Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 12-0258.01 Esther van Mourik x4215HOUSE BILL 12-1320 HOUSE SPONSORSHIP Acree, SENATE SPONSORSHIP (None), House Committees Senate Committees Agriculture, Livestock, & Natural Resources A BILL FOR AN ACT Concerning energy-related assistance to low-income households. 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://www.leg.state.co.us/billsummaries.) The bill repeals the governor's energy office's program for providing home energy efficiency improvements for low-income households. The bill also redirects money to the department of human services low-income energy assistance fund for the purpose of increasing available funding under the low-income energy assistance program from: Money currently allocated to the governor's energy office for the office's home energy efficiency improvements program; and Money currently allocated to the energy outreach Colorado low-income energy assistance fund used by energy outreach Colorado to provide direct bill payment assistance to low-income households when the department of human services is not accepting client applications for the low-income energy assistance program. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 24-38.5-102, repeal (1) (l) as follows: 24-38.5-102. Governor's energy office - duties and powers. (1) The governor's energy office shall: (l) Provide home energy efficiency improvements for low-income households as specified in section 40-8.7-112 (3) (b), C.R.S., and prepare and submit to the general assembly an annual report as specified in section 40-8.7-112 (3) (f), C.R.S.; SECTION 2. In Colorado Revised Statutes, 24-75-1201, amend (1) (a) as follows: 24-75-1201. Clean energy fund - creation - use of fund - definitions. (1) (a) The clean energy fund is hereby created in the state treasury. The principal of the fund shall consist of moneys transferred to the fund at the end of the 2006-07 state fiscal year and at the end of each succeeding state fiscal year from moneys received by the governor's energy office, pursuant to section 39-29-109.3 (2) (f), C.R.S., in accordance with section 40-8.7-112 (3) (g), C.R.S., moneys received pursuant to the federal "American Recovery and Reinvestment Act of 2009", Pub.L. 111-5, or any amendments thereto, or from revenue contracts, court settlement funds, supplemental environmental program funds, repayment or return of funds from eligible public depositories, and gifts, grants, and donations, and any other moneys received by the governor's energy office. Interest and income earned on the deposit and investment of moneys in the clean energy fund shall be credited to the fund. Moneys in the fund at the end of any state fiscal year shall remain in the fund and shall not be credited to the state general fund or any other fund. SECTION 3. In Colorado Revised Statutes, 39-29-109.3, amend (2) (f) (V) (A) as follows: 39-29-109.3. Operational account of the severance tax trust fund - repeal. (2) Subject to the requirements of subsections (3) and (4) of this section, if the general assembly chooses not to spend up to one hundred percent of the moneys in the operational account as specified in subsection (1) of this section, the state treasurer shall transfer the following: (f) For providing energy-related assistance to low-income households as specified in section 40-8.7-112, C.R.S.: (V) (A) For the state fiscal year commencing July 1, 2012, thirteen million dollars as follows: Twenty-five percent to the department of human services low-income energy assistance fund created in section 40-8.7-112 (1), C.R.S. twenty-five percent to the energy outreach Colorado low-income energy assistance fund created in section 40-8.7-112 (2) (a), C.R.S.; and fifty percent to the governor's energy office low-income energy assistance fund created in section 40-8.7-112 (3) (a), C.R.S. SECTION 4. In Colorado Revised Statutes, 39-29-109.3, amend as amended by House Bill 12-1028 (2) (f) (V) (A) as follows: 39-29-109.3. Operational account of the severance tax trust fund - repeal. (2) Subject to the requirements of subsections (3) and (4) of this section, if the general assembly chooses not to spend up to one hundred percent of the moneys in the operational account as specified in subsection (1) of this section, the state treasurer shall transfer the following: (f) For providing energy-related assistance to low-income households as specified in section 40-8.7-112, C.R.S.: (V) (A) For the state fiscal year commencing July 1, 2012, and each state fiscal year thereafter through the state fiscal year commencing July 1, 2018, thirteen million dollars as follows: Twenty-five percent to the department of human services low-income energy assistance fund created in section 40-8.7-112 (1), C.R.S. twenty-five percent to the energy outreach Colorado low-income energy assistance fund created in section 40-8.7-112 (2) (a), C.R.S.; and fifty percent to the governor's energy office low-income energy assistance fund created in section 40-8.7-112 (3) (a), C.R.S. SECTION 5. In Colorado Revised Statutes, 39-29-109.3, amend (4) (a) introductory portion; and repeal (4) (c) as follows: 39-29-109.3. Operational account of the severance tax trust fund - repeal. (4) (a) Except as provided in paragraphs (b) and (c) paragraph (b) of this subsection (4), all transfers specified in subsection (2) of this section shall be made by the state treasurer in three installments, as follows: (c) (I) Except as provided in paragraph (b) of this subsection (4), the state treasurer shall make the transfers specified in paragraph (f) of subsection (2) of this section as follows: (A) The transfers to the governor's energy office low-income energy assistance fund shall be made on July 1; (B) The transfers to the department of human services low-income energy assistance fund shall be made on January 4; (C) The transfers to the energy outreach Colorado low-income energy assistance fund shall be made on April 1. (II) If there are proportional reductions made to the transfers specified in this paragraph (c) pursuant to paragraph (b) of this subsection (4), the treasurer shall transfer on July 1 of the following fiscal year the amount of the proportional reduction to the fund that should have received that money from the funding for the following fiscal year as specified in paragraph (f) of subsection (2) of this section and shall then distribute the remaining funding for the following fiscal year pursuant to the percentages specified in said paragraph (f). SECTION 6. In Colorado Revised Statutes, 40-8.7-110, repeal (1.5) as follows: 40-8.7-110. Reports. (1.5) To the extent applicable, the organization shall include in the report the information required by paragraphs (b) and (c) of subsection (1) of this section for moneys received from the governor's energy office pursuant to section 40-8.7-112 (2) (a). SECTION 7. In Colorado Revised Statutes, 40-8.7-112, amend (1) (a), (2), (3) (a), (3) (b) introductory portion, (3) (d) introductory portion, (3) (e), and (3) (f) introductory portion; and add (3) (h) as follows: 40-8.7-112. Department of human services low-income energy assistance fund - creation - energy outreach Colorado low-income energy assistance fund - creation - governor's energy office low-income energy assistance fund - creation - definitions - repeal. (1) (a) There is hereby created in the state treasury the department of human services low-income energy assistance fund, which shall be administered by the department of human services and shall consist of all moneys transferred by the treasurer as specified in section 39-29-109.3 (2) (f), C.R.S. All moneys in the fund are continuously appropriated to the department of human services for the purpose of increasing available funds under the low-income energy assistance program specified in section 26-1-109 sections 26-1-109 and 26-2-122.5, C.R.S. All moneys in the fund at the end of each fiscal year shall be retained in the fund and shall not revert to the general fund or any other fund. (2) (a) There is hereby created in the state treasury the energy outreach Colorado low-income energy assistance fund, which shall be administered by the governor's energy office and for state fiscal years prior to the 2012-13 state fiscal year shall consist of all moneys transferred by the treasurer as specified in section 39-29-109.3 (2) (f), C.R.S. For state fiscal years prior to the 2012-13 state fiscal year, all moneys in the fund are continuously appropriated to the governor's energy office for distribution to the organization to be used for the purposes set forth in this subsection (2). For state fiscal years prior to the 2012-13 state fiscal year, all moneys in the fund at the end of each fiscal year shall be retained in the fund and shall not revert to the general fund or any other fund. Any moneys remaining in the fund on July 1, 2012, shall be transferred to the department of human services low-income energy assistance fund created in subsection (1) of this section. (b) For state fiscal years prior to the 2012-13 state fiscal year, the organization shall use moneys it receives from the governor's energy office pursuant to paragraph (a) of this subsection (2) to provide direct bill payment assistance to low-income households when the department of human services is not accepting client applications for the program specified in section 26-1-109, C.R.S. Bill payments shall be paid to each utility as vendor payments. For state fiscal years prior to the 2012-13 state fiscal year, the organization may use up to five percent of the moneys for administration of the direct bill payment assistance in accordance with generally accepted accounting principles. (c) For state fiscal years prior to the 2012-13 state fiscal year, the organization shall hold and administer all moneys it receives from the governor's energy office pursuant to paragraph (a) of this subsection (2) in a separately identifiable account, the use of which shall be restricted to the purposes set forth in paragraph (b) of this subsection (2). For state fiscal years prior to the 2012-13 state fiscal year, the organization shall maintain its books and records pertaining to any moneys received from the governor's energy office in accordance with generally accepted accounting principles. For state fiscal years prior to the 2012-13 state fiscal year, if the organization commingles the moneys with other assets of the organization for investment purposes, the organization shall maintain accurate accounts of the investment moneys and shall credit or charge a pro rata portion of all investment earnings, gains, or losses to the account that holds the moneys received from the governor's energy office pursuant to paragraph (a) of this subsection (2). (d) For state fiscal years prior to the 2012-13 state fiscal year, the organization shall develop an annual budget for the direct bill payment assistance program to determine the allocation of the moneys received from the governor's energy office pursuant to paragraph (a) of this subsection (2). (e) For state fiscal years prior to the 2012-13 state fiscal year, the organization shall include information related to any moneys received from the governor's energy office pursuant to paragraph (a) of this subsection (2) in the report it prepares pursuant to section 40-8.7-110. (f) This subsection (2) is repealed, effective July 1, 2013. (3) (a) There is hereby created in the state treasury the governor's energy office low-income energy assistance fund, which shall be administered by the governor's energy office and for state fiscal years prior to the 2012-13 state fiscal year shall consist of all moneys transferred by the treasurer as specified in section 39-29-109.3 (2) (f), C.R.S. For state fiscal years prior to the 2012-13 state fiscal year, all moneys in the fund are continuously appropriated to the governor's energy office to be used for the purposes set forth in this subsection (3). For state fiscal years prior to the 2012-13 state fiscal year, all moneys in the fund at the end of each fiscal year shall be retained in the fund and shall not revert to the general fund or any other fund. Any moneys remaining in the fund on July 1, 2012, shall be transferred to the department of human services low-income energy assistance fund created in subsection (1) of this section. (b) For state fiscal years prior to the 2012-13 state fiscal year, the governor's energy office shall use moneys it receives pursuant to paragraph (a) of this subsection (3) for a program to provide home energy efficiency improvements for low-income households, which shall include any of the following services: (d) For state fiscal years prior to the 2012-13 state fiscal year, in carrying out the program to improve the home energy efficiency of low-income households, the governor's energy office shall: (e) For state fiscal years prior to the 2012-13 state fiscal year, the governor's energy office may use up to five percent of the moneys transferred pursuant to paragraph (a) of this subsection (3) for planning, overseeing, and evaluating the program to improve the home energy efficiency of low-income households. The governor's energy office shall not hire additional state employees using these moneys to implement the program but may contract with nonprofit organizations, for-profit organizations, and governmental entities as is necessary to carry out the program. (f) For any state fiscal year prior to the 2012-13 state fiscal year in which moneys are expended as part of the program to improve the home energy efficiency of low-income households, the governor's energy office shall prepare and submit to the general assembly an annual report that specifies: (h) This subsection (3) is repealed, effective July 1, 2013. SECTION 8. Effective date. (1) Except as otherwise provided in this section, this act takes effect July 1, 2012. (2) Section 3 of this act takes effect only if House Bill 12-1028 does not become law and takes effect upon the applicable effective date of this act. (3) Section 4 of this act takes effect only if House Bill 12-1028 becomes law and takes effect either upon the applicable effective date of this act or House Bill 12-1028, whichever is later. SECTION 9. 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.