First Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED SENATE SPONSORSHIP
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1 First Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO Jason Gelender x0 HOUSE BILL 1-1 HOUSE SPONSORSHIP Tyler and Foote, Schwartz, SENATE SPONSORSHIP House Committees Transportation & Energy Appropriations Senate Committees 1 A BILL FOR AN ACT CONCERNING THE ENERGY SAVING MORTGAGE PROGRAM, AND, IN CONNECTION THEREWITH, DEFINING THE PROGRAM AND THE ENERGY SAVING MORTGAGE PROGRAM FUND, ESTABLISHING PROGRAM REQUIREMENTS, AND PROVIDING AN INCENTIVE TO PUBLIC UTILITIES TO PARTICIPATE IN THE PROGRAM. 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 The Colorado energy office (office) currently administers the Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute.
2 Colorado energy star/energy saving mortgage program, which provides loan benefits in the form of interest rate buy-downs to persons who take out mortgages to finance purchases of new energy efficient homes or improvements that make existing homes more energy efficient. The bill defines the Colorado energy saving mortgage program (program) as the Colorado energy star/energy saving mortgage program, as modified by the bill or by any program changes implemented by the office within the limitations specified in the bill, creates a Colorado energy saving mortgage program fund (fund) that is continuously appropriated to the office and is to be used by the office to fund the program, limits the amount of fund principal allowed to be appropriated or transferred to the fund from state sources to the total amount of fund principal credited to the fund from all nonstate sources combined, and specifies requirements for program participation and limitations on the maximum amount of financial benefits that a borrower may receive from an energy saving mortgage. An energy saving mortgage must be funded with contributions from the state, a participating public utility, and a participating lender, and the office may promulgate rules specifying minimum percentages of the total funding that each nonstate source of funding must provide. The office may spend moneys contributed to the fund by a participating public utility only for energy saving mortgages for homes within the service area of the participating public utility. A public utility participates in the program by contributing moneys to the fund and may receive credit against its demand side management program goals, and any carbon emission program goals that may be established in the future, for its participation. The public utilities commission may promulgate rules that establish the requirements for claiming and methods for calculating the amount of any such credit. 1 Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add -.-. as follows: Colorado energy saving mortgage program fund - creation - use of fund - definitions. (1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES: (a) "ACCREDITED HOME ENERGY RATING PROVIDER" MEANS A PERSON WHO RESNET HAS ACCREDITED THROUGH THE MORTGAGE -- HB1-1
3 INDUSTRY NATIONAL HOME ENERGY RATING SYSTEM ACCREDITATION STANDARD AS A RATING PROVIDER AND WHO APPEARS ON RESNET'S NATIONAL REGISTRY OF ACCREDITED RATING PROVIDERS. (b) "CERTIFIED HOME ENERGY RATER" MEANS AN INDIVIDUAL WHO AN ACCREDITED HOME ENERGY RATING PROVIDER HAS CERTIFIED AS A RESNET HOME ENERGY RATER TO INSPECT AND EVALUATE A HOME'S ENERGY FEATURES, ASSIGN A HERS INDEX SCORE TO THE HOME, AND RECOMMEND ENERGY EFFICIENCY IMPROVEMENTS. (c) "COLORADO ENERGY SAVING MORTGAGE PROGRAM" OR "PROGRAM" MEANS THE COLORADO ENERGY STAR/ENERGY SAVING MORTGAGE PROGRAM ADMINISTERED BY THE COLORADO ENERGY OFFICE AS OF JANUARY 1, 01, AS MODIFIED BY THIS SECTION OR BY ANY PROGRAM CHANGES IMPLEMENTED BY THE COLORADO ENERGY OFFICE WITHIN THE LIMITATIONS SPECIFIED IN THIS SECTION, OR ANY SUCCESSOR PROGRAM. (d) "ENERGY EFFICIENT HOME" MEANS A HOME THAT A CERTIFIED HOME ENERGY RATER HAS CERTIFIED AS HAVING A HERS INDEX SCORE OF NOT MORE THAN FIFTY. (e) "ENERGY SAVING MORTGAGE" MEANS A MORTGAGE ISSUED TO A BORROWER BY A PARTICIPATING LENDER THROUGH THE COLORADO ENERGY SAVING MORTGAGE PROGRAM FOR THE PURPOSE OF FINANCING: (I) THE PURCHASE OF A NEWLY-BUILT ENERGY EFFICIENT HOME; OR (II) IMPROVEMENTS TO AN EXISTING RESIDENCE THAT REDUCE THE HERS INDEX SCORE OF THE RESIDENCE BY AT LEAST TWENTY-FIVE POINTS, AND ARE MADE IN ACCORDANCE WITH RECOMMENDATIONS RESULTING FROM A RESIDENTIAL ENERGY AUDIT OF THE RESIDENCE. -- HB1-1
4 (f) "FUND" MEANS THE COLORADO ENERGY SAVING MORTGAGE PROGRAM FUND CREATED IN PARAGRAPH (a) OF SUBSECTION () OF THIS SECTION. (g) "HERS INDEX" MEANS THE HOME ENERGY RATING SYSTEM INDEX ESTABLISHED BY RESNET TO MEASURE THE ENERGY EFFICIENCY OF A HOME. (h) "PARTICIPATING LENDER" MEANS A BANK, CREDIT UNION, OTHER FINANCIAL INSTITUTION, OR INDEPENDENT MORTGAGE BROKER THAT PARTICIPATES IN THE COLORADO ENERGY SAVING MORTGAGE PROGRAM BY ISSUING ENERGY SAVING MORTGAGES AND CONTRIBUTING FUNDING THAT REDUCES THE TOTAL COST OF THE MORTGAGES TO THE BORROWERS AS REQUIRED BY PARAGRAPH (b) OF SUBSECTION () OF THIS SECTION. (i) "PARTICIPATING PUBLIC UTILITY" MEANS A PUBLIC UTILITY, AS DEFINED IN SECTION 0-1-, C.R.S., THAT PROVIDES ELECTRICITY OR NATURAL GAS TO RESIDENTIAL CUSTOMERS AND CHOOSES TO PARTICIPATE IN THE COLORADO ENERGY SAVING MORTGAGE PROGRAM BY CONTRIBUTING MONEYS TO THE FUND. (j) "RESNET" MEANS THE RESIDENTIAL ENERGY SERVICES NETWORK THAT IS A RECOGNIZED NATIONAL STANDARDS-MAKING BODY FOR BUILDING ENERGY EFFICIENCY RATING AND CERTIFICATION SYSTEMS IN THE UNITED STATES. () (a) THE COLORADO ENERGY SAVING MORTGAGE PROGRAM FUND IS HEREBY CREATED IN THE STATE TREASURY. THE PRINCIPAL OF THE FUND CONSISTS OF MONEYS APPROPRIATED OR TRANSFERRED TO THE FUND BY THE GENERAL ASSEMBLY, MATCHING MONEYS RECEIVED FROM PARTICIPATING PUBLIC UTILITIES OR OTHER NONSTATE ENTITIES, ANY -- HB1-1
5 GIFTS, GRANTS, AND DONATIONS RECEIVED FROM ANY SOURCE, AND ANY OTHER MONEYS THAT THE COLORADO ENERGY OFFICE MAY RECEIVE FOR THE PURPOSE OF FUNDING THE COLORADO ENERGY SAVING MORTGAGE PROGRAM. THE AMOUNT OF FUND PRINCIPAL APPROPRIATED OR TRANSFERRED TO THE FUND BY THE STATE FROM STATE SOURCES MAY NOT EXCEED THE AMOUNT OF FUND PRINCIPAL CREDITED TO THE FUND FROM ALL NONSTATE SOURCES COMBINED. INTEREST AND INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEYS IN THE FUND SHALL BE CREDITED TO THE FUND. MONEYS IN THE FUND AT THE END OF ANY FISCAL YEAR REMAIN IN THE FUND AND MAY NOT BE CREDITED TO THE GENERAL FUND OR ANY OTHER FUND. THE BALANCE OF THE FUND, EXCLUDING INTEREST AND INCOME. (b) THE GENERAL ASSEMBLY FINDS THAT THE IMPLEMENTATION OF THIS SECTION DOES NOT RELY ENTIRELY OR IN ANY PART ON THE RECEIPT OF ADEQUATE FUNDING THROUGH GIFTS, GRANTS, OR DONATIONS. THEREFORE, THE COLORADO ENERGY OFFICE IS NOT SUBJECT TO THE NOTICE REQUIREMENTS SPECIFIED IN SECTION -- (). () ALL MONEYS IN THE COLORADO ENERGY SAVING MORTGAGE PROGRAM FUND ARE CONTINUOUSLY APPROPRIATED TO THE COLORADO ENERGY OFFICE FOR THE PURPOSE OF FUNDING THE COLORADO ENERGY SAVING MORTGAGE PROGRAM. THE OFFICE SHALL SPEND MONEYS FROM THE FUND TO FUND ENERGY SAVING MORTGAGES SUBJECT TO THE FOLLOWING LIMITATIONS: (a) TO THE EXTENT FEASIBLE, THE COLORADO ENERGY OFFICE SHALL SPEND MONEY FROM THE FUND EVENLY ON ENERGY SAVING MORTGAGES THAT FINANCE PURCHASES OF NEWLY BUILT ENERGY EFFICIENT HOMES AND ENERGY SAVING MORTGAGES THAT FINANCE -- HB1-1
6 IMPROVEMENTS TO EXISTING RESIDENCES; (b) EACH ENERGY SAVING MORTGAGE MUST INCLUDE FUNDING THAT REDUCES THE TOTAL COST OF THE MORTGAGE TO THE BORROWER FROM BOTH A PARTICIPATING PUBLIC UTILITY AND A PARTICIPATING LENDER. THE COLORADO ENERGY OFFICE MAY PROMULGATE RULES IN ACCORDANCE WITH ARTICLE OF THIS TITLE. TO ESTABLISH THE MINIMUM PERCENTAGES OF TOTAL FUNDING FOR AN ENERGY SAVING MORTGAGE THAT EACH NON-STATE SOURCE OF FUNDING MUST PROVIDE. (c) THE MAXIMUM TOTAL VALUE TO THE BORROWER IN TERMS OF REDUCTION IN THE TOTAL COSTS OF AN ENERGY SAVING MORTGAGE IS: (I) FOR AN ENERGY SAVING MORTGAGE THAT FINANCES THE PURCHASE OF A NEW ENERGY EFFICIENT HOME: (A) EIGHT THOUSAND DOLLARS IF THE HOME HAS A HERS INDEX SCORE OF ZERO OR LESS; (B) SIX THOUSAND DOLLARS IF THE HOME HAS A HERS INDEX SCORE OF MORE THAN ZERO BUT NOT MORE THAN TWENTY-FIVE; (C) FOUR THOUSAND DOLLARS IF THE HOME HAS A HERS INDEX SCORE OF MORE THAN TWENTY-FIVE BUT NOT MORE THAN FIFTY. (II) FOR AN ENERGY SAVING MORTGAGE THAT FINANCES IMPROVEMENTS TO AN EXISTING RESIDENCE: (A) EIGHT THOUSAND DOLLARS IF THE IMPROVEMENTS REDUCE THE HERS INDEX SCORE FOR THE HOME, AS MEASURED BY A CERTIFIED HOME ENERGY RATER BOTH BEFORE AND AFTER THE INSTALLATION OF THE IMPROVEMENTS, BY SEVENTY-FIVE OR MORE POINTS; (B) SIX THOUSAND DOLLARS IF THE IMPROVEMENTS REDUCE THE HERS INDEX SCORE FOR THE HOME, AS MEASURED BY A CERTIFIED HOME ENERGY RATER BOTH BEFORE AND AFTER THE INSTALLATION OF THE -- HB1-1
7 IMPROVEMENTS, BY FIFTY OR MORE POINTS BUT FEWER THAN SEVENTY-FIVE POINTS; AND (C) FOUR THOUSAND DOLLARS IF THE IMPROVEMENTS REDUCE THE HERS INDEX SCORE FOR THE HOME, AS MEASURED BY A CERTIFIED HOME ENERGY RATER BOTH BEFORE AND AFTER THE INSTALLATION OF THE IMPROVEMENTS, BY TWENTY-FIVE OR MORE POINTS BUT FEWER THAN FIFTY POINTS. (d) THE COLORADO ENERGY OFFICE MAY SPEND MONEYS CONTRIBUTED TO THE FUND BY A PARTICIPATING PUBLIC UTILITY ONLY FOR ENERGY SAVING MORTGAGES FOR HOMES WITHIN THE SERVICE AREA OF THE PARTICIPATING PUBLIC UTILITY. () A PARTICIPATING PUBLIC UTILITY MAY RECEIVE CREDIT FOR ITS PARTICIPATION IN THE PROGRAM AGAINST ANY DEMAND SIDE MANAGEMENT PROGRAM TARGETS ESTABLISHED BY THE PUBLIC UTILITIES COMMISSION PURSUANT TO ARTICLE. OF TITLE 0, C.R.S., OR AGAINST ANY CARBON EMISSION PROGRAM GOALS THAT MAY BE ESTABLISHED IN THE FUTURE. THE PUBLIC UTILITIES COMMISSION MAY PROMULGATE RULES IN ACCORDANCE WITH ARTICLE OF THIS TITLE THAT ESTABLISH THE REQUIREMENTS FOR CLAIMING AND METHODS FOR CALCULATING THE AMOUNT OF SUCH CREDIT. () NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, IF ANOTHER INDEX OR MEASURE SUPERSEDES THE HERS INDEX AS THE INDUSTRY STANDARD FOR MEASURING BUILDING ENERGY EFFICIENCY, THE COLORADO ENERGY OFFICE MAY PROMULGATE RULES IN ACCORDANCE WITH ARTICLE OF THIS TITLE THAT: (a) ADOPT THE OTHER INDEX OR MEASURE AS THE STANDARD FOR DETERMINING THE ENERGY EFFICIENCY OF A NEW HOME OR EXISTING -- HB1-1
8 1 1 RESIDENCE; (b) SPECIFY VALUES ON THE NEW INDEX OR MEASURE THAT ARE COMPARABLE TO THE HERS INDEX SCORES AND POINT IMPROVEMENTS SPECIFIED IN THIS SECTION AND ARE TO BE USED TO DETERMINE ELIGIBILITY FOR AND THE MAXIMUM VALUE OF ENERGY SAVING MORTGAGES; AND (c) SPECIFY THE REQUIREMENTS AND PROCEDURES, INCLUDING ANY REQUIRED CERTIFICATION OF RATERS, THAT MUST BE COMPLIED WITH IN RATING A NEW HOME OR EXISTING RESIDENCE UNDER THE OTHER INDEX OR MEASURE. SECTION. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety. -- HB1-1
Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 24-38.5-102.
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
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