Charging Plug-In Electric Vehicles at Multi-Unit Dwellings A guide to establishing charging stations at multi-unit dwelling locations Winter 2014
Overview The Arizona Electric Vehicle Stakeholder group (EVAZ) was created in 2011 to understand the barriers and promote the benefits of electric vehicles in Arizona. This diverse group represents a broad range of interests with a focus on identifying and structuring unified policy issues to benefit the electric vehicle (EV) market. In 2013 the group focused on several issues they found to be relevant in having a positive impact on EVs within our community. The following are the 2013-14 Policy Objectives identified by the EVAZ Stakeholders: Workplace Charging Station Implementation Guidelines Identify and Develop Ancillary Items to Benefit EV Market Multi-Family Charging Station Policy and Implementation Permitting and Infrastructure Development Policy and Implementation Centralized Message and Promotional Opportunities for EVAZ Stakeholders According to a January 2014 report by Navigant Research, there will be more than 35 million electric vehicles on roads worldwide by 2022. As that market segment continues to grow there will be more demand for EV drivers to plug in and fuel up their vehicles. Although the typical EV driver charges their vehicles overnight at their home, a growing segment of owners want the convenience to charge while at work. Research shows that consumers even the ones who don t drive EVs prefer doing business with companies who encourage environmental sustainability and help cut our dependence on foreign oil by installing electric vehicle (EV) charging infrastructure. This report is one in a series of documents designed to identify barriers to the EV market and provide solutions to overcome those barriers. Previous reports included identification of barriers and opportunities for implementing workplace charging station programs. The following is a guide to assisting developers, owners, or managers of multi-family dwelling units (MuDs) get their sites ready for the growing EV-driving market. The success of an EV market in any community is dependent on the availability of charging stations. Electric vehicle charging in multifamily residences may also be one 2014 BMW i8 of the primary obstacles to expanding the EV market in Arizona. Charging units are relatively easy to install in single family residences and with very limited regulation. Unfortunately, there are numerous challenges to bringing the capability to charge EVs in an existing multifamily residence. Electric Vehicles and Terminology Understanding the types of electric vehicles people are driving, along with the necessary charging equipment, is important to know before making any attempts to implement an EV charging program. The technology is constantly changing, building regulations differ between communities, and installing new infrastructure in an existing facility will have challenges. Page 2
Types of Electric Vehicles There are typically three types of vehicles that define an EV: battery electric, plug-in hybrid, and hybrid electric vehicles. Battery Electric Vehicles (BEVs) A battery electric vehicle is an all-electric car, which runs entirely on an electric motor and rechargeable battery. As compared to a gasoline engine, an electric motor is much more efficient and mechanically simple. Plug-In Hybrid (PHEVs) A plug-in hybrid is a type of hybrid vehicle that takes electricity from an outlet to recharge internal batteries. The energy stored in the batteries can be used to drive an electric motor, just as in a BEV. However, a PHEV also has an engine, typically gasoline-fueled, which can power the vehicle when the battery is depleted. Hybrid Electric Vehicle (HEVs) Hybrids on the road today can have two complementary drive systems: a gasoline engine and fuel tank; and an electric motor, battery and controls. Both the engine and the electric motor can turn the transmission at the same time, and the transmission then turns the wheels. HEVs cannot be recharged from the electricity grid all their energy comes from gasoline and from regenerative braking. Charging Stations There are numerous reports and information on the internet about the different types of charging stations identified by their charge level. This is used to describe the varying level of power requirement and total time to provide a full charge on an electric vehicle. Level 1 - This type of charging is utilizing your basic household outlet to charge a vehicle. These sockets typically take longer to fully charge a vehicle. If you only need to charge during the night for the morning commute then this may just work fine for you. Basically, you plug the charger into the wall and the electricity flows to your car. Level 2 - A system that delivers 240v of household electricity to a car, similar to that of a residential dryer or oven. Level 1 and 2 chargers are utilized for both residential and commercial uses. This charger can provide a full charge in approximately 4 hours, depending on the vehicle and quality of charging station. Level 3 - Commonly referred to as a DC Fast Charging with around 40 miles of range for every 10 minutes of charging. These are more often utilized as a public charging station and allow the user to charge in a smaller amount of time for longer distances. Page 3
New EV Charging Technology Technology in the EV market is constantly changing. Each year, vehicle manufactures introduce new vehicles with increased distance capabilities, along with faster ways to charge a vehicle. The way EV owners can charge their vehicle is changing as well as new technology becomes available. Inductive Charging Although an existing technology, inductive charging is where electricity is transferred through a magnetic field generated by the on-board vehicle receptor coming into a close range with the power delivery source installed in a parking space. This adds an ease of use to the driver that doesn t require the vehicle to be plugged in. The driver pulls up to the power source and places the vehicle directly over the source. Barriers to EV Charging in Multi-Dwelling Units Although there are numerous benefits to installing EV charging stations at MuDs, there are barriers that need to be identified and managed. These barriers will vary depending on the type of facility, but will likely be more complicated than a standard single-family home EV charging station installation. Barriers such as engaging multiple stakeholders (management company, HOAs, local electric utility), capital costs for initial installation, and physical limitations for EV charging station locations within the MUD will all need to be considered. What do I need to know? There are a number of factors to consider when considering a charging station program for your facility and residents. The most important thing to understand is to have a strategy before installing a charging station. A successful program will happen if your employees, property managers, and residents, are fully aware of the challenges and benefits of a program. Homeowner Associations, Property Managers, and Building Owner Approval Identifying current rules and regulations within your state is important. States such as California and Hawaii say that residents of multi-family dwellings have the right to install EV charging stations as long as they pay for it and indemnify the landlord or HOA, as well as taking out a low-cost insurance policy against property damage, according to Paul Scott, a founding member of the EV advocacy group Plug In America. Developing a PEV charging program requires the involvement of all stakeholders that will be impacted. This includes tenants, property managers and homeowner associations, utility providers, local regulatory agency, and your local utility. A good starting point is to identify these stakeholders within your community and take the steps necessary to engage them early in the process. Questions and answers to identify could include the following when determining all the factors involved in developing your program: Will your program allow residents to charge their PEV in their current parking spaces, or will it be centralized to allow easier access for all residents and visitors? Who will manage the program once it is established? Will the property manager, owner or HOA Page 4
decide on the number of charging stations, locations, or how the program will work? Identifying the responsible entity to manage your charging program early in the process is important. Who is going to pay for the equipment, future upgrades, insurance, and maintenance of the system? These factors need to be carefully considered with a long term strategy. Decide in advance who pays what. Which costs are paid by the residents and which by the HOA or property owners collectively? Who will own the equipment? Will the tenant be able to take the equipment with them when they move? Additionally, how will the existing facility be restored to original condition if the equipment is removed? Get Support The process of making charging available to residents can often take months to plan and implement. Gathering stakeholder support for an EV charging program is probably one of the most important steps that can be taken. There are numerous ways residents, the local HOA, or property management company can engage in identifying the desire to provide this service. Develop an Interest Survey A very popular method of implementing a charging program is to identify the current and future interests of residents by developing a resident interest survey. This is a good tool that can be used to identify those interested in electric vehicles and possibly provide an additional service to residents. Those taking the survey should include residents, property managers and facilities managers, or any stakeholders you can identify that could provide valuable input in the process. Survey questions should be designed to get a better understanding of what is expected of the program from residents and management along with developing infrastructure expectations. Identify if any of your current residents own an electric vehicle or plan on purchasing one in the near future. This will help you get the potential charging equipment needed, what is being offered in the market, and what type of electric vehicles your residents drive. Determining the existing or potential charging needs of your residents will help determine what infrastructure options are needed and the costs associated with those options. Potential survey questions for your residents could include the following: Do you own an electric vehicle? If so, how do you currently charge your vehicle? If you drive an electric vehicle to work, how far is your commute? Are you considering the purchase of an electric vehicle? Would the availability of chargers at our facility be of interest to you? Would you be willing to pay to use this service? Would the availability of chargers at our property increase the likely-hood that you would choose our residence over another residence? An additional survey with your facilities manager, current HOA board of directors (if one is managing your property) or any service providers to the property is important so you can understand existing infrastructure and assess the readiness of the site for electric vehicle chargers. Page 5
Regardless of where the concept of an electric vehicle charging program begins, there should be an overall benefit to the HOA/Property Management company and an understanding of the benefits the program will bring. Utilizing a resident interest survey that identifies those benefits, along with understanding installation costs, types of equipment, who will install and own the equipment, and what type of property policy will surround the program are important factors to gauge. Identify External Factors Local utilities in Arizona have additional instruction and guidance that can be helpful in identifying charging station options and installation concepts. Additionally, many municipalities in Arizona have identified special permitting for the installation of EV charging units. State law may regulate the type of restrictions that can be placed on the availability of charging stations within multi-dwelling unit facilities. Looking online for guidelines to getting charging points installed is also a good idea. Additional external factors that should be considered: Regulatory requirements related to installing EV charging stations at multi-family dwelling units are important factors to consider. Parking access considerations are crucial in determining charging location and cost. Identifying current power sources and capacity to your campus. Choosing the right licensed electrician can be a challenge. Selecting one with installation experience and knowledge of local regulations is vital. Cost as a Factor The greatest challenge to EV charging station instillations is their cost. It s often difficult to justify the initial investment for the charging station infrastructure when the return on investment could reach a 7-year timeline. HOAs, building managers and owners need to weigh the installation and ongoing maintenance costs when considering an EV charging program. The initial up front costs could range from a few thousand dollars to as high as $10,000, depending on demand and available infrastructure. Careful consideration should be taken for the up front capital expense, along with ongoing maintenance costs, and how to recoup those expenses with your charging program. The cost of electricity is also a component to consider when developing an EV charging station program. Electricity costs vary by location and the current rates provided by your local utility. Contacting your local utility representative prior to implementation is an important first step so you are fully aware of the variable rates and options available. Although the cost of electricity will vary depending on your location and utility provider, consideration should be taken for the increased cost of providing a power source for your chargers. Several utilities have developed special rates for supplying electricity for EV fueling. Contacting your local utility representative is important to fully understand available rates and options available. Installation and Maintenance Factors Choice of equipment, power requirements, and siting considerations are all important items to consider when installing electric vehicle charging stations. Page 6
Power Requirements: The existing power structure may need to be evaluated to support additional power loads. A review with your property manager and local utility may be in order to determine whether or not existing transformers or wiring infrastructure is capable of handling vehicle charging stations. Siting Considerations: Locate the charging stations as close to the existing electrical supply as possible. This will help keep avoid any trenching and additional conduit to a minimum. Equipment Selection: The type of charging station system you identify will have an impact on both installation and cost of electricity. The larger the system you install (Level II or III) will increase installation costs and the cost to purchase electricity. Limited Parking Spaces If you do not currently have a dedicated parking space at your residence, it may be challenging to ensure regular access to electrical vehicle charging. There are methods to address parking issues at your site when determining an EV charging plan. Develop an assigned parking space program. This can help identify potential spaces for EV chargers. Valet charging is a new method of coordinating EV charging when parking spaces are limited. This amenity would provide tenants with a valet service to charge their vehicle. This method could also assist in utilizing community charging equipment. Complex Metering Metering is a complex issue and engaging your building or property manager and your electricity provider early in the process is important. The underlying factor is determining who actually pays for the electricity for recharging a PEV and how it is paid is very complicated. Common methods of metering electricity in multi-unit dwellings include the following: Residential Metering: Each tenant s electricity is metered by a dedicated electrical meter. Often the meters are grouped together in one location to make meter reading easier for the electric utility. Residential metering may make it easier to navigate the complexities of charging station installations at multi-unit dwellings; however, this is not always the case. It may not be cost feasible to route the electricity supplying your charging station through your dedicated electric meter. Master or Group Metering: A single meter that measures electricity usage for an entire building or area without distinguishing amongst the included areas/units. In this metering scenario, it will be difficult to determine the electrical consumption for a single tenant s charging station. Common Area Metering: A meter that measures the electricity usage in common areas such as parking lots, laundry rooms, pool areas, etc. It may be more cost feasible to connect a charging station to a common area meter, but as with master or group metering, it will be difficult to determine the electrical consumption for a single tenant s charging station. Page 7
Benefits of Multi-Dwelling Unit Charging Stations There are numerous benefits to providing charging stations to residents A successful program will happen if employees, employers, and building owners/managers are fully aware of the challenges and benefits. A successful PEV charging program can help bring value to residents, promote the facility as environmentally conscious, or help a building owner attract or retain tenants. Tenant Resident Benefits The PEV market is expected see over 40 million vehicles on the road within the next 15 years. Additionally, nearly ever major automobile manufacturer has released, or are preparing to release, some form of PEV. All the owners of these vehicles are going to need locations to charge their PEVs, either at home, work, or where they shop. As a result, home vehicle charging is quickly becoming a priority for residents when deciding on a place to live. The early adoption of a PEV charging program can help retaining existing tenants and help attract a growing segment of the housing market. Market Differentiation and Community Benefit The multi-unit dwelling market is highly competitive, with Millennials driving the Phoenix multifamily market to higher levels. There are numerous market studies in the PEV market that point to this market segment as one who prefers environmentally sound methods of transportation and living. Offering higher-end amenities such as PEV charging can help differential your facility from that of your competitors and attract a diverse tenant base. Additional benefits for the multi-dwelling unit property could include the following: Increased Range: Range Anxiety is one of the most talked about terms in relation to electric vehicle ownership. It s used to describe electric vehicle owners fear their vehicle will run out of charge before reaching a charger. Providing PEV owners the ability to charge at multiple locations helps reduce their concerns. Shortens long commutes: Providing workplace charging stations to tenants enables those with longer commutes access to charging stations at home and work. Improve local air quality: Combustion engine vehicles are large contributors to smog and ground level ozone. Incorporating an electric vehicle program can help reduce those harmful emissions. Energy independence: When we keep our energy dollars here, we keep jobs here. Electric vehicles and charging stations are good for our economy. When we fill up our car with gasoline, much of the money we pay leaves our state and goes out of our country. However, most of our electricity we use is made locally, meaning fuel dollars can stay closer to our local economy when we charge up our car with electricity. Phoenix has seen a resurgence in downtown living with an increase in multi-dwelling unit communities. Downtown has gained a momentum, with people excited about living in lofts, high-rises, and historical homes. Many are looking for shorter commutes, sustainable living, and areas rich in culture. Providing this emerging market with unique amenities is another way to attract this emerging market. Page 8
The electric grid: A future community benefit is the ability of electric vehicles to connect to a future smart grid, where electric batteries have the potential to benefit both consumers and the overall electrical grid. By feeding electricity back to the grid during peak demand, electric vehicles could help keep overall electricity costs lower by reducing the need for additional supplemental power sources. Case Studies Companies across the nation are taking the first step toward engaging workplace charging station programs for their employees and visitors. General Motors, Google, and the Apollo Education Group are just a few of the organizations across the country that have worked with employees to find ways to utilize this added benefit in a very positive manner. There are additional stories of Arizona companies who are utilizing workplace charging stations as well. The Elysian, Los Angeles, California Linear City Development announced in 2014 that The Elysian, a 96-unit apartment building in Los Angeles, would provide free electric vehicle charging for tenants. This is the first apartment building in the nation to provide this service to tenants for free. Liv Avenida, Chandler, Arizona Liv Avenida is a recently constructed luxury apartment community located at 3250 S. Arizona Avenue in Chandler, Arizona that was one of the first multi-housing developments in Arizona to install electric vehicle charging stations for their tenants and visitors. Communities such as Liv Avenida offer residents the option of driving an electric vehicle, which will continue to be more seriously considered by relatively affluent, yet budget conscience consumers that are attracted to premium communities. Electric vehicle charging stations and convenient access to this type of property amenity combines both a high-tech resource and sustainability which is a perfect fit to today s growing tech savvy and eco-friendly consumers. (livavenida.com) Avenue 25 Apartments, Phoenix, Arizona Avenue 25 is a gated, controlled access community located at 18250 North 25th Avenue in Phoenix, Arizona. The property is in the heart of the one of the most important and highly concentrated employment corridors in the entire valley near the I-17 and Loop-101 interchange. With some of the greatest concentration of major employers in the immediate area, the property is working to attract renters in the high-tech market by providing amenities such as electric vehicle charging stations. Page 9
Summary Electric vehicle charging in multi-unit dwellings may be one of the largest obstacles to expanding the electric vehicle market in Arizona. The complications associated with installing charging stations are much more different than that of a single-family residence. Owners, property managers, and homeowner associations are challenged with issues such as an insufficient number of parking, limited infrastructure, expensive installation costs, all while having greater demand for charging stations. According to the National Multifamily Housing Council, nearly 22% of Phoenicians live in rental housing, with over 50% of Americans living in some type of multi-unit dwelling. These numbers are continuing to grow in our community, along with the demand for EVs. These EV owners living in these multi-unit dwellings will want to find reliable, inexpensive ways to charge their vehicles. This document is intended as a guide to those stakeholders who are seeking to implement a charging program at their multi-unit dwelling facility. There is not a single solution that will fit every facility. The most important factor to deploy a program is to start with a well laid out plan and start looking at the simplest solution for tenants. Additional information about multi-unit dwelling charging programs can be found through the following resources: DriveClean.ca.gov A good source of information on multi-family charging programs along with regulation background in California. The site also provides the visitor with survey tools and resources for MuD groups to better understand the methods associated with implementing a charging station program. National Apartment Association (NAAHQ.org) NAA s mission is to serve the interests of multifamily housing owners, managers, developers and suppliers and maintain a high level of professionalism in the multifamily housing industry to better serve the rental housing needs of the public. They are a good resource of information and supported the Program to Provide 206 Electric Vehicle Charging Stations at Apartments, a program in northern California to allow condo and apartment property owners to apply for free EV chargers, with applicants assuming the costs for installation. Rocky Mountain Institute (RMI.org) RMI is an independent, non-partisan nonprofit based out of Colorado that drives the efficient and restorative use of resources. They advance market-based solutions, engaging businesses, communities, and institutions to cost-effectively shift to efficiency and renewables. They employ rigorous research, analysis, and whole-systems expertise to develop breakthrough insights. They then convene and collaborate with diverse partners business, government, academic, nonprofit, philanthropic, and military to accelerate and scale solutions. They have done a number of studies related to renewable programs in transportation, industry, along with research on multi-family charging programs. --------------------- Page 10