(1) (a) The innovative energy fund is hereby created in the state treasury. The principal of the fund consists of money transferred to the fund by the general assembly, money transferredat the end of each state fiscal year from money received by the Colorado energy office, or from revenue contracts, court settlement funds, supplemental program funds, repayment or return of funds from eligible public depositories, and gifts, grants, and donations, and any other money received by the Colorado energy office. Interest and income earned on the deposit and investment of money in the innovative energy fund is credited to the fund. Money in the fund at the end of any state fiscal year remains in the fund and may not be credited to the state general fund or any other fund. Money in the fund may not be transferred to the energy fund created in section 24-38.5-102.4.

(b) For purposes of this section:

(I) "Colorado energy office" means the Colorado energy office created in section 24-38.5-101.

(II) "Innovative energy" means an existing, new, or emerging technology that:

(A) Enables the use of a local fuel source;

(B) Establishes a more efficient or environmentally beneficial use of energy; and

(C) Helps to create energy independence or energy security for the state.

(2) (a) All moneys in the innovative energy fund are continuously appropriated to the Colorado energy office for the purposes of advancing innovative energy efficiency throughout the state; except that the moneys are limited to efficiency projects and any other projects related to the severance of minerals subject to taxation under article 29 of title 39, C.R.S.

(b) The Colorado energy office may expend moneys from the innovative energy fund:

(I) To overcome market barriers facing emerging and cost-effective energy technologies;

(II) To promote robust research, development, commercialization, and financing of innovative energy technologies;

(III) To educate the general public on energy issues and opportunities;

(IV) To attract innovative energy industry investment in the state;

(V) To assist in technology transfer into the marketplace for newly developed innovative energy efficiency technologies;

(VI) To provide market incentives for the purchase and distribution of efficient innovative energy products;

(VII) To assist in the implementation of innovative energy efficiency projects throughout the state;

(VIII) To aid governmental agencies in innovative energy efficiency government initiatives;

(IX) To facilitate widespread implementation of innovative energy technologies; and

(X) In any other manner that serves the purposes of advancing innovative energy efficiency throughout the state.

(c) (I) Subject to the provisions of subparagraph (II) of this paragraph (c), the moneys in the innovative energy fund may also be used by the Colorado energy office to make grants or loans to persons, as defined in section 2-4-401 (8), C.R.S., for use in carrying out the purposes of this section. The Colorado energy office shall consider the following information in determining whether to make a grant or loan:

(A) The amount of the grant or loan;

(B) The quantified impact on energy demand or amount of innovative energy production generated as a result of the grant or loan;

(C) The potential economic impact of the grant or loan; and

(D) The public benefits expected to result from the grant or loan.

(II) The Colorado energy office may establish terms and conditions for making grants or loans pursuant to this section and in accordance with the objectives of the office as set forth in section 24-38.5-102.