Notably, the CPUC declined to require OBR obligations to remain attached to the utility meter for a participating property in the event of a subsequent sale, lease, or other transfer of the property before full repayment of the obligation. Some parties, including financial institutions and project developers, had advocated for an OBR mechanism with a tariff-based charge that would survive changes of ownership. Indicating a reluctance to affect the rights of future property owners, landlords, and tenants, the CPUC decided instead on a “written consent” approach, under which subsequent property owners and tenants must give their written consent for the obligations to transfer.
The program is expected to boost demand for energy efficiency, distributed generation, and demand response projects at nonresidential properties in California.