Property Assessed Clean Energy program.
AB 271 specifically addresses the way delinquent PACE installments are handled, giving county tax collectors the authority to remove these from secured tax rolls under specified conditions. It mandates notification processes when removals occur and outlines how penalties and costs should be collected and allocated. This adjustment aims to improve financial management for counties while ensuring that local taxing agencies can still address related revenue losses effectively. Furthermore, the bill establishes a restricted county fund for handling funds derived from penalties related to PACE assessments, ensuring transparency and proper allocation.
Assembly Bill 271, introduced by Assembly Member Caballero, amends sections of the Government Code and the Streets and Highways Code to enhance the Property Assessed Clean Energy (PACE) program in California. The bill facilitates the process for local governments to assist property owners in financing renewable energy improvements and energy efficiency projects through PACE assessments. It streamlines certain procedures related to the removal of delinquent installments from the tax rolls, allowing counties to manage PACE assessments more effectively, particularly those arising from contracts entered into after January 1, 2018.
The sentiment around AB 271 appears to be supportive among stakeholders in renewable energy financing, as it promotes the integration of clean energy technologies. Supporters view the bill as a proactive measure to enhance PACE programs, thereby encouraging property owners to adopt energy-efficient practices. However, there are concerns regarding the implications for local taxing agencies and the potential for revenue shortfalls which could arise from the removal of delinquent assessments. This sentiment creates a tension between promoting clean energy initiatives and securing local government revenues.
A notable point of contention is the balance between facilitating property owners' access to PACE financing and ensuring that local governments do not face financial burdens due to lost revenue from delinquent payments. Critics of the bill worry that by allowing easy removal of delinquent PACE assessments from tax rolls, it might set a precedent that undermines the fiscal responsibilities of counties and complicates their revenue forecasting. Advocates argue that the urgency of addressing climate change necessitates these amendments, positioning it as a necessary compromise for greater environmental benefits.