Property Assessed Clean Energy program: enforcement: ancillary relief.
The bill significantly bolsters the enforcement mechanisms within the existing California Financing Law (CFL), which governs PACE administrators and the activities of solicitors in this financing space. By adding provisions for ancillary relief, the bill enhances the accountability of PACE solicitors and ensures that property owners have recourse in the event of misconduct. Furthermore, it allows the Commissioner to conduct examinations, inspections, and investigations of PACE solicitors and agents, thereby increasing oversight in the program’s operation.
Assembly Bill 1136, introduced by Assembly Member Luz Rivas and co-authored by Senator Roth, modifies the Property Assessed Clean Energy (PACE) program framework within California's Financial Code. This bill serves to enhance the regulatory framework for PACE solicitors and agents by granting the Commissioner of Financial Protection and Innovation the authority to impose ancillary relief—such as damages and restitution—on those found to have violated PACE program regulations. This amendment aims to strengthen consumer protection in the emerging sectors of renewable energy financing and energy efficiency improvements.
While the bill promotes consumer protection by aiming to curb fraudulent or unethical practices within the PACE program, the introduction of stricter regulatory measures may face opposition from PACE providers who argue that such regulations could stifle market growth and innovation. The balance between fostering a conducive environment for renewable energy financing and imposing necessary safeguards remains a point of discussion among stakeholders. Critics may point to the need for fairness in enforcement to avoid unintentional hindrances to legitimate business practices within this evolving financial sector.