Sacramento Report
May 15, 2012
Utility Loan Payment Bill Passes Energy Committee
Senate Bill 998 (De Leon) requires the PUC to require utilities to develop and implement on-bill repayment (OBR) programs for energy efficiency under which a customer pays down a loan from a third-party lender on their utility bill. The loan obligation would run with the meter, meaning that any subsequent owner or occupant of a property is required to assume the repayment obligation.
Effective July 1, 2013, every seller of real property subject to a repayment obligation would be required to deliver to the buyer a notice of the obligation under a disclosure form to be adopted by the PUC. The CLTA is evaluating the bill for possible priority issues that might arise if utility bills are unpaid.
