Financing Utility On-Bill Repayment Program

Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO INTRODUCED SENATE BILL 26-148 LLS NO. 26-0820.01 Clare Haffner x6137 SENATE SPONSORSHIP Ball and Mullica, HOUSE SPONSORSHIP Joseph and Camacho, Senate Committees House Committees Transportation & Energy A BILL FOR AN ACT CONCERNING FINANCING A UTILITY ON-BILL REPAYMENT PROGRAM TO SUPPORT 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.

Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Legislative declaration. (1) The general assembly finds and declares that:

(a) The Colorado Clean Energy Fund was established as the result of a multiyear initiative led by the Colorado energy office in partnership with the United States department of energy to identify strategies for addressing clean energy financing gaps across the state. The effort concluded with a formal recommendation that Colorado create an independent, mission-driven financial institution capable of supporting state energy policy objectives and mobilizing private capital.

(b) Acting on this recommendation, the Colorado energy office, working closely with the governor's office, incorporated and publicly announced the Colorado Clean Energy Fund in December 2018 as Colorado's designated "green bank". From its inception, the Colorado Clean Energy Fund has been structured to advance state priorities while operating independently as a nonprofit lender, consistent with national green bank models.

(c) The general assembly subsequently provided direct capitalization through Senate Bill 21-230, enacted in 2021, reinforcing the state's commitment to a green bank model and its role in advancing statutory clean energy, decarbonization, and economic development goals. The Colorado Clean Energy Fund continues to maintain a formal connection to the state through its board of directors, which includes an ex officio seat held by the director of the Colorado energy office.

SECTION 2. In Colorado Revised Statutes, add part 6 to article 38.5 of title 24 as follows:

PART 6 UTILITY ON-BILL REPAYMENT PROGRAM 24-38.5-601. Legislative declaration.

(1) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:

(a) THE COLORADO CLEAN ENERGY FUND IS A COLORADO-BASED NONPROFIT FINANCIAL INSTITUTION THAT SERVES AS THE STATE'S GREEN BANK. THE MISSION OF THE COLORADO CLEAN ENERGY FUND IS TO ACCELERATE AFFORDABLE ACCESS TO CLEAN ENERGY AND ENERGY EFFICIENCY MEASURES THROUGH INNOVATIVE FINANCING MECHANISMS.

(b) THE UTILITY ON-BILL REPAYMENT PROGRAM ADMINISTERED BY THE COLORADO CLEAN ENERGY FUND ENABLES HOUSEHOLDS AND SMALL BUSINESSES ELECTRIFICATION MEASURES, AND ENERGY UPGRADES WITH NO UPFRONT COSTS, WITH COSTS THAT ARE INSTEAD REPAID THROUGH UTILITY BILLS, THEREBY REDUCING ENERGY COST BURDENS, REDUCING POLLUTION, AND IMPROVING HOUSING RESILIENCE;

TO INVEST IN ENERGY EFFICIENCY MEASURES ,

(c) THE PROGRAM EMPLOYS INDUSTRY-LEADING BEST PRACTICES AND HAS DEMONSTRATED MEASURABLE SUCCESS IN REDUCING ENERGY CONSUMPTION, IMPROVING AFFORDABILITY, AND LEVERAGING PRIVATE CAPITAL FOR PUBLIC BENEFIT;

(d) EXPANDING ACCESS TO THE PROGRAM ADVANCES THE PUBLIC INTEREST BY REDUCING ENERGY COST BURDENS, IMPROVING HOUSING RESILIENCE, REDUCING POLLUTION, AND SUPPORTING CLIMATE GOALS;

COLORADO'S

(e) THE PROGRAM SERVES A PUBLIC PURPOSE AND IS ELIGIBLE TO RECEIVE FINANCIAL SUPPORT FROM THE UNCLAIMED PROPERTY TRUST FUND PURSUANT TO SECTION 38-13-801 IF THIS FINANCIAL SUPPORT DOES NOT IMPAIR THE ABILITY OF THE ADMINISTRATOR OF THE UNCLAIMED PROPERTY TRUST FUND TO PAY RIGHTFUL CLAIMS;

(f) A LOW-INTEREST LOAN TO THE COLORADO CLEAN ENERGY FUND, SERVING AS A MISSION-ALIGNED GREEN BANK, WILL CATALYZE PRIVATE INVESTMENT, ACCELERATE UTILITY ADOPTION OF THE PROGRAM, AND REINVESTMENT; AND ENSURE (g) FISCAL STEWARDSHIP THROUGH REPAYMENT AND EXPANDING ACCESS TO THE PROGRAM IS EXPECTED TO GENERATE ECONOMIC BENEFITS THROUGHOUT COLORADO BY SUPPORTING LOCAL CONTRACTORS AND SMALL BUSINESSES, REDUCING ENERGY COSTS FOR HOUSEHOLDS AND BUSINESSES, AND KEEPING MORE ENERGY DOLLARS IN LOCAL COMMUNITIES.

ELECTRIFICATION, AND RELATED IMPROVEMENTS CAN STIMULATE PRIVATE CAPITAL, CREATE WELL-PAYING JOBS IN CONSTRUCTION AND ENERGY SERVICES, BUSINESSES.

AND IMPROVE INVESTMENTS THE IN ENERGY COMPETITIVENESS OF EFFICIENCY, COLORADO

(2) THE GENERAL ASSEMBLY FURTHER DECLARES THAT THE LOAN AUTHORIZED IN SECTION 38-13-801 (7)(a) IS CONSIDERED A STRATEGIC INVESTMENT IN COLORADO'S CLEAN ENERGY INFRASTRUCTURE, ECONOMIC RESILIENCE, AND REDUCTION OF ENERGY BURDENS.

24-38.5-602. Definitions.

AS USED IN THIS PART 6, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(1) "COMMISSION" MEANS THE PUBLIC UTILITIES COMMISSION CREATED IN SECTION 40-2-101.

(2) "INCOME-QUALIFIED UTILITY CUSTOMER" HAS THE MEANING SET FORTH IN SECTION 40-3-106 (1)(d)(II).

(3) "OFFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN SECTION 24-38.5-101 (1).

(4) "PARTICIPATING UTILITY" MEANS A UTILITY THAT ELECTS TO PARTICIPATE IN THE PROGRAM AND CONTRACTS WITH THE COLORADO CLEAN ENERGY FUND TO RECEIVE MONEY THROUGH THE PROGRAM.

(5) "PROGRAM" MEANS THE TARIFF-BASED ON-BILL REPAYMENT PROGRAM ADMINISTERED BY THE COLORADO CLEAN ENERGY FUND AND REVIEWED BY THE OFFICE PURSUANT TO SECTION 24-38.5-603 (2).

(6) "PROGRAM PARTICIPANT" MEANS A UTILITY CUSTOMER THAT REQUESTS TO PARTICIPATE IN THE PROGRAM AND THAT THE RELEVANT PARTICIPATING UTILITY, IN COLLABORATION WITH THE COLORADO CLEAN ENERGY FUND, DETERMINES IS ELIGIBLE FOR PROGRAM PARTICIPATION.

(7) "UTILITY" MEANS AN ELECTRIC UTILITY, A GAS UTILITY, OR A COMBINED FUEL UTILITY AND INCLUDES:

(a) AN INVESTOR-OWNED UTILITY;

(b) A COOPERATIVE ELECTRIC ASSOCIATION; AND

(c) A MUNICIPALLY OWNED UTILITY.

On-bill repayment program - tariff-based programs - required disclosures - transfers of financial responsibility - utility loss reserve - interest rates - income-qualified pathway - shutoff for nonpayment.

(1) On-bill repayment obligations. THE COLORADO CLEAN ENERGY FUND'S ON-BILL REPAYMENT PROGRAM MUST REQUIRE THAT A REPAYMENT OBLIGATION MUST:

(a) BE ASSIGNED TO THE METERED UTILITY SERVICE AND NOT TO AN INDIVIDUAL CUSTOMER;

(b) BE ATTACHED TO THE METERED UTILITY SERVICE AND NOT CONSTITUTE A LIEN ON REAL PROPERTY; AND (c) TRANSFER WITH THE METERED UTILITY SERVICE UPON TRANSFER OF REAL PROPERTY OWNERSHIP OR OCCUPANCY, UNLESS THE ON-BILL REPAYMENT OBLIGATION IS SATISFIED IN FULL AT OR PRIOR TO THE TIME OF TRANSFER.

(2) On-bill repayment program design and review.

(a) ON OR BEFORE AUGUST 1, 2026, THE OFFICE SHALL REVIEW THE INITIAL DESIGN OF THE COLORADO CLEAN ENERGY FUND'S ON-BILL REPAYMENT PROGRAM AND ANY MATERIAL MODIFICATIONS TO THE PROGRAM DEVELOPED BY THE COLORADO CLEAN ENERGY FUND AND NOTIFY THE STATE TREASURER AS TO WHETHER THE PROGRAM GUIDANCE ALIGNS WITH THE STATEWIDE EMISSION REDUCTION GOALS DESCRIBED IN

SECTION 25-7-102 (2)(g).

(b) THE OFFICE MAY, PERIODICALLY THROUGHOUT THE DURATION OF THE PROGRAM AND IN CONSULTATION WITH THE COLORADO CLEAN ENERGY FUND, REQUEST THAT THE COLORADO CLEAN ENERGY FUND MAKE REASONABLE MODIFICATIONS TO THE PROGRAM DESIGN AS NECESSARY TO ENSURE CONSISTENCY WITH THIS PART 6, ALIGNMENT WITH THE STATEWIDE EMISSION REDUCTION GOALS DESCRIBED IN SECTION 25-7-102 (2)(g), ADMINISTRATION AND MARKET PARTICIPATION.

AND THE PRACTICAL FEASIBILITY OF PROGRAM

(c) SUBSECTION (2)(b) OF THIS SECTION DOES NOT WAIVE OR ALTER THE PARTICIPATING UTILITY THAT IS SUBJECT TO REGULATION BY THE COMMISSION PURSUANT TO TITLE 40.

AUTHORITY OF THE

(3) Required disclosures.

(a) COMMISSION TO REGULATE A THE COLORADO CLEAN ENERGY FUND, ACTING AS THE PROGRAM ADMINISTRATOR, AND PARTICIPATING UTILITIES SHALL DISCLOSE TO PROGRAM PARTICIPANTS THE RIGHTS AND RESPONSIBILITIES OF PROGRAM PARTICIPANTS, INCLUDING DISCLOSURE OF:

(I) THE TARIFF STRUCTURE, ESTIMATED MONTHLY CHARGES, AND ESTIMATED TERM OF THE REPAYMENT OBLIGATION;

(II) THE TRANSFERABILITY OF THE REPAYMENT OBLIGATION; AND (III) CUSTOMER RIGHTS RELATED TO DISPUTES, HARDSHIP ACCOMMODATIONS, AND SERVICE INTERRUPTION POLICIES.

(b) (I) IF A RESIDENTIAL PROPERTY SUBJECT TO AN ON-BILL REPAYMENT OBLIGATION IS LEASED TO A TENANT, THE LEASE AGREEMENT MUST INCLUDE A WRITTEN DISCLOSURE STATING THAT THE RESIDENTIAL PROPERTY IS SUBJECT TO AN ON-BILL REPAYMENT OBLIGATION ASSOCIATED WITH THE METERED UTILITY SERVICE.

(II) AT THE TIME THE LEASE AGREEMENT IS EXECUTED, THE DISCLOSURE REQUIRED BY THIS SUBSECTION (3)(b) MUST INCLUDE:

(A) A STATEMENT THAT THE ON-BILL REPAYMENT OBLIGATION IS ASSOCIATED WITH THE UTILITY METER SERVING THE RESIDENTIAL PROPERTY AND IS REPAID THROUGH CHARGES ON THE UTILITY BILL;

(B) OBLIGATION; AND (C) THE ESTIMATED AMOUNT OF THE ON-BILL REPAYMENT THE EXPECTED TERM OR REMAINING DURATION OF THE ON-BILL REPAYMENT OBLIGATION.

(III) NOTHING IN THIS SUBSECTION (3)(b) AFFECTS THE ALLOCATION OF UTILITY COSTS BETWEEN A RESIDENTIAL PROPERTY OWNER AND A TENANT OR AUTHORIZES OR PROHIBITS THE RECOVERY OF COSTS THROUGH RENT, UTILITY CHARGES, OR OTHER LEASE AGREEMENT TERMS.

(IV) FAILURE TO PROVIDE THE DISCLOSURE REQUIRED BY THIS SUBSECTION (3)(b) MAY BE CONSIDERED IN AN ACTION BROUGHT UNDER APPLICABLE LAW CONCERNING LANDLORDS AND TENANTS.

(4) Transfers of financial responsibility - notification required - program administrator's obligation.

(a) IN A CONTRACT THAT THE COLORADO CLEAN ENERGY FUND ENTERS INTO WITH A PARTICIPATING UTILITY REGARDING THE USE OF MONEY LOANED TO THE COLORADO CLEAN ENERGY FUND PURSUANT TO

SECTION 38-13-801 (7)(a), THE COLORADO CLEAN ENERGY FUND SHALL INCLUDE:

(I) A REQUIREMENT THAT THE COLORADO CLEAN ENERGY FUND, ACTING AS THE PROGRAM ADMINISTRATOR, RECORD A NOTICE OF THE ON-BILL REPAYMENT OBLIGATION WITH THE COUNTY CLERK AND RECORDER FOR INCLUSION IN THE PUBLIC RECORDS OF THE COUNTY IN WHICH A PROGRAM PARTICIPANT'S PROPERTY IS LOCATED AGAINST THE REAL PROPERTY TITLE. THE COLORADO CLEAN ENERGY FUND SHALL RECORD THE NOTICE WITHIN THIRTY DAYS AFTER THE PROVISION OF FINANCING TO A PROGRAM PARTICIPANT AND INCLUDE IN THE NOTICE:

(A) A LEGAL DESCRIPTION OF THE REAL PROPERTY SUBJECT TO THE FINANCING;

(B) A STATEMENT THAT THE FINANCING IS ATTACHED TO THE METERED UTILITY SERVICE;

(C) THE NAME AND ADDRESS OF THE PROGRAM PARTICIPANT;

(D) THE PRINCIPAL AMOUNT FINANCED;

(E) THE TERMS OF THE REPAYMENT OBLIGATION; AND

(F) A STATEMENT THAT THE REPAYMENT OBLIGATION DOES NOT CONSTITUTE A LIEN ON THE REAL PROPERTY BUT IS INTENDED TO GIVE A PURCHASER OF THE REAL PROPERTY NOTICE THAT THE REAL PROPERTY IS SUBJECT TO AN ON-BILL REPAYMENT OBLIGATION; AND

(II) A REQUIREMENT THAT THE COLORADO CLEAN ENERGY FUND SHALL, WITHIN THIRTY DAYS AFTER THE FINANCING HAS BEEN COMPLETELY REPAID, FILE A NOTICE WITH THE COUNTY CLERK AND RECORDER FOR INCLUSION IN THE PUBLIC RECORDS OF THE COUNTY IN WHICH THE REAL PROPERTY IS LOCATED, INDICATING THAT THE FINANCING REPAYMENT IS COMPLETE AND THAT THERE ARE NO FURTHER ON-BILL REPAYMENT OBLIGATIONS ASSOCIATED WITH THE REAL PROPERTY.

(b) AT THE POINT OF SALE OR TRANSFER OF OCCUPANCY OF REAL PROPERTY SUBJECT TO AN ON-BILL REPAYMENT OBLIGATION, THE ON-BILL REPAYMENT OBLIGATION MUST TRANSFER WITH THE METERED UTILITY SERVICE UNLESS THE ON-BILL REPAYMENT OBLIGATION IS SATISFIED IN FULL AT OR PRIOR TO THE TIME OF TRANSFER.

(c) A COUNTY CLERK AND RECORDER SHALL RECORD A NOTICE FILED BY THE COLORADO CLEAN ENERGY FUND PURSUANT TO THIS SUBSECTION (4) IN A MANNER THAT ENSURES THE NOTICE APPEARS IN A TITLE SEARCH OF THE REAL PROPERTY.

(5) Utility loss reserve requirement.

(a) AS A CONDITION OF PARTICIPATING IN THE COLORADO CLEAN ENERGY FUND'S ON-BILL REPAYMENT PROGRAM AND RECEIVING MONEY THROUGH THE PROGRAM, A PARTICIPATING UTILITY SHALL ESTABLISH OR CAUSE TO BE ESTABLISHED A LOSS RESERVE OR OTHER CREDIT ENHANCEMENT IN AN AMOUNT OF AT LEAST FIVE PERCENT OF THE OUTSTANDING ON-BILL REPAYMENT OBLIGATIONS ASSOCIATED WITH THE UTILITY'S ON-BILL REPAYMENT PROGRAM.

(b) FOR A PARTICIPATING UTILITY SUBJECT TO REGULATION BY THE COMMISSION, THE ESTABLISHMENT OF A LOSS RESERVE OR OTHER CREDIT ENHANCEMENT IS SUBJECT TO APPROVAL BY THE COMMISSION. AN APPROVED NONPAYMENT OF ON-BILL REPAYMENT OBLIGATIONS MAY SATISFY ALL OR A PORTION OF THE LOSS RESERVE, SUBJECT TO COMMISSION APPROVAL.

THE COMMISSION MAY APPROVE COST RECOVERY ASSOCIATED WITH AN APPROVED LOSS RESERVE OR OTHER CREDIT ENHANCEMENT, CONSISTENT WITH APPLICABLE LAW.

(c) REGULATORY ASSET FOR LOSSES ATTRIBUTABLE TO FOR A MUNICIPALLY OWNED UTILITY OR COOPERATIVE ELECTRIC ASSOCIATION THAT HAS VOTED TO EXEMPT ITSELF FROM REGULATION BY THE COMMISSION PURSUANT TO ARTICLE 9.5 OF TITLE 40, THE ESTABLISHMENT OF A LOSS RESERVE OR OTHER CREDIT ENHANCEMENT IS SUBJECT TO APPROVAL BY THE MUNICIPALLY OWNED UTILITY'S OR COOPERATIVE ELECTRIC ASSOCIATION'S GOVERNING BODY, CONSISTENT WITH APPLICABLE LAW AND GOVERNING DOCUMENTS.

(6) Interest rates - cost-reduction authority.

(a) THE COLORADO CLEAN ENERGY FUND, ACTING AS THE PROGRAM ADMINISTRATOR, SHALL ESTABLISH INTEREST RATES FOR ON-BILL REPAYMENT OBLIGATIONS BASED ON PREVAILING MARKET CONDITIONS AND PROGRAM OBJECTIVES AND SHALL DESIGN INTEREST RATES TO BE MORE FAVORABLE THAN GENERALLY AVAILABLE MARKET FINANCING FOR COMPARABLE FINANCING ARRANGEMENTS.

(b) A PARTICIPATING UTILITY MAY DEVELOP AND IMPLEMENT A MECHANISM TO REDUCE INTEREST RATES IF THE MECHANISM IS AUTHORIZED BY THE COMMISSION OR GOVERNING BODY OF A MUNICIPALLY OWNED UTILITY OR COOPERATIVE ELECTRIC ASSOCIATION THAT HAS VOTED TO EXEMPT ITSELF FROM REGULATION BY THE COMMISSION PURSUANT TO ARTICLE 9.5 OF TITLE 40, AS APPLICABLE.

(7) Income-qualified pathway.

(a) THE COLORADO CLEAN ENERGY FUND, ACTING AS THE PROGRAM ADMINISTRATOR, SHALL DEVELOP AND MAINTAIN A PATHWAY FOR PARTICIPATION IN THE PROGRAM FOR INCOME-QUALIFIED UTILITY CUSTOMERS.

INCOME-QUALIFIED UTILITY CUSTOMERS TO EXISTING STATE OR FEDERAL ENERGY-ASSISTANCE PROGRAMS WHEN APPROPRIATE.

THE COLORADO CLEAN ENERGY FUND SHALL REFER

(b) THIS SECTION DOES NOT REQUIRE DUPLICATION OF EXISTING INCOME-QUALIFIED SERVICES OR ELIGIBILITY PROCESSES.

(8) Shutoff for nonpayment.

(a) NOTHING IN THIS SECTION ALTERS THE APPLICATION OF THE FOLLOWING TO PROGRAM PARTICIPANTS, AS APPLICABLE:

(I) COMMISSION RULES AND UTILITY TARIFFS GOVERNING DISCONTINUATION OF SERVICE, INCLUDING SHUTOFF PROTECTIONS FOR FINANCIAL HARDSHIP AND SEVERE WEATHER; OR

(II) REGULATIONS ADOPTED BY MUNICIPALLY OWNED UTILITIES OR COOPERATIVE ELECTRIC ASSOCIATIONS THAT HAVE VOTED TO EXEMPT THEMSELVES FROM REGULATION BY THE COMMISSION PURSUANT TO ARTICLE 9.5 OF TITLE 40 REGARDING HARDSHIP AND WEATHER-RELATED SHUTOFF PROTECTIONS.

(b) CONSISTENT WITH SUBSECTION (8)(a) OF THIS SECTION AND OTHER APPLICABLE LAW, A UTILITY MAY DISCONTINUE SERVICE FOR NONPAYMENT OF AN ON-BILL REPAYMENT CHARGE IF THE CHARGE IS MORE THAN NINETY DAYS PAST DUE.

SECTION 3. In Colorado Revised Statutes, 38-13-801, amend (1)(b); and add (7) as follows: 38-13-801.

Unclaimed property trust fund - creation - payments - interest - appropriations - records - rules - definitions - repeal.

(1) (b) Except as provided in subsections (2), (3), and (3.5), AND

(7) of this section, the principal of the trust fund shall not be expended except to pay claims made pursuant to this article 13. Money constituting the principal of the trust fund is not fiscal year spending of the state for purposes of section 20 of article X of the state constitution and is not subject to appropriation by the general assembly.

(7) (a) (I) AFTER RESERVING THE AMOUNTS DESCRIBED IN SUBSECTION (3)(b) OF THIS SECTION AND TRANSMITTING THE MONEY NECESSARY FOR THE PURPOSES DESCRIBED IN SUBSECTION (3)(a) OF THIS SECTION, ON AUGUST 15, 2026, THE STATE TREASURER SHALL EXECUTE A LOAN AGREEMENT WITH THE COLORADO CLEAN ENERGY FUND, A NONPROFIT FINANCIAL INSTITUTION WITH EXPERIENCE ADMINISTERING CLEAN ENERGY FINANCING PROGRAMS. THE LOAN AGREEMENT MUST REQUIRE THE STATE TREASURER TO MAKE A LOW-INTEREST LOAN IN THE AMOUNT OF FIFTY MILLION DOLLARS FROM THE UNCLAIMED PROPERTY TRUST FUND TO THE COLORADO CLEAN ENERGY FUND, SUBJECT TO THE REQUIREMENTS OF THIS SUBSECTION CAPITALIZING AND EXPANDING THE COLORADO CLEAN ENERGY FUND'S ON-BILL REPAYMENT PROGRAM AND ACCELERATING STATEWIDE UTILITY ADOPTION OF THE PROGRAM.

FOR THE PURPOSE OF

(II) THE STATE TREASURER SHALL EXECUTE THE LOAN AGREEMENT DESCRIBED IN SUBSECTION (7)(a)(I) OF THIS SECTION AFTER:

(A) THE STATE TREASURER CERTIFIES THAT THE LOAN WILL NOT IMPAIR THE UNCLAIMED PROPERTY TRUST FUND'S ABILITY TO PAY CLAIMS;

(B) THE COLORADO ENERGY OFFICE NOTIFIES THE STATE TREASURER THAT THE PROGRAM GUIDANCE ALIGNS WITH THE STATEWIDE EMISSION REDUCTION GOALS DESCRIBED IN SECTION 25-7-102 (2)(g), PURSUANT TO SECTION 24-38.5-603 (2)(a); AND

(C) THE STATE TREASURER CERTIFIES THAT THE LOAN AGREEMENT DETAILS PERFORMANCE METRICS.

REPAYMENT TERMS, REPORTING REQUIREMENTS, AND

(III) THE COLORADO CLEAN ENERGY FUND MAY DRAW THE LOAN IN FIVE ADVANCES OF TEN MILLION DOLLARS EACH, INCLUDING AN INITIAL ADVANCE ON AUGUST 15, 2026, AND, AFTER CERTIFICATION BY THE COLORADO CLEAN ENERGY FUND THAT NOT LESS THAN EIGHTY PERCENT OF THE AMOUNT PREVIOUSLY ADVANCED HAS BEEN COMMITTED OR ENCUMBERED FOR ELIGIBLE PROGRAM PURPOSES, SUBSEQUENT ADVANCES.

(IV) AMOUNTS ADVANCED UNDER THE LOAN BEAR INTEREST AT A RATE NEGOTIATED BETWEEN THE STATE TREASURER AND THE COLORADO CLEAN ENERGY FUND, NOT TO EXCEED TWO PERCENT ANNUALLY. INTEREST ACCRUES ONLY ON THE OUTSTANDING PRINCIPAL BALANCE ADVANCED BY THE STATE TREASURER UNDER THE LOAN.

(V) DURING THE FIRST SIX YEARS AFTER THE DATE OF THE INITIAL DRAW, INTEREST-ONLY PAYMENTS TO THE STATE TREASURER IN REPAYMENT OF THE LOAN, AND THE STATE TREASURER SHALL CREDIT THE PAYMENTS TO THE UNCLAIMED PROPERTY TRUST FUND. BEGINNING IN THE SEVENTH YEAR AFTER THE DATE OF THE INITIAL DRAW AND CONTINUING THROUGH THE TWENTIETH YEAR, THE COLORADO CLEAN ENERGY FUND SHALL MAKE ANNUAL PRINCIPAL PAYMENTS EQUAL TO TWO PERCENT OF THE ORIGINAL PRINCIPAL AMOUNT, IN ADDITION TO REQUIRED INTEREST PAYMENTS, TO THE STATE TREASURER. ANY REMAINING OUTSTANDING PRINCIPAL AND ACCRUED INTEREST IS DUE AND PAYABLE IN FULL BY THE COLORADO CLEAN ENERGY FUND AT MATURITY.

THE COLORADO CLEAN ENERGY FUND SHALL MAKE

(VI) THE MAXIMUM TERM OF THE LOAN IS TWENTY YEARS FROM THE DATE OF THE FIRST DRAW. THE COLORADO CLEAN ENERGY FUND MAY MAKE PRINCIPAL REPAYMENTS TO THE STATE TREASURER AT ANY TIME WITHOUT PENALTY IF THE TOTAL OUTSTANDING PRINCIPAL OF THE LOAN DOES NOT EXCEED THE AUTHORIZED CAP OF FIFTY MILLION DOLLARS.

(VII) THE COLORADO CLEAN ENERGY FUND SHALL PAY THE LOAN BACK TO THE STATE TREASURER BEFORE AUGUST 15, 2046.

(b) NOTHING IN THIS SUBSECTION (7) PROHIBITS THE COLORADO CLEAN ENERGY FUND FROM SELLING, ASSIGNING, OR OTHERWISE TRANSFERRING PROGRAM RECEIVABLES OR PORTIONS OF THE PROGRAM'S PORTFOLIO TO THIRD PARTIES OR SECONDARY MARKET INVESTORS IF DOING SO DOES NOT IMPAIR REPAYMENT OBLIGATIONS OWED TO THE STATE TREASURER.

(c) ON OR BEFORE FEBRUARY 15, 2027, AND ON OR BEFORE EVERY FEBRUARY 15 THEREAFTER THROUGH FEBRUARY 15, 2046, THE COLORADO CLEAN ENERGY FUND SHALL SUBMIT AN ANNUAL REPORT TO THE JOINT BUDGET COMMITTEE, THE COLORADO ENERGY OFFICE, AND THE STATE TREASURER DETAILING:

(I) FINANCIAL DISBURSEMENTS AND REPAYMENTS;

(II) PROGRAM DEPLOYMENT METRICS, INCLUDING HOUSEHOLDS SERVED AND ENERGY SAVINGS ACHIEVED; AND

(III) LEVERAGED PRIVATE CAPITAL AND COMMUNITY IMPACT.

(d) AS USED IN THIS SUBSECTION (7), "PROGRAM" HAS THE MEANING SET FORTH IN SECTION 24-38.5-602 (5).

(e) THIS SUBSECTION (7) IS REPEALED, EFFECTIVE SEPTEMBER 1, 2046. SECTION 4.

Safety clause. The general assembly finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, or safety or for appropriations for the support and maintenance of the departments of the state and state institutions.