Nearly $4 billion in upgrades shows that California homeowners embrace PACE as the best way to pay for improvements that make homes more comfortable, energy efficient and resilient against natural disasters.
PLEASANTVILLE, NY (PRWEB) September 21, 2017
The California Legislature has passed two bills that will work in tandem to provide strong consumer protections and a regulatory framework for the state’s residential PACE programs. AB 1284, sponsored by Assembly Member Matt Dababneh, and SB 242, sponsored by Senator Nancy Skinner both passed with overwhelming bi-partisan support.
In less than 10 years, PACE has grown from a niche market option to the most successful energy financing program in California history. “Nearly $4 billion in upgrades shows that California homeowners embrace PACE as the best way to pay for improvements that make homes more comfortable, energy efficient and resilient against natural disasters,” said David Gabrielson, Executive Director of PACENation. “State regulation is an important next-step in the evolving PACE marketplace, and we are thrilled that the legislation provides a pathway to ensure the safety and protection of PACE consumers.”
Under AB 1284, the California Department of Business Oversight (DBO) will become the regulatory body for residential PACE administrators operating within the state. The legislation establishes licensing requirements for contractors, new underwriting guidelines that include income verification and ability-to-pay standards, and other consumer protection enhancements. “The leadership of Senator Skinner and Assemblyman Dababneh has evolved PACE into a long-term viable solution for homeowners, while providing a model for states across the nation to base PACE on income and ability-to-pay, and with a comprehensive suite of consumer protections and enforcement tools,” said JP McNeill, CEO of Renovate America.
SB 242 focuses squarely on standardizing best practice guidelines and disclosures for residential PACE administrators. The legislation requires that PACE administrators record a live phone call with customers to confirm agreement of terms, provides homeowners a 3-day right to cancel, and mandates reporting to public agencies. "Renew Financial is honored to stand with Assemblyman Dababneh and Senator Skinner, as well as the consumer advocates, business leaders and environmental organizations who worked so hard to strengthen PACE financing for California homeowners," said Cisco DeVries, CEO of Renew Financial.
PACENation is proud to have been a part of the industry-wide stakeholder coalition that worked for a year on the success of these bills. Negotiations between low-income consumer advocates, environmental groups, PACE program administrators, and the banking industry have resulted in California legislation that sets a regulatory precedent for R-PACE programs throughout the country. “Someday, I would like to see the money and energy saving benefits of PACE become available to every homeowner in the Country, and these bills put in place a framework to scale R-PACE safely and effectively,” said David Gabrielson, Executive Director of PACENation.
PACENation is a national non-profit organization serving the interests and needs of over 400 member organizations that share a common goal of making PACE financing available to all building owners throughout the United States. PACENation is building a broader PACE network by providing information, resources, and advice to a growing universe of PACE market stakeholders. To learn more, visit http://www.PACENation.us
Property Assessed Clean Energy (PACE) is a financing mechanism that enables low-cost, long-term funding for energy efficiency, renewable energy and water conservation projects. PACE financing is repaid as an assessment on the property’s regular tax bill, and is processed the same way as other local public benefit assessments (sidewalks, sewers) have been for decades. Depending on local legislation, PACE can be used for commercial, nonprofit and residential properties. For more information, visit http://www.pacenation.us
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