Requires on-bill financing be an option for certain energy efficiency services and requires the disclosure of on-bill financing prior to the sale of real property

2025 Regular Session Introduced by Pat Burke

Requires on-bill financing as an option for certain energy efficiency services and mandates disclosure of any on-bill financing before real estate sales.

REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Summary of Assembly Bill A 3717

Overview

A 3717 is a bill introduced on January 30, 2025, and currently referred to the Committee on Corporations, Authorities and Commissions. The bill focuses on energy efficiency financing and real property disclosures. It would make on-bill financing (OBF) an available option for certain energy efficiency services and would require disclosure of any on-bill financing prior to the sale of real property. A related bill from a prior session is A 8270.

Purpose and Policy Intent

Promote access to financing for energy efficiency improvements by ensuring on-bill financing is an available option for eligible services.

Enhance transparency in real estate transactions by mandating disclosure of on-bill financing arrangements before a property is sold.

Support consumer awareness and informed decision-making in both energy retrofit projects and property transactions.

Key Provisions (as described)

On-bill Financing Option: The bill would require that on-bill financing be an available option for certain energy efficiency services. Details on which services qualify and how the option is implemented are not specified in the provided text.

Pre-Sale Disclosure: The bill would require disclosure of any on-bill financing prior to the sale of real property. This would presumably include the existence of the financing arrangement and its basic factors, though exact disclosure content is not enumerated in the provided information.

Scope of Application: The term “certain energy efficiency services” indicates a defined subset of services or measures, though the specific scope is not included in the summary provided.

Compliance and Implementation: The summary does not include explicit implementation timelines, regulatory requirements, or penalties for non-compliance. These details, if present, would likely be addressed in the bill’s text or subsequent amendments.

Affected Parties

Property buyers and sellers: directly impacted by disclosure requirements in real estate transactions.

Real estate professionals: brokers, agents, and attorneys who facilitate property sales and disclosures.

Energy service providers and installers: entities that offer energy efficiency measures and potentially participate in OBF programs.

Utilities and financing entities: potential administrators or lenders involved in on-bill financing.

State or local agencies: bodies responsible for implementing and enforcing energy financing and disclosure requirements (subject to statutory framework).

Timeline and Procedural Status

Introduced: January 30, 2025

Status: Referred to the Committee on Corporations, Authorities and Commissions

Next steps: Committee review, potential amendments, and consideration on the floor if advanced.

Related Legislation

A 8270 (prior-session) is identified as related, suggesting prior interest in similar energy financing or disclosure provisions.

Potential Implications and Questions

How will “certain energy efficiency services” be defined and which programs or measures qualify?

What specific disclosures will be required (format, content, and timing) to ensure clarity for buyers?

Will there be consumer protections, caps, or standards for on-bill financing terms?

How will this interact with existing energy efficiency programs, utility tariffs, and real estate disclosure laws?

This summary captures the bill’s stated aims and provisions based on the available information. Full analysis would require the bill’s text to detail definitions, implementation mechanisms, and any regulatory authority.