Developers exploit loophole to fit EV chargers despite fire warnings – Exclusive

12/10/2024 01:00 PM

EXCLUSIVE

Australia has a legal loophole allowing some building developers to retrospectively fit electric car chargers to new high-density buildings such as apartment blocks and offices without approval from fire authorities.

Why is that a problem? 

It's quite complicated, but has the potential to affect everyone – not just EV owners or those who live in inner-city buildings – in the event of a catastrophic, albeit rare electric vehicle fire.

The most substantial changes to the National Construction Code in 25 years came into effect this year, after last being updated in 2022.

The changes to the code say that 100 per cent of parking spaces in apartment buildings should be wired ready to have EV chargers installed, as well as 10 per cent of offices and retail spaces, and 20 per cent of other commercial sites.

But crucially there is no legal requirement for fire suppression methods to be upgraded alongside this, which has prompted fire authorities across Australia to have major concerns.

Some have even issued their own recommendations for what they'd like to see fitted to help manage any fires. While these are not enshrined in law, it is causing ripples for developers when seeking approval of building applications.

Multiple sources have told Drive that plans for electric car chargers in new buildings are being removed from applications by some developers and retrofitted later to bypass fire authorities.

MORE: Do electric cars actually present a greater fire risk than petrol or diesel? EV fire myths busted

"When somebody proposes a new building and they indicate that there’s going to be electric vehicle charging facilities in the new building, as soon as they realise that’s going to get a bit of opposition from the fire brigade and create complications for the approval process, they delete all of that off the plans and get it approved without it," Jeremy Turner, Technical Manager for the Australian Institute of Building Surveyors (AIBS) told Drive.

"And then once the building’s built, they come in and retrospectively put it in so that it doesn’t cause a problem for them.

"And these developers know full well that what they’re doing is not actually in the interest of the community, it’s not creating a safe outcome for the occupants of the building, but as soon as they sell the development, they’re off into the sunset and enjoying their lives."

Drive also spoke to an architect who told us that while their firm doesn't do it, they can easily imagine others would because it's a "grey area".

"It’s not happened to me, but I could imagine that. It’s finding a path through the mud. It's about trying to find a path that deems to satisfy the documentation," they told us.

"But are they willing to bear the responsibility of the risk if it should catch fire? And then the rest of the corporation is looking to them for financial reimbursement to make things good again. So I think that’s the risk the person is taking. Is it legal? Probably, yeah, but does that make it ok? Morally, probably no."

At present there is also no oversight from fire services or other safety checks (beyond needing to be carried out by a qualified electrician) for EV chargers retrofitted to existing buildings – meaning if you want one and can pay an electrician to fit it, you can.

MORE: Fire service warning as electric car goes up in flames

So what? Sounds like a developer problem.

In theory, yes it is. But it gets worse – because the problem the fire authorities are pointing out is that as things stand, in many cases new and old buildings don't have adequate suppression systems if an electric car fire reaches thermal runaway status.

What is thermal runaway?

It's different to a normal fire – and is very rare, with only 570 verified instances occurring worldwide over the last 14 years – and happens when an EV battery gets damaged and a cell within it short circuits.

When that cell heats up, causing pressure to rise and eventually resulting in it bursting – the vehicle catches fire.

A fire that’s reached thermal runaway doesn't respond well to traditional suppression methods – making it significantly harder and more time-consuming for crews to extinguish.

In some cases it can take days for a thermal runaway fire to be completely extinguished.

If this happens in an apartment block, and the whole building and those around it are engulfed or even simply inhabitable due to smoke damage, the problem is amplified.

MORE: How many electric cars actually catch fire? We ask the experts

“The issue is about public safety and making sure that this building that was built in maybe 1880 that’s been modified and adapted to become a residential building with car parking is capable of withstanding the impact of a fire,” said Mr Turner.

"I think building owners, or even the occupiers of these buildings, are going to expect that somebody’s put some thought into that. And if regulators are not standing by that principle and making sure that that happens, I think probably they would be concerned."

Earlier this year, Fire and Rescue NSW (FRNSW) issued guidance on its position regarding EVs being parked – whether they're charging or not – in underground car parks.

"Fire and Rescue NSW does not recommend EV parking and/or charging within any building not protected by an AS 2118 fire sprinkler system," the guidelines read.

The organisation went on to state its preferred option is to have electric vehicles parked in the open air or if they must be parked internally, this should be close to exits, not close to lifts or other “critical infrastructure”.

However, it acknowledges the number of EV fires is low, with just two incidents in the state in 2024 to date and three in 2023 – none of which were related to charging in buildings – with the bigger risk coming from devices such as e-bikes and e-scooters.

“Fire and Rescue NSW recognises the importance of electric vehicles in the transition to alternative energy and highlights it is critical to understand and manage the risks associated with their use to protect the community, firefighters and infrastructure,” a spokesperson said.

FRNSW's position is based on that of the Australasian Fire And Emergency Services Authorities Council (AFAC) which believes EVs should be considered a "special hazard" which means buildings need a higher level of fire protection than is required now by law.

"Renewable energy offers many benefits and EV battery technologies present new challenges for fire safety. We consider risks such as thermal runaway, toxic vapour cloud explosions, and the potential for prolonged, high-intensity fires," said AFAC CEO Rob Webb.

"A precautionary approach is essential – rather than asking if a battery might fail, fire authorities must plan for the consequences when one does fail. As such, the impact on building occupants and structural integrity must be carefully evaluated.

"Fire authorities are conscious that the risk profile is changing because of new technologies. Codes and standards are still evolving and are based on research from a different time. As such, fire authorities are using special hazard clauses to address these gaps and ensure fire safety is prioritised until the NCC implements updated safety measures based on solid research.  

"In short, fire authorities support safe innovation and sustainability. Our goal is to ensure the infrastructure supporting electric vehicles is both sustainable and secure for the public and emergency responders alike, now and in the decades ahead. We continue to work within Australia and New Zealand, and with partners across the world to best understand the path forward."

Do EVs just catch fire though? Is that really going to happen?

No, they don't "just" catch fire.

In recent months and years, the issue of whether EVs should be allowed in – or to charge – in underground car parks has come into the spotlight, with a handful of large-scale blazes either wrongly blamed on electric cars or at the very least embellished.

This predominantly came about due to three car park fires within 16 days of each other earlier this year, though there have of course been other instances over the last few years in other countries too.

This has led South Korea to introduce a ban on electric cars entering underground car parks if their batteries are more than 90 per cent charged.

One of the incidents, which involved a Mercedes-Benz EQE electric SUV, escalated to such a huge blaze due to the building's construction and suppression methods rather than the type of car and the EV was not on charge at the time the fire broke out, according to EV FireSafe.

EV FireSafe, which investigates the causes of electric vehicle fires in Australia, says EVs are between 20 and 80 per cent less likely to catch fire than an internal combustion-engined vehicle.

"The really important point is that if you’ve got a normally operating electric vehicle, and there’s no damage to that vehicle, it has not been recalled, there are no faults with it, and you’ve got an electrically compliant charging unit that’s been installed to standard by a qualified person it cannot cause a battery fire," EV FireSafe's Director, Emma Sutcliffe, told Drive.

"We totally get it. We have to be very cautious when new technology comes along and emergency response is often the last thing that’s considered. So we completely understand the guidance, but through our work, what we know is that it’s a different challenge, but it’s not a greater challenge than petrol or diesel car fires."

Others, including the Electric Vehicle Council, consider the fire services' approach a case of overreach.

"Our fire and rescue services have issued position statements that treat electric vehicles and their associated charging equipment as special hazards in our built environment, calling for complex and expensive mitigation measures," the Electric Vehicle Council's Head of Energy and Infrastructure, Ross De Rango, told Drive.

"These statements, however, aren't subject to the same checks and balances as formal regulations – they lack regulatory oversight, transparency, evidence-based justification, or cost-benefit analyses. Yet, for some insurance providers and developers working on our building stock, they often carry the same weight and perception as actual regulation, which creates an issue.

 "While we are seeing isolated knee-jerk overreactions to perceived EV fire risks in parts of the world, generally speaking on a national level the majority of countries aren't treating road registered EVs as a significant new hazard in our urban environments because the evidence indicates that EVs are safer than the cars that we're already parking in our buildings."

What about insurance if an EV charger is installed in a building? 

The question of whether a building's insurance will cover the damage from a fire if EV chargers are retrofitted is also a grey area, with insurers not giving a clear answer on what would happen and who would be liable.

But the Insurance Council of Australia has told Drive owners must let their insurer know if they make changes to their property, suggesting it's likely firms wouldn't pay out if a charger has been put in without them knowing.

"There is growing interest in how insurers price EV risk, the current products available for EVs and EV charging infrastructure and whether insurance is available when buildings are retrofitted to be EV-ready," a spokesperson said.

"If property owners, developers or managers install EV charging infrastructure into new or existing properties, this is a material fact that should be disclosed to insurers and needs to be considered in insurance coverage. 

"It's recommended that insurers and their customers engage in comprehensive discussions to ensure adequate insurance coverage is provided and also discuss how to address potential risk factors. 

"Insurers may assess a range of factors when calculating an insurance premium for EV chargers, including location, installation and maintenance, theft and tampering, personal injury, product liability and safety regulations and guidance."

"I think that insurers are pretty savvy at identifying risk," the AIBS' Mr Turner added.

"And if they think that there’s a risk arising from electric vehicle charging activities inside buildings, I would imagine that it wouldn’t be too long before they either start pricing that risk or excluding that activity from things that they’re prepared to cover."

What's the answer?

In the short term, a consultation on the next update to the National Construction Code closed in May 2024, with new rules being introduced in 2025. As with the last changes, however, expect it to be a couple of years after that before anything is properly rolled out.

As part of this, there is a proposal to increase the stringency of fire resistance in underground car parks.

And the AIBS is also seeking regulatory change to prevent electricians from installing EV chargers without sign-off from a building surveyor.

Furthermore, working with EV FireSafe, the Australian Building Codes Board (ABCB) has introduced guidance on how to safely install and use EV chargers in a way that helps the emergency services if there were a fire but doesn't create a barrier to adoption.

The 15 recommendations include things like; avoiding putting EV chargers too close to other flammable risks or blocking evacuation routes, using 'smart charging' where the power supply can be disconnected remotely, updating block plans and ensuring the owner gets them regularly maintained.

"There are some low-cost, pretty simple things that we can do to make things as safe and functional as possible while supporting emergency responders in that transition as well," said Dan Fish, EV FireSafe's Technical Director.

As of October 2024, EV Firesafe says there have only been six verified fires where the car went into thermal runaway in Australia since records began in 2010.

None of these have been close to or underneath a high-density building, so it's hard to argue against the potential risk given it’s yet to be disproven in reality.

State and federal governments are encouraging Australians to transition to electric vehicles, but at the same time are lagging behind when it comes to public charging infrastructure roll-out.

According to the Australian Energy Regulator, of the EV owners it has surveyed, 70 to 85 per cent said they charge at home, which seems a great solution to solving the public charging station shortfall.

But if homes and workplaces aren’t up to scratch from a fire safety perspective, what then?

With the Victorian Government announcing plans for 50 new higher-density housing zones around train and tram stations in Melbourne resulting in 300,000 extra homes in tall buildings by 2051 – is it time for a rethink?

Many think so, including the Electric Vehicle Council.

"Good regulatory practice requires a balanced approach that incorporates these key elements to ensure regulations are in harmony with other priorities like housing affordability, addressing climate change, and improving air quality in our communities, said Mr De Rango.

"We need state and territory ministers who are responsible for energy, transport, building and planning, and emergency services to have a discussion, and from there, ministers for emergency services should engage with their fire services departments to align their position statements with the evidence." 

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