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Residential Property Assessed Clean Energy Consumer Protection Task Force

Purpose

The 2017 Minnesota Legislature established, under the responsibility of the Minnesota Department of Commerce, the Residential Property Assessed Clean Energy (PACE) Consumer Protection Task Force

The Task Force is charged with developing recommendation to:

  1. Address concerns regarding the possible constraints on free alienation of residential property caused by existence and amount of the PACE liens;
  2. Reduce and minimize any point-of-sale confusion in transactions involving PACE-encumbered homes;
  3. Ensure conspicuous and meaningful disclosure of, among other things:
    1. all costs and fees of a residential PACE loan; and
    2. the risks, such as foreclosure and higher costs, that may be associated with residential PACE loans relative to other financing mechanisms;
  4. Ensure that the ability to repay standard uses commonly accepted underwriting principles;
  5. Ensure that consumer provisions required of and protections that apply to conventional loans and other financing options, including but not limited to the Truth in Lending Act and the Real Estate Settlement Procedures Act, are required of and apply to PACE financing;
  6. Address any unique protections necessary for elderly, low-income homeowners and other financially vulnerable homeowners;
  7. Establish criteria to ensure the cost-effectiveness of PACE-enabled clean energy improvements; and
  8. Address any other issues the task force identifies that are necessary to protect consumers.
 

The Task Force must submit a report including any draft legislation necessary to implement the recommendations by January 15, 2018.

Meetings Dates

Meeting Focus

Date
1. Organization and Building Common Knowledge
  • Frame the issue
  • Define scope and goals
  • Overview of PACE 
  • Additional presentations to build common knowledge 
  • Future meeting organization
  • Task force timeline

Friday, July 14, 2017
9:00 - 12:00 PM
Skjegstad Room, Minnesota Department of Revenue

Minutes

2. Knowledge Building (Continued)
  • PACE Big Picture (NASEO)
  • Department of Energy Guidelines 
  • Lender Requirements 
  • Contractor Requirements  
  • Energy Improvement Requirements 
  • State Statute Comparisons 
  • Renovate America

Thursday , July 27, 2017
9:00 - 12:00 PM
Room 295, Commerce Department

Minutes

3. Consumer Protections (Subd. 3 (5))
  • Ensure consumer provisions required and protections that apply to conventional loans and other financing options, including but not limited to the Truth in Lending Act and the Real Estate Settlement Procedures Act, are require of and apply to PACE financing.

Wednesday, August 9, 2017
1:00 - 4:00 PM
Room 295, Commerce Department

Minutes

4. Transactions involving PACE-encumbered Homes (Subd. 3 (2))
  • Reduce and minimize any point-of-sale confusion in transaction involving PACE-encumbered homes
Disclosures (Subd. 3 (i) and ii))
  • Ensure conspicuous and meaningful disclosure of, among other things: all costs and fees of a residential PACE loan; and the risks, such as foreclosure and higher costs, that may be associated with residential PACE loans relative to other financing mechanisms.

Thursday, August 24, 2017
9:00 - 12:00 PM
Skjegstad Room, Minnesota Department of Revenue

Minutes

5. PACE Liens (Subd. 3 (1))
  • Address concerns regarding possible constraints on free alienation of residential property causes by existence and amount of PACE liens

Thursday, September 7, 2017
9:00 - 12:00 PM
Skjegstad Room, Minnesota Department of Revenue

Minutes

6. Ability to Repay (Subd. 3 (4))
  • Ensure that the ability to repay standard uses commonly accepted underwriting principles
Protections for Vulnerable Homeowners (Subd. 3 (6))
  • Address unique protections necessary for elderly, low-income homeowners and other financially vulnerable homeowners

Thursday, September 21, 2017
9:00 - 12:00 PM
Skjegstad Room, Minnesota Department of Revenue

7. Cost Effectiveness (Subd. 3 (7))
  • Establish criteria to ensure the cost-effectiveness of PACE-enabled clean energy improvements

Thursday, October 8, 2017 
9:00 - 12:00 PM
Room 2308, Minnesota Senate Building

8. Other Issues (Subd. 3 (8))

Thursday, October 19, 2017
9:00 - 12:00 PM
Room 1150, Minnesota Senate Building

9. Draft Report and Legislative Language
  • Commerce staff draft report
  • Work with Revisor’s Office to draft legislation

November 2017

10. Completed draft report and legislative language
Week of November 27, 2017
11. Task force meeting to review draft report and legislative language
Thursday, December 14, 2017
9:00 - 12:00 PM
TBA
11. Final task force meeting and approval of report and legislation
Thursday, January 4, 2018
9:00 - 12:00 PM
TBA
Task Force recommendations sent to Legislature
January 15, 2018

Task Force Membership

Appointing Authority Appointment
Commerce Commissioner or designee Anne O'Connor
Minnesota Association of Realtors Paul Eger
Center for Energy and Environment Chris Duffrin
Minnesota Bankers Association Janet Johnson
Legal Services Advocacy Project Ron Elwood
Minnesota Credit Union Network Mara B. Humphrey
Minnesota Solar Energy Industry Association John Kearney 
St. Paul Port Authority Peter M. Klein
League of Minnesota Cities Craig Johnson
Association of Minnesota Counties Emily Murray
AARP Minnesota Mary Jo George
Fresh Energy Will Nissen
Citizens Utility Board of Minnesota Annie Levenson-Falk
Clean Energy Economy Logan O'Grady
Minnesota Land Title Association Sue Basiago
Organization experienced in implementing residential PACE programs in other states Julie Padilla, Renovate America
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