Charging Up: Best Practices for Safety of Electrical Vehicles

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1 Charging Up: Best Practices for Safety of Electrical Vehicles March 2011 Lockton Companies A new fleet of electric vehicles (EVs) are hitting America s LORI SEVERSON Loss Control Consultant lori.severson@lockton.com roadways. This development has implications for safety and insurance programs. This report outlines the development of electric vehicles and provides recommendations for fleet operators and risk managers THOMAS METZNER Vice President Senior Loss Control Consultant tmetzner@lockton.com working with electric vehicles and charging stations. A Long History of Electric Vehicles Electric vehicle technology is not new and in fact dates back to the 1830s. In 1897, New York City had a fleet of electric taxis. In 1899 and 1900, electric cars outsold all other types of cars. However, in the 1920s, there were several developments that proved to be fatal blows to the electric car industry, including expanding cities and the desire to travel greater distances, affordable gasoline and the mass production of the internal combustion engine. The latter two directly affected the cost to purchase and operate a gasolinepowered vehicle. Within the last decade, there has been a renewed interest in electric vehicles. Once considered an abundant resource, supplies of fossil fuels are limited and are identified as a source of greenhouse gas emissions. Technology has improved to the point of enabling electric cars to travel greater ranges before needing to recharge. L O C K T O N C O M P A N I E S

2 The United States has pledged $2.4 billion in federal grants for electric cars and batteries. Electric Vehicles: The Electric Vehicle Project The United States transportation industry is changing. Travel to Houston, Seattle or New York, and one will now see pedestal or wallmounted electric vehicle charging stations curbside, akin to the parking meter. President Obama announced in January 2011 the one million vehicle challenge to see America put one million electric vehicles on the road by The Facts In a U.S. Energy Information Administration study conducted in 2008, a state-by-state analysis estimated that there were 57,000 electric cars on U.S. roads. 2 October 1, 2009, ECOtality North America launched the EV Project ( with a $99.8 million grant from the U.S. Department of Energy. This project deployed nearly 15,000 charging stations in 16 cities located in six states (Oregon, Washington, California, Arizona, Tennessee and Texas) and the District of Columbia. Nissan North America and General Motors/Chevrolet are partners in the EV Project. A recent review of the electric vehicle (EV) market shows almost every major auto manufacturer has debuted an electric vehicle, and they are projecting increased production levels in hh hh The ultimate goal of The EV Project is to take the lessons learned from the deployment of these first 8,300 EVs, and the charging infrastructure supporting them, to enable the streamlined deployment of the next 5 million electric vehicles. In 2010, charging infrastructure was deployed in the following to major population areas: Phoenix (Arizona), Tucson (Arizona), San Diego (California), Los Angeles (California), Portland (Oregon), Eugene (Oregon), Salem (Oregon), Corvallis (Oregon), Seattle (Washington), Nashville (Tennessee), Knoxville (Tennessee) and Chattanooga (Tennessee), Washington (D.C.), Dallas (Texas), Fort Worth (Texas) and Houston (Texas). 3 2

3 March 2011 Lockton Companies Costs to charge an electric vehicle can range between 20 cents and a dollar, depending on the vehicle type, length of the charge and the price of electricity. A few cities, including San Francisco, have installed charging stations that assess a fee, payable by credit card. 4 Lockton clients may be impacted by this industry transition from internal combustion engine (ICE) vehicles to the green auto movement and zero emission market of vehicles in the United States, and we are prepared to assist your loss control planning for these new products. A recent review of the electric vehicle (EV) market shows almost every major auto manufacturer has debuted an electric vehicle, and they are projecting increased production levels in What Is an Electric Car? An electric car is powered by an electric motor instead of a gasoline engine. The electric motor gets energy from a controller, which regulates the amount of power based on the driver s use of an accelerator pedal. The electric car (also known as electric vehicle or EV) uses energy stored in its rechargeable batteries, which are recharged by electricity. 5 To learn more about electric cars: Electric Vehicles Offer 2-5 seats To learn more about electric cars, visit Driving distances are estimated at miles on a fully charged battery. The batteries vary but are often lithium-ion systems. To charge the lithium-ion batteries, a 120-volt charger may take eight hours to fully charge a battery Some 120-volt chargeable cars can be charged using a standard 120-volt household outlet. A faster charge is completed by having a 240 volt charger. The 240-volt chargers provide a full charge in approximately three to four hours. Specialty vehicles, such as large vans and utility trucks, may have 480-volt chargers. It is anticipated these will be for employers of large fleets and not the home owner, nor will these be at the city curbside due to the high voltage. There will be separate high-voltage charging stations. We provide this loss control guidance so your installations can plan in advance for the safest installations. Can travel at top speed ranges of mph Price range: $15,000 to $40,000 All require some form of battery charger at the workplace, in the city and at home to charge the battery. 3

4 CHARGING INFRASTRUCTURE LOCATIONS Charging Stations Installations Always follow manufacturer s installation, inspection, and maintenance recommendations. Installations should be in compliance with national and local codes (including the National Electrical Code, Article 625 Electric Vehicle Charging System) and performed by a qualified and licensed electrician. Obtain certificates of insurance from all contractors performing installations and review limits of liability; review contracts for favorable risk transfer and hold harmless agreements. In the event an accident happens with the charger, all parties will be potentially included in any lawsuit. Always review with the manufacturer and the contracted, licensed electrical contractor the advantages of a remote, emergency electrical disconnect/breaker. If certain installations present the need, install them in compliance with NFPA 70E, Standard for Electrical Safety in the Workplace. After installation and before customers use the chargers, have knowledgeable, trained staff verify charging stations by performing detailed visual inspection of all attachments, including cables and connectors, and document and date this pre use inspection. Charging station units should be secured or locked to prevent access to the internal wiring and equipment. Time limitation signs should advise customers to move their vehicle immediately after charging (or after a certain time period). Charging Station Placement Checklist Located in a visible locations and/or monitored by surveillance cameras to deter vandalism (signage to this effect is suggested, e.g., This Area Monitored by Surveillance Cameras ). Identify the charging parking spaces clearly as a charging station. Parking space should be identified as a charging station. Locate the charging station so customers are parked safely and consider all potential inclement weather exposures, especially snow conditions and their impact on the charger location. Stations should be located so cables or posts are not struck by snow removal equipment. Avoid installing chargers where cables would be stretched across walkways. Post clear, simple instructions for customers on proper use and instructions on how to properly store cables following use. Situate the charging station to avoid vehicle collisions. Protective bollards may be required. Include accessibility and ADA requirements when selecting the charger locations. 4

5 March 2011 Lockton Companies This electric charging station is in Redmond, WA, and is part of the ChargePoint America Program, a $37 million project sponsored by Coulomb Technologies, Inc. ChargePoint encompasses roughly 5,000 charging stations in nine regions nationwide that were installed free of cost. It is part of an agreement that requires ChargePoint to collect data from the stations for two years to report back to the federal government, said Cathy Beam, a principal planner for the City of Redmond. The data, which is not available publicly, will be sent to Purdue University and Idaho National Laboratory to be analyzed to determine the station s success. 6 Inspection and Maintenance Recommendations Frequency of inspection and maintenance is dictated by the manufacturer and installer, as well as whether the devices are remotely monitored through a computerized preventive maintenance program with an notification or alert system. Visual inspections should observe any obvious damage to charging stations, abrasions to the cables or damage to connectors. Plan for authorized staff or the manufacturer to take immediate corrective measures. Maintain documentation, and implement lock-out or tag-out procedures. Other Considerations Inform your insurance broker, so your insurance carriers are properly notified and can provide guidance on any special insurance options, such as adding the charging stations to your insurance program. Note: The items noted above are considered best practices and should not be used in lieu of compliance with local ordinances or manufacturer s recommendations. This data represents the latest best practices as of its development in March Resources 1 The Oakland Press, Groups applaud Obama s goal of 1 million electric vehicles by 2015, Retrieved March 03, 2011 from articles/2011/01/27/news/state/doc4d410a1a3cd0f txt 2 The U.S. Energy Information Association, Estimated Number of Electric Vehicles in Use, by State and User Group 2008 released April 2010, retrieved March 03, 2011 from 3 The EV Project, (By Ecotality) An Overview, retrieved March 03, 2011 from 4 Brown, Lisa, Area moving forward to install electric car charging stations St. Louis Today, retrieved March 03, 2011 from local/article_b41d7b59-59c adf6-5be7e50d3a8b.html 5 Hybrid cars, Electric cars: A definitive guide, retrieved March 03, 2011 from 6 Pak, Samantha, The Redmond Reporter.com, Electric Vehicle charging stations coming to Redmond January 13 retrieved March 03, 2011 from pnwlocalnews.com/east_king/red/news/ html# 5

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