vehicle charging station.
2. Defines "reasonable restrictions" as restrictions based upon space, aesthetics, structure integrity, and equal access to these services for all homeowners, but an association (HOA) shall attempt to find a reasonable way to accommodate the installation request, unless the HOA would need to incur expense.
3. Declares that it is the policy of the state to promote, encourage, and remove obstacles to the effective installation of EV-dedicated TOU meters.
4. Requires EV-dedicated TOU meters to meet applicable health and safety standards and requirements imposed by state and local authorities, and all other applicable zoning, land use, or other ordinances, or land use permits.
5. Provides that if approval of the installation or use of an EV-dedicated TOU meter is required, the application for approval shall be processed and approved by the HOA in the same manner as an application for an architectural modification to the project and shall not be willfully avoided or delayed.
6. Requires the approval or denial of an application to be made in writing, and provides that if an application is not denied in writing within 60 days of receipt of the application, the application shall be deemed approved, unless the delay is the result of a reasonable request for additional information.
7. Provides that if the EV-dedicated TOU meter is to be placed in a common area or an exclusive use common area as designated in the CID declaration, the following provisions apply:
8. The owner must first obtain approval from the HOA for installation and the HOA must approve installation if the owner does both of the following:
   • 1. Complies with the HOA's architectural standards; and
     2. Engages the relevant electric utility to install the EV-dedicated TOU meter and, if applicable, a licensed contractor to install any wiring necessary to the EV charging station.
9. The owner and every successive owner shall be responsible for all of the following:
   • 1. Costs for damage to the EV-dedicated TOU meter, common area, exclusive use common area, or separate interests resulting from the installation, maintenance, repair, removal, or replacement of the EV-dedicated TOU meter;
     2. Costs for the maintenance, repair, replacement of the EV-dedicated TOU meter until it has been removed and for the restoration of the common area after removal; and
     3. Disclosing to prospective buyers the existence of any EV-dedicated TOU meter of the owner and the related responsibilities of the owner under this section.
10. Provides that installation of an EV-dedicated TOU meter in the common area that is for the exclusive use of an owner shall only be authorized by the HOA if installation in the owner's designated parking space is impossible or unreasonable expensive. Provides that in this case, the HOA shall enter into a license agreement with the owner for the use of the common area.
11. Provides that the HOA may install an EV-dedicated TOU meter in the common area for the use of all members of the HOA and, in that case, the HOA shall develop appropriate terms for the use of the EV-dedicated TOU meter.
12. Makes an HOA that willfully violates this section liable to the applicant or other party for actual damages, payment of a civil penalty to the applicant or other party in an amount not to exceed $1,000.
13. Provides that, in any action to enforce compliance with the laws governing installation of an electric vehicle charging station in a common interest development, the prevailing plaintiff shall be awarded reasonable attorney's fees.
14. Deletes the requirement that owners with an EV-dedicated charging station have an insurance policy of $1 million naming the HOA as additionally insured under the policy and giving the HOA the right to a notice of cancellation.
15. Requires owners with an EV-dedicated charging station to provide an HOA with a copy of an insurance policy that covers the charging station within 14 days of receiving approval to install the charging station and each year thereafter.

FISCAL EFFECT: None.

COMMENTS:

There are over 52,000 CIDs in the state that range in size from three to 27,000 units. CIDs make up over six million total housing units, which represents approximately one quarter of the state's housing stock. In the 1990s, over 60% of all residential construction starts in the state were in CIDs. CIDs include condominiums, community apartment projects, housing cooperatives, and planned unit developments. They are characterized by a separate ownership of dwelling space coupled with an undivided interest in a common property, restricted by covenants and conditions that limit the use of common area, and the separate ownership interests and the management of common property and enforcement of restrictions by an association. CIDs are governed by the Davis-Stirling Act (Civil Code Section 1350 et al.) as well as the governing documents of the association, including the bylaws, declaration, and operating rules. No state agency provides oversight to these communities after initial development.

The governing documents of CIDs generally require approval of the HOA for owners to make improvements or alterations to their separate interests. HOAs are required to provide a fair, reasonable, and expeditious procedure for reviewing applications for improvements or alterations. In the case of the installation of energy savings technology, the Legislature has taken proactive steps to ensure that HOAs cannot deny a homeowner's request to make changes to their separate unit. SB 209 (Corbett), Chaptered 121, Statutes of 2011, and SB 880 (Corbett), Chapter 6, Statutes of 2012, prohibited the governing documents of an association from denying or restricting the installation of an EV charging station by an owner in a CID. These bills specified conditions for the installation of an EV charging station in the common area of a CID.

This bill would create a procedure and protections for the installation of EV-dedicated TOU meters that mirrors the provisions of existing law for EV charging stations. EV-dedicated TOU meters measure when the customer used the electricity. That feature allows a public utility to bill customers with TOU meters at different rates at different times of the day and reduces the cost for consumers.

EV-dedicated TOU meter measures: Electricity prices vary by the time of the day, which reflects the varying cost of producing the electricity. During peak times in the summer, expensive and rarely used plants must be activated; however, during late evenings in the spring, renewable energy from wind plants is abundant. Varying electric rates by time of day is an economic encouragement to consumers to shift their usage. Peak rates can be as much as three or four times the off-peak rate. Because EVs will typically be garaged in the evening, and evenings and early mornings are typically times of surplus energy, TOU rates are often favorable to EV charging.

According to the author, SB 1016 would address a gap in law by prohibiting HOAs from "unreasonably restricting" the ability of an owner to install a TOU meter and accompanying infrastructure in a common area where their EV charging station is located. The bill includes provisions similar to those required for an EV driver to install the actual charging station. These include requirements that the driver comply with HOA standards and requirements, cover the costs of the equipment, and provide necessary disclosures, among other safeguards.

Revisions to the law governing EV charging stations: In addition to establishing a new code section governing the installation of TOU meters in HOAs, this bill also makes a few changes to the previous statute governing the installation of EV charging stations.

Lowering the insurance requirement. Existing law, Civil Code Section 4745(f)(3), provides that in order to install an EV charging station, 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. According to the author and proponents, this insurance requirement was enacted in 2011, before EV charging stations were commonplace, and implementation of the statute since has proven that the requirement serves little useful purpose other than to act as an obstacle to installation of charging stations. The Electric Vehicle Charging Association writes:

Not only is $1,000,000 higher than normal for a homeowner liability policy, but the insurance market itself has failed to follow through in offering this kind of coverage. This has left residents without options for insurance coverage, preventing them from installing an EV charging station at their home in a multi-unit dwelling.

Recent amendments to the bill instead require the owner to, at all times, simply maintain a homeowner liability coverage policy and provide the association with the corresponding certificate of insurance within 14 days of approval of the application, and annually thereafter. According to the author's office, insurance companies consulted with expressed reluctance to issue these unusual policies, particularly because homeowners liability insurance was intended to protect the homeowners' property but not the property of another party, like the HOA named as an additional insured. Proponents contend that removing the requirement that the HOA is a named insured, as well as eliminating the statutory minimum of $1 million coverage, will help remove a key existing barrier to EV charging stations, while still maintaining some liability coverage for protection. It should be noted that the bill requires no additional insurance coverage for installation of an EV-dedicated TOU meter, because the meter is connected to the EV charging station which must be insured, and there are no independent hazards associated with having a simple time-of-use meter that could damage property.

Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-3744 FN: 0004150

SENATE THIRD READING

STR Bill Id:

Author:(Allen)

As Amended Ver:

Majority vote

SENATE VOTE: 38-0

SUMMARY: 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 or use of an electric vehicle (EV) –dedicated time of use (TOU) meter. Specifically, this bill:

1. Defines an "EV-dedicated TOU meter" to mean an electric meter supplied and installed by an electric utility that is separate from and in addition to any other electric meter and is devoted exclusively to the charging of electric vehicles and that tracks the TOU when charging occurs. Includes any wiring or conduit necessary to connect the electric meter to an electric vehicle charging station.
2. Defines "reasonable restrictions" as restrictions based upon space, aesthetics, structure integrity, and equal access to these services for all homeowners, but an association (HOA) shall attempt to find a reasonable way to accommodate the installation request, unless the HOA would need to incur expense.
3. Declares that it is the policy of the state to promote, encourage, and remove obstacles to the effective installation of EV-dedicated TOU meters.
4. Requires EV-dedicated TOU meters to meet applicable health and safety standards and requirements imposed by state and local authorities, and all other applicable zoning, land use, or other ordinances, or land use permits.
5. Provides that if approval of the installation or use of an EV-dedicated TOU meter is required, the application for approval shall be processed and approved by the HOA in the same manner as an application for an architectural modification to the project and shall not be willfully avoided or delayed.
6. Requires the approval or denial of an application to be made in writing, and provides that if an application is not denied in writing within 60 days of receipt of the application, the application shall be deemed approved, unless the delay is the result of a reasonable request for additional information.
7. Provides that if the EV-dedicated TOU meter is to be placed in a common area or an exclusive use common area as designated in the CID declaration, the following provisions apply:
   1. The owner must first obtain approval from the HOA for installation and the HOA must approve installation if the owner does both of the following:
      1. Complies with the HOA's architectural standards; and
      2. Engages the relevant electric utility to install the EV-dedicated TOU meter and, if applicable, a licensed contractor to install any wiring necessary to the EV charging station.
   2. The owner and every successive owner shall be responsible for all of the following:
      1. Costs for damage to the EV-dedicated TOU meter, common area, exclusive use common area, or separate interests resulting from the installation, maintenance, repair, removal, or replacement of the EV-dedicated TOU meter;
      2. Costs for the maintenance, repair, replacement of the EV-dedicated TOU meter until it has been removed and for the restoration of the common area after removal; and
      3. Disclosing to prospective buyers the existence of any EV-dedicated TOU meter of the owner and the related responsibilities of the owner under this section.
8. Provides that installation of an EV-dedicated TOU meter in the common area that is for the exclusive use of an owner shall only be authorized by the HOA if installation in the owner's designated parking space is impossible or unreasonable expensive. Provides that in this case, the HOA shall enter into a license agreement with the owner for the use of the common area.
9. Provides that the HOA may install an EV-dedicated TOU meter in the common area for the use of all members of the HOA and, in that case, the HOA shall develop appropriate terms for the use of the EV-dedicated TOU meter.
10. Makes an HOA that willfully violates this section liable to the applicant or other party for actual damages, payment of a civil penalty to the applicant or other party in an amount not to exceed $1,000.
11. Provides that, in any action to enforce compliance with the laws governing installation of an electric vehicle charging station in a common interest development, the prevailing plaintiff shall be awarded reasonable attorney's fees.
12. Deletes the requirement that owners with an EV-dedicated charging station have an insurance policy of $1 million naming the HOA as additionally insured under the policy and giving the HOA the right to a notice of cancellation.
13. Requires owners with an EV-dedicated charging station to provide an HOA with a copy of an insurance policy that covers the charging station within 14 days of receiving approval to install the charging station and each year thereafter.

FISCAL EFFECT: None.

COMMENTS:

There are over 52,000 CIDs in the state that range in size from three to 27,000 units: CIDs make up over six million total housing units, which represents approximately one quarter of the state's housing stock. In the 1990s, over 60% of all residential construction starts in the state were in CIDs. CIDs include condominiums, community apartment projects, housing cooperatives, and planned unit developments. They are characterized by a separate ownership of dwelling space coupled with an undivided interest in a common property, restricted by covenants and conditions that limit the use of common area, and the separate ownership interests and the management of common property and enforcement of restrictions by an association. CIDs are governed by the Davis-Stirling Act (Civil Code Section 1350 et al.) as well as the governing documents of the association, including the bylaws, declaration, and operating rules. No state agency provides oversight to these communities after initial development.

The governing documents of CIDs generally require approval of the HOA for owners to make improvements or alterations to their separate interests. HOAs are required to provide a fair, reasonable, and expeditious procedure for reviewing applications for improvements or alterations. In the case of the installation of energy savings technology, the Legislature has taken proactive steps to ensure that HOAs cannot deny a homeowner's request to make changes to their separate unit. SB 209 (Corbett), Chaptered 121, Statutes of 2011, and SB 880 (Corbett), Chapter 6, Statutes of 2012, prohibited the governing documents of an association from denying or restricting the installation of an EV charging station by an owner in a CID. These bills specified conditions for the installation of an EV charging station in the common area of a CID.

This bill would create a procedure and protections for the installation of EV-dedicated TOU meters that mirrors the provisions of existing law for EV charging stations. EV-dedicated TOU meters measure when the customer used the electricity. That feature allows a public utility to bill customers with TOU meters at different rates at different times of the day and reduces the cost for consumers.

EV-dedicated TOU meter measures: Electricity prices vary by the time of the day, which reflects the varying cost of producing the electricity. During peak times in the summer, expensive and rarely used plants must be activated; however, during late evenings in the spring, renewable energy from wind plants is abundant. Varying electric rates by time of day is an economic encouragement to consumers to shift their usage. Peak rates can be as much as three or four times the off-peak rate. Because EVs will typically be garaged in the evening, and evenings and early mornings are typically times of surplus energy, TOU rates are often favorable to EV charging.

According to the author, this bill would address a gap in law by prohibiting HOAs from "unreasonably restricting" the ability of an owner to install a TOU meter and accompanying infrastructure in a common area where their EV charging station is located. The bill includes provisions similar to those required for an EV driver to install the actual charging station. These include requirements that the driver comply with HOA standards and requirements, cover the costs of the equipment, and provide necessary disclosures, among other safeguards.

Revisions to the law governing EV charging stations: In addition to establishing a new code section governing the installation of TOU meters in HOAs, this bill also makes a few changes to the previous statute governing the installation of EV charging stations.

Lowering the insurance requirement. Existing law, Civil Code Section 4745 (f)(3), provides that in order to install an EV charging station, 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. According to the author and proponents, this insurance requirement was enacted in 2011, before EV charging stations were commonplace, and implementation of the statute since has proven that the requirement serves little useful purpose other than to act as an obstacle to installation of charging stations. The Electric Vehicle Charging Association writes:

Not only is $1,000,000 higher than normal for a homeowner liability policy, but the insurance market itself has failed to follow through in offering this kind of coverage. This has left residents without options for insurance coverage, preventing them from installing an EV charging station at their home in a multi-unit dwelling.

Recent amendments to the bill instead require the owner to, at all times, simply maintain a homeowner liability coverage policy and provide the association with the corresponding certificate of insurance within 14 days of approval of the application, and annually thereafter. According to the author's office, insurance companies consulted with expressed reluctance to issue these unusual policies, particularly because homeowners liability insurance was intended to protect the homeowners' property but not the property of another party, like the HOA named as an additional insured. Proponents contend that removing the requirement that the HOA is a named insured, as well as eliminating the statutory minimum of $1,000,000 coverage, will help remove a key existing barrier to EV charging stations, while still maintaining some liability coverage for protection. It should be noted that the bill requires no additional insurance coverage for installation of an EV-dedicated TOU meter, because the meter is connected to the EV charging station which must be insured, and there are no independent hazards associated with having a simple time-of-use meter that could damage property.

Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085 FN: 0003757

Date of Hearing: July 3, 2018

ASSEMBLY COMMITTEE ON JUDICIARY

Mark Stone, Chair

SBPCA Bill Id:SB 1016

Author:(Allen) – As Amended Ver:June 28, 2018

SENATE VOTE: 38-0

SUBJECT: COMMON INTEREST DEVELOPMENTS: EV-DEDICATED TIME-OF-USE METERS

KEY ISSUE: should HOMEOWNERS ASSOCIATIONS BE PREVENTED FROM ENFORCING RESTRICTIONS THAT EFFECTIVELY PROHIBIT OR CREATE UNREASONABLE BARRIERS TO THE INSTALLATION OF ELECTRIC VEHICLE-DEDICATED TIME-OF-USE METERS BY HOMEOWNERS IN THESE COMMON INTEREST DEVELOPMENTS?

SYNOPSIS

This bill represents a proactive approach to address what the author anticipates may pose an obstacle to greater ownership of electric vehicles in California, particularly among the estimated 25 percent of Californians who live in housing units that are located in a common interest development (CID). Ownership of an electric vehicle is greatly enhanced when a time-of-use (TOU) meter is attached to the charging station, providing better data about charging use but also allowing the owner to reduce charging costs and earn better rates from the utility for charging during nighttime or off-peak hours. This bill seeks to follow the lead of SB 209 (2011), the bill that first prohibited CIDs from enforcing restrictions in their governing documents that effectively prohibit or create unreasonable barriers to the installation of electric vehicle charging equipment by their member homeowners. The bill would do the same for electric vehicle-dedicated time-of-use meters. Like SB 209, the bill also specifies the duties and responsibilities that fall upon homeowners as a condition of installing and maintaining the TOU meter in the appropriate space within the CID. The bill also provides for actual damages, civil liability up to $1,000, and reasonable attorney's fees to be awarded to a plaintiff homeowner who can show that the HOA willfully violated these provisions. Recent amendments to the bill clarify the wording of the attorney's fee provision, and reduce the homeowner liability insurance requirement of $1 million that was originally enacted by SB 209, as applicable to EV charging stations. This bill is supported by the Electric Vehicle Charging Association, the California Electric Transportation Coalition, and the City of West Hollywood, among others. The bill was recently approved by the Assembly Housing & Community Development Committee by a 6-0 vote, and there is no registered opposition to the bill.

SUMMARY: Prohibits homeowner associations (HOAs) from effectively prohibiting or unreasonably restricting the installation of electric vehicle-dedicated time-of-use (TOU) meters by member homeowners in the common interest development. Specifically, this bill:

1. Defines an "EV-dedicated TOU meter" to mean an electric meter supplied and installed by an electric utility that is separate from and in addition to any other electric meter and is devoted exclusively to the charging of electric vehicles and that tracks the time of use when charging occurs. Clarifies that an "EV-dedicated TOU meter" includes any wiring or conduit necessary to connect the electric meter to an electric vehicle charging station.
2. Makes void and unenforceable any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a common interest development, and any provision of a governing document, that either effectively prohibits or unreasonably restricts the installation or use of an EV-dedicated TOU meter, or that is in conflict with this bill.
3. Defines "reasonable restrictions" as restrictions based upon space, aesthetics, structure integrity, and equal access to these services for all homeowners. Clarifies that this act does not restrict reasonable restrictions on EV-dedicated TOU meters and requires the HOA to attempt to find a reasonable way to accommodate the installation request, unless the HOA would need to incur an expense.
4. Declares that it is the policy of the state to promote, encourage, and remove obstacles to the effective installation of EV-dedicated TOU meters.
5. Requires EV-dedicated TOU meters to meet applicable health and safety standards and requirements imposed by state and local authorities, and all other applicable zoning, land use, or other ordinances, or land use permits.
6. Provides that if approval of the installation or use of an EV-dedicated TOU meter is required, the application for approval shall be processed and approved by the HOA in the same manner as an application for an architectural modification to the project and shall not be willfully avoided or delayed.
7. Requires the approval or denial of an application to be made in writing, and provides that if an application is not denied in writing within 60 days of receipt of the application, the application shall be deemed approved, unless the delay is the result of a reasonable request for additional information.
8. Provides that if the EV-dedicated TOU meter is to be placed in a common area or an exclusive use common area as designated in the common interest development (CID) declaration, the following provisions apply:
   1. The owner must first obtain approval from the HOA for installation and the HOA must approve installation if the owner complies with the HOA's architectural standards for installation and engages the relevant electric utility to install the EV-dedicated TOU meter and, if applicable, a licensed contractor to install any necessary wiring.
   2. The owner and every successive owner shall be responsible for all of the following:
      1. Costs for damage to the EV-dedicated TOU meter, common area, exclusive use common area, or separate interests resulting from the installation, maintenance, repair, removal, or replacement of the EV-dedicated TOU meter;
      2. Costs for the maintenance, repair, and replacement of the EV-dedicated TOU meter until it has been removed and for the restoration of the common area after removal; and
      3. Disclosing to prospective buyers the existence of any EV-dedicated TOU meter of the owner and the related responsibilities of the owner under this section.
9. Authorizes the HOA to install an EV-dedicated TOU meter in the common area for the use of all members of the HOA and to develop appropriate terms for the use of the EV-dedicated TOU meter.
10. Makes an HOA that willfully violates this section liable to the applicant or other party for actual damages, and a payment of a civil penalty to the applicant or other party in an amount not to exceed $1,000.
11. Provides that in any action by a homeowner requesting to have an EV-dedicated TOU meter installed and seeking to enforce compliance with this section, the prevailing plaintiff shall be awarded reasonable attorney’s fees.
12. With respect to electric vehicle charging stations:
    1. Repeals the requirement that the owner of the EV charging station maintains a homeowner liability coverage policy in the amount of $1 million and name the association as an additional named insured under the policy.
    2. Instead requires the owner to, at all times, maintain homeowner liability coverage and provide the association with the corresponding certificate of insurance within 14 days of approval of the application, and annually thereafter.
    3. Clarifies that the prevailing plaintiff shall be awarded reasonable attorney’s fees in any action by a homeowner requesting to have an electric vehicle charging station installed and seeking to enforce compliance with the law.

EXISTING LAW:

1. Makes void and unenforceable any covenant, restriction, or conditions contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a CID that effectively prohibits or unreasonably restricts the installation or use of an EV charging station within an owner's unit or a designated parking space. (Civil Code Section 4745 (a). All further references are to this code unless otherwise stated.)
2. Defines "reasonable restrictions" as those that do not significantly increase the cost of the station or decrease its efficiency or performance, and permits the application of reasonable restrictions on EV charging stations. (Section 4745 (b).)
3. Declares that it is the policy of the state to promote, encourage, and remove obstacles to the use of EV charging stations. (Section 4745 (b).)
4. Requires EV charging stations to meet applicable health and safety standards and requirements imposed by state and local permitting authorities, and all other applicable zoning, land use, or other ordinances, or land use permits. (Section 474 5 (c).)
5. Requires the 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 prohibits the HOA from willfully delaying or avoiding approval. (Section 4745 (e).)
6. Requires the homeowner to obtain permission to install the charging station, and to comply with certain other requirements if an EV charging station is to be placed in the common area or an exclusive use common area. (Section 4745 (f).)
7. Requires that any owner and each successive owner of the parking stall on which or near where the EV charging station is placed is responsible for all associated costs for the station, including cost for the maintenance, repair, and replacement of the charging station and the cost of electricity associated with the station. (Section 4745 (f)(2).)
8. Requires any homeowner and each successive homeowner to maintain an umbrella liability coverage policy for $1 million and to name the HOA as an additional insured under the policy with a right to notice of cancellation. (Section 4745 (f)(3).)
9. Provides that a homeowner liability coverage policy is not required if a homeowner uses an existing National Electrical Manufacturers Association standard alternating current power plug. (Section 4745 (f)(4).)
10. Provides that an HOA that willfully violates this section is liable for actual damages and shall pay a civil penalty to the applicant in an amount not to exceed $1,000. (Section 4745 (j).)
11. Provides that in any action to enforce compliance with this section, the prevailing plaintiff is entitled to reasonable attorney’s fees. (Section 4745 (k).)

FISCAL EFFECT: As currently in print this bill is keyed non-fiscal.

COMMENTS: This bill seeks to follow the lead of SB 209 (2011), the bill that first prohibited CIDs from enforcing restrictions in their governing documents that effectively prohibit or create unreasonable barriers to the installation of electric vehicle charging equipment by their member homeowners. The bill would enact similar rules governing the installation of electric vehicle-dedicated TOU meters. According to the author:

In order to meet California’s ambitious climate goals set forth in AB 32 and SB 32, the State must do more to limit the barriers of EV ownership. While the price of electric vehicles has been steadily decreasing, the accessibility of EV changing stations continues to be an issue. Residents belonging to HOAs and condominium complexes find it particularly difficult to make the switch to an EV because unlike single family homeowners, these residents need to use common area spaces to install the needed infrastructure to charge their vehicles.

Current law prohibits an HOA from unreasonably restricting a resident’s ability to install a charging station at their own cost. However, the law is silent regarding the remaining necessary infrastructure. To get more EVs on the road, the state has a strong interest in ensuring that anyone who wants an EV has the ability to use a supplementary time-of-use (TOU) meter just for their EV(s).

SB 1016 would address this gap in law by prohibiting HOAs from "unreasonably restricting" the ability of an owner to install the TOU meter and accompanying infrastructure in a common area where their EV charging station is located. The bill includes provisions similar to those required for an EV driver to install the actual charging station. These include requirements that the driver comply with HOA standards and requirements, cover the costs of the equipment, and provide necessary disclosures among other safeguards.

Short background on Time-of-Use meters. For reasons that are self-evident, the highest demand for electricity takes place during daytime hours when most people are active at work, at home, or at school, using appliances or devices that need electric power to operate. Most people are familiar with ad campaigns by public utilities urging their customers to run their washing machines and dishwashers at nighttime or off-peak hours in order to relieve strain on the electric grid during the daytime. TOU meters are electric meters supplied and installed by an electric utility that monitor not only the amount of electricity that a customer uses, but also when the customer uses the electricity. That feature allows a public utility to bill customers with TOU meters a different rate at different times of the day. Utilities can charge lower rates for electricity at night than they do during the day, thus incentivizing customers to change what time they use power.

This is particularly useful for owners of electric vehicles, who typically recharge their vehicles while they are home at night, and not during the day when they are at work or driving around town. Electric vehicles are well-suited for use with a TOU meter and an associated rate plan that bills the consumer at a lower rate at night. The author explains:

Currently, prospective EV drivers have three options for charging their EVs at home: (1) A “Type 1” charger with an existing 110v connection. These “trickle chargers” often take more time than just overnight to get a full charge on an EV. (2) A "Type 2" EV charging station uses a 240v connection and fully charges a vehicle in less than 8 hours. (3) Faster chargers that can fully charge a vehicle in under an hour are limited to only the most advanced cars.

Slow-charging Type 1 chargers can be used without upgrades to infrastructure, but only if the driver can plug into a nearby outlet at their home. In condo complexes, this is rarely the case. Further, many drivers require at least a Type 2 charger to accommodate their commute, which most often requires the installation of new charging infrastructure. Also, EV drivers need to have a TOU meter to allow them to benefit from the reduced overnight electricity rates offered by utilities.

Some electric utilities offer customers the option of installing a TOU meter that is dedicated to the electric vehicle alone, separate and apart from the electrical meter that measures other electrical use. Some of the electric utilities even offer rate plans that are specific to such EV-dedicated TOU meters, which are the subject of this bill. An EV-dedicated TOU meter can also have the advantage of separating out the cost of charging an electric vehicle from all other electrical use expenses, which permits the electric vehicle owner to monitor how much the owner is spending to fuel the car specifically.

For these reasons, EV-dedicated TOU meters encourage greater EV ownership by making it possible for owners to manage and minimize costs of recharging the vehicle at home, and to take advantage of beneficial pricing schemes offered by utility companies to customers with such TOU meters.

Background on common interest developments and HOA-imposed restrictions on use of property. There are over 50,000 common interest developments in California that vary in size and structure, but generally speaking, CIDs are multi-unit communities characterized by the following: (1) separate ownership of individual residential units coupled with an undivided interest in common property; (2) covenants, conditions, and restrictions (CC&Rs) that limit the use of both separate interests and common property; and (3) management of common property and enforcement of restrictions by a homeowner association (HOA).

Under the Davis-Stirling Act (Civil Code Section 1350 et seq.), which sets forth general rules governing common interest developments, each individual CID is subject to rules and regulations set forth by the HOA’s "governing documents." These governing documents include the recorded declaration and any other documents, such as bylaws, operating rules of the association, or articles of incorporation that govern the operation of the association. (Section 1351 (j).) CIDs are governed by volunteer boards of directors who are elected by the members of the HOA and who are responsible for interpreting the governing documents and state law. Except when CIDs are first developed, no state agency provides ongoing oversight to these communities. In order to amend the governing documents, an HOA must follow the procedure outlined in their governing documents, or if the governing documents are silent, the process provided in state law. State law and most governing documents require that a majority of members vote to approve an amendment to the governing documents. The governing documents of CIDs typically contain many restrictions over aspects of use, appearance, and transferability of interest of the property, and this bill appears intended to head off the possibility that some HOAs may elect in the future to adopt restrictions regarding the installation of EV-dedicated TOU meters.

Proponents of the bill contend that it is prudent to enact SB 209-like restrictions on HOAs in order to ensure that homeowners can install TOU meters without being subject to unreasonable restrictions by the HOA. Although no actual examples of HOAs prohibiting or unreasonably restricting the installation of TOU meters are cited, proponents contend that the same policy of removing obstacles to the use of EV-charging station justifies the bill. It should be noted that at the time SB 209 was enacted in 2011, there were no reports in California of HOAs actually prohibiting the installation of EV-charging stations. That bill was characterized as an "early problem-solving approach to an imminent potential problem." (Assembly Judiciary Committee analysis of SB 209 (June 21, 2011).) In any case, there are few reported problems with the current law this bill is modeled on, and this bill has no known opposition.

Furthermore, the Committee notes that, notwithstanding the authority for self-governance provided to HOAs by statute, the Legislature over the years has seen fit to modify or limit that authority when appropriate to further other important public policy goals. For example, the Legislature approved and the Governor signed AB 3689 (Hauser), Chap. 1517, Stats. 1990, to promote the ownership of solar energy systems and reduce greenhouse gases. (See also Civil Code restrictions upon HOA authority to prohibit installation of satellite dishes or antennas (Section 4725), ownership of pets (Section 4715), and rental of the property to tenants (Section 4740), among others.) According to the author, his bill is intended to further the important public policy of expanding EV charging infrastructure.

This bill follows previous legislation restricting homeowner associations from adopting rules that conflict with other state policy. Existing law, Civil Code Section 1353.9, establishes that it is the policy of the state to promote, encourage, and remove obstacles to the use of electric vehicle charging stations, and to that end, specifies that any provision of a CID's governing documents that effectively prohibits or restricts the installation or use of an electric vehicle charging station is void and unenforceable. At the same time, the law allows HOAs to impose reasonable restrictions on EV charging stations, defined to mean restrictions that do not significantly increase the cost of the station or significantly decrease its efficiency or specified performance.

This bill seeks to build upon this statute, enacted by SB 209, and establish a similar framework that restricts the ability of HOAs to effectively prohibit or unreasonably restrict the installation or use of an EV-dedicated TOU meter. Like SB 209, this bill would allow reasonable restrictions by the HOA, in this case based upon space, aesthetics, structural integrity, and equal access for all homeowners. The bill provides for a similar application process for a homeowner seeking approval from the HOA, and specifies that an application is deemed approved unless the HOA denies the application in writing within 60 days.

Under this bill, if the EV-dedicated TOU meter is approved by the HOA, the individual homeowner assumes responsibility for all associated costs of the TOU meter, including costs for the maintenance, repair, and replacement of the meter, as well as costs for any damage to the TOU meter itself, the common area, exclusive use common area, or separate interests resulting from the installation, maintenance, repair, removal, or replacement of the meter. Finally, the homeowner is responsible for disclosing to prospective buyers the existence of any EV-dedicated TOU meter of the owner and the related responsibilities of the owner under this bill.

Revisions to the law governing EV charging stations. In addition to establishing a new code section governing the installation of TOU meters in HOAs, this bill also makes a few changes to the previous statute governing the installation of EV charging stations.

Lowering the insurance requirement. Existing law, Civil Code Section 4745 (f)(3), provides that in order to install an EV charging station, 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. According to the author and proponents, this insurance requirement was enacted in 2011, before EV charging stations were commonplace, and implementation of the statute since has proven that the requirement serves little useful purpose other than to act as an obstacle to installation of charging stations. The Electric Vehicle Charging Association writes:

Not only is $1,000,000 higher than normal for a homeowner liability policy, but the insurance market itself has failed to follow through in offering this kind of coverage. This has left residents without options for insurance coverage, preventing them from installing an EV charging station at their home in a multi-unit dwelling.

Recent amendments to the bill instead require the owner to, at all times, simply maintain a homeowner liability coverage policy and provide the association with the corresponding certificate of insurance within 14 days of approval of the application, and annually thereafter. According to the author's office, insurance companies consulted with expressed reluctance to issue these unusual policies, particularly because homeowners liability insurance was intended to protect the homeowners' property but not the property of another party, like the HOA named as an additional insured. Proponents contend that removing the requirement that the HOA is a named insured, as well as eliminating the statutory minimum of $1,000,000 coverage, will help remove a key existing barrier to EV charging stations, while still maintaining some liability coverage for protection. It should be noted that the bill requires no additional insurance coverage for installation of a EV-dedicated TOU meter, because the meter is connected to the EV charging station which must be insured, and there are no independent hazards associated with having a simple time-of-use meter that could damage property.

Clarifying the attorney's fee provision. With respect to installation of EV charging stations, current law states very simply: "In any action to enforce compliance with this section, the prevailing plaintiff shall be awarded reasonable attorney’s fees." (Section 4745 (k).) As originally drafted, this bill would have mirrored that provision in the proposed code section applying to EV-dedicated TOU meters. Subsequently, amendments taken in the Senate Judiciary Committee seek to clarify that the fee-shifting provision in both cases applies to the award of attorney's fees only to a prevailing homeowner in a lawsuit he or she has filed to enforce compliance with the respective statute. This clarifies that the provision is not meant to require a judge to award attorney's fees to a HOA that sues under the same statute.

The legislative history behind the provision appears to support this conclusion. SB 209 (Corbett), Chap. 121, Stats. 2011, is the legislation that enacted the existing fee-shifting provision in Civil Code Section 4745 (j). As introduced, that bill called for the prevailing “party” to receive attorney's fees in any action to enforce compliance, and an early amendment to the bill replaced “party” with "plaintiff." This Committee's subsequent analysis of SB 209 reinforces that the intent of the law is to allow only homeowners suing to install an EV charging station to recover attorney's fees, not HOAs. We wrote:

In addition, the bill requires reasonable attorney's fees to be awarded to the prevailing plaintiff in an action against the CID to enforce compliance with this section. Prevailing plaintiff attorney's fee statutes, such as this one, are intended to encourage persons to pursue litigation which advances a specific public policy, or to enhance the ability of aggrieved parties to enforce their rights when the legal costs may otherwise be prohibitive. In this case, the bill advances public policy "to promote, encourage, and remove obstacles to the use of electric vehicle charging stations" and would also allow a homeowner to enforce his or her right to install charging equipment if he or she believed the CID was willfully creating unreasonable restrictions to prevent installation of the charging equipment.

Accordingly, this bill clarifies both sections of law to state that in any action by a homeowner requesting to install an EV-charging station, or an EV-dedicated TOU meter, and seeking to enforce compliance with the statute, the prevailing plaintiff-homeowner shall be awarded reasonable attorney's fees.

ARGUMENTS IN SUPPORT. In support of the bill, the California Electric Transportation Coalition (CalETC) writes:

Although California is leading the nation in zero-emission vehicle (ZEV) adoption, our state still has a long way to go to reach the goals in the Governor’s Executive Order B-48-18: 5 million ZEVs on California roads by 2030 and specified levels of zero-emission vehicle infrastructure by 2025 to support the transition to these vehicles. In addition, the state must implement SB 1275 (De León) [Chapter 530, Statutes of 2014] and SB 1204 (Lara) [Chapter 524, Statutes of 2014], which set targets for the deployment of 1 million zero- and near-zero-emission vehicles by 2023, access to these vehicles by disadvantaged and low- and moderate-income communities, and deployment of zero- and near-zero-emission medium- and heavy-duty vehicle technologies.

CalETC supports SB 1016 because it will expand access to charging stations and time-of-use rates for those who live in HOA-governed homes and will allow more Californians to drive electric. The bill will help California meet its ZEV, air-quality, climate-change, and public-health targets.

Previous Related Legislation. AB 634 (Eggman), Chap. 818, Stats. 2017, provides that homeowners associations cannot impose conditions that effectively prohibit the installation or use of rooftop solar panel installation, but permits homeowners associations to impose other specified conditions, and requires homeowners associations to condition approval on maintenance of a homeowners insurance policy, among other things.

AB 2565 (Muratsuchi), Chap. 529, Stats. 2014, is similar to SB 209 but operates in the rental property context. It allows a commercial or residential tenant to install an EV charging station in his or her parking space, at the tenant’s expense, but subject to the reasonable restrictions of the lessor.

SB 209 (Corbett), Chap. 121, Stats. 2011, provides that homeowners associations cannot impose conditions that effectively prohibit the installation or use of an electrical vehicle charging station, but permits homeowners associations to impose other specified conditions, and requires homeowners associations to condition approval on maintenance of an umbrella liability coverage policy of $1,000,000 that names the CID as an additional insured, among other things.

REGISTERED SUPPORT / OPPOSITION:

Support

Automobile Club of Southern California

California Electric Transportation Coalition

Chargepoint, Inc.

City Of West Hollywood

Electric Vehicle Charging Association

Environment California

Office of Ratepayer Advocates (ORA)

Silicon Valley Leadership Group

Tesla

Opposition

None on file

Analysis Prepared by: Anthony Lew / JUD. / (916) 319-2334

Date of Hearing: June 13, 2018

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

David Chiu, Chair

SBPCA Bill Id:SB 1016

Author:(Allen) – As Amended Ver:April 17, 2018

SENATE VOTE: 38-0

SUBJECT: Common interest developments: EV-dedicated TOU meters

SUMMARY: 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 or use of an EV-dedicated TOU meter. Specifically, this bill:

1. Defines an "EV-dedicated TOU meter" to mean an electric meter supplied and installed by an electric utility that is separate from and in addition to any other electric meter and is devoted exclusively to the charging of electric vehicles and that tracks the time of use (TOU) when charging occurs. Includes any wiring or conduit necessary to connect the electric meter to an electric vehicle charging station.
2. Defines "reasonable restrictions" as restrictions based upon space, aesthetics, structure integrity, and equal access to these services for all homeowners, but an association (HOA) shall attempt to find a reasonable way to accommodate the installation request, unless the HOA would need to incur expense.
3. Declares that it is the policy of the state to promote, encourage, and remove obstacles to the effective installation of EV-dedicated TOU meters.
4. Requires EV-dedicated TOU meters to meet applicable health and safety standards and requirements imposed by state and local authorities, and all other applicable zoning, land use, or other ordinances, or land use permits.
5. Provides that if approval of the installation or use of an EV-dedicated TOU meter is required, the application for approval shall be processed and approved by the HOA in the same manner as an application for an architectural modification to the project and shall not be willfully avoided or delayed.
6. Requires the approval or denial of an application to be made in writing, and provides that if an application is not denied in writing within 60 days of receipt of the application, the application shall be deemed approved, unless the delay is the result of a reasonable request for additional information.
7. Provides that if the EV-dedicated TOU meter is to be placed in a common area or an exclusive use common area as designated in the CID declaration, the following provisions apply:
8. The owner must first obtain approval from the HOA for installation and the HOA must approve installation if the owner does both of the following:
9. Complies with the HOA's architectural standards; and
10. Engages the relevant electric utility to install the EV-dedicated TOU meter and, if applicable, a licensed contractor to install any wiring necessary to the EV charging station.
11. The owner and every successive owner shall be responsible for all of the following:
12. Costs for damage to the EV-dedicated TOU meter, common area, exclusive use common area, or separate interests resulting from the installation, maintenance, repair, removal, or replacement of the EV-dedicated TOU meter;
13. Costs for the maintenance, repair, replacement of the EV-dedicated TOU meter until it has been removed and for the restoration of the common area after removal; and
14. Disclosing to prospective buyers the existence of any EV-dedicated TOU meter of the owner and the related responsibilities of the owner under this section.
15. Provides that installation of an EV-dedicated TOU meter in the common area that is for the exclusive use of an owner shall only be authorized by the HOA if installation in the owner's designated parking space is impossible or unreasonable expensive. Provides that in this case, the HOA shall enter into a license agreement with the owner for the use of the common area.
16. Provides that the HOA may install an EV-dedicated TOU meter in the common area for the use of all members of the HOA and, in that case, the HOA shall develop appropriate terms for the use of the EV-dedicated TOU meter.
17. Makes an HOA that willfully violates this section liable to the applicant or other party for actual damages, payment of a civil penalty to the applicant or other party in an amount not to exceed $1,000.
18. Provides that, in any action to enforce compliance with the laws governing installation of an electric vehicle charging station in a common interest development, the prevailing plaintiff shall be awarded reasonable attorney’s fees.

EXISTING LAW:

1. Makes void and unenforceable any covenant, restriction or conditions contained in any deed, contract, security instrument, or other instrument in a CID that prohibits or restricts the installation of an EV charging station.
2. Defines an "EV charging station" as the following:
3. Designed in compliance with the California Building Standards;
4. Delivers electricity from a source outside an EV into one or more EVs; and,
5. May include several charge points simultaneously connecting several EVs to the station and any related equipment needed to facilitate charging plug-in EVs.
6. Defines "reasonable restrictions" as those that do not significantly increase the cost of the station or decrease its efficiency or performance.
7. Permits the application of reasonable restrictions on EV charging stations.
8. Declares that it is the policy of the state to promote, encourage, and remove obstacles to the use of EV charging stations.
9. Requires EV charging stations to meet applicable health and safety standards and requirements imposed by state and local permitting authorities, and all other applicable zoning, land use, or other ordinances, or land use permits.
10. Requires a 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 prohibits the HOA from willfully delaying or avoiding approval.
11. Requires the approval or denial of an EV charging station to be in writing.
12. Provides that if an application is not denied within 60 days from the date it is received, the application will be deemed approved, unless the delay was a result of a reasonable request for additional information.
13. Provides that if an EV charging station is to be placed in the common area or an exclusive use common area, the owner must obtain approval to install the charging station.
14. Provides that if an EV charging station is to be placed in the common area or an exclusive use common area, the homeowner must agree in writing to all the following:
15. Comply with the architectural standards for installation;
16. Engage a licensed contractor to install the station;
17. 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,
18. Pay for the electricity usage associated with the station.
19. Requires that any owner and each successive owner of the parking stall on which or near where the EV charging station is placed is responsible for all of the following:
20. Cost for any damage to the station, common areas, exclusive use common areas, or adjacent units resulting from the installation, maintenance, repair, removal, or replacement of the station;
21. Cost for the maintenance, repair, and replacement of the charging station until it has been removed from the common area, and restoration of the common area after removal;
    
22. The cost of electricity associated with the station; and,
23. Disclosing to prospective buyers the existence of any charging station and the related responsibilities of the homeowner.
24. Requires any homeowner and each successive homeowner to maintain an umbrella liability coverage policy for $1 million and to name the HOA as an additional insured under the policy with a right to notice of cancellation.
25. Provides that a homeowner liability coverage policy is not required if a homeowner uses an existing National Electrical Manufacturers Association standard alternating current power plug.
26. Provides that an HOA that willfully violates this section is liable for actual damages and shall pay a civil penalty to the applicant in an amount not to exceed $1,000.
27. Provides that in any action to enforce compliance with this section, the prevailing plaintiff is entitled to reasonable attorney’s fees.
28. Provides that a HOA may authorize the installation of an EV charging station in a common area for the exclusive use of an owner only if it is impossible or unreasonably expensive to install the station in the owner's designated parking space. In this case, the HOA must enter into a license agreement with the owner for the use of the space in the common area.
29. Provides that an HOA or the owners in an HOA may install an EV charging station in the common area for the use of all the owners. The HOA must develop the terms of use for the charging station.
30. Allows an HOA to create a new parking space where one did not previously exist to facilitate the installation of an EV charging station.
31. Provides that the affirmative vote of the owners of an HOA is not needed to install and use an EV charging station in an owner's garage or a designated parking space if the installation or use of the charging station requires access through or across the common area for the utility lines or meters, or to install and use an EV charging station through a license granted to an owner.

FISCAL EFFECT: Unknown.

COMMENTS:

There are over 52,000 CIDs in the state that range in size from three to 27,000 units. CIDs make up over six million total housing units, which represents approximately one quarter of the state's housing stock. In the 1990s, over 60% of all residential construction starts in the state were in CIDs. CIDs include condominiums, community apartment projects, housing cooperatives, and planned unit developments. They are characterized by a separate ownership of dwelling space coupled with an undivided interest in a common property, restricted by covenants and conditions that limit the use of common area, and the separate ownership interests and the management of common property and enforcement of restrictions by an association. CIDs are governed by the Davis-Stirling Act (Civil Code Section 1350 et al.) as well as the governing documents of the association, including the bylaws, declaration, and operating rules. No state agency provides oversight to these communities after initial development.

The governing documents of CIDs generally require approval of the HOA for owners to make improvements or alterations to their separate interests. HOAs are required to provide a fair, reasonable, and expeditious procedure for reviewing applications for improvements or alterations. In the case of the installation of energy savings technology, the Legislature has taken proactive steps to ensure that HOAs cannot deny a homeowner's request to make changes to their separate unit. SB 209 (Corbett), Chaptered 121, Statutes of 2011, and SB 880 (Corbett), Chapter 6, Statutes of 2012, prohibited the governing documents of an association from denying or restricting the installation of an EV charging station by an owner in a CID. These bills specified conditions for the installation of an EV charging station in the common area of a CID.

This bill would create a procedure and protections for the installation of EV-dedicated TOU meters that mirrors the provisions of existing law for EV charging stations. EV-dedicated TOU meters measure when the customer used the electricity. That feature allows a public utility to bill customers with TOU meters at different rates at different times of the day and reduces the cost for consumers.

EV-dedicated TOU meter measures: Electricity prices vary by the time of the day, which reflects the varying cost of producing the electricity. During peak times in the summer, expensive and rarely used plants must be activated; however, during late evenings in the spring, renewable energy from wind plants is abundant. Varying electric rates by time of day is an economic encouragement to consumers to shift their usage. Peak rates can be as much as three or four times the off-peak rate. Because EVs will typically be garaged in the evening, and evenings and early mornings are typically times of surplus energy, TOU rates are often favorable to EV charging.

Purpose of the bill: According to the author, SB 1016 would address a gap in law by prohibiting HOAs from "unreasonably restricting" the ability of an owner to install a TOU meter and accompanying infrastructure in a common area where their EV charging station is located. The bill includes provisions similar to those required for an EV driver to install the actual charging station. These include requirements that the driver comply with HOA standards and requirements, cover the costs of the equipment, and provide necessary disclosures, among other safeguards.

Double-referred: This bill was also referred to the Committee on Judiciary where it will be heard should it pass out of this committee.

REGISTERED SUPPORT / OPPOSITION:

Support

Automobile Club of Southern California

California Electric Transportation Coalition
Chargepoint, Inc.
City Of West Hollywood
Electric Vehicle Charging Association
Environment California
Office Of Ratepayer Advocates (ORA)
Silicon Valley Leadership Group
Tesla

Opposition

None on file

Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085

 CONSENT  

Bill No: SB 1016

Author:

Amended: 4/17/18

Vote:

SENATE TRANS. & HOUSING COMMITTEE: 11-0, 3/20/18

AYES: Beall, Cannella, Allen, Dodd, Galgiani, McGuire, Morrell, Roth, Skinner, Wieckowski, Wiener

NO VOTE RECORDED: Gaines, Vidak

SENATE JUDICIARY COMMITTEE: 7-0, 4/10/18

AYES: Jackson, Moorlach, Anderson, Hertzberg, Monning, Stern, Wieckowski

SUBJECT:

SOURCE: Author

DIGEST:

This bill prohibits any unreasonable restriction that effectively prohibits or restricts the installation or use of an EV (electric vehicle)-dedicated time-of-use (TOU) meter, as defined, in common interest developments (CIDs).

ANALYSIS: Existing law prohibits any unreasonable restriction in a CID on the installation or use of an EV charging station within an owner’s parking space.

This bill prohibits any unreasonable restriction that effectively prohibits or restricts the installation or use of an EV-dedicated TOU meter, as defined.

Background

1. Zero emission vehicles (ZEVs). Recognizing that the transportation sector emits half of California’s greenhouse gas emissions, Governor Brown has issued two Executive Orders supporting widespread adoption of ZEVs. The first, Executive Order B-16-12 issued in March 2012, called for 1.5 million ZEVs on California roads by 2025. The second, Executive Order B-48-18 issued in January 2018, called for 5 million ZEVs on California roads by 2030. To reach that goal the Governor has established a goal of installing 250,000 ZEV chargers by 2025.

Five million ZEVs may seem out of reach, especially given that there are only 350,000 ZEVs on the road now. Considering that major manufacturers are bringing to market many more models with greater range and decreasing prices, that goal does not seem too far-fetched. On an operating cost basis, EVs are already less expensive than other vehicles because of low fuel and maintenance costs. Global auto markets will also strongly encourage EV sales as the European Union, China and India take supportive industrial and regulatory policy action. The rise of autonomous vehicles may also spur EV deployment. ^[1]

There are 25 million automobiles on the road today in California. Five million ZEVs are 20%. Already 5% of new car sales/leases are ZEV; getting to 20% in 13 years doesn’t seem unreasonable in light of these trends, if adequate EV charging infrastructure is available.

Unlike conventional cars, filling up the “tank” of an EV takes hours. For example, using a 220V Level 2 charger, fully charging an empty Chevy Bolt can take 10 hours. This lends itself to charging overnight at home.

1. TOU. Electricity prices vary by the time of the day, which reflects the varying cost of producing the electricity. During peak times in the summer, expensive and rarely used plants must be activated; during late evenings in the spring renewable, energy from wind plants is abundant. Varying electric rates by time of day is an economic encouragement to consumers to shift their usage. Peak rates can be as much as three and four times the off-peak rate. Because EVs will typically be garaged in the evening, and evenings and early mornings are typically times of surplus energy, TOU rates are often favorable to EV charging.
2. Single-Family/Multi-Family. Policy needs to focus on EV charging infrastructure in multi-unit housing as one-third of California homes are multi-unit, which includes some homeowner associations. Residents in multi-unit housing are often renters, which raises specific economic issues. As with many energy efficiency programs, there is little incentive for landlords to make investments into EV charging stations as they receive no benefit. There is no incentive for renters to make that investment, even if they could afford it, as they can’t take that investment with them when they move.

A study funded by the California Energy Commission examined additional barriers to installing EV charging infrastructure in multi-unit dwellings.^[2] The study noted that EV charging station installation costs in multi-unit dwellings were very expensive compared to single-family home installations^[3], and that the costs were directly related to the distance between the electric panel and the EV parking spot. However, the cost per charging station can be greatly reduced if multiple charging stations are installed in a given location.

1. More to Do. This bill removes a potential barrier to the installation of EV charging infrastructure in HOAs by extending the protections against unreasonable restrictions on the installation of EV charging stations to the meters which are necessary for the EV charging station to function. However, for California to meet the five million ZEV goal, much more supportive EV charging infrastructure policies will need to be enacted for HOAs and other multi-unit housing, including subsidies and, perhaps, installation requirements. The Governor’s recent Executive Order recognizes this and directs state agencies to focus on ways to make EV charging infrastructure more accessible.

Comments

1. Author’s statement. “SB 1016 will help California meet our climate and clean transportation goals by eliminating obstacles that could prevent condo owners from accessing EV charging stations. Residents belonging to Homeowner Associations (HOAs) and condominium complexes find it particularly difficult to make the switch to an EV because unlike single family homeowners, these residents need to use common area spaces to install the needed infrastructure to charge their vehicles, including the TOU meters that allow the resident to benefit from the reduced overnight electricity rates offered by utilities. Most meters for HOAs are located in the ‘common area’ (including exclusive use common areas), which means permission must be obtained from the HOA. Current law already prohibits the HOA from unreasonably hindering the residents’ ability to install a charging station. This bill removes a remaining hurdle by prohibiting the HOA from restricting the resident from installing the accompanying meter infrastructure.”

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 4/18/18)

ChargePoint

Electric Vehicle Charging Association

Environment California

OPPOSITION: (Verified 4/18/18)

None received

Prepared by:

4/18/18 11:48:25

**** END ****

1. The other ZEV technology is hydrogen, but that deployment for passenger vehicles lags far behind EVs. Until hydrogen is produced from renewable resources, there is little greenhouse gas reduction benefit. ↑

2. “Overcoming Barriers to Electric Vehicle Charging in Multi-unit Dwellings; A South Bay Case Study”; California Energy Commission, May 2016: CEC-ARV-14-305. ↑

3. The cost to install an EV charging station in a single family home averaged $1,500. In a multi-unit setting the cost averaged $5,400 with the lowest-priced installation costing $1,800. ↑

SENATE JUDICIARY COMMITTEE

Senator Hannah-Beth Jackson, Chair

2017-2018 Regular Session

Bill No: SB 1016 (Author:Allen)

Version: March 21, 2018

Hearing Date: April 10, 2018

Fiscal: No

Urgency: No

Consultant: TSG

SUBJECT

Common interest developments: EV-dedicated TOU meters

DESCRIPTION

This bill would set forth procedural and substantive rules for the installation, within common interest developments, of Time of Use (TOU) electricity meters for use with an electric vehicle charging station. The bill would also prevent homeowner associations from placing other, unreasonable restrictions on such installations.

BACKGROUND

Common interest developments are self-governing groups of dwellings that share common spaces and amenities. They come in a wide variety of physical formats: condominium complexes, apartment buildings, and neighborhoods of detached, single-family residences, for example. The owners of the separate properties within the common interest development are the members of it. Each member is subject to the covenants, conditions, and restrictions that govern the development, as well as annual assessments that pay for communal expenses. Units within common housing developments currently account for approximately a quarter of the state’s overall housing stock, meaning that the laws governing such development have a large impact on the population. In California, common interest developments are governed by the Davis-Stirling Act. (Civ. Code Secs. 4000-6150.)

Time of Use (TOU) electricity meters are, as the name implies, devices that can measure not only how much power is being used, but also when it is being used. Because of that feature, TOU meters can be used by energy utilities to charge customers different rates for energy use at different times. For the reasons explained in the Comments of this analysis, this kind of billing may have environmental benefits and is particularly advantageous for electric vehicle owners.

This bill addresses what happens when a common interest development homeowner wants to install a TOU meter on an electric vehicle charging station located within the development. The bill would impose certain requirements on the installation of the TOU meter and set forth the steps that the homeowner would have to go through to gain approval from the common interest development’s governing association. At the same time, the bill would prohibit the governing association from placing any additional, unreasonable barriers on the installation of EV-dedicated TOUs. In this way, the bill seeks to ensure that homeowners’ associations do not prevent homeowners with electric vehicles from installing TOU meters and benefitting from the associated energy cost savings.

This bill passed out of the Senate Committee on Transportation and Housing 11-0.

CHANGES TO EXISTING LAW

Existing law, in the form of the Davis-Stirling Act, defines “governing documents” as the declaration and any other documents, such as bylaws, operating rules, articles of incorporation, or articles of association, which govern the operation of a common interest development or association. (Civ. Code Sec. 4150.)

Existing law defines an “electric vehicle charging station,” in the common interest development context, to mean a code-compliant station that delivers electricity from a source outside an electric vehicle into one or more electric vehicles, and any related equipment needed to facilitate charging plug-in electric vehicles. (Civ. Code Sec. 4745(d).)

Existing law makes void and unenforceable any provision of a governing document and any covenant, restriction, or condition purporting to affect the transfer or sale of separate property within a common interest development, if they effectively prohibit or unreasonably restrict the installation or use of an electric vehicle charging station in an owner’s designated parking space. (Civ. Code Sec. 4745(a).)

Existing law allows homeowners’ associations to impose reasonable restrictions on electric vehicle charging stations, so long as they do not significantly increase the cost of the station or significantly decrease its efficiency or specified performance. (Civ. Code Sec. 4745(b).)

Existing law specifies that an electric vehicle charging station installed in a common interest development shall meet applicable state and local health and safety standards and requirements, as well as all other applicable zoning, land use, or other ordinances, or land use permits. (Civ. Code Sec. 4745(c).)

Existing law obligates homeowners associations to process a request for approval to install an electric vehicle charging station in the same manner as an application for approval of an architectural modification to the property and to provide a response in writing. If the request is not denied within 60 days, the application shall be deemed approved, unless the delay is the result of a reasonable request for additional information. (Civ. Code Sec. 4745(e).)

Existing law provides that if the electric vehicle charging station is to be placed in a common area or an exclusive use common area, then the owner first shall obtain approval from the association to install the electric vehicle charging station. The association shall approve the installation if the owner agrees in writing to:

• comply with the association’s architectural standards for the installation of the charging station;
• engage a licensed contractor to install the charging station;
• provide, within 14 days, a certificate of insurance that names the association as an additional insured under the owner’s insurance policy in the amount of $1,000,000 (one million dollars); and
• pay for the electricity usage associated with the charging station. (Civ. Code Sec. 4745(f)(1).)

Existing law provides that the owner and each successive owner of the charging station shall be responsible for:

• costs for damage to the charging station, common area, exclusive use common area, or separate interests resulting from the installation, maintenance, repair, removal, or replacement of the charging station;
• costs for the maintenance, repair, and replacement of the charging station until it has been removed and for the restoration of the common area after removal;
• the cost of electricity associated with the charging station;
• disclosing to prospective buyers the existence of any charging station of the owner and the related responsibilities of the owner under this section;
• maintaining, at all times, a homeowner liability coverage policy in the amount of $1,000,000 (one million dollars) and name the association as a named additional insured under the policy with a right to notice of cancellation, except that this requirement does not apply to an existing, standard alternating current power plug. (Civ. Code Sec. 4745(f)(2-4).)

Existing law provides that, with specified exceptions, installation of an electric vehicle charging station for the exclusive use of an owner in a common area that is not an exclusive use common area, shall be authorized by the association only if installation in the owner’s designated parking space is impossible or unreasonably expensive. In such cases, the association shall enter into a license agreement with the owner for the use of the space in a common area, and the owner shall comply with all of the same requirements for installation in the homeowner’s exclusive use common area. (Civ. Code Sec. 4745(g).)

Existing law makes an association that willfully violates this section liable to the applicant or other party for actual damages, payment of a civil penalty to the applicant or other party in an amount not to exceed $1,000 (one thousand dollars). (Civ. Code Sec. 4745(j).)

Existing law provides that, in any action to enforce compliance with the laws governing installation of an electric vehicle charging station in a common interest development, the prevailing plaintiff shall be awarded reasonable attorney’s fees. (Civ. Code Sec. 4745(k).)

This bill would clarify that the rules governing installation of electric vehicle charging stations in common interest developments, including the requirement to maintain a homeowner liability coverage policy in the amount of $1,000,000 (one million dollars), applies to installations within confines of the homeowner’s separate property.

This bill would clarify that in order to qualify for mandatory approval of the installation of an electric vehicle charging station, the applicant must agree in writing to, among other things, pay the costs associated with the installation.

This bill would make any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a common interest development, and any provision of a governing document that either effectively prohibits or unreasonably restricts the installation or use of an EV-dedicated TOU meter or is in conflict with the laws governing such installations is void and unenforceable.

This bill would define an “EV-dedicated TOU meter” to mean an electric meter supplied and installed by an electric utility, that is separate from, and in addition to, any other electric meter and is devoted exclusively to the charging of electric vehicles, and that tracks the time of use (TOU) when charging occurs. The definition would include any wiring or conduit necessary to connect the electric meter to an electric vehicle charging station.

This bill would permit reasonable restrictions on the installation of an EV-dedicated TOU meter based upon space, aesthetics, structural integrity, and equal access to these services for all homeowners, but an association shall attempt to find a reasonable way to accommodate the installation request, unless the association would need to incur an expense.

This bill would require the installation of an EV-dedicated TOU meter in a common interest development to meet applicable state and local health and safety standards and all other applicable zoning, land use, or other ordinances, or land use permits.

This bill would provide that, if approval is required for the installation or use of an EV-dedicated TOU meter, the application for approval shall be processed and approved by the association in the same manner as an application for approval of an architectural modification to the property, and shall not be willfully avoided or delayed. The approval or denial of an application would have to be in writing. If an application is not denied in writing within 60 days from the date of receipt of the application, the application would be deemed approved, unless that delay is the result of a reasonable request for additional information.

This bill would specify that, if the EV-dedicated TOU meter is to be placed in a designated common area or an exclusive use common area, then the owner would first have to obtain approval from the association to install the EV-dedicated TOU meter and the association would have to approve the installation if the owner agrees in writing to:

• comply with the association’s architectural standards for the installation of the EV-dedicated TOU meter; and
• engage the relevant public electric utility to install the EV-dedicated TOU meter and, if applicable, a licensed contractor to install wiring or conduit necessary to connect the electric meter to an EV charging station.

This bill would require the owner and each successive owner of an EV-dedicated TOU meter to be responsible for all of the following:

• costs for damage to the EV-dedicated TOU meter, common area, exclusive use common area, or separate interests resulting from the installation, maintenance, repair, removal, or replacement of the EV-dedicated TOU meter;
• costs for the maintenance, repair, and replacement of the EV-dedicated TOU meter until it has been removed and for the restoration of the common area after removal; and
• disclosing to prospective buyers the existence of any EV-dedicated TOU meter of the owner and the related responsibilities of the owner under this section.

This bill would, with specified exceptions, require association approval of the installation of an EV-dedicated TOU meter for the exclusive use of an owner in a common area, that is not an exclusive use common area, only if installation in the owner’s designated parking space is impossible or unreasonably expensive. In these cases, the association shall enter into a license agreement with the owner for the use of the space in a common area, and the owner shall comply with all of the requirements applicable to installation of an EV-dedicated TOU meter in an exclusive use common area.

This bill would make an association that willfully violates the laws regarding installation of an EV-dedicated TOU meter liable to the applicant or other party for actual damages, and payment of a civil penalty to the applicant or other party in an amount not to exceed $1,000 (one thousand dollars).

This bill would provide that, in any action to enforce compliance with the laws regarding installation of an EV-dedicated TOU meter in a common interest development, the prevailing plaintiff shall be awarded reasonable attorney’s fees.

COMMENT

1. Stated need for the bill

According to the author:

SB 1016 will help California meet our climate and clean transportation goals by eliminating obstacles that could prevent condo owners from accessing electric vehicle (EV) charging stations. Residents belonging to Homeowner Associations (HOA) and condominium complexes find it particularly difficult to make the switch to an EV because unlike single family homeowners, these residents need to use common area spaces to install the needed infrastructure to charge their vehicles, including the time of use meters that allow the resident to benefit from the reduced overnight electricity rates offered by utilities. Most meters for HOAs are located in the “common area” (including exclusive use common areas) this means permission must be obtained from the HOA. Current law already prohibits the HOA from unreasonably hindering the residents’ ability to install a charging station. This bill removes a remaining hurdle by prohibiting the HOA from restricting the resident from installing the accompanying meter infrastructure.

In support, Environment California writes:

To prevent the worst impacts of climate change and put the world on a path to a sustainable climate, scientists and policy experts agree that we must stop burning virtually all fossil fuels by mid-century and fully electrify our transportation sector, which produces more greenhouse gas emissions than any other single source. […]

To support these new electric vehicles, California’s energy infrastructure needs to adapt. Instead of gas stations, ZEVs [Zero Emission Vehicles] need charging stations. Since ZEV charging often takes place overnight, California needs to ensure that people have access to charging in or near their homes. […]

By making it easier for electric vehicle owners and users to recharge their vehicles, California can position itself to meet the state’s long-term climate and air pollution goals.

In further support, the Office of Ratepayer Advocates writes:

Cost-effectively advancing the state’s clean climate goals is a top priority for ORA. SB 1016 would help achieve these goals by reducing barriers to installing charging stations in common interest developments.

In further support, Charge Point, Inc. writes:

[A]s the technology and market for EVs continues to mature, consumers are increasingly motivated to purchase and install the appropriate infrastructure to fit their charging needs.

SB 1016 ensures that no common interest development can create arbitrary barriers to the installation of EV-dedicated TOU meters. If consumers are motivated to purchase EVs, they should not be prevented from installing the necessary infrastructure at their residence.

In further support, Tesla, Inc. writes:

Access to charging remains among the most significant barriers impeding market growth of [electric vehicles]…[…] This challenge extends to installation in common interest developments… of TOU meters that facilitate customer utilization of electricity tariffs that encourage use of electricity when it is the least costly to generate (e.g., at night). Electricity meters at most HOAs are located in “common areas,” where typically permission to install must first be obtained from the HOA. Depending on the HOA, this can be difficult, and a resident can be subject to an onerous, expensive, and lengthy approval process. SB 1016 addresses this issue by conferring the same rights and responsibilities to residents desiring to install TOU meters as currently exist for EV charging infrastructure.

2. Concerns expressed about the bill

The Committee received no timely letters in opposition to this bill.

3. How TOU meters relate to the environment

Electricity is difficult and costly to store, so utilities only generate enough power to meet the immediate demand at any given moment. When demand for electricity remains relatively low and steady, the utilities can rely on their cheapest and cleanest sources of power. When demand for energy spikes, however, the utilities have to turn to dirtier, more expensive methods for generating electricity. As a result, from a cost and environmental point of view, moderate, steady electrical use is ideal.

Unfortunately, however, human beings do not use electricity in this way. Most human beings sleep at night and are active during the day. Not surprisingly, therefore, our collective electrical power use peaks during the day and subsides at night.

One way to counteract this natural fluctuation is for utilities to charge higher rates for electricity during the day, and less at night, thus incentivizing customers to change what time they use power. TOU meters make such a pricing scheme possible. Unlike an ordinary electrical meter, which measures only the amount of electricity that a customer uses, a TOU meter also measures when the customer used the electricity. That feature allows a public utility to bill customers with TOU meters at different rates at different times of the day.

4. How TOU meters relate to electric vehicles

Most of our electronic devices – lights, microwaves, televisions, and computers, for example -- are designed to operate when we are active, awake, and using them. That explains why the greatest draw on the electrical grid takes place during the daytime. Electric vehicles, by contrast, are typically used in exactly the opposite pattern: they are disconnected from the grid during the day, while the owner drives around, and plugged in at night, so that they will recharge. This makes electric vehicles especially well-suited for use with a TOU meter and an associated rate plan that bills the consumer at a lower rate at night.

Electric utilities also benefit if electric vehicle owners charge up at night, since that helps reduce disparities between overall daytime and nighttime power demand. Recognizing this, some electric utilities offer customers the option of installing a TOU meter that is dedicated to the electric vehicle alone, separate and apart from the electrical meter that measures other electrical use. Some of the electric utilities even offer rate plans that are specific to such EV-dedicated TOU meters. An EV dedicated TOU meter can also have the advantage of separating out the cost of charging an electric vehicle from all other electrical use expenses, which permits the electric vehicle owner to monitor how much the owner is spending to fuel the car specifically.

5. Analysis of impact on other homeowners in the common interest development

This bill derives its pedigree from the Solar Rights Act (AB 3250, Levine, Ch. 1154, Stats. 1978) and more recent attempts to force common interest developments to be more open to the installation of environmentally friendly technology like electric vehicle charging stations (SB 209, Corbett, Ch. 121, Stats. 2011) and rooftop solar panels (AB 634, Egg man, Ch. 818, Stats. 2017). Those initiatives generated some controversy among advocates for homeowners because, in forcing common interest developments to approve the installations, they shifted some of the risk associated with the installation onto surrounding homeowners. Installation of electric vehicle charging stations involves some fire hazard, for example, while installation of rooftop solar panels raises the potential for leaks.

To at least partially mitigate for that shift in risk, both the electric vehicle charging station bill and the rooftop solar bill wound up including some form of insurance requirement for the proponent of the installation. By contrast, this bill does not. The omission does not present an obvious call for concern, however, for two reasons. First of all, Committee staff is unaware of any significant risk associated with the installation of TOU meters. Second of all, because the TOU meters in question are EV-dedicated, they will always be associated with an electric vehicle charging station, for which the owner must, by law, carry a $1,000,000 (one million dollar) liability coverage policy. With these factors in mind, there does not appear to be any immediately obvious reason why it would be necessary or beneficial to pile on additional insurance requirements for the installation of a TOU meter.

6. Fee shifting provisions

The existing law regarding installation of electric vehicle charging stations, which this bill would lightly amend, contains a fee shifting provision requiring the award of attorney’s fees in the event of litigation. The proposed law regarding installation of EV-dedicated TOU meters, which this bill would add to the codes, has a matching provision.

The provisions are identical, and both say: “[I]n any action to enforce compliance with this section, the prevailing plaintiff shall be awarded reasonable attorney fees.”

Given the intent behind both laws – to reduce barriers to the installation of electric vehicle charging infrastructure – it seems likely that the fee-shifting provisions are meant to allow homeowners to recover attorneys’ fees if they must go to court to gain the governing association’s approval for a lawful installation. It seems unlikely that the provisions are also meant to require a judge to award attorneys’ fees to a homeowner’s association if it sues to prevent installation of electric vehicle infrastructure.

The legislative history behind the provision appears to support this conclusion. SB 209 (Corbett, Chapter 121, Statutes of 2011) is the legislation that enacted the existing fee-shifting provision in Civil Code Section 4745(j). As introduced, that bill called for the prevailing “party” to receive attorneys’ fees in any action to enforce compliance. An early amendment to the bill replaced “party” with “plaintiff” and the corresponding analysis by the Senate Transportation and Housing Committee indicated that the bill “[s]ubjects a CID that willfully violates this bill to actual damages, a civil penalty up to $1000, and attorney’s fees.” (Cal. Sen. Trans. & Hag. Com. Analysis of SB 209 (Mar. 29, 2011 Hearing), p. 2. Emphasis added).

While the purpose of the statute and the legislative history both suggest that only homeowners seeking to install electric vehicle stations may recover attorneys’ fees, the phrasing of the fee-shifting provisions is awkward and could potentially be susceptible to more than one interpretation. The author may wish to alter the language to clarify who is entitled to attorneys’ fees and in what circumstances.

7. Proposed Amendments

In order to address the issues set forth in the analysis, above, the author has offered to incorporate amendments into the bill that would:

• Clarify that attorney’s fees are available to a homeowner plaintiff who prevails in an action to enforce the terms of the laws governing installation of electric vehicle charging stations and associated EV-dedicated TOU meters, but not to any other plaintiff.

The specific proposed amendments are as follows:

Amendment 1

On page 4, in line 35, after “action” insert:

by a homeowner requesting to have an electric vehicle charging station installed and seeking

Amendment 2

On page 7, in line 3, after “action” insert:

by a homeowner requesting to have an EV-dedicated TOU meter installed and seeking

Support: ChargePoint, Inc.; City of Santa Monica; City of West Hollywood; Electric Vehicle Charging Association; Environment California; Office of Ratepayer Advocates; Tesla, Inc.

Opposition: None known

HISTORY

Source: Author

Related Pending Legislation: None known

Prior Legislation:

SB 522 (Glazer, 2017) would have provided that if the approval of an architectural modification requires a vote of the membership of the association, then only the percentage of the votes submitted on the architectural modification shall be counted to determine this approval. SB 522 was withdrawn by the author from consideration before the Senate Judiciary Committee and then subsequently gutted and amended to address unrelated subject matter.

AB 634 (Eggman, Ch. 818, Stats. 2017) provided that homeowners’ associations cannot impose conditions that effectively prohibit the installation or use of rooftop solar panel installation, but permitted homeowners’ associations to impose other specified conditions, and required homeowners’ associations to condition approval on maintenance of a homeowners insurance policy, among other things.

AB 1239 (Holden, 2017) would have required the state to develop building standards for electric vehicle parking spaces for existing nonresidential buildings and multifamily dwellings. Governor Brown vetoed AB 1239.

SB 209 (Corbett, Chapter 121, Statutes of 2011) provided that homeowners’ associations cannot impose conditions that effectively prohibit the installation or use of an electrical vehicle charging station, but permitted homeowners’ associations to impose other specified conditions, and required homeowners’ associations to condition approval on maintenance of an umbrella liability coverage policy of $1,000,000 that names the common interest development as an additional insured, among other things.

AB 3250 (Levine, Chapter 1154, Statutes of 1978) established the Solar Rights Act declaring void and unenforceable covenants, conditions, and regulations that effectively preclude the installation of solar energy systems, but permitting the imposition of certain reasonable requirements on installation.

Prior Vote: Senate Transportation and Housing Committee (Ayes 11, Noes 0)

**************

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2017 - 2018 Regular

Bill No: SB 1016 Hearing Date: 3/20/2018

SUBJECT: Common interest developments: EV-dedicated TOU meters

DIGEST: This bill prohibits any unreasonable restriction that effectively prohibits or restricts the installation or use of an EV-dedicated time-of-use (TOU) meter, as defined, in common interest developments (CIDs).

ANALYSIS:

Existing law:

Prohibits any unreasonable restriction in a CID on the installation or use of an electric vehicle (EV) charging station within an owner’s parking space.

This bill:

Prohibits any unreasonable restriction that effectively prohibits or restricts the installation or use of an EV-dedicated time-of-use (TOU) meter, as defined.

COMMENTS

1. Author’s Statement. SB 1016 will help California meet our climate and clean transportation goals by eliminating obstacles that could prevent condo owners from accessing EV charging stations. Residents belonging to Homeowner Associations (HOAs) and condominium complexes find it particularly difficult to make the switch to an EV because unlike single family homeowners, these residents need to use common area spaces to install the needed infrastructure to charge their vehicles, including the TOU meters that allow the resident to benefit from the reduced overnight electricity rates offered by utilities. Most meters for HOAs are located in the "common area" (including exclusive use common areas), which means permission must be obtained from the HOA. Current law already prohibits the HOA from unreasonably hindering the resident’s ability to install a charging station. This bill removes a remaining hurdle by prohibiting the HOA from restricting the resident from installing the accompanying meter infrastructure.
2. Background. Recognizing that the transportation sector emits half of California’s greenhouse gas emissions, Governor Brown has issued two Executive Orders supporting widespread adoption of zero emission vehicles (ZEVs). The first, Executive Order B-16-12 issued in March 2012, called for 1.5 million ZEVs on California roads by 2025. The second, Executive Order B-48-18 issued in January 2018, called for 5 million ZEVs on California roads by 2030. To reach that goal the Governor has established a goal of installing 250,000 ZEV chargers by 2025.

Five million ZEVs may seem out of reach, especially given that there are only 350,000 ZEVs on the road now. Considering that major manufacturers are bringing to market many more models with greater range and decreasing prices, that goal does not seem too far-fetched. On an operating cost basis, EVs are already less expensive than other vehicles because of low fuel and maintenance costs. Global auto markets will also strongly encourage EV sales as the European Union, China and India take supportive industrial and regulatory policy action. The rise of autonomous vehicles may also spur EV deployment. ^[1]

There are 25 million automobiles on the road today in California. Five million ZEVs is 20%. Already 5% of new car sales/leases are ZEV; getting to 20% in 13 years doesn’t seem unreasonable in light of these trends, if adequate EV charging infrastructure is available.

Unlike conventional cars, filling up the “tank” of an EV takes hours. For example, using a 220V Level 2 charger, fully charging an empty Chevy Bolt can take 10 hours. This lends itself to charging overnight at home.

1. Time-of-Use. Electricity prices vary by the time of the day, which reflects the varying cost of producing the electricity. During peak times in the summer, expensive and rarely used plants must be activated; during late evenings in the spring renewable, energy from wind plants is abundant. Varying electric rates by time of day is an economic encouragement to consumers to shift their usage. Peak rates can be as much as three and four times the off-peak rate. Because EVs will typically be garaged in the evening, and evenings and early mornings are typically times of surplus energy, TOU rates are often favorable to EV charging.
2. Single Family/Multi-Family. Policy needs to focus on EV charging infrastructure in multi-unit housing as one-third of California homes are multi-unit, which includes some HOAs. Residents in multi-unit housing are often renters, which raises specific economic issues. As with many energy efficiency programs, there is little incentive for landlords to make investments into EV charging stations as they receive no benefit. There is no incentive for renters to make that investment, even if they could afford it, as they can’t take that investment with them when they move.

A study funded by the California Energy Commission examined additional barriers to installing EV charging infrastructure in multi-unit dwellings.^[2] The study noted that EV charging station installation costs in multi-unit dwellings were very expensive compared to single-family home installations^[3], and that the costs were directly related to the distance between the electric panel and the EV parking spot. However, the cost per charging station can be greatly reduced if multiple charging stations are installed in a given location.

1. More to Do. This bill removes a potential barrier to the installation of EV charging infrastructure in HOAs by extending the protections against unreasonable restrictions on the installation of EV charging stations to the meters which are necessary for the EV charging station to function. The committee hasn’t received any reports that this has been a problem, but extending the protections to meters is a logical expansion. A representative of the Community Associations Institute has been contacted by the committee and indicated no concerns with the current version of the bill. However, for California to meet the 5 million ZEV goal, much more supportive EV charging infrastructure policies will need to be enacted for HOAs and other multi-unit housing, including subsidies and, perhaps, installation requirements. The Governor’s recent Executive Order recognizes this and directs state agencies to focus on ways to make EV charging infrastructure more accessible.
2. Clarifying Amendments. The author proposes clarifying the bill to ensure that the owner pays for the installation of the EV charging station, as well as the cost of the electricity. This is accomplished by adding the following to page three, line 30 of the bill:

After “for” insert “both the costs associated with the installation and”.   

An additional clarifying amendment is necessary to ensure that the bill covers both municipal utilities (SMUD) and investor owned utilities (e.g. Southern California Edison). This requires replacing the term “public utility” with “electric utility”.

1. Double Referral. This bill has been double referred to the Judiciary Committee.

Related Legislation:

AB 1239 (Holden, 2017) — would have required the state to develop building standards for electric vehicle parking spaces for existing nonresidential buildings and multifamily dwellings. The bill passed the Legislature and was vetoed by the Governor. In his veto the Governor said:

In 2013, I signed AB 1092 which required the California Building Standards Commission to adopt mandatory standards for the installation of electric vehicle charging stations for parking spaces in new multifamily dwellings and nonresidential buildings. Furthermore, the California Public Utilities Commission is currently working on a comprehensive plan that will determine where investor-owned utilities can install charging stations around the state.

Increasing transportation electrification will require additional coordination and collaboration from the California Energy Commission, the California Public Utilities Commission and the various departments within the Administration. I am directing the Government Operations Agency to work with all the key parties to identify barriers to the construction of charging stations in existing buildings.

AB 1452 (Muratsuchi, Chapter 635 of 2017) — authorizes local governments to designate public spaces for EV parking.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

POSITIONS: (Communicated to the committee before noon on Wednesday, March 14, 2018.)

SUPPORT:

Electric Vehicle Charging Association

Environment California

OPPOSITION:

None received.

-- END --

1. The other ZEV technology is hydrogen, but that deployment for passenger vehicles lags far behind EVs. Until hydrogen is produced from renewable resources, there is little greenhouse gas reduction benefit. ↑

2. “Overcoming Barriers to Electric Vehicle Charging in Multi-unit Dwellings; A South Bay Case Study”; California Energy Commission, May 2016: CEC-ARV-14-305. ↑

3. The cost to install an EV charging station in a single family home averaged $1,500. In a multi-unit setting the cost averaged $5,400 with the lowest-priced installation costing $1,800. ↑