Comments due on CFPB ANPR on residential PACE financing
he Consumer Financial Protection Bureau reported Monday it has issued an Advance Notice of Proposed Rulemaking on residential Property Assessed Clean Energy (PACE) financing, as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), signed into law in May 2018.
PACE financing is dependent on state enabling laws. It is typically used to finance clean energy projects, disaster resiliency improvements, and water conservation measures. Loans are repaid over a number of years via an annual assessment on municipal property tax bills. According to PaceNation, PACE-enabling legislation is active in 36 states and the District of Columbia, with active programs in 20 states and D.C. Residential PACE programs are currently active in only three states -- California, Florida and Missouri.
The Bureau will consider the information it receives in response to the ANPR to develop a Notice of Proposed Rulemaking. The information solicited will enable the Bureau to better understand the market and unique nature of PACE financing. This will help the Bureau formulate proposed regulations that not only would achieve statutory objectives but also would reflect a careful consideration of costs and benefits. Comments on the ANPR will be accepted for 60 days following publication in the Federal Register.
UPDATE: The ANPR will be published on 3/8/2019. Comments will be accepted through 5/7/2019.