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THE REAL COST OF CLEAN ENERGY, PART 1

By Ron Kingston

This Two-Part Series will be focusing on the Legislature’s efforts, costs, and the reality of “electrifying” California’s transportation system with a special focus on the impact and potential impact upon the multi-family housing industry.

Last year a bill was introduced to create building standards regarding the installation of EV charging stations for existing buildings. One of these standards will require the installation of EV charging stations with low power level two or higher in existing multi-family housing during specified retrofits, additions, and alterations to existing parking facilities for which a permit application is submitted. The California Building Standards Commission, along with the Department of Housing and Community Development have been charged with the task of creating the standards, which are to commence with the, “next triennial edition of the California Building Standards Code.” For reference, the last Triennial Edition was published on July 1, 2022, therefore, the “next triennial edition of the California Building Standards Code” will be published sometime around July 2025, and likely take effect January 1, 2026.

While the notion of clean energy is appealing to many Californians, our state’s leaders, perhaps, are not considering the financial waste and time needed to realistically change Californians’ reliance on dirty energy to clean energy. As a residential rental property owner, imagine being financially responsible for all costs associated with installing and maintaining EV charging stations for renters that do not use the equipment because they do not own or operate an electric vehicle?

According to J.D. Power, the average cost to install a Level 2 charging station in the United States is $1,300, including installation, but not including upgrade to the electricity panels, underground work, installing or upgrading the entire electrical delivery to each development. The requirement for residential rental property owners to install EV charging stations could be the most expensive building retrofit they’ve ever faced, and quite possibly the most wasteful.

As change would have it, advances in EV charging technology are already surpassing the current normal expectations. On average, one Level 2 charge will draw about 13.5 kilowatts of electricity per day and can take up to eight hours to fully charge. Current law requires a Level 2 charging station be installed, which requires a 240-volt electrical source – equivalent to an oven range or clothes dryer; however, Level 3 charging stations are also on the market, which require a 480-volt electrical source and draw up to 350 kilowatts of electricity per day and are advertised as having the capability to charge vehicles in minutes as opposed to hours. This begs the question as to whether California has the capacity to electrify transportation as quickly as our leaders believe it can. If so, the next question is how much money is the State willing to spend in order to meet its unattainable goal of maintaining zero-emission passenger vehicles in California by 2035.

Part II will appear in the March/April edition of Rental Housing Magazine.

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