Rulemaking planned on Property Assessed Clean Energy (PACE) programs; local government call scheduled for April 10
Upcoming Events
Related News
Key Takeaways
On March 8, the Consumer Financial Protection Bureau (CFPB) published an Advanced Notice of Proposed Rulemaking (ANPR) on Property Assessed Clean Energy (PACE) Financing to solicit information relating to the agency’s implementation of the Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA). EGRRCPA amends the Truth in Lending Act (TILA) and requires that the CFPB write regulations to strengthen consumer protections in residential PACE programs. This ANPR is only the first step of the process and will inform the CFPB’s rulemaking as the process moves forward. The agency will accept comments on the ANPR until May 7, 2019, and CFPB will host a call with county officials to review and receive feedback on the proposed rule on April 10 at 2:00pm ET. Further information on the call is provided below.
PACE is a financing mechanism issued by state and local governments to incentivize renewable energy and energy efficiency improvements – such as energy efficient boilers, upgraded insulation, new windows and solar panel installations – to homes and businesses. Structured as a traditional tax assessment, local governments participating in PACE obtain startup funding through bonds or third-party entities. Once financing is secured, counties make PACE loans to residents and businesses for energy efficient improvements. These loans are paid back on an annual or biannual basis through a special property tax assessment on the property. Currently, 36 states have PACE enabling laws and 20 states have active PACE programs. This rulemaking is especially relevant to California, Florida and Missouri who have active residential PACE programs, along with other states that are considering similar programs.
EGRRCPA was signed into law in 2018. While primarily focused on the banking industry, EGRRCPA instructs the CFPB to study whether TILA requirements should be applied to residential PACE programs. Through the ANPR, the CFPB is seeking feedback on 34 questions, including some that are relevant to local government PACE programs. The questions can be found on pages 6-14 of the ANPR and are also available through this link.
To learn more about the local government perspective on PACE, CFPB is hosting a conference call on Wednesday, April 10 at 2:00pm ET with local government officials and staff. To receive call-in information, please RSVP with Zach George at zgeorge@naco.org or 202.661.8819.
CFPB is accepting written comments on the PACE ANPR until May 7, 2019 through the Federal eRulemaking Portal at www.regulations.gov. Please identify Docket ID No. CFPB-2019-0011 in your comments.
Attachments
Related News
Endangered Species Committee convenes to exempt Gulf energy projects from Endangered Species Act requirements
On March 31, the Endangered Species Committee convened a meeting to discuss a national security exemption to Endangered Species Act (ESA) requirements for energy exploration and extraction projects in the Gulf. The Committee, which had only previously gathered 3 times since 1978, voted unanimously to grant the exemption.
Congress examines reforms to endangered species management
On Mar. 18, the U.S. Senate Environment and Public Work held a hearing examining how to improve implementation of the Endangered Species Act (ESA). The hearing follows several legislative proposals to reform endangered species management that recently advanced in the U.S. House of Representatives.
White House Releases Budget Request for FY 2027: Top Highlights for Counties
On April 3, the White House released the Fiscal Year (FY) 2027 budget request, outlining the administration's proposals for budgetary spending for the fiscal year beginning October 1, 2026. The President’s budget requests cutting non-defense discretionary funding by 10 percent, or $73 billion. This budget proposal reflects the administration’s priorities but is unlikely to be passed in its current form and will need to be approved by Congress to be implemented.