(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 industry national home energy rating system
accreditation standard as a rating provider and who appears on RESNET's national
registry of accredited rating providers or a person who meets other rating provider
requirements adopted in guidelines by the Colorado energy office pursuant to
paragraph (c) of subsection (4) of this section.
(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 or an individual who meets
other rater certification requirements adopted in guidelines by the Colorado energy
office pursuant to paragraph (c) of subsection (4) of this section.
(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, 2013, 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 or that meets
other requirements for being an energy efficient home that the Colorado energy
office adopts in guidelines pursuant to subsection (4) of this section.
(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 home that:
(A) Are made in accordance with recommendations made by or approved by
the Colorado energy office following a residential energy audit of the home; and
(B) Are confirmed by post-installation verification conducted by the
Colorado energy office or a vendor, including but not limited to a participating
utility, under contract with the office to have improved the energy efficiency of the
home to the extent required by the Colorado energy office.
(f) HERS index means the home energy rating system index established by
RESNET to measure the energy efficiency of a home.
(g) 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.
(h) Participating public utility means a public utility, as defined in section
40-1-103, C.R.S., including any municipality that operates an electric utility and any
cooperative electric or gas association or nonprofit electric corporation or
association, that:
(I) Provides electricity or natural gas to residential customers, without
regard to whether the utility, association, or corporation is subject to or exempt, in
whole or in part, from the Public Utilities Law, articles 1 to 7 of title 40, C.R.S.;
(II) Chooses to participate in the Colorado energy saving mortgage program
by meeting all requirements for participation set forth in guidelines adopted by the
Colorado energy office; and
(III) If it is required to comply with the provisions of article 3.2 of title 40,
C.R.S., has, prior to its initial participation in the Colorado energy savings mortgage
program, had the public utilities commission approve a participation plan.
(i) 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.
(2) The Colorado energy office may spend any available moneys to fund
energy saving mortgages subject to the following limitations:
(a) To the extent feasible, the Colorado energy office shall spend money
evenly on energy saving mortgages that finance purchases of newly built energy
efficient homes and energy saving mortgages that finance improvements to
existing residences;
(b) Each energy saving mortgage may 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 adopt guidelines to specify
minimum percentages of total funding for an energy saving mortgage that each
nonstate source of funding must provide.
(c) If a utility chooses to participate in the Colorado energy savings
mortgage program by providing demand-side management program moneys, such
moneys may only be used towards energy savings attributable to energy efficiency
improvements and not towards energy savings attributable to renewable energy or
on-site energy generation improvements.
(d) If a utility has existing demand-side management programs for
residential new construction or whole-house existing retrofits, the utility must
identify, in a demand-side management plan approved by the public utilities
commission prior to the utility's initial participation in the Colorado energy
mortgage savings program, how it will track participation in all programs, including
the Colorado energy savings mortgage program, to ensure that customers do not
receive multiple incentives.
(e) The Colorado energy office may only approve an energy saving mortgage
that finances improvements to an existing home if the improvements are made by
or approved by the office following a residential energy audit of the home and are
confirmed by post-installation verification to have increased the energy efficiency
of the home to the extent required by the office. The office may adopt guidelines
that specify requirements for energy efficiency increases and the conduct of
residential energy audits and post-installation testing.
(f) Subject to the following maximum value limitations, the Colorado energy
office may adopt energy savings-based guidelines that set forth the maximum total
value to the borrower in terms of reduction in the total costs of an energy saving
mortgage:
(I) For an energy saving mortgage that finances the purchase of a new
energy efficient home, the maximum total value to the borrower in terms of
reduction in the total costs of an energy saving mortgage is:
(A) For a home that has a HERS index score of zero, eight thousand dollars or
any lower amount that the Colorado energy office establishes in guidelines; or
(B) For a home that has a HERS index score that is greater than zero but no
more than fifty, any lower amounts that the Colorado energy office establishes in
guidelines subject to the limitation that if the office establishes multiple lower
amounts, those amounts must increase as the HERS index score of a home
decreases;
(II) For an energy saving mortgage that finances improvements to an existing
home, the maximum total value to the borrower in terms of reduction in the total
costs of an energy saving mortgage is the lesser of any energy savings-based
amount adopted in guidelines by the Colorado energy office or eight thousand
dollars.
(g) The Colorado energy office may spend moneys contributed by a
participating public utility only for energy saving mortgages for homes within the
service area of the participating public utility.
(h) If demand-side management moneys contributed by a participating
utility, when combined with moneys from all other sources, yield an incentive
amount that exceeds the incremental cost of the energy saving improvements, the
utility must set forth the treatment of the demand-side management moneys in its
demand-side management plan and have that treatment approved by the public
utilities commission.
(i) If the participation of a participating utility causes additional energy
savings improvements to be made, due to the matching Colorado energy office and
lender moneys, the public utilities commission may include the additional energy
savings benefits and exclude the additional leveraged moneys from the benefit-cost ratio calculation described in section 40-1-102 (5)(b), C.R.S.
(3) A participating public utility receives credit for its participation in the
program towards any demand side management program targets, contingent upon
public utilities commission approval, pursuant to article 3.2 of title 40, C.R.S., or
may receive credit towards any greenhouse gas emissions requirements that may
be established in the future.
(4) 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 adopt guidelines that:
(a) Adopt the other index or measure as the standard for determining the
energy efficiency of a new home or existing 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
accreditation of rating providers or certification of raters, that must be complied
with in rating a new home or existing residence under the other index or measure.