SB 2

NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
     SENATE BILL 26-002
     BY SENATOR(S) Kipp and Exum, Amabile, Ball, Benavidez, Cutter,
     Gonzales J., Kolker, Lindstedt, Marchman, Roberts, Snyder, Wallace,
     Weissman, Coleman;
     also REPRESENTATIVE(S) Willford and Velasco, Boesenecker, Brown,
     Duran, Goldstein, Jackson, Joseph, Lindsay, McCormick, Nguyen, Rutinel,
     Rydin, Smith.
     CONCERNING ENERGY AFFORDABILITY, AND, IN CONNECTION THEREWITH,
          ESTABLISHING A PERCENTAGE-OF-INCOME PAYMENT PLAN PROGRAM
          FOR INCOME-QUALIFIED UTILITY CUSTOMERS.
     Be it enacted by the General Assembly of the State of Colorado:
           SECTION 1. In Colorado Revised Statutes, add 40-3-122 as
     follows:
            40-3-122. Energy affordability - percentage-of-income payment
     plan program - eligibility and participation - cost recovery - definitions
     - rules.
          (1) Definitions. AS USED IN THIS SECTION, UNLESS THE CONTEXT
     OTHERWISE REQUIRES:
     ________
     Capital letters or bold & italic numbers indicate new material added to existing law; dashes
     through words or numbers indicate deletions from existing law and such material is not part of
     the act.
      (a) (I) "ADMINISTRATIVE COSTS" MEANS A UTILITY'S DIRECT COSTS
FOR LABOR, INCLUDING APPLICABLE BENEFIT LOADINGS, MATERIALS, AND
OTHER VERIFIABLE EXPENDITURES DIRECTLY RELATED  TO   THE
ADMINISTRATION AND OPERATION OF A PIPP PROGRAM.
      (II) ADMINISTRATIVE COSTS MUST NOT EXCEED TEN PERCENT OF THE
TOTAL AMOUNT OF THE FIXED CREDITS APPLIED TO CUSTOMER BILLS FOR
CURRENT USAGE AND PRE-EXISTING ARREARAGES, OR TEN THOUSAND
DOLLARS, WHICHEVER AMOUNT IS GREATER.
      (b) "AFFORDABLE PERCENTAGE OF INCOME" MEANS THE AMOUNT OF
A PARTICIPANT'S ANNUAL BILL THAT IS DEEMED AFFORDABLE BASED ON A
PARTICIPANT'S ANNUAL HOUSEHOLD INCOME, AS DETERMINED PURSUANT TO
SUBSECTIONS (4)(b) AND (4)(c) OF THIS SECTION.
        (c) "APPLICATION" MEANS:
     (I) A REQUEST BY AN APPLICANT TO PARTICIPATE IN A UTILITY'S PIPP
PROGRAM, IF AN INVESTOR-OWNED UTILITY OFFERS THEIR OWN APPLICATION
PROCESS;
        (II) A REFERRAL BY A THIRD PARTY, AS DESCRIBED IN SUBSECTION
(3)(a)(II)(B) OF THIS SECTION, FOR AN APPLICANT TO PARTICIPATE IN A
UTILITY'S PIPP PROGRAM; OR
        (III) A PROCESS DETERMINED BY THE COMMISSION BY ORDER OR BY
RULE.
      (d) "ARREARAGE" MEANS THE PAST-DUE BALANCE OWED BY A
PARTICIPANT IN A PERCENTAGE-OF-INCOME PAYMENT PLAN PROGRAM FOR
UTILITY SERVICE, AS SHOWN ON THE MOST RECENT BILL RECEIVED BY THE
PARTICIPANT BEFORE THE PARTICIPANT'S INITIAL ENROLLMENT IN THE PIPP
PROGRAM.
      (e) (I) "FIXED CREDIT" MEANS AN ANNUAL BILL CREDIT THAT IS
CALCULATED BY A UTILITY AT THE BEGINNING OF A PARTICIPANT'S
PARTICIPATION IN THE UTILITY'S PIPP PROGRAM EACH YEAR AND IS
DELIVERED EITHER AS AN UP-FRONT ANNUAL CREDIT OR AS AN EQUAL
MONTHLY CREDIT ON THE PARTICIPANT'S MONTHLY UTILITY BILL.
PAGE 2-SENATE BILL 26-002
      (II) THE FIXED CREDIT IS EQUAL TO THE PARTICIPANT'S TOTAL
PROJECTED FULL ANNUAL BILL MINUS THE PARTICIPANT'S AFFORDABLE
PERCENTAGE OF INCOME PAYMENT.
       (f) "FULL ANNUAL BILL" MEANS THE PROJECTED ELECTRICITY OR GAS
CONSUMPTION OF A PARTICIPANT IN ONE CALENDAR YEAR BILLED AT
STANDARD RESIDENTIAL RATES BEFORE ANY FIXED CREDIT AMOUNT OR
OTHER CREDITS OR DISCOUNTS ARE APPLIED TO THE BILL.
      (g) "INCOME-QUALIFIED UTILITY CUSTOMER" HAS THE MEANING SET
FORTH IN SECTION 40-3-106 (1)(d)(II).
      (h) "INVESTOR-OWNED UTILITY" OR "UTILITY" MEANS A RETAIL
ELECTRIC UTILITY, RETAIL GAS UTILITY, OR A COMBINED RETAIL ELECTRIC
AND GAS UTILITY IN THE STATE THAT IS REGULATED BY THE COMMISSION
AND IS NOT A COOPERATIVE ELECTRIC ASSOCIATION OR A MUNICIPALLY
OWNED UTILITY.
      (i) "PARTICIPANT" MEANS AN INCOME-QUALIFIED UTILITY CUSTOMER
W H O IS A P P R O V E D F O R P A R T I C I P A T I O N I N A U T I LI T Y ' S
PERCENTAGE-OF-INCOME PAYMENT PLAN PROGRAM.
      (j) "PERCENTAGE-OF-INCOME PAYMENT PLAN PROGRAM" OR "PIPP
PROGRAM" MEANS A PAYMENT PLAN PROGRAM FOR RESIDENTIAL
PARTICIPANTS IN WHICH A PARTICIPANT'S UTILITY BILL DOES NOT EXCEED AN
AFFORDABLE PERCENTAGE OF INCOME.
      (k) "PIPP CHARGE" MEANS A FEE CHARGED TO AN INVESTOR-OWNED
UTILITY'S CUSTOMERS IN ACCORDANCE WITH SUBSECTION (7) OF THIS
SECTION TO RECOVER COSTS ASSOCIATED WITH THE UTILITY'S PIPP
PROGRAM.
       (l) "UNAFFORDABLE PORTION" MEANS THE AMOUNT OF A
PARTICIPANT'S ESTIMATED FULL ANNUAL BILL THAT EXCEEDS THE
AFFORDABLE PERCENTAGE OF INCOME PAID BY THE PARTICIPANT.
       (2) Percentage-of-income payment plan program.
      (a)   AN INVESTOR-OWNED UTILITY SHALL ESTABLISH A
PERCENTAGE-OF-INCOME PAYMENT PLAN PROGRAM FOR RESIDENTIAL
PAGE 3-SENATE BILL 26-002
INCOME-QUALIFIED UTILITY CUSTOMERS.
      (b) AN INVESTOR-OWNED UTILITY SHALL USE CONSISTENT NAMING
FOR THE PIPP PROGRAM IN TARIFFS, RATES, CUSTOMER COMMUNICATIONS,
AND BILL STATEMENTS, WHICH NAME MUST INCLUDE THE WORDS
"PERCENTAGE-OF-INCOME PAYMENT PLAN PROGRAM".
      (c) AN INVESTOR-OWNED UTILITY SHALL PUBLISH THE FOLLOWING
INFORMATION RELATED TO THE PIPP PROGRAM ON THE UTILITY'S PUBLIC
WEBSITE:
      (I) THE INCOME ELIGIBILITY CRITERIA FOR THE PIPP PROGRAM;
      (II) AN EXPLANATION OF WHAT THE PIPP PROGRAM DOES;
      (III) THE APPLICATION AND ENROLLMENT PROCESSES;
      (IV) AN ESTIMATED TIME FRAME FOR WHEN AN APPLICANT WILL
RECEIVE NOTICE OF THEIR ACCEPTANCE INTO OR DENIAL FROM THE PIPP
PROGRAM;
      (V) AFFORDABLE PERCENTAGE OF INCOME AMOUNTS FOR DIFFERENT
TYPES OF CUSTOMERS, AS DESCRIBED IN SUBSECTION (4) OF THIS SECTION;
      (VI) PIPP CHARGE AMOUNTS; AND
     (VII)   THE TERMS AND CONDITIONS FOR THE UTILITY'S PIPP
PROGRAM.
      (3) Eligibility and participation.
      (a) AN INCOME-QUALIFIED UTILITY CUSTOMER IS ELIGIBLE TO
PARTICIPATE IN THE PERCENTAGE-OF-INCOME PAYMENT PLAN PROGRAM IF
THE CUSTOMER:
      (I) MEETS THE INCOME ELIGIBILITY CRITERIA, AS DETERMINED BY
THE COMMISSION BY ORDER OR BY RULE;
      (II) EITHER:
PAGE 4-SENATE BILL 26-002
      (A) SUBMITS AN APPLICATION TO THE INVESTOR-OWNED UTILITY TO
PARTICIPATE IN THE PIPP PROGRAM; OR
      (B)   IS REFERRED BY ANOTHER INCOME-ELIGIBLE ASSISTANCE
PROGRAM OFFERED BY THE DEPARTMENT OF HUMAN SERVICES, CREATED IN
SECTION 26-1-105; THE COLORADO ENERGY OFFICE, CREATED IN SECTION
24-38.5-101; THE ORGANIZATION DEFINED IN SECTION 40-8.7-103 (4); OR
OTHER ENERGY ASSISTANCE PROGRAM APPROVED BY THE COMMISSION; AND
      (III) LIVES IN THE SERVICE AREA OF AN INVESTOR-OWNED UTILITY
THAT HAS ESTABLISHED A PIPP PROGRAM.
       (b) (I) AN APPLICANT THAT SUBMITS A PIPP PROGRAM APPLICATION
TO AN INVESTOR-OWNED UTILITY MAY SUBMIT DOCUMENTATION WITH THE
APPLICATION VERIFYING THAT THE APPLICANT MEETS THE INCOME
ELIGIBILITY CRITERIA, INCLUDING:
      (A)   DOCUMENTATION THAT THE APPLICANT IS ENROLLED IN
ANOTHER INCOME-ELIGIBLE ASSISTANCE PROGRAM OFFERED BY THE
DEPARTMENT OF HUMAN SERVICES, CREATED IN SECTION 26-1-105; THE
COLORADO ENERGY OFFICE, CREATED IN SECTION 24-38.5-101; THE
ORGANIZATION DEFINED IN SECTION 40-8.7-103 (4); OR OTHER ENERGY
ASSISTANCE PROGRAM APPROVED BY THE COMMISSION; OR
       (B) INFORMATION REQUIRED TO VERIFY THE APPLICANT'S INCOME
ELIGIBILITY, WHICH MAY INCLUDE SELF-ATTESTATION, AS DETERMINED BY
THE UTILITY THAT HAS ESTABLISHED THE PIPP PROGRAM.
      (II) IF AN APPLICANT'S HOUSEHOLD INCOME IS ZERO DOLLARS, THE
UTILITY MAY ESTABLISH A PROCESS THAT VERIFIES THE APPLICANT'S
HOUSEHOLD INCOME ON A MORE FREQUENT THAN ANNUAL BASIS.
      (c) AN APPLICANT IS NOT REQUIRED TO MAKE A PAYMENT ON THE
APPLICANT'S ACCOUNT AS A CONDITION OF ACCEPTANCE INTO A PIPP
PROGRAM.
      (d) AN INVESTOR-OWNED UTILITY SHALL ESTABLISH APPLICATION
AND PARTICIPATION PROCEDURES THAT ARE EFFICIENT, AVAILABLE TO
APPLICANTS IN PLAIN LANGUAGE, AND INTENDED TO MAXIMIZE
PARTICIPATION IN THE UTILITY'S PIPP PROGRAM.
PAGE 5-SENATE BILL 26-002
      (e) (I) WITHIN THIRTY DAYS AFTER RECEIVING A PIPP PROGRAM
APPLICATION FROM AN INCOME-QUALIFIED UTILITY CUSTOMER, AN
INVESTOR-OWNED UTILITY SHALL APPROVE OR DENY THE INCOME-QUALIFIED
UTILITY CUSTOMER'S APPLICATION.
      (II)    IF THE INVESTOR-OWNED UTILITY APPROVES AN
INCOME-QUALIFIED UTILITY CUSTOMER'S APPLICATION FOR PARTICIPATION
IN THE PIPP PROGRAM, THE UTILITY SHALL PROVIDE AN EXPLANATION OF
THE PIPP PROGRAM BENEFITS, INCLUDING:
      (A) THE PARTICIPANT'S ESTIMATED FULL ANNUAL BILL AMOUNT;
      (B) THE PARTICIPANT'S FIXED CREDIT AMOUNT;
      (C) THE AFFORDABLE PERCENTAGE OF INCOME FOR WHICH THE
PARTICIPANT IS RESPONSIBLE FOR PAYING, LISTED AS BOTH A PERCENTAGE
AND AN ESTIMATED MONTHLY AMOUNT; AND
      (D) A COPY OF THE TERMS AND CONDITIONS OF PARTICIPATION IN
THE PIPP PROGRAM.
       (III) IF THE INVESTOR-OWNED UTILITY DENIES AN APPLICANT'S
APPLICATION FOR PARTICIPATION IN THE PIPP PROGRAM, THE UTILITY SHALL
PROVIDE THE APPLICANT AN EXPLANATION FOR THE DENIAL AND, IF THE
REASON FOR THE DENIAL WAS BASED ON THE UTILITY'S VERIFICATION OF THE
APPLICANT'S HOUSEHOLD INCOME IN ACCORDANCE WITH SUBSECTION (3)(b)
OF THIS SECTION, THE DEPARTMENT, AGENCY, OR ORGANIZATION THAT THE
UTILITY CONTACTED TO VERIFY THE APPLICANT'S HOUSEHOLD INCOME.
      (IV) IF AN INCOME-QUALIFIED UTILITY CUSTOMER IS ACCEPTED INTO
THE PIPP PROGRAM, THE CUSTOMER SHALL REMAIN QUALIFIED FOR THE
PIPP PROGRAM FOR TWO PROGRAM YEARS AFTER THE DATE ON WHICH THE
CUSTOMER IS ACCEPTED INTO THE PROGRAM.
      (f) (I)  AN INVESTOR-OWNED UTILITY IS RESPONSIBLE FOR
ESTABLISHING AND ADMINISTERING THE PROCESS FOR INCOME-QUALIFIED
UTILITY CUSTOMERS TO APPLY FOR PARTICIPATION AND MAINTAINING
ENROLLMENT IN THE PIPP PROGRAM.
      (II) A PARTICIPANT MAY REMAIN ENROLLED IN A UTILITY'S PIPP
PAGE 6-SENATE BILL 26-002
PROGRAM IF THE PARTICIPANT MOVES WITHIN THE SAME UTILITY SERVICE
TERRITORY WITHOUT REAPPLYING FOR PARTICIPATION IN THE PIPP
PROGRAM, AND THE PARTICIPANT SHALL NOTIFY THE UTILITY OF THE
PARTICIPANT'S CHANGE OF ADDRESS AND NEW ACCOUNT NUMBER.
      (III) IF A PARTICIPANT MOVES OUTSIDE OF A UTILITY'S SERVICE
TERRITORY, THE PARTICIPANT IS NO LONGER ELIGIBLE FOR THE UTILITY'S
PIPP PROGRAM AND THE UTILITY SHALL SEND NOTICE TO THE PARTICIPANT
THAT THE PARTICIPANT'S ELIGIBILITY FOR AND ENROLLMENT IN THE PIPP
PROGRAM HAS ENDED.
      (g) IF A PARTICIPANT MAKES PARTIAL OR LATE PAYMENTS ON THEIR
UTILITY BILL, THE INVESTOR-OWNED UTILITY SHALL NOT TERMINATE THE
PARTICIPANT'S PARTICIPATION IN THE PIPP PROGRAM SOLELY FOR THAT
REASON. HOWEVER, THE UTILITY MAY PURSUE COLLECTION EFFORTS FOR
THE UNPAID AMOUNTS.
      (4) Affordable percentage of income calculation.
      (a) (I)    AN INVESTOR-OWNED UTILITY SHALL ESTIMATE A
PARTICIPANT'S FULL ANNUAL BILL IN ORDER TO DETERMINE A PARTICIPANT'S
AFFORDABLE PERCENTAGE OF INCOME PAYMENT IN ACCORDANCE WITH
SUBSECTIONS (4)(b) AND (4)(c) OF THIS SECTION.
       (II) AN INVESTOR-OWNED UTILITY SHALL INCLUDE THE DIFFERENCE
BETWEEN A PARTICIPANT'S AFFORDABLE PERCENTAGE OF INCOME PAYMENT
AND THE PROJECTED FULL ANNUAL BILL ON THE PARTICIPANT'S UTILITY BILL
AS A FIXED CREDIT.
      (III) AN INVESTOR-OWNED UTILITY MAY ADJUST THE FIXED CREDIT
AMOUNT IF RESIDENTIAL RATES FOR ELECTRICITY OR GAS SIGNIFICANTLY
CHANGE FROM THE RATE USED TO ESTIMATE THE PARTICIPANT'S FULL
ANNUAL BILL OR IF THE PARTICIPANT'S ACTUAL BILL AMOUNT VARIES BY
TWENTY-FIVE PERCENT OR MORE FROM THE PARTICIPANT'S ESTIMATED FULL
ANNUAL BILL.
      (b) UNLESS OTHERWISE DETERMINED BY THE COMMISSION BY ORDER
OR BY RULE, IF A PARTICIPANT'S ANNUAL HOUSEHOLD INCOME IS ABOVE
ZERO DOLLARS, A PARTICIPANT'S AFFORDABLE PERCENTAGE OF INCOME
MUST NOT EXCEED THE APPLICABLE PERCENTAGE OF HOUSEHOLD INCOME AS
PAGE 7-SENATE BILL 26-002
FOLLOWS:
     (I) FOR UTILITIES WITH FIVE HUNDRED THOUSAND CUSTOMERS OR
FEWER:
      (A) FOR ELECTRIC ACCOUNTS THAT HAVE ELECTRICITY AS THE
PRIMARY HEATING FUEL, A PARTICIPANT'S AFFORDABLE PERCENTAGE OF
INCOME PAYMENT MUST NOT BE GREATER THAN SIX PERCENT OF THE
PARTICIPANT'S HOUSEHOLD INCOME;
      (B) FOR ELECTRIC ACCOUNTS THAT DO NOT HAVE ELECTRICITY AS
THE PRIMARY HEATING FUEL, A PARTICIPANT'S AFFORDABLE PERCENTAGE OF
INCOME PAYMENT MUST NOT BE GREATER THAN THREE PERCENT OF THE
PARTICIPANT'S HOUSEHOLD INCOME;
      (C) FOR ACCOUNTS THAT HAVE BOTH NATURAL GAS SERVICE AND
ELECTRIC SERVICE FROM A SINGLE UTILITY, A PARTICIPANT'S AFFORDABLE
PERCENTAGE OF INCOME PAYMENT MUST NOT BE GREATER THAN FIVE
PERCENT OF THE PARTICIPANT'S HOUSEHOLD INCOME;
     (D) FOR ACCOUNTS THAT HAVE NEITHER ELECTRICITY NOR NATURAL
GAS AS A PRIMARY HEATING SOURCE, A PARTICIPANT'S AFFORDABLE
PERCENTAGE OF INCOME PAYMENT MUST NOT BE GREATER THAN FIVE
PERCENT OF THE PARTICIPANT'S HOUSEHOLD INCOME; OR
     (E) FOR ACCOUNTS THAT HAVE NATURAL GAS AS THE PRIMARY HEAT
SOURCE, A PARTICIPANT'S AFFORDABLE PERCENTAGE OF INCOME PAYMENT
MUST NOT BE GREATER THAN THREE PERCENT OF THE PARTICIPANT'S
HOUSEHOLD INCOME; AND
     (II) FOR UTILITIES WITH MORE THAN FIVE HUNDRED THOUSAND
CUSTOMERS:
      (A) FOR ELECTRIC ACCOUNTS THAT HAVE ELECTRICITY AS THE
PRIMARY HEATING FUEL, A PARTICIPANT'S AFFORDABLE PERCENTAGE OF
INCOME PAYMENT MUST NOT BE GREATER THAN FOUR PERCENT OF THE
PARTICIPANT'S HOUSEHOLD INCOME;
       (B) FOR ELECTRIC ACCOUNTS THAT DO NOT HAVE ELECTRICITY AS
THE PRIMARY HEATING FUEL, A PARTICIPANT'S AFFORDABLE PERCENTAGE OF
PAGE 8-SENATE BILL 26-002
INCOME PAYMENT MUST NOT BE GREATER THAN TWO PERCENT OF THE
PARTICIPANT'S HOUSEHOLD INCOME;
      (C) FOR ACCOUNTS THAT HAVE BOTH NATURAL GAS SERVICE AND
ELECTRIC SERVICE FROM A SINGLE UTILITY, A PARTICIPANT'S AFFORDABLE
PERCENTAGE OF INCOME PAYMENT MUST NOT BE GREATER THAN FIVE
PERCENT OF THE PARTICIPANT'S HOUSEHOLD INCOME; OR
     (D) FOR ACCOUNTS THAT HAVE NEITHER ELECTRICITY NOR NATURAL
GAS AS A PRIMARY HEATING SOURCE, A PARTICIPANT'S AFFORDABLE
PERCENTAGE OF INCOME PAYMENT MUST NOT BE GREATER THAN FIVE
PERCENT OF THE PARTICIPANT'S HOUSEHOLD INCOME.
      (c) IF A PARTICIPANT'S ANNUAL HOUSEHOLD INCOME IS ZERO
DOLLARS, THE COMMISSION SHALL SET THE PARTICIPANT'S AFFORDABLE
PERCENTAGE OF INCOME BY ORDER OR RULE.
      (5) Arrearage credits.
      (a) (I) AN INVESTOR-OWNED UTILITY SHALL APPLY ARREARAGE
CREDITS TO A PARTICIPANT'S ARREARAGES THAT EXISTED BEFORE THE
PARTICIPANT INITIALLY APPLIED FOR THE PIPP PROGRAM.
      (II) ARREARAGE CREDITS MUST BE ESTABLISHED AND APPLIED TO A
PARTICIPANT'S UTILITY BILL IN AN AMOUNT SUFFICIENT TO REDUCE, WHEN
COMBINED WITH ANY REQUIRED PAYMENTS FROM THE PARTICIPANT, THE
PARTICIPANT'S ARREARAGES TO ZERO DOLLARS OVER A PERIOD OF NOT LESS
THAN ONE MONTH AND NOT MORE THAN TWENTY-FOUR MONTHS.
      (b) AN INVESTOR-OWNED UTILITY MAY CONDITION THE APPLICATION
OF ARREARAGE CREDITS ON THE FOLLOWING:
     (I) A PARTICIPANT'S TIMELY PAYMENT OF BILLS FOR CURRENT
USAGE; OR
      (II) A PARTICIPANT'S PAYMENT TOWARD PREEXISTING ARREARAGES,
EXCEPT THAT THE TOTAL DOLLAR AMOUNT OF THE PAYMENT REQUIRED BY
THE UTILITY MUST NOT EXCEED ONE PERCENT OF THE PARTICIPANT'S ANNUAL
HOUSEHOLD INCOME.
PAGE 9-SENATE BILL 26-002
      (c) IF A PARTICIPANT'S ENROLLMENT IN THE PIPP PROGRAM ENDS
FOR ANY REASON PRIOR TO THE FORGIVENESS OF ALL ARREARAGES, ANY
REMAINING ARREARAGES BECOME DUE IN ACCORDANCE WITH THE UTILITY'S
CURRENT TARIFF FILED WITH THE COMMISSION AT THE TIME OF THE
TERMINATION.
      (d) WHILE A PARTICIPANT IS ENROLLED IN A UTILITY'S PIPP
PROGRAM, THE UTILITY SHALL NOT TERMINATE THE PARTICIPANT'S SERVICE
FOR NONPAYMENT OF THE ARREARAGES.
      (e) A PARTICIPANT MAY RECEIVE ARREARAGE CREDITS PURSUANT TO
THIS SECTION REGARDLESS OF WHETHER THE PARTICIPANT RECEIVES A
CREDIT TOWARD A UTILITY BILL FOR CURRENT USAGE.
      (6) Participation in other assistance programs.
      (a) THIS SECTION DOES NOT PROHIBIT AN INCOME-QUALIFIED UTILITY
CUSTOMER FROM PARTICIPATING IN OTHER ENERGY ASSISTANCE PROGRAMS
WHILE ENROLLED IN A PERCENTAGE-OF-INCOME PAYMENT PLAN PROGRAM.
      (b) AN INVESTOR-OWNED UTILITY MAY APPLY ENERGY ASSISTANCE
GRANTS PROVIDED TO A PARTICIPANT TO THE DOLLAR VALUE OF THE FIXED
CREDITS PROVIDED TO THE PARTICIPANT TO COVER THE UNAFFORDABLE
PORTION OF THE PARTICIPANT'S UTILITY BILL IN A MANNER DETERMINED BY
THE COMMISSION BY RULE.
      (7) Cost recovery.
      (a)    A N INVESTOR - OWNED UTILITY MAY RECOVER
PERCENTAGE-OF-INCOME PAYMENT PLAN PROGRAM COSTS THROUGH A PIPP
CHARGE ON THE UTILITY'S CUSTOMERS, AS APPROVED BY THE COMMISSION.
      (b) IF AN INVESTOR-OWNED UTILITY IMPOSES A PIPP CHARGE, THE
INVESTOR-OWNED UTILITY SHALL:
        (I) ASSESS THE PIPP CHARGE AS A SEPARATE LINE ITEM ON EVERY
CUSTOMER'S MONTHLY BILL AND IDENTIFY THE CHARGE AS A "PIPP CHARGE"
OR, IF THE PIPP CHARGE IS COMBINED WITH ANOTHER LINE ITEM, ENSURE
THAT THE PIPP CHARGE IS ITEMIZED AND NOTED ON THE CUSTOMER'S
MONTHLY BILL AS SUCH;
PAGE 10-SENATE BILL 26-002
      (II) COLLECT THE MONTHLY PIPP CHARGE IN THE SAME MANNER AS
ALL OTHER CHARGES AND FEES ARE COLLECTED FROM A CUSTOMER;
     (III) STATE THE AMOUNT OF THE PIPP CHARGE, WHICH MUST BE
APPROVED BY THE COMMISSION; AND
      (IV) INCLUDE THE AMOUNT OF PIPP CHARGES COLLECTED FROM A
UTILITY'S CUSTOMERS ON THE UTILITY'S TARIFF SHEET FILED WITH THE
COMMISSION.
      (c) IF AN INVESTOR-OWNED UTILITY IMPOSES A PIPP CHARGE, THE
UTILITY IS ENCOURAGED TO ANNUALLY CONTRIBUTE SHAREHOLDER PROFITS
TO THE PIPP PROGRAM. ANY AMOUNT CONTRIBUTED BY THE UTILITY IS NOT
TO BE DIRECTLY OR INDIRECTLY RECOVERED FROM CUSTOMERS.
      (d)   AN INVESTOR-OWNED UTILITY MUST USE THE REVENUE
GENERATED FROM THE PIPP CHARGE PLUS ANY AMOUNT CONTRIBUTED BY
THE UTILITY PURSUANT TO SUBSECTION (7)(c) OF THIS SECTION ONLY FOR
THE FOLLOWING PURPOSES:
      (I) TO PROVIDE CREDITS OR DISCOUNTS TO PARTICIPANTS APPLIED
AGAINST THE PARTICIPANTS' BILL FOR CURRENT USAGE;
     (II) TO PROVIDE CREDITS TO PARTICIPANTS FOR THE PARTICIPANTS'
ARREARAGES;
     (III) TO COVER ADMINISTRATIVE COSTS OF IMPLEMENTING AND
ADMINISTERING THE PIPP PROGRAM; AND
      (IV) TO COVER PIPP PROGRAM EVALUATION COSTS REQUIRED BY
THE COMMISSION.
      (e) THE COMMISSION SHALL DETERMINE BY RULE THE AMOUNT OF
THE PIPP CHARGE AND PROCEDURES BY WHICH A UTILITY MAY APPLY TO
INCREASE OR DECREASE THE MONTHLY PIPP CHARGE.
     (f) (I) AN INVESTOR-OWNED UTILITY SHALL TRACK AND ANNUALLY
REPORT THE FOLLOWING INFORMATION TO THE COMMISSION:
      (A) THE PIPP CHARGE REVENUE COLLECTED BY THE UTILITY;
PAGE 11-SENATE BILL 26-002
      (B) THE PIPP CHARGE UTILITY CONTRIBUTION AMOUNT DESCRIBED
IN SUBSECTION (7)(c) OF THIS SECTION;
     (C) ADMINISTRATIVE COSTS ASSOCIATED WITH IMPLEMENTING AND
ADMINISTERING THE PIPP PROGRAM;
      (D) THE AMOUNT OF FIXED OR ANNUAL CREDITS PROVIDED TO
PARTICIPANTS IN THE PIPP PROGRAM; AND
      (E)    THE  AMOUNT OF ARREARAGE CREDITS PROVIDED TO
PARTICIPANTS IN THE PIPP PROGRAM.
      (II) THE COMMISSION SHALL REPORT THE INFORMATION REPORTED
BY AN INVESTOR-OWNED UTILITY PURSUANT TO SUBSECTION (7)(f)(I) OF
THIS SECTION IN THE COMMISSION'S ANNUAL REPORTING REQUIREMENTS
ESTABLISHED BY THE COMMISSION BY RULE.
      (8) Rules. THE COMMISSION SHALL ADOPT ANY RULES NECESSARY
TO IMPLEMENT AND ENFORCE THIS SECTION.
        SECTION 2. In Colorado Revised Statutes, 25-7-1503, amend
(2)(c) and (2)(d); and add (2)(e) as follows:
      25-7-1503. Scope and applicability - repeal.
      (2) This part 15 does not apply to:
       (c) Products designed expressly for installation and use in
recreational vehicles; or
      (d) Products that do not burn fossil fuels; OR
      (e) (I) UNTIL JANUARY 1, 2031:
      (A) PRODUCTS FUELED BY PROPANE; AND
      (B)    PRODUCTS DESIGNED AND LISTED EXCLUSIVELY FOR
INSTALLATION IN A MANUFACTURED HOME AND INSTALLED AS A
REPLACEMENT IN A MANUFACTURED HOME.
PAGE 12-SENATE BILL 26-002
        (II) THIS SUBSECTION (2)(e) IS REPEALED, EFFECTIVE DECEMBER 31,
2031.
       SECTION 3. In Colorado Revised Statutes, 25-7-1504, amend (1)
introductory portion and (2); and add (3) as follows:
        25-7-1504. Emission standards for new products.
       (1) On and after January 1, 2026, except as described in section
25-7-1506, SECTION 25-7-1503 (2), AND SUBSECTION (3) OF THIS SECTION,
a person shall not manufacture, distribute, sell, offer for sale, lease, or offer
for lease in Colorado any of the following new products unless the
emissions of the product do not exceed the following emissions limits, as
applicable:
        (2)Equipment that is certified to the most recent RECENTLY
PUBLISHED version of the Energy Star program for the relevant equipment
type is deemed to comply with the requirements of subsection (1)
SUBSECTIONS (1) AND (3) of this section.
          ON AND AFTER JANUARY 1, 2031, A PERSON SHALL NOT
        (3)
MANUFACTURE, DISTRIBUTE, SELL, OFFER FOR SALE, LEASE, OR OFFER FOR
LEASE IN COLORADO ANY NEW WATER HEATER OR FAN-TYPE CENTRAL
FURNACE DESIGNED AND LISTED EXCLUSIVELY FOR INSTALLATION IN A
MANUFACTURED HOME UNLESS THE EMISSIONS OF THE PRODUCT DO NOT
EXCEED FORTY NANOGRAMS OF NOX PER JOULE OF HEAT INPUT.
      SECTION 4. In Colorado Revised Statutes, 25-7-1505, amend (1);
and add (2.5) as follows:
      25-7-1505. Testing - required displays - demonstrations of
compliance.
       (1) Manufacturers of natural-gas-fueled water heaters described by
IN section 25-7-1503 (1)(a) shall test each applicable model for sale in
Colorado in accordance with:
       (a) The south coast air quality management district protocol
"Nitrogen Oxides Emissions Compliance Testing for Natural Gas-Fired
Water Heaters and Small Boilers", as amended;
PAGE 13-SENATE BILL 26-002
       (b) THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT METHOD
100.1 "INSTRUMENTAL ANALYZER PROCEDURES FOR CONTINUOUS GASEOUS
EMISSION SAMPLING", AS AMENDED; OR
      (c) AN EQUIVALENT TEST PROTOCOL ADOPTED OR APPROVED BY A
LOCAL, STATE, OR FEDERAL AIR QUALITY AGENCY FOR DETERMINING NOX
EMISSIONS FROM APPLICABLE FOSSIL-FUELED WATER HEATERS.
      (2.5) TESTING CONDUCTED PURSUANT TO SUBSECTIONS (1) AND (2)
OF THIS SECTION MUST BE PERFORMED USING THE FUEL, BURNER, AND
CONTROL CONFIGURATION, INCLUDING ANY HIGH-ALTITUDE OR FUEL
CONVERSION KITS, TEST ELEVATION OR SIMULATED ELEVATION, AND
OPERATING CONDITIONS THAT ARE REPRESENTATIVE OF NORMAL FIELD USE
OF THE MODEL AS IT IS MARKETED FOR INSTALLATION IN COLORADO.
        SECTION 5. In Colorado Revised Statutes, 24-75-232, amend
(4)(c) and (8) as follows:
       24-75-232. "Infrastructure Investment and Jobs Act" cash fund
- creation - allowable uses - report - compliance monitoring - legislative
declaration - definitions - repeal.
       (4) (c) On June 30, 2028 JUNE 30, 2031, the state treasurer shall
transfer all unexpended money in the fund to the general fund.
       (8) This section is repealed, effective July 1, 2028 JULY 1, 2031.
Any unexpended and unencumbered money remaining in the fund upon the
repeal of this section reverts to the general fund.
       SECTION 6. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly (August
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a
referendum petition is filed pursuant to section 1 (3) of article V of the state
constitution against this act or an item, section, or part of this act within
such period, then the act, item, section, or part will not take effect unless
PAGE 14-SENATE BILL 26-002
approved by the people at the general election to be held in November 2026
and, in such case, will take effect on the date of the official declaration of
the vote thereon by the governor.
____________________________  ____________________________
James Rashad Coleman, Sr.  Julie McCluskie
PRESIDENT OF  SPEAKER OF THE HOUSE
THE SENATE  OF REPRESENTATIVES
____________________________  ____________________________
Esther van Mourik  Vanessa Reilly
SECRETARY OF  CHIEF CLERK OF THE HOUSE
THE SENATE  OF REPRESENTATIVES
       APPROVED________________________________________
                          (Date and Time)
                    _________________________________________
                   Jared S. Polis
                   GOVERNOR OF THE STATE OF COLORADO
PAGE 15-SENATE BILL 26-002