SB 148

                            Second Regular Session
                         Seventy-fifth General Assembly
                           STATE OF COLORADO
                                                                           INTRODUCED
LLS NO. 26-0820.01 Clare Haffner x6137  SENATE BILL 26-148
                            SENATE SPONSORSHIP
 Ball and Mullica,
                             HOUSE SPONSORSHIP
 Joseph and Camacho,
Senate Committees  House Committees
Transportation & Energy
                                     A BILL FOR AN ACT
101     CONCERNING FINANCING A UTILITY ON-BILL REPAYMENT PROGRAM TO
102SUPPORT CERTAIN ENERGY-RELATED UPGRADES.
                                           Bill Summary
             (Note: This summary applies to this bill as introduced and does
     not reflect any amendments that may be subsequently adopted. If this bill
     passes third reading in the house of introduction, a bill summary that
     applies to the reengrossed version of this bill will be available at
     http://leg.colorado.gov.)
            The Colorado Clean Energy Fund (CCEF) is a nonprofit institution
     with experience administering clean energy financing programs and is the
     designated green bank for the federal environmental protection agency's
     region 8. The CCEF administers an on-bill repayment program (program)
     to help finance certain energy-related upgrades installed at a utility
     customer's premises that are associated with the utility meter. Under the
           Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
        Capital letters or bold & italic numbers indicate new material to be added to existing law.
              Dashes through the words or numbers indicate deletions from existing law.
program, in partnership with Colorado-based utilities, the CCEF finances
energy-related upgrades that are then repaid through a customer's monthly
utility bill payments.
        The bill directs the state treasurer to, on August 15, 2026, execute
a loan agreement with the CCEF for a low-interest loan of $50 million
from the unclaimed property trust fund.The purpose of the loan is to
capitalize and expand the CCEF's on-bill repayment program and to
accelerate utility adoption of the program.
        The Colorado energy office is required to review the design of the
program before August 1, 2026. The bill specifies certain requirements
for the program and for a utility to access the funding for the program,
including requirements related to disclosures, notices, transfers of
responsibility for an on-bill repayment obligation, and interest rates.
        The CCEF is required to submit annual reports to the joint budget
committee, the Colorado energy office, and the state treasurer detailing
the deployment of the program.
1  Be it enacted by the General Assembly of the State of Colorado:
2SECTION 1. Legislative declaration. (1) The general assembly
3  finds and declares that:
4(a) The Colorado Clean Energy Fund was established as the result
5  of a multiyear initiative led by the Colorado energy office in partnership
6  with the United States department of energy to identify strategies for
7  addressing clean energy financing gaps across the state. The effort
8  concluded with a formal recommendation that Colorado create an
9  independent, mission-driven financial institution capable of supporting
10 state energy policy objectives and mobilizing private capital.
11(b) Acting on this recommendation, the Colorado energy office,
12 working closely with the governor's office, incorporated and publicly
13 announced the Colorado Clean Energy Fund in December 2018 as
14 Colorado's designated "green bank". From its inception, the Colorado
15 Clean Energy Fund has been structured to advance state priorities while
16 operating independently as a nonprofit lender, consistent with national
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1 green bank models.
2(c)    The general assembly subsequently provided direct
3 capitalization through Senate Bill 21-230, enacted in 2021, reinforcing
4 the state's commitment to a green bank model and its role in advancing
5 statutory clean energy, decarbonization, and economic development
6 goals. The Colorado Clean Energy Fund continues to maintain a formal
7 connection to the state through its board of directors, which includes an
8 ex officio seat held by the director of the Colorado energy office.
9SECTION 2. In Colorado Revised Statutes, add part 6 to article
10 38.5 of title 24 as follows:
11PART 6
12UTILITY ON-BILL REPAYMENT PROGRAM
1324-38.5-601. Legislative declaration.
14(1) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:
15(a) THE COLORADO CLEAN ENERGY FUND IS A COLORADO-BASED
16 NONPROFIT FINANCIAL INSTITUTION THAT SERVES AS THE STATE'S GREEN
17 BANK. THE MISSION OF THE COLORADO CLEAN ENERGY FUND IS TO
18 ACCELERATE AFFORDABLE ACCESS TO CLEAN ENERGY AND ENERGY
19 EFFICIENCY MEASURES THROUGH INNOVATIVE FINANCING MECHANISMS.
20(b) THE UTILITY ON-BILL REPAYMENT PROGRAM ADMINISTERED BY
21 THE COLORADO CLEAN ENERGY FUND ENABLES HOUSEHOLDS AND SMALL
22 BUSINESSES     TO    INVEST    IN   ENERGY    EFFICIENCY     MEASURES ,
23 ELECTRIFICATION MEASURES, AND ENERGY UPGRADES WITH NO UPFRONT
24 COSTS, WITH COSTS THAT ARE INSTEAD REPAID THROUGH UTILITY BILLS,
25 THEREBY REDUCING ENERGY COST BURDENS, REDUCING POLLUTION, AND
26 IMPROVING HOUSING RESILIENCE;
27(c) THE PROGRAM EMPLOYS INDUSTRY-LEADING BEST PRACTICES
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1 AND HAS DEMONSTRATED MEASURABLE SUCCESS IN REDUCING ENERGY
2 CONSUMPTION, IMPROVING AFFORDABILITY, AND LEVERAGING PRIVATE
3 CAPITAL FOR PUBLIC BENEFIT;
4(d) EXPANDING ACCESS TO THE PROGRAM ADVANCES THE PUBLIC
5 INTEREST BY REDUCING ENERGY COST BURDENS, IMPROVING HOUSING
6 RESILIENCE, REDUCING POLLUTION, AND SUPPORTING  COLORADO'S
7  CLIMATE GOALS;
8(e) THE PROGRAM SERVES A PUBLIC PURPOSE AND IS ELIGIBLE TO
9 RECEIVE FINANCIAL SUPPORT FROM THE UNCLAIMED PROPERTY TRUST
10 FUND PURSUANT TO SECTION 38-13-801 IF THIS FINANCIAL SUPPORT DOES
11 NOT IMPAIR THE ABILITY OF THE ADMINISTRATOR OF THE UNCLAIMED
12 PROPERTY TRUST FUND TO PAY RIGHTFUL CLAIMS;
13(f) A LOW-INTEREST LOAN TO THE COLORADO CLEAN ENERGY
14 FUND, SERVING AS A MISSION-ALIGNED GREEN BANK, WILL CATALYZE
15 PRIVATE INVESTMENT, ACCELERATE UTILITY ADOPTION OF THE PROGRAM,
16 AND   ENSURE    FISCAL   STEWARDSHIP    THROUGH   REPAYMENT      AND
17 REINVESTMENT; AND
18(g)     EXPANDING ACCESS TO THE PROGRAM IS EXPECTED TO
19 GENERATE ECONOMIC BENEFITS THROUGHOUT COLORADO BY SUPPORTING
20 LOCAL CONTRACTORS AND SMALL BUSINESSES, REDUCING ENERGY COSTS
21 FOR HOUSEHOLDS AND BUSINESSES, AND KEEPING MORE ENERGY DOLLARS
22 IN LOCAL COMMUNITIES.       INVESTMENTS    IN ENERGY      EFFICIENCY,
23 ELECTRIFICATION, AND RELATED IMPROVEMENTS CAN STIMULATE PRIVATE
24 CAPITAL, CREATE WELL-PAYING JOBS IN CONSTRUCTION AND ENERGY
25 SERVICES,   AND   IMPROVE   THE    COMPETITIVENESS   OF    COLORADO
26 BUSINESSES.
27(2) THE GENERAL ASSEMBLY FURTHER DECLARES THAT THE LOAN
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1 AUTHORIZED IN SECTION 38-13-801 (7)(a) IS CONSIDERED A STRATEGIC
2 INVESTMENT IN COLORADO'S CLEAN ENERGY INFRASTRUCTURE, ECONOMIC
3 RESILIENCE, AND REDUCTION OF ENERGY BURDENS.
424-38.5-602. Definitions.
5AS USED IN THIS PART 6, UNLESS THE CONTEXT OTHERWISE
6 REQUIRES:
7(1) "COMMISSION" MEANS THE PUBLIC UTILITIES COMMISSION
8 CREATED IN SECTION 40-2-101.
9(2) "INCOME-QUALIFIED UTILITY CUSTOMER" HAS THE MEANING
10 SET FORTH IN SECTION 40-3-106 (1)(d)(II).
11(3) "OFFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN
12 SECTION 24-38.5-101 (1).
13(4) "PARTICIPATING UTILITY" MEANS A UTILITY THAT ELECTS TO
14 PARTICIPATE IN THE PROGRAM AND CONTRACTS WITH THE COLORADO
15 CLEAN ENERGY FUND TO RECEIVE MONEY THROUGH THE PROGRAM.
16(5) "PROGRAM" MEANS THE TARIFF-BASED ON-BILL REPAYMENT
17 PROGRAM ADMINISTERED BY THE COLORADO CLEAN ENERGY FUND AND
18 REVIEWED BY THE OFFICE PURSUANT TO SECTION 24-38.5-603 (2).
19(6) "PROGRAM PARTICIPANT" MEANS A UTILITY CUSTOMER THAT
20 REQUESTS TO PARTICIPATE IN THE PROGRAM AND THAT THE RELEVANT
21 PARTICIPATING UTILITY, IN COLLABORATION WITH THE COLORADO CLEAN
22 ENERGY FUND, DETERMINES IS ELIGIBLE FOR PROGRAM PARTICIPATION.
23(7) "UTILITY" MEANS AN ELECTRIC UTILITY, A GAS UTILITY, OR A
24 COMBINED FUEL UTILITY AND INCLUDES:
25(a) AN INVESTOR-OWNED UTILITY;
26(b) A COOPERATIVE ELECTRIC ASSOCIATION; AND
27(c) A MUNICIPALLY OWNED UTILITY.
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124-38.5-603.    On-bill repayment program - tariff-based
2 programs - required disclosures - transfers of financial responsibility
3 - utility loss reserve - interest rates - income-qualified pathway -
4 shutoff for nonpayment.
5(1) On-bill repayment obligations. THE COLORADO CLEAN
6 ENERGY FUND'S ON-BILL REPAYMENT PROGRAM MUST REQUIRE THAT A
7 REPAYMENT OBLIGATION MUST:
8(a) BE ASSIGNED TO THE METERED UTILITY SERVICE AND NOT TO
9 AN INDIVIDUAL CUSTOMER;
10(b) BE ATTACHED TO THE METERED UTILITY SERVICE AND NOT
11 CONSTITUTE A LIEN ON REAL PROPERTY; AND
12(c)   TRANSFER WITH THE METERED UTILITY SERVICE UPON
13 TRANSFER OF REAL PROPERTY OWNERSHIP OR OCCUPANCY, UNLESS THE
14 ON-BILL REPAYMENT OBLIGATION IS SATISFIED IN FULL AT OR PRIOR TO
15 THE TIME OF TRANSFER.
16(2) On-bill repayment program design and review.
17(a) ON OR BEFORE AUGUST 1, 2026, THE OFFICE SHALL REVIEW THE
18 INITIAL DESIGN OF THE COLORADO CLEAN ENERGY FUND'S ON-BILL
19 REPAYMENT PROGRAM AND ANY MATERIAL MODIFICATIONS TO THE
20 PROGRAM DEVELOPED BY THE COLORADO CLEAN ENERGY FUND AND
21 NOTIFY THE STATE TREASURER AS TO WHETHER THE PROGRAM GUIDANCE
22 ALIGNS WITH THE STATEWIDE EMISSION REDUCTION GOALS DESCRIBED IN
23 SECTION 25-7-102 (2)(g).
24(b) THE OFFICE MAY, PERIODICALLY THROUGHOUT THE DURATION
25 OF THE PROGRAM AND IN CONSULTATION WITH THE COLORADO CLEAN
26 ENERGY FUND, REQUEST THAT THE COLORADO CLEAN ENERGY FUND
27 MAKE REASONABLE MODIFICATIONS TO THE PROGRAM DESIGN AS
                                  -6-  SB26-148
1 NECESSARY TO ENSURE CONSISTENCY WITH THIS PART 6, ALIGNMENT WITH
2 THE STATEWIDE EMISSION REDUCTION GOALS DESCRIBED IN SECTION
3 25-7-102 (2)(g),   AND THE PRACTICAL FEASIBILITY OF PROGRAM
4 ADMINISTRATION AND MARKET PARTICIPATION.
5(c) SUBSECTION (2)(b) OF THIS SECTION DOES NOT WAIVE OR
6 ALTER THE      AUTHORITY OF   THE       COMMISSION TO REGULATE   A
7 PARTICIPATING UTILITY THAT IS SUBJECT TO REGULATION BY THE
8 COMMISSION PURSUANT TO TITLE 40.
9(3) Required disclosures.
10(a)     THE COLORADO CLEAN ENERGY FUND, ACTING AS THE
11 PROGRAM ADMINISTRATOR, AND PARTICIPATING UTILITIES SHALL
12 DISCLOSE TO PROGRAM PARTICIPANTS THE RIGHTS AND RESPONSIBILITIES
13 OF PROGRAM PARTICIPANTS, INCLUDING DISCLOSURE OF:
14(I) THE TARIFF STRUCTURE, ESTIMATED MONTHLY CHARGES, AND
15 ESTIMATED TERM OF THE REPAYMENT OBLIGATION;
16(II) THE TRANSFERABILITY OF THE REPAYMENT OBLIGATION; AND
17(III)    CUSTOMER RIGHTS RELATED TO DISPUTES, HARDSHIP
18 ACCOMMODATIONS, AND SERVICE INTERRUPTION POLICIES.
19(b) (I) IF A RESIDENTIAL PROPERTY SUBJECT TO AN ON-BILL
20 REPAYMENT OBLIGATION IS LEASED TO A TENANT, THE LEASE AGREEMENT
21 MUST INCLUDE A WRITTEN DISCLOSURE STATING THAT THE RESIDENTIAL
22 PROPERTY IS SUBJECT TO AN ON-BILL REPAYMENT OBLIGATION
23 ASSOCIATED WITH THE METERED UTILITY SERVICE.
24(II) AT THE TIME THE LEASE AGREEMENT IS EXECUTED, THE
25 DISCLOSURE REQUIRED BY THIS SUBSECTION (3)(b) MUST INCLUDE:
26(A) A STATEMENT THAT THE ON-BILL REPAYMENT OBLIGATION IS
27 ASSOCIATED WITH THE UTILITY METER SERVING THE RESIDENTIAL
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1 PROPERTY AND IS REPAID THROUGH CHARGES ON THE UTILITY BILL;
2(B)     THE ESTIMATED AMOUNT OF THE ON-BILL REPAYMENT
3 OBLIGATION; AND
4(C)     THE EXPECTED TERM OR REMAINING DURATION OF THE
5 ON-BILL REPAYMENT OBLIGATION.
6(III)    NOTHING IN THIS SUBSECTION (3)(b)        AFFECTS THE
7 ALLOCATION OF UTILITY COSTS BETWEEN A RESIDENTIAL PROPERTY
8 OWNER AND A TENANT OR AUTHORIZES OR PROHIBITS THE RECOVERY OF
9 COSTS THROUGH RENT, UTILITY CHARGES, OR OTHER LEASE AGREEMENT
10 TERMS.
11(IV) FAILURE TO PROVIDE THE DISCLOSURE REQUIRED BY THIS
12 SUBSECTION (3)(b) MAY BE CONSIDERED IN AN ACTION BROUGHT UNDER
13 APPLICABLE LAW CONCERNING LANDLORDS AND TENANTS.
14(4) Transfers of financial responsibility - notification required
15 - program administrator's obligation.
16(a) IN A CONTRACT THAT THE COLORADO CLEAN ENERGY FUND
17 ENTERS INTO WITH A PARTICIPATING UTILITY REGARDING THE USE OF
18 MONEY LOANED TO THE COLORADO CLEAN ENERGY FUND PURSUANT TO
19 SECTION 38-13-801 (7)(a), THE COLORADO CLEAN ENERGY FUND SHALL
20 INCLUDE:
21(I) A REQUIREMENT THAT THE COLORADO CLEAN ENERGY FUND,
22 ACTING AS THE PROGRAM ADMINISTRATOR, RECORD A NOTICE OF THE
23 ON-BILL REPAYMENT OBLIGATION WITH THE COUNTY CLERK AND
24 RECORDER FOR INCLUSION IN THE PUBLIC RECORDS OF THE COUNTY IN
25 WHICH A PROGRAM PARTICIPANT'S PROPERTY IS LOCATED AGAINST THE
26 REAL PROPERTY TITLE. THE COLORADO CLEAN ENERGY FUND SHALL
27 RECORD THE NOTICE WITHIN THIRTY DAYS AFTER THE PROVISION OF
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1 FINANCING TO A PROGRAM PARTICIPANT AND INCLUDE IN THE NOTICE:
2(A) A LEGAL DESCRIPTION OF THE REAL PROPERTY SUBJECT TO THE
3 FINANCING;
4(B) A STATEMENT THAT THE FINANCING IS ATTACHED TO THE
5  METERED UTILITY SERVICE;
6(C) THE NAME AND ADDRESS OF THE PROGRAM PARTICIPANT;
7(D) THE PRINCIPAL AMOUNT FINANCED;
8(E) THE TERMS OF THE REPAYMENT OBLIGATION; AND
9(F) A STATEMENT THAT THE REPAYMENT OBLIGATION DOES NOT
10 CONSTITUTE A LIEN ON THE REAL PROPERTY BUT IS INTENDED TO GIVE A
11 PURCHASER OF THE REAL PROPERTY NOTICE THAT THE REAL PROPERTY IS
12 SUBJECT TO AN ON-BILL REPAYMENT OBLIGATION; AND
13(II) A REQUIREMENT THAT THE COLORADO CLEAN ENERGY FUND
14 SHALL, WITHIN THIRTY DAYS AFTER THE FINANCING HAS BEEN
15 COMPLETELY REPAID, FILE A NOTICE WITH THE COUNTY CLERK AND
16 RECORDER FOR INCLUSION IN THE PUBLIC RECORDS OF THE COUNTY IN
17 WHICH THE REAL PROPERTY IS LOCATED, INDICATING THAT THE FINANCING
18 REPAYMENT IS COMPLETE AND THAT THERE ARE NO FURTHER ON-BILL
19 REPAYMENT OBLIGATIONS ASSOCIATED WITH THE REAL PROPERTY.
20(b) AT THE POINT OF SALE OR TRANSFER OF OCCUPANCY OF REAL
21 PROPERTY SUBJECT TO AN ON-BILL REPAYMENT OBLIGATION, THE ON-BILL
22 REPAYMENT OBLIGATION MUST TRANSFER WITH THE METERED UTILITY
23 SERVICE UNLESS THE ON-BILL REPAYMENT OBLIGATION IS SATISFIED IN
24 FULL AT OR PRIOR TO THE TIME OF TRANSFER.
25(c) A COUNTY CLERK AND RECORDER SHALL RECORD A NOTICE
26 FILED BY THE COLORADO CLEAN ENERGY FUND PURSUANT TO THIS
27 SUBSECTION (4) IN A MANNER THAT ENSURES THE NOTICE APPEARS IN A
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1  TITLE SEARCH OF THE REAL PROPERTY.
2(5) Utility loss reserve requirement.
3(a) AS A CONDITION OF PARTICIPATING IN THE COLORADO CLEAN
4 ENERGY FUND'S ON-BILL REPAYMENT PROGRAM AND RECEIVING MONEY
5 THROUGH THE PROGRAM, A PARTICIPATING UTILITY SHALL ESTABLISH OR
6 CAUSE TO BE ESTABLISHED A LOSS RESERVE OR OTHER CREDIT
7 ENHANCEMENT IN AN AMOUNT OF AT LEAST FIVE PERCENT OF THE
8 OUTSTANDING ON-BILL REPAYMENT OBLIGATIONS ASSOCIATED WITH THE
9  UTILITY'S ON-BILL REPAYMENT PROGRAM.
10(b) FOR A PARTICIPATING UTILITY SUBJECT TO REGULATION BY THE
11 COMMISSION, THE ESTABLISHMENT OF A LOSS RESERVE OR OTHER CREDIT
12 ENHANCEMENT IS SUBJECT TO APPROVAL BY THE COMMISSION. AN
13 APPROVED    REGULATORY    ASSET   FOR   LOSSES   ATTRIBUTABLE   TO
14 NONPAYMENT OF ON-BILL REPAYMENT OBLIGATIONS MAY SATISFY ALL OR
15 A PORTION OF THE LOSS RESERVE, SUBJECT TO COMMISSION APPROVAL.
16 THE COMMISSION MAY APPROVE COST RECOVERY ASSOCIATED WITH AN
17 APPROVED LOSS RESERVE OR OTHER CREDIT ENHANCEMENT, CONSISTENT
18 WITH APPLICABLE LAW.
19(c)   FOR A MUNICIPALLY OWNED UTILITY OR COOPERATIVE
20 ELECTRIC ASSOCIATION THAT HAS VOTED TO EXEMPT ITSELF FROM
21 REGULATION BY THE COMMISSION PURSUANT TO ARTICLE 9.5 OF TITLE 40,
22 THE ESTABLISHMENT OF A LOSS RESERVE OR OTHER CREDIT ENHANCEMENT
23 IS SUBJECT TO APPROVAL BY THE MUNICIPALLY OWNED UTILITY'S OR
24 COOPERATIVE ELECTRIC ASSOCIATION'S GOVERNING BODY, CONSISTENT
25 WITH APPLICABLE LAW AND GOVERNING DOCUMENTS.
26(6) Interest rates - cost-reduction authority.
27(a)   THE COLORADO CLEAN ENERGY FUND, ACTING AS THE
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1 PROGRAM ADMINISTRATOR, SHALL ESTABLISH INTEREST RATES FOR
2 ON-BILL REPAYMENT OBLIGATIONS BASED ON PREVAILING MARKET
3 CONDITIONS AND PROGRAM OBJECTIVES AND SHALL DESIGN INTEREST
4 RATES TO BE MORE FAVORABLE THAN GENERALLY AVAILABLE MARKET
5  FINANCING FOR COMPARABLE FINANCING ARRANGEMENTS.
6(b) A PARTICIPATING UTILITY MAY DEVELOP AND IMPLEMENT A
7 MECHANISM TO REDUCE INTEREST RATES IF THE MECHANISM IS
8 AUTHORIZED BY THE COMMISSION OR GOVERNING BODY OF A
9 MUNICIPALLY OWNED UTILITY OR COOPERATIVE ELECTRIC ASSOCIATION
10 THAT HAS VOTED TO EXEMPT ITSELF FROM REGULATION BY THE
11 COMMISSION PURSUANT TO ARTICLE 9.5 OF TITLE 40, AS APPLICABLE.
12(7) Income-qualified pathway.
13(a)   THE COLORADO CLEAN ENERGY FUND, ACTING AS THE
14 PROGRAM ADMINISTRATOR, SHALL DEVELOP AND MAINTAIN A PATHWAY
15 FOR PARTICIPATION IN THE PROGRAM FOR INCOME-QUALIFIED UTILITY
16 CUSTOMERS.   THE COLORADO CLEAN ENERGY FUND SHALL REFER
17 INCOME-QUALIFIED UTILITY CUSTOMERS TO EXISTING STATE OR FEDERAL
18 ENERGY-ASSISTANCE PROGRAMS WHEN APPROPRIATE.
19(b) THIS SECTION DOES NOT REQUIRE DUPLICATION OF EXISTING
20 INCOME-QUALIFIED SERVICES OR ELIGIBILITY PROCESSES.
21(8) Shutoff for nonpayment.
22(a) NOTHING IN THIS SECTION ALTERS THE APPLICATION OF THE
23 FOLLOWING TO PROGRAM PARTICIPANTS, AS APPLICABLE:
24(I)    COMMISSION RULES AND UTILITY TARIFFS GOVERNING
25 DISCONTINUATION OF SERVICE, INCLUDING SHUTOFF PROTECTIONS FOR
26 FINANCIAL HARDSHIP AND SEVERE WEATHER; OR
27(II) REGULATIONS ADOPTED BY MUNICIPALLY OWNED UTILITIES OR
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1 COOPERATIVE ELECTRIC ASSOCIATIONS THAT HAVE VOTED TO EXEMPT
2 THEMSELVES FROM REGULATION BY THE COMMISSION PURSUANT TO
3 ARTICLE 9.5 OF TITLE 40 REGARDING HARDSHIP AND WEATHER-RELATED
4  SHUTOFF PROTECTIONS.
5(b) CONSISTENT WITH SUBSECTION (8)(a) OF THIS SECTION AND
6 OTHER APPLICABLE LAW, A UTILITY MAY DISCONTINUE SERVICE FOR
7 NONPAYMENT OF AN ON-BILL REPAYMENT CHARGE IF THE CHARGE IS MORE
8 THAN NINETY DAYS PAST DUE.
9SECTION 3. In Colorado Revised Statutes, 38-13-801, amend
10 (1)(b); and add (7) as follows:
1138-13-801.     Unclaimed property trust fund - creation -
12 payments - interest - appropriations - records - rules - definitions -
13 repeal.
14(1) (b) Except as provided in subsections (2), (3), and (3.5), AND
15 (7) of this section, the principal of the trust fund shall not be expended
16 except to pay claims made pursuant to this article 13. Money constituting
17 the principal of the trust fund is not fiscal year spending of the state for
18 purposes of section 20 of article X of the state constitution and is not
19 subject to appropriation by the general assembly.
20(7) (a) (I)   AFTER RESERVING THE AMOUNTS DESCRIBED IN
21 SUBSECTION (3)(b) OF THIS SECTION AND TRANSMITTING THE MONEY
22 NECESSARY FOR THE PURPOSES DESCRIBED IN SUBSECTION (3)(a) OF THIS
23 SECTION, ON AUGUST 15, 2026, THE STATE TREASURER SHALL EXECUTE A
24 LOAN AGREEMENT WITH THE COLORADO CLEAN ENERGY FUND, A
25 NONPROFIT FINANCIAL INSTITUTION WITH EXPERIENCE ADMINISTERING
26 CLEAN ENERGY FINANCING PROGRAMS. THE LOAN AGREEMENT MUST
27 REQUIRE THE STATE TREASURER TO MAKE A LOW-INTEREST LOAN IN THE
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1 AMOUNT OF FIFTY MILLION DOLLARS FROM THE UNCLAIMED PROPERTY
2 TRUST FUND TO THE COLORADO CLEAN ENERGY FUND, SUBJECT TO THE
3 REQUIREMENTS OF THIS SUBSECTION  (7),   FOR THE PURPOSE OF
4 CAPITALIZING AND EXPANDING THE COLORADO CLEAN ENERGY FUND'S
5 ON-BILL REPAYMENT PROGRAM AND ACCELERATING STATEWIDE UTILITY
6 ADOPTION OF THE PROGRAM.
7(II) THE STATE TREASURER SHALL EXECUTE THE LOAN AGREEMENT
8  DESCRIBED IN SUBSECTION (7)(a)(I) OF THIS SECTION AFTER:
9(A) THE STATE TREASURER CERTIFIES THAT THE LOAN WILL NOT
10 IMPAIR THE UNCLAIMED PROPERTY TRUST FUND'S ABILITY TO PAY CLAIMS;
11(B)    THE COLORADO ENERGY OFFICE NOTIFIES THE STATE
12 TREASURER THAT THE PROGRAM GUIDANCE ALIGNS WITH THE STATEWIDE
13 EMISSION REDUCTION GOALS DESCRIBED IN SECTION 25-7-102 (2)(g),
14 PURSUANT TO SECTION 24-38.5-603 (2)(a); AND
15(C) THE STATE TREASURER CERTIFIES THAT THE LOAN AGREEMENT
16 DETAILS     REPAYMENT   TERMS,    REPORTING     REQUIREMENTS,   AND
17 PERFORMANCE METRICS.
18(III) THE COLORADO CLEAN ENERGY FUND MAY DRAW THE LOAN
19 IN FIVE ADVANCES OF TEN MILLION DOLLARS EACH, INCLUDING AN INITIAL
20 ADVANCE ON AUGUST 15, 2026, AND, AFTER CERTIFICATION BY THE
21 COLORADO CLEAN ENERGY FUND THAT NOT LESS THAN EIGHTY PERCENT
22 OF THE AMOUNT PREVIOUSLY ADVANCED HAS BEEN COMMITTED OR
23 ENCUMBERED FOR ELIGIBLE PROGRAM PURPOSES, SUBSEQUENT ADVANCES.
24(IV) AMOUNTS ADVANCED UNDER THE LOAN BEAR INTEREST AT
25 A RATE NEGOTIATED BETWEEN THE STATE TREASURER AND THE
26 COLORADO CLEAN ENERGY FUND, NOT TO EXCEED TWO PERCENT
27 ANNUALLY. INTEREST ACCRUES ONLY ON THE OUTSTANDING PRINCIPAL
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1 BALANCE ADVANCED BY THE STATE TREASURER UNDER THE LOAN.
2(V) DURING THE FIRST SIX YEARS AFTER THE DATE OF THE INITIAL
3 DRAW,    THE   COLORADO CLEAN ENERGY FUND  SHALL   MAKE
4 INTEREST-ONLY PAYMENTS TO THE STATE TREASURER IN REPAYMENT OF
5 THE LOAN, AND THE STATE TREASURER SHALL CREDIT THE PAYMENTS TO
6 THE UNCLAIMED PROPERTY TRUST FUND. BEGINNING IN THE SEVENTH
7 YEAR AFTER THE DATE OF THE INITIAL DRAW AND CONTINUING THROUGH
8 THE TWENTIETH YEAR, THE COLORADO CLEAN ENERGY FUND SHALL
9 MAKE ANNUAL PRINCIPAL PAYMENTS EQUAL TO TWO PERCENT OF THE
10 ORIGINAL PRINCIPAL AMOUNT, IN ADDITION TO REQUIRED INTEREST
11 PAYMENTS, TO THE STATE TREASURER. ANY REMAINING OUTSTANDING
12 PRINCIPAL AND ACCRUED INTEREST IS DUE AND PAYABLE IN FULL BY THE
13 COLORADO CLEAN ENERGY FUND AT MATURITY.
14(VI) THE MAXIMUM TERM OF THE LOAN IS TWENTY YEARS FROM
15 THE DATE OF THE FIRST DRAW. THE COLORADO CLEAN ENERGY FUND
16 MAY MAKE PRINCIPAL REPAYMENTS TO THE STATE TREASURER AT ANY
17 TIME WITHOUT PENALTY IF THE TOTAL OUTSTANDING PRINCIPAL OF THE
18 LOAN DOES NOT EXCEED THE AUTHORIZED CAP OF FIFTY MILLION
19 DOLLARS.
20(VII) THE COLORADO CLEAN ENERGY FUND SHALL PAY THE LOAN
21 BACK TO THE STATE TREASURER BEFORE AUGUST 15, 2046.
22(b) NOTHING IN THIS SUBSECTION (7) PROHIBITS THE COLORADO
23 CLEAN ENERGY FUND FROM SELLING, ASSIGNING, OR OTHERWISE
24 TRANSFERRING PROGRAM RECEIVABLES OR PORTIONS OF THE PROGRAM'S
25 PORTFOLIO TO THIRD PARTIES OR SECONDARY MARKET INVESTORS IF
26 DOING SO DOES NOT IMPAIR REPAYMENT OBLIGATIONS OWED TO THE
27 STATE TREASURER.
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1(c) ON OR BEFORE FEBRUARY 15, 2027, AND ON OR BEFORE EVERY
2 FEBRUARY 15 THEREAFTER THROUGH FEBRUARY 15, 2046, THE
3 COLORADO CLEAN ENERGY FUND SHALL SUBMIT AN ANNUAL REPORT TO
4 THE JOINT BUDGET COMMITTEE, THE COLORADO ENERGY OFFICE, AND THE
5 STATE TREASURER DETAILING:
6(I) FINANCIAL DISBURSEMENTS AND REPAYMENTS;
7(II) PROGRAM DEPLOYMENT METRICS, INCLUDING HOUSEHOLDS
8 SERVED AND ENERGY SAVINGS ACHIEVED; AND
9(III) LEVERAGED PRIVATE CAPITAL AND COMMUNITY IMPACT.
10(d) AS USED IN THIS SUBSECTION (7), "PROGRAM" HAS THE
11 MEANING SET FORTH IN SECTION 24-38.5-602 (5).
12(e) THIS SUBSECTION (7) IS REPEALED, EFFECTIVE SEPTEMBER 1,
13 2046.
14SECTION 4.        Safety clause. The general assembly finds,
15 determines, and declares that this act is necessary for the immediate
16 preservation of the public peace, health, or safety or for appropriations for
17 the support and maintenance of the departments of the state and state
18 institutions.
                                    -15-  SB26-148