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2023-05-03 P & R Packet
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2023-05-03 P & R Packet
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negotiate these transactions and underlying business models with flexibility and <br />appropriate due diligence. It's also important to consider the technological elements of <br />this service, meaning that in addition to the contractual elements relating to delivery, <br />installation, operations, and the guarantees of the physical charging station, the <br />software, IT support, ownership and use of charging station customer data, payment <br />processing, privacy issues, and data security elements will also be important. These <br />contractual provisions must be well understood by all parties as they relate back to <br />standard contractual questions such as each party's various obligations, which entity is <br />required to pay which and when, the length of the term, potential breaches and <br />remedies, indemnification and insurance responsibilities, assignability, and what is to <br />be done when there is a change in controlling law. This last point is particularly <br />important in this area, given the fluid nature of energy technology and associated laws <br />and regulations. <br />Beyond initial procurement matters, construction issues must also be considered. While <br />the relevant utility will typically install the electrical infrastructure, the party installing <br />the charging station must be determined such that utility, installer, and property owner <br />or tenant operations can be coordinated. Necessary utility infrastructure upgrades, land <br />use rights and restrictions, regulatory approvals, and associated costs should also be <br />confirmed. Clarity regarding the responsible permit applicant and regulatory contact <br />should also be addressed and the impact of construction on surrounding properties and <br />business operations should be considered in advance to potentially work out mitigating <br />measures, if necessary. <br />After construction, project operation also presents issues that must be resolved. Chief <br />among these is whether customers are charged a fee to use the charging station and, if <br />so, how the fees are set, collected, held, processed, and disbursed by and between <br />parties. Branding or advertising considerations should also be addressed along with the <br />party in control thereof, as well as the party responsible for charging station <br />maintenance and upkeep (e.g. site owner responsibility, utility or installer service plan, <br />etc.) Further, the liable party for operation malfunctions and their attendant <br />responsibilities should also be clear. <br />The eventual end of a contract's initial term should also be proactively addressed. <br />Potential options for continuing the contract for varying terms, advance notice <br />requirements, required or optional system upgrades, or purchase and vendor changes, <br />among other issues, should be considered during initial contract negotiation. End of <br />useful life issues are also important, as the party responsible for removing and disposing <br />of the charging station and relevant infrastructure must be identified. Potential <br />environmental remediation and indemnification responsibilities must also be dealt with <br />in the event charging station -related construction or removal results in a release of a <br />hazardous or regulated substance. <br />As EV adoption and associated public charging infrastructure continue to proliferate <br />commercial and business entities should consider the opportunities and benefits of <br />hosting charging stations. Doing so, however, requires deliberate, thoughtful, and <br />
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