A few months after Florida lawmakers said they would like to see changes to a state-authorized energy efficiency loan program, no bills have been filed. And with a number of high-profile issues to address in the 2021 session, reform efforts can be difficult.
Home-rated clean energy programs present themselves to homes and businesses as a way to fund expensive energy efficiency upgrades, such as new air conditioners or weatherproof windows.
But one Tampa Bay weather A survey released in September found that financing terms are often unclear to clients, and many end up with rising property taxes that are difficult to pay. Some risk losing their homes. The program has little government oversight.
The largest provider of these “PACE” loans, Ygrene Energy Fund, is the subject of a consumer protection investigation by the Florida attorney general’s office. As of mid-December, the investigation was underway, spokeswoman Kylie Mason said.
Just days before Christmas, no bill was proposed regarding the PACE programs. Rep. Ed Hooper, R-Clearwater, said if one is introduced it will compete with important issues like the state budget and pandemic response.
“(There) could be a historic low number of bills passed,” he said.
Following the Time‘survey, several Florida lawmakers said the program needed reform, largely around consumer protection.
Two bills from last year reportedly added a number of consumer protections, such as requiring PACE loan providers to check a client’s ability to repay the loan before granting it, but none have been granted. vote.
“My hope is that a lawmaker will take it over and say, ‘We’re going to fix the PACE program,’” said Senator Jeff Brandes, R-St. Petersburg.
Brandes, who sits on the Florida Senate Banking and Insurance Committee, previously told the Time he would like to see reform around a technical aspect of the program – which is paid off first in a foreclosure. Typically, banks are the first to collect funds from a foreclosure to pay off any remaining mortgage balances on the home. But Florida law allows PACE loan providers to lead the way for these funds, leaving less for the banks. This placement ensures a certain return on investment for PACE providers.
Just before the election, PACE supplier Ygrene made $ 112,000 in political donations in Florida to Republican candidates and committees, including a check for $ 50,000 to Governor Ron DeSantis’ political committee.
One county in Tampa Bay – Pasco – still authorizes the program. Hernando County ended its program in May. At a meeting in December, Hillsborough County Commissioners said they would allow the program to expire this month, expressing concerns over what they called a lack of consumer protection.
Pinellas County has never licensed the program to its residents.
Hooper said that while other important issues may take priority for lawmakers, the way local governments interact with PACE programs may have an effect.
“If more local governments took the same action, I think there would be more interaction with PACE loan providers to find common ground and a user-friendly solution,” he said.
