Bill
SB 1041
SB 1041 broadens wildfire safety financing to more public agencies, financing rebuilds and defensible-space upgrades via voluntary contractual assessments, permanent with protectio
Effective context
- Jurisdiction: California
- Session: 2025–2026
- Introduced: February 11, 2026
- Amended in committee; amended and re-referred; most recent action: Do pass as amended and re-refer to Assembly Appropriations (April 22, 2026)
Purpose and intent
- SB 1041 extends and broadens the operation of California’s wildfire safety financing tools by modifying the Wildfire Safety Finance Act provisions and related statutes.
- It aims to facilitate financing for wildfire safety improvements through voluntary contractual assessments (a form of PACE-like financing) by allowing more public agencies to offer such assessments and by expanding eligible project types, including improvements related to rebuilding after fire damage and creating defensible space zones.
Key provisions and changes
1) Eligibility and program design
- Removes the requirement that a public agency must have a Very High Fire Hazard Severity Zone designation to offer voluntary contractual assessments for wildfire safety improvements.
- Allows any public agency that has an existing Property Assessed Clean Energy (PACE) program or has established a special tax relating to a community facilities district to enter into voluntary contractual assessments with property owners for wildfire safety improvements.
- The bill would extend the lifetime of relevant wildfire safety financing provisions (previously set to expire Jan 1, 2029) and make them ongoing.
2) Financing scope and eligible projects
- Expands eligible projects financed under the Wildfire Safety Finance Act to include:
- Wildfire safety improvements that occur in connection with rebuilding or reconstruction of property, as an addition to or an improvement to the property as it existed immediately before destruction or damage by fire.
- Improvements that contribute to defensible space Zones 1 and 2 (0–100 feet around structures), including items fixed to a building or structure.
- These expansions broaden the types of improvements that can be financed under voluntary contractual assessments, beyond strictly pre-fire improvements.
3) Regulatory and program administration
- SB 1041 is described as a nonsubstantive change to related provisions in the California Financing Law, ensuring alignment with the broader expansion of wildfire safety financing mechanisms.
4) Existing consumer protections and disclosures
- The bill maintains existing consumer safeguards tied to contractual assessments, including rights to cancel, disclosures, and lien considerations, as carried forward from current law (e.g., notices of right to cancel, cancellation timelines, and protections for senior citizens).
5) Sunset and repealer adjustments
- The bill repeals the statutory sunset that would otherwise end the wildfire financing provisions and makes the framework permanent, subject to ongoing regulatory oversight and program operation within public agencies.
Who is affected
- Public agencies that have established PACE programs or community facilities district taxes.
- Property owners who participate in voluntary contractual assessments to finance wildfire safety improvements on their real property.
- Entities administering the program (lenders, program administrators) subject to adherence to California Financing Law regulatory requirements.
Timeline and procedural notes
- Legislative history shows standard committee progression with amendments.
- The bill’s core changes are designed to take effect upon enactment and to be permanent, removing prior sunset while expanding eligibility and project scope.
Observations for readers
- The bill shifts eligibility away from the need for a Very High Fire Hazard Severity Zone designation, potentially increasing the number of jurisdictions able to offer wildfire safety financing.
- By including rebuilding-related improvements and defensible space enhancements, the bill aligns wildfire resilience financing with post-disaster rebuilding efforts and proactive defensible space investments.
- As with all contractual assessment programs, consumers should review right-to-cancel provisions, lien implications, and any fees before participation.
Compiled from official sources — confirm details with the bill’s official record.
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