Legal Considerations for Commercial Property Owners Offering EV Charging to Tenants in Illinois

The rapid adoption of electric vehicles (EVs) is transforming the Illinois commercial real estate market. For office buildings, retail centers, and multi-family properties, EV charging is no longer a "luxury amenity"—it is a core infrastructure requirement. However, for a property owner or manager, installing EV chargers is not as simple as putting in a new vending machine.

The legal landscape for EV charging in Illinois is evolving quickly, driven by the Illinois Electric Vehicle Charging Act and new building codes. Property owners must navigate a complex web of tenant rights, liability risks, insurance requirements, and ADA compliance. This guide provides the legal roadmap for Illinois commercial property owners looking to implement EV charging while protecting their interests and their assets.

Unlocking Tenant Demand: Illinois' 'Right to Charge' Act & Your Legal Duties

In 2023, Illinois joined a growing list of states that have enacted "Right to Charge" legislation. This law fundamentally changed the power dynamic between landlords and tenants regarding EV infrastructure.

The Core Mandate

The Illinois Electric Vehicle Charging Act stipulates that a landlord cannot "unreasonably" prohibit a tenant from installing an EV charging station in their designated parking space or a common area.

• Tenant Responsibility: The tenant is generally responsible for the cost of installation, maintenance, and electricity.
• Landlord Protection: The landlord can require the tenant to use a licensed and insured contractor, pay for a professional load study, and provide proof of liability insurance that names the landlord as an additional insured.

"Reasonable" Restrictions

While you can't say "no," you can set conditions. For example, a landlord in Chicago can require that the charger's design matches the aesthetic of the building or that the installation does not interfere with critical building systems. However, these restrictions cannot be used to "effectively prohibit" the installation.

To see how this fits into your broader property strategy, read Illinois commercial real estate: energy infrastructure for buyers and tenants.

Protecting Your Assets: A Landlord's Guide to EV Charger Liability, Insurance, and ADA Compliance

Installing EV chargers introduces new physical and legal risks to a property. Managing these risks is essential for long-term success.

1. Liability and Insurance

The primary risk with EV charging is fire (though rare) and trip-and-fall accidents over charging cables.

• The Lease Clause: Your lease or a dedicated "EV Charging Addendum" should clearly state that the user of the charger assumes all risk.
• Insurance Requirements: Ensure your property's umbrella policy covers EV charging. If a tenant is installing their own charger, require a minimum liability limit (often $1 million) specifically for the charging unit.

2. ADA Compliance (The Illinois Accessibility Code)

EV charging stations are considered "public accommodations" or "common area amenities." This means they must be accessible.

• Aisle Width: At least one charging space must have a 5-foot access aisle to allow for a wheelchair.
• Reach Heights: The charging handle and the payment screen must be within the reach of a person in a wheelchair (typically 15 to 48 inches from the ground).
• Path of Travel: There must be an unobstructed path from the charging station to the building's main entrance.

3. Electrical Load Liability

If a tenant's charger trips the building's main breaker or damages a shared transformer, who is responsible? Your agreement should include an "Indemnification" clause that holds the tenant liable for any damage to the building's electrical infrastructure caused by their equipment.

The Profit Equation: How to Bill for EV Charging and Craft a Bulletproof Tenant Lease Agreement

For most landlords, the goal is to provide charging without it becoming a drain on the building's operating budget.

Billing Models:

• Flat Monthly Fee: Simple for the tenant, but the landlord risks losing money if the tenant is a "heavy" user.
• Per-kWh Pricing: The most fair model. Using "networked" chargers allows the landlord to bill the tenant exactly for the electricity they use, often adding a small "administrative fee" to cover the hardware cost.
• CAM Allocation: In retail or multi-family settings, the cost of the "common" chargers can be included in the Common Area Maintenance (CAM) charges, provided the lease language specifically allows for "sustainability improvements."

The "EV Charging Addendum" Checklist:

A bulletproof agreement should address:

• Ownership: Who owns the hardware at the end of the lease? (Usually, the landlord wants the right to keep it or require the tenant to remove it at their cost).
• Maintenance: Who is responsible for repairs?
• Removal: A requirement for the tenant to restore the parking space to its original condition if the charger is removed.
• Data Access: The landlord's right to access usage data for carbon emissions reporting.

Maximize Your ROI: Tapping into Illinois EV Rebates and Future-Proofing Your Commercial Property

The cost of compliance and installation is significantly offset by the incentives we've discussed in our EV infrastructure planning guide.

1. The "Make Ready" Advantage

In Illinois, ComEd and Ameren will often pay for the "behind-the-meter" infrastructure (trenching, conduits, panels). This removes the biggest financial and legal hurdle for the landlord, as the utility takes on much of the "infrastructure risk."

2. Future-Proofing for "Right to Charge"

Even if you don't have tenants asking for chargers today, new Illinois building codes are increasingly requiring "EV-Capable" or "EV-Ready" spaces in new construction. Planning for these during a parking lot resurfacing or an electrical upgrade can save you 70% compared to retrofitting later.

3. Enhancing Property Value

A building with a robust, legally compliant EV charging program has a higher appraisal value and a lower "cap rate." It is seen as a lower-risk asset that is better prepared for the future of the Illinois economy.

Conclusion

Offering EV charging to tenants in Illinois is a complex but necessary evolution for commercial property owners. By understanding your duties under the "Right to Charge" Act, proactively managing your liability and ADA risks, and crafting clear, data-driven lease agreements, you can transform a potential legal headache into a high-value amenity. In the competitive Illinois real estate market, the property owners who master the legal and technical "charge" will be the ones who attract and retain the highest-quality tenants.

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Sources:

• Illinois General Assembly - Public Act 103-0053 (Electric Vehicle Charging Act)
• U.S. Access Board - ADA Guide to EV Charging Stations
• Illinois Capital Development Board - Illinois Accessibility Code
• Building Owners and Managers Association (BOMA) - EV Charging for Landlords
• Illinois State Bar Association - Real Estate Law Section