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Jeffrey W. Erdman

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Arevik Sargsyan

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The California Legislature enacted Civil Code Section 1952.7 to promote the installation of electric vehicle charging stations. Importantly, while commercial lessors are not required to install or maintain EV stations in California, the law prevents them from hindering lessees who wish to do so. See Civil Code § 1952.7(a)(1). Lessees are entitled to request permission from a lessor to install electric vehicle charging stations. Section 1952.7 governs the requirements lessees must satisfy for installation of vehicle charging stations, outlines the scope of their rights, and details the costs lessees must bear.

Who does Section 1952.7 apply to?

Civil Code Section 1952.7 excludes commercial properties on which charging stations already exist to service at least two parking spaces for every 100 parking spaces. Id. § 1952.7(b)(1). It also excludes commercial properties with less than 50 parking spaces. Id. § 1952.7(b)(2).

What does Section 1952.7 prohibit?

Pursuant to § 1952.7(b), any commercial lease entered into after January 1, 2015 is unenforceable if it “prohibits” or “unreasonably restricts” the installation or use of electric vehicle charging stations. Lessors are prohibited from imposing restrictions on lessees that significantly increase the cost of the electric vehicle charging station or its installation or significantly decrease the charging station’s efficiency or specified performance. Id. § 1952.7(a)(2), (c)(3).

What requirements must the lessee satisfy to install an electric vehicle charging station?

When required, the lessee must obtain prior approval from the lessor. Id. § 1952.7(f)(1). In doing so, the lessee must comply with the applicable lease provisions consistent with § 1952.7 and must also agree, in writing, to comply with the lessor’s reasonable standards, engage a licensed contractor, and within 14 days of approval, provide a certificate of insurance that names the lessor as an additional insured under the lessee's insurance policy in the minimum amount of $1,000,000. Id. The lessor cannot intentionally delay or avoid approval of an otherwise valid application and must approve an application when the lessee complies with all applicable requirements. Id. § 1952.7(e), (f)(1).

Who is responsible for the costs associated with the charging station?

The lessee is responsible for any costs for damage to the property or the charging station as a result of installation, maintenance, repair, removal or replacement of the charging station. Id. § 1952.7(f)(2)(A). The lessee is likewise responsible for the costs for maintenance, repair and replacement of the charging station. Id. § 1952.7(f)(2)(B). Further, the lessee is responsible for the costs of electricity associated with the charging station. Id. § 1952.7(f)(2)(C).

The lessee must maintain a lessee liability coverage policy in the amount of at least $1,000,000, naming the lessor as an additional insured under the policy with a right to notice of cancellation. Id. § 1952.7(f)(3). The lessee must also maintain property insurance covering any damage or destruction caused by the charging station, naming the lessor as its interests may appear. Id.

How many charging stations can a lessee install?

A lessee may only install electric vehicle charging stations in the maximum number of parking spaces allotted per the lease. Id. § 1952.7(a)(3). If no parking spaces are allotted per the lease, the lessee is not allowed to install more charging stations than the maximum allowed pursuant to the formula provided in the statute. Id. To arrive at the maximum number per the formula, the lessee or lessor must multiply the total number of parking spaces in the commercial property by a fraction, the denominator of which is the total rentable square feet at the property and the numerator of which is the number of total square feet rented by the leaseholder. Id.