How Would the Lithium-Ion Battery Bill Affect Building Owners and Managers?

The Setting Consumer Standards for Lithium-Ion Batteries Act (H.R. 973) has passed the House with a bipartisan majority vote. The legislation has been received in the Senate, where it was referred to the Committee on Commerce, Science, and Transportation. Here’s what this bill would mean for building owners and managers.

What Does This Bill Do?

The bill, which is supported by BOMA International, would require the Consumer Product Safety Commission to establish a consumer product safety standard for rechargeable lithium-ion batteries, which are used in e-bikes and other micromobility devices. This standard would have several impacts, according to BOMA/Chicago, including:

• Companies wouldn’t be able to sell, distribute, or import lithium-ion batteries for e-bikes or other micromobility devices that aren’t in compliance with the safety standard issued by the Consumer Product Safety Commission. Companies that violate the rule would be subject to potential civil and criminal penalties.
• Manufacturers of lithium-ion batteries would have to test and certify that their batteries meet the safety standard before they can be sold.
• The Consumer Product Safety Commission would be able to conduct compliance inspections at any factory, warehouse, or other establishment where lithium-ion batteries are manufactured to make sure they’re complying with the standard.
• The commission would also be able to obtain samples of batteries that are being imported into the United States and inspect them. If they don’t comply with the standard, the CPSC can request that the Secretary of the Treasury deny entry of those batteries.

Why Is It Important to Regulate Lithium-Ion Batteries?

Lithium-ion batteries serve as the power source for many e-mobility devices. They’re generally safe, but have been linked to an increase in fires, which occur when the batteries are damaged, defective, overcharged, or exposed to extreme conditions. Once a fire from a lithium-ion battery is ignited, it can spread very quickly and even reignite after it has been extinguished. The fires are also difficult to extinguish due to the volatility of lithium-ion batteries.

In New York City, the fire department recorded more than 200 fires linked to these batteries in 2022 alone; the fires led to six fatalities and more than 140 injuries.

Some local and state governments are beginning to implement regulations, according to BOMA International, but there is minimal regulation in place so far. The Setting Consumer Standards for Lithium-Ion Batteries Act would regulate the batteries at the federal level.

What Can Building Owners and Managers Do in the Meantime?

It’s not inherently riskier to have charging infrastructure on your property, but it’s a good idea to follow best practices for charging and storage, such as:

• Make sure charging spaces for smaller devices are fire-rated. Scooters and e-bikes can be plugged in anywhere in your building, but ideally, people should use a designated charging location that’s separate from habitable space.
• Implement guidelines around charging. Some battery fires are caused by overcharging; for example, when people plug their devices in and leave them all night. Require people to use the charging location you provide and educate them about why it’s important.
• Deliver value for your tenants. Understand who is charging, when they charge their devices, and why they need the equipment. That will help you deliver a space that works for everyone.

For building owners and managers, the passage of this bill signals a shift in accountability and opportunity: the need to proactively address safety risks while meeting tenant demands for modern mobility solutions. Now is the time to evaluate your building’s infrastructure and implement necessary policies to reduce your liability and keep occupants safe.