As electric vehicles (EVs) grow in popularity, businesses across the country, including in Michigan, are increasingly considering the installation of charging stations at workplaces. This trend is riding a wave of government support, exemplified by the Biden administration’s recent allocation of $26.2 million in grants for EV charging infrastructure in Michigan alone, part of a broader $521 million investment across 29 states. While there are some obvious benefits of workplace charging, including making a workplace more EV-friendly for employees and customers, the path to implementation is paved with legal and regulatory considerations. Let’s explore some of the key issues Michigan businesses must navigate when installing and operating EV charging stations.
Property Ownership and Management
For businesses that don’t own their premises, a first important step is securing permission from the building owner or management. This isn’t as simple as getting a yes or no answer. It involves a thorough review of lease agreements, negotiations on installation costs and maintenance responsibilities, and discussions about the impact on common areas and parking allocation.
Liability Considerations
Once the green light is given to move forward with EV charging station installation, liability considerations come to the forefront. As with any workplace amenity, EV charging stations carry potential risks that should be anticipated and addressed.
For example, businesses may want to consider developing user agreements that employees must sign before accessing the charging stations. Such agreements can outline terms of use, including any fees, time limits, and user responsibilities. They also may include clauses limiting company liability for vehicle damage, personal injury, or property damage resulting from the use of the stations.
Businesses should also consult with insurance providers to ensure business liability policies cover incidents related to EV charging stations, and adjust coverage as necessary.
ADA Compliance
Accessibility is another critical factor. The Americans with Disabilities Act (ADA) has specific implications for EV charging station design and placement. This includes designating a portion of EV charging spaces that meet ADA size and accessibility requirements, implementing proper signage and markings, and considering the path of travel from charging stations to building entrances. There may also be disability-related rules and regulations at the state and local level that need to be considered with respect to a particular project. It’s important to consult with legal counsel on these and other matters.
Zoning and Land Use Regulations
Local zoning laws can significantly impact a business’s ability to install EV charging stations. Businesses should review local zoning ordinances with experienced legal counsel early in the process to ensure EV charging stations are a permitted use in their area. In some cases, this might mean applying for special permits or variances if current zoning doesn’t explicitly allow for charging infrastructure.
Incentives and Tax Implications
Installing EV charging stations can come with financial perks. The Alternative Fuel Vehicle Refueling Property Credit (part of the Inflation Reduction Act), for instance, can cover up to 30% of the installation cost. States offer a variety of incentives, from grants and rebates to tax credits, while local utilities might provide additional financial support or preferential electricity rates. The Charge Up Michigan program, arising from the funds Michigan received in the Volkswagen diesel emissions settlement, has earmarked $9.7 million to support the installation of EV charging stations. The program is available to public or private organizations that can host publicly accessible charging stations. The initiative offers potential grants – covering up to a third of equipment costs or as much as $70,000 per station location.
Workplace Policies and Employee Management
Finally, clear workplace policies are essential for the smooth operation of charging stations. Business should consider developing fair usage policies that address time limits, scheduling, and any associated costs for employees, among other issues.
Conclusion
The world of EVs, and the infrastructure to support them, is rapidly evolving. Regulations and incentives are frequently changing, so make sure to consult with legal counsel before installing a charging station in your parking lot. If you have any questions or require assistance, please contact Zana Tomich.
