EV Sales Mandate – Impact on Condominiums

     In our July 14th, 2022, EV Blog we discussed the Sticker Shock associated with EV charger installations in Condos. Now we are at the cusp of a major change that has the potential to disrupt the investments made by Condo Corporations or the plans the Boards have for EVs in their buildings. There has been a recent announcement by the Canadian Federal Government about mandating electric car sales in Canada as of 2026. It follows European trends and the US states like California, Washington, Oregon, and others.

 The Mandate

    The draft regulations will be published on December 30th, 2022, but the announcement confirmed that by 2026, 20% of all passenger cars, SUVs, and light trucks sales will need to be electric.
Previously the Canadian Federal Government left the market to operate on its own with buyers deciding to go EV or not. But this new legislation will force manufacturers to sell more and more EVs or be penalized. In fact, the mandate will increase to 60% of all vehicle sales by 2030, which is 8 years out, and 100% by 2035.
    There was a time when the industry, and consumers, were relying on predictions to gauge the future of EV sales. Well, those days are gone. This mandate by the Federal Government will cement those numbers.
Canadians purchase about 2 million vehicles a year. For manufacturers to meet their target of 20% they will have to prepare to sell more vehicles. In fact, they will need to make sure they sell at least 20% to avoid any penalties. As such the actual adoption of EVs by 2026 will be higher.

Impact on Condominium Corporations

    In our previous Blog, we discuss how Condo corporations, property managers, and condo owners were struggling with the implementation of EV chargers; during a time with low adoption. The problem is about to get worst with this Federal Mandate. How does the Corporation meet the demand for 20%, 60%, and eventually 100% adoption?

  We recently surveyed 600 Condominium buildings in the Greater Toronto Area. Many of the properties were in the evaluation process or the pre-deployment stage, some had already installed chargers, while the balance had not started the process at all. Of those that had installed chargers, the deployment was limited to 5 units or less in buildings that had 100+ parking spaces. While in the evaluation or pre-deployment stage, their biggest challenge was how to deal with the limited electrical capacity in the building. The general approach, in these situations, was to adopt a ‘First come First serve’ policy. Leaving those that signup early the Winners, and those that don’t the Losers.

The Rabbit Hole

    The pressure on Corporations to deal with EV charging will only get more intense. Condo Boards must ensure equal treatment and equal access for all owners. Condos that have invested will be faced with new and more significant costs while they risk writing off their existing investment.
    Few condos, if any, are planning for 100% adoption of EVs. Those that have leaped will need to re-evaluate. At the heart of the problem is the Condo’s assumption that EV charging is an infrastructure project to be taken on by the Board! The reality is that EV charging is a service. Corporations and their Boards don’t design, invest in, or operate sub-meters, TV, home phone, or internet infrastructure. EV charging is the same. Not only do you need hardware, but you also need ongoing administrative services such as sub-meters, TV, etc.
    The Federal Government Mandate will drive condos down the Rabbit Hole of a never-ending cycle of analysis, investment, and change as demand for equal access to EV charging in the building increases. Now is the time to re-evaluate the approach.