Micro-mobility vehicles (such as e-bikes, electric kick scooters, and other powered mobility devices) have surged in popularity over the last couple of years and continue to do so.

In fact, according to Markets and Markets, the global micro-mobility market is projected to grow at a rate of 12.5% between 2022 and 2027, with the Americas projected to make up more than 50% of the market share.

However, with more e- Micro-mobility vehicles on the roads, there has been an increasing number of fires due to lithium-ion battery failures. In New York City (NYC) alone, these batteries were the source of more than 219 fires (resulting in 147 injuries and six deaths) in 2022.

While e-bike fires are an issue in many parts of the world, New York City appears to be the first municipality to create a law mandating certification around e-micro mobility vehicles—with New York State and the U.S. Federal government introducing new laws of their own.

Here, we will explain how current regulatory changes are unfolding—and how these changes stand to impact e-micro mobility vehicle and battery manufacturers looking to enter the United States.

Timeline: A shifting regulatory environment

As e-micro mobility fires become more commonplace, various governments and regulatory bodies are responding in stride. Here is how they have played out, to date.

December 2022: Federal Consumer Product Safety Commission issues a list of voluntary requirements for e-mobility battery manufacturers.

March 2023: New York City Council passes a series of laws mandating that all e- micro mobility devices sold, rented, or leased in the city must be certified under either UL 2849, UL 2272, or UL 2271. The laws will be enforced effective September 2023.

March 2023: U.S. Congress introduces H.R.1797 – Setting Consumer Standards for Lithium-Ion Batteries Act, which would direct the Consumer Product Safety Commission (CPSC) to regulate lithium ion batteries in products like electric bicycles, scooters, hoverboards, and other powered personal mobility devices.

May 2023: New York State Senate passed S154B, amendment C, delivered to assembly and referred to Consumer Affairs and Protection. The bill prevents all people, firms, and partnerships from manufacturing, distributing or selling lithium-ion batteries and chargers that don’t comply with a range of standards, including UL 2271, UL 2272 and UL 2849.

What do the New York City regulations entail and why are they relevant?

The law in New York City, which was passed in March 2023 and takes effect in September 2023, focuses specifically on powered bicycles, powered mobility devices, and storage batteries for such devices.

According to the law, “no person shall distribute, sell, lease, or rent a powered bicycle or mobility device unless”:

• The electrical system for such bicycle has been certified by an accredited testing laboratory for compliance with Underwriters Laboratories (UL) standard 2849;
• The electrical system for such powered mobility device has been certified by an accredited testing laboratory for compliance with Underwriters Laboratories (UL) standard 2272;
  or
• The storage battery has been certified by an accredited testing laboratory for compliance with Underwriters Laboratories (UL) standard 2271.

Anyone who violates either of these three “subdivisions” will face a warning for the first violation (with no financial penalty). If you commit the same offense within two years of your first violation, however, you’ll be fined a civil penalty of not more than $1,000 per violation.

The NYC law is relevant because it could pose as a template for other jurisdictions. These means whether manufacturers are intending to enter the NYC market or not, they would be well-served to make sure they meet these requirements.

What do the New York State regulations entail?

After New York City passed its e- micro micro mobility safety legislation, New York State introduced a similar bill to expand the requirements across the entire state. According to this legislation, to manufacture, distribute or sell lithium-ion batteries and chargers in New York State, they must comply with one of the following standards:

• UL 2271
• UL 2272
• UL 2849

A first violation will be punishable by a civil penalty of $500, with each subsequent violation costing $1000. This act will take effect on the ninetieth day after it becomes law.

What do the U.S Federal government regulations entail?

The U.S Federal government is approaching e-bike safety from a few different angles:

The E-BIKE Act
There is a safety stipulation under the recently-proposed Electric Bicycle Incentive Kickstart for the Environment Act or the E-BIKE Act, which was introduced to the house on March 21.

Under this bill, individual taxpayers would receive a new tax credit for 30% of the cost of a qualified electric bicycle. A “qualified” e-bike costs under $8,000, with fully-operable pedals, a saddle or seat for a rider, and an electric motor of less than 750 watts. The drive system of the e-bike OR the battery must also be certified by an accredited lab to UL 2849.

Setting Consumer Standards for Lithium-Ion Batteries Act
This Act would require the Consumer Product Safety Commission to create a final consumer product safety standard for rechargeable lithium-ion batteries used in eight personal mobility devices, including electric bicycles and electric scooters, to protect against the risk of fires caused by such batteries.

Who’s impacted by these new regulations?

These regulations will impact how and where e-micro mobility vehicles are sold, leased, and used. As a result, they will inevitably impact:

• Manufacturers of micro-mobility vehicles
• Manufacturers of lithium-ion batteries for micro-mobility vehicles
• Manufacturers of lithium-ion battery chargers for micro-mobility vehicles
• Distributors
• Retailers
• Rental companies
• Rideshare services

What standards are referenced in the legislation?