House Bill 25-1268 Preamended

A Bill for an Act

• Page 1, Line 101Concerning the financing of a utility on-bill program for

• Page 1, Line 102certain energy-related improvements.

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 bill requires the Colorado energy office (office) to establish a state utility on-bill repayment program to help finance certain gas and electric utilities' on-bill repayment programs (on-bill repayment program), which are programs through which energy efficiency measures, electrification measures, and energy upgrades installed at utility customers' premises are financed through loans that the customers repay through their monthly utility bill payments. The bill requires gas or electric investor-owned utilities that serve more than 500,000 customers to propose a plan to the public utilities commission for establishing or expanding an existing on-bill repayment program for the commission to review and approve, disapprove, or modify.

The bill requires the state treasurer, on July 1, 2025, to make an interest-free loan in the amount of $100 million from the unclaimed property trust fund to the state utility on-bill repayment program cash fund, which fund is created in the bill, to support the financing of the on-bill repayment programs. The office is required to pay back the loan by July 1, 2045.

• This Unofficial Version Includes Committee

• Amendments Not Yet Adopted on Second Reading

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, add part 6 to article 38.5 of title 24 as follows:

• Page 2, Line 3PART 6

• UTILITY ON-BILL PROGRAM

• Page 2, Line 424-38.5-601.  Legislative declaration. (1)  The general

• Page 2, Line 5assembly finds that Colorado consumers have the potential to

• Page 2, Line 6save energy, reduce greenhouse gas emissions, and transition

• Page 2, Line 7away from fossil fuel infrastructure through energy solutions,

• Page 2, Line 8including energy efficiency measures, electrification measures, and energy upgrades.

• Page 2, Line 9(2)  Therefore, the general assembly declares that:

• Page 2, Line 10(a)  Utilities benefit from utility on-bill programs because the programs can reduce energy consumption and peak demand;

• Page 2, Line 11(b)  Utility customers would benefit from having access to

• Page 2, Line 12significant amounts of public and private capital for low-cost

• Page 2, Line 13financing solutions for energy-related improvements, including end-of-life equipment replacement;

• Page 2, Line 14(c)  Utility on-bill programs that allow repayments

• Page 3, Line 1through utility bill payments could expand the opportunities

• Page 3, Line 2for eligible retail utility customers to pursue energy efficiency

• Page 3, Line 3measures, electrification measures, and energy upgrades by

• Page 3, Line 4enabling utility customers to pay back the up-front costs of the

• Page 3, Line 5upgrades and measures over time through their utility bill

• Page 3, Line 6payments at or below interest rates that may be available from other sources; and

• Page 3, Line 7(d)  A program established to provide such on-bill

• Page 3, Line 8repayment could include utility-administered repayment of

• Page 3, Line 9costs for which the repayment obligation remains with the

• Page 3, Line 10associated energy meter and service address, instead of transferring to a customer's new location.

• Page 3, Line 1124-38.5-602.  Definitions.As used in this part 6, unless the context otherwise requires:

• Page 3, Line 12(1)  "Commission" means the public utilities commission created in section 40-2-101.

• Page 3, Line 13(2)  "Cooperative electric association" has the meaning set forth in section 40-9.5-102 (1).

• Page 3, Line 14(3) (a)  "Electrification" means "beneficial electrification", as defined in section 40-1-102 (1.2).

• Page 3, Line 15(b)  "Electrification" includes:

• (I)  A ground-source or air-source heat pump system; and

• Page 3, Line 16(II)  A heat pump water heater.

• Page 3, Line 17(4) (a)  "Energy efficiency measure" means any

• Page 3, Line 18permanently installed improvement, addition, or equipment that

• Page 3, Line 19aligns with the state's greenhouse gas reduction targets and

• Page 3, Line 20that:

• Page 4, Line 1(I)  Reduces the consumption of energy at a program participant's premises; or

• Page 4, Line 2(II)  Enables a program participant to reduce or shift energy consumption at the premises.

• Page 4, Line 3(b)  "Energy efficiency measure" includes:

• Page 4, Line 4(I)  A building shell measure, such as air sealing, window film, roof repair, insulation, or window and door modifications;

• Page 4, Line 5(II)  An automatic or internet-connected energy control system; and

• Page 4, Line 6(III)  Any other measure or upgrade authorized by the

• Page 4, Line 7office or approved by the commission as part of a utility's

• Page 4, Line 8application to establish an on-bill program or to use money from the fund.

• Page 4, Line 9(5)  "Energy upgrade" means the installation,

• Page 4, Line 10improvement, or addition of appurtenance equipment at a program participant's premises to:

• Page 4, Line 11(a)  Upgrade the program participant's electric panel to

• Page 4, Line 12enable the installation of energy efficiency measures or electrification measures;

• Page 4, Line 13(b)  Upgrade other electrical equipment that enables the

• Page 4, Line 14installation of energy storage, including installation of a

• Page 4, Line 15subpanel, critical load panel, backup switch, gateway, or other equipment; or

• Page 4, Line 16(c)  Make any other energy upgrade authorized by the

• Page 4, Line 17office or approved by the commission as part of a utility's application to establish an on-bill program.

• Page 4, Line 18(6)  "Office" means the Colorado energy office created in section 24-38.5-101 (1).

• Page 5, Line 1(7)  "On-bill cash fund" or "fund" means the on-bill cash fund created in section 24-38.5-607.

• Page 5, Line 2(8)  "On-bill program" means a utility's program that

• Page 5, Line 3receives money from the on-bill cash fund pursuant to this part

• Page 5, Line 46 and through which program the costs of energy efficiency

• Page 5, Line 5measures, electrification measures, and energy upgrades

• Page 5, Line 6installed at a program participant's premises are repaid through monthly utility bill payments.

• Page 5, Line 7(9)  "Participating utility" means a utility that receives

• Page 5, Line 8money through the program, either directly or by electing to

• Page 5, Line 9have its utility-designated administrator receive money;

• Page 5, Line 10through a loan from the office; or through participation in a

• Page 5, Line 11program administered by the program administrator in which

• Page 5, Line 12the program administrator receives money from the office to manage a utility on-bill program for the utility.

• Page 5, Line 13(10)  "Program administrator" means a third-party entity

• Page 5, Line 14that the office may contract with to plan, administer, operate,

• Page 5, Line 15and manage a utility on-bill program for participating utilities

• Page 5, Line 16that voluntarily choose to contract with the program administrator as their utility-designated administrator.

• Page 5, Line 17(11)  "Program participant" means a participating utility

• Page 5, Line 18customer that has requested to participate in a participating

• Page 5, Line 19utility's on-bill program and that the participating utility,

• Page 5, Line 20either directly or through its utility-designated administrator, has determined is eligible for program participation.

• Page 5, Line 21(12)  "Unclaimed property trust fund" means the unclaimed property trust fund created in section 38-13-801.

• Page 6, Line 1(13)  "Utility" means an electric utility, a gas utility, or a combined fuel utility and includes:

• Page 6, Line 2(a)  An investor-owned utility;

• (b)  A cooperative electric association; and

• Page 6, Line 3(c)  A municipally owned utility.

• Page 6, Line 4(14) (a)  "Utility-designated administrator" means a

• Page 6, Line 5third-party entity that a utility may contract with to plan, administer, operate, and manage the utility's on-bill program.

• Page 6, Line 6(b)  "Utility-designated administrator" includes the program administrator, as applicable.

• Page 6, Line 724-38.5-603.  On-bill programs - participation process -

• Page 6, Line 8reporting. (1)  For the purpose of allocating money to provide

• Page 6, Line 9capital for participating utilities' on-bill programs, the office

• Page 6, Line 10shall establish a process through which a utility may request to

• Page 6, Line 11become a participating utility. The office may design request

• Page 6, Line 12forms or guidance documents for the process and shall post any such forms and guidance documents on its public website.

• Page 6, Line 13(2)  (a)   Pursuant to an agreement between the office and

• Page 6, Line 14a participating utility or the program administrator, money

• Page 6, Line 15provided to the utility or its utility-designated administrator

• Page 6, Line 16to help establish or continue the utility's on-bill program may

• Page 6, Line 17be used to support energy efficiency measures, electrification

• Page 6, Line 18measures, and energy upgrades at a program participant's

• Page 6, Line 19premises that are located and remain in the utility's service territory.

• Page 6, Line 20(b)  In an agreement entered into pursuant to this

• Page 7, Line 1subsection (2), the agreement must include requirements that,

• Page 7, Line 2no later than three years after money is loaned to the

• Page 7, Line 3participating utility or program administrator, the

• Page 7, Line 4participating utility or program administrator shall begin

• Page 7, Line 5making annual payments of the principal and interest of the

• Page 7, Line 6amount loaned at the interest rate specified in subsection (2)(c)

• Page 7, Line 7of this section, which money the state treasurer shall credit

• Page 7, Line 8directly to the unclaimed property trust fund. An agreement

• Page 7, Line 9entered into pursuant to this subsection (2) must require that the loan is amortized over a maximum of twenty years.

• Page 7, Line 10(c)  A loan made to a participating utility from the on-bill

• Page 7, Line 11cash fund must include an interest rate of one percent, and

• Page 7, Line 12interest payments must be credited to the unclaimed property trust fund.

• Page 7, Line 13(3) (a)  The office may issue guidance on program

• Page 7, Line 14requirements or place contract limitations on the use of loans

• Page 7, Line 15from the fund, as appropriate, for development, implementation,

• Page 7, Line 16and updates of consumer protection and equity requirements to ensure the success of the program, while balancing:

• Page 7, Line 17(I)  Risk to lenders, utilities, utility-designated administrators, and customers;

• Page 7, Line 18(II)  Equity;

• (III)  Repayment terms; and

• Page 7, Line 19(IV)  Utility bill impacts for program participants and nonparticipants.

• Page 7, Line 20(b)  The office shall consult with a participating utility's

• Page 7, Line 21utility-designated administrator or a program administrator

• Page 8, Line 1selected by the office pursuant to section 24-38.5-604, as

• Page 8, Line 2appropriate, in developing guidance on program requirements,

• Page 8, Line 3including consumer protection and equity requirements, which requirements may include:

• Page 8, Line 4(I)  The rate classes of utility customers that may

• Page 8, Line 5participate in the utility's on-bill program, which rate classes must, at a minimum, include residential customers;

• Page 8, Line 6(II)  The energy efficiency measures, electrification

• Page 8, Line 7measures, and energy upgrades that the utility may authorize a program participant to finance through an on-bill program;

• Page 8, Line 8(III)  A cap on the total financing that may be made

• Page 8, Line 9available to a residential utility customer, not to exceed fifty thousand dollars;

• Page 8, Line 10(IV)  For utilities that are not regulated by the

• Page 8, Line 11commission, the method that a participating utility may use to recover program administration costs; and

• Page 8, Line 12(V)  Requirements regarding transfers of financial

• Page 8, Line 13responsibility when an owner or tenant vacates a building

• Page 8, Line 14subject to a utility's on-bill program, including a requirement

• Page 8, Line 15that a property owner that is a participating customer or is the

• Page 8, Line 16owner of a property for which there is an existing repayment

• Page 8, Line 17obligation on the utility bill related to participation in a

• Page 8, Line 18program shall agree to notify a prospective tenant of the on-bill repayment obligation, prior to the execution of a lease.

• Page 8, Line 19(c)  For contracts with a regulated utility or the

• Page 8, Line 20regulated utility's utility-designated administrator, the final

• Page 8, Line 21contract must conform with any final approval from the commission.

• Page 9, Line 1(d)  A participating utility or its utility-designated

• Page 9, Line 2administrator shall be responsible for repaying the amount of

• Page 9, Line 3funding provided from the on-bill cash fund to the utility or its utility-designated administrator.

• Page 9, Line 4(e)  In developing guidance on program requirements

• Page 9, Line 5pursuant to this subsection (3), the office shall create as much

• Page 9, Line 6standardization as possible among newly proposed and already

• Page 9, Line 7existing tariffed on-bill programs, with a particular focus on

• Page 9, Line 8easing the burden of participation by contractors working across multiple utility territories.

• Page 9, Line 9(4)  When contracting with a participating utility or

• Page 9, Line 10program administrator regarding an on-bill program

• Page 9, Line 11established after July 1, 2025, the office shall structure the contract as a tariffed on-bill program.

• Page 9, Line 12(5)  The office may place contract limitations on the use

• Page 9, Line 13of loans from the fund, as appropriate, for the development,

• Page 9, Line 14implementation, and updates of consumer protection and equity

• Page 9, Line 15requirements to ensure the success of the program, while

• Page 9, Line 16balancing risk to lenders, utilities, utility-designated

• Page 9, Line 17administrators, and customers; equity; repayment terms; and

• Page 9, Line 18utility bill impacts for program participants. The office shall

• Page 9, Line 19consult with the participating utility, the participating utility's

• Page 9, Line 20utility-designated administrator, or a program administrator

• Page 9, Line 21selected by the office pursuant to section 24-38.5-604, as

• Page 9, Line 22appropriate, in developing the consumer protection and equity

• Page 9, Line 23requirements, which requirements may include:

• Page 10, Line 1(a)  Quality installation verification, including the

• Page 10, Line 2certifications and related enforcement mechanisms needed to ensure and verify quality installations;

• Page 10, Line 3(b)  Procedures for addressing failing equipment;

• Page 10, Line 4(c)  Vendor or contractor selection and approval

• Page 10, Line 5processes, including labor standards and a process for enforcement of the labor standards;

• Page 10, Line 6(d)  Eligibility requirements for program participants;

• Page 10, Line 7(e)  Protections for tenants whose landlords finance energy efficiency measures through a program, including:

• Page 10, Line 8(I)  Requirements to notify tenants of repayment obligations in lease agreements;

• Page 10, Line 9(II)  Processes for property owners to install measures at tenant-occupied locations; and

• Page 10, Line 10(III)  Other measures as appropriate;

• Page 10, Line 11(f)  Program design to manage the risk of utility disconnection;

• Page 10, Line 12(g)  The financing terms available for different types of energy efficiency measures and energy upgrades; and

• Page 10, Line 13(h)  The treatment of transfer of property ownership,

• Page 10, Line 14treatment of debts to a utility or its utility-designated administrator, and property treatment at transfer.

• Page 10, Line 15(6) (a)  Except as provided in subsection (5)(b) of this

• Page 10, Line 16section, on or before the first January 31 following the fifth

• Page 10, Line 17completed year of program implementation, or once a utility has

• Page 10, Line 18financed at least ten million dollars in energy efficiency

• Page 10, Line 19measures, electrification measures, or energy upgrades with

• Page 11, Line 1funding from the on-bill cash fund, whichever occurs first, and

• Page 11, Line 2on or before January 31 of each of the three years thereafter,

• Page 11, Line 3a participating utility or its utility-designated administrator

• Page 11, Line 4shall prepare and submit to the office a report that tracks the

• Page 11, Line 5total amount of energy efficiency measures, electrification

• Page 11, Line 6measures, and energy upgrades financed; the number of

• Page 11, Line 7participating customers broken down by interest rate, as

• Page 11, Line 8applicable; and cumulative program participation default rates,

• Page 11, Line 9utility disconnections, compliance with labor standards, and

• Page 11, Line 10other metrics that the office deems relevant to the consumer

• Page 11, Line 11protection and equity requirements for the program. The office shall make the reports publicly available on its public website.

• Page 11, Line 12(b)  A regulated utility that is required to file a report

• Page 11, Line 13with the commission regarding an on-bill program need not

• Page 11, Line 14prepare and submit to the office a report pursuant to subsection(6)(a) of this section.

• Page 11, Line 1524-38.5-604.  Authority to contract with program

• Page 11, Line 16administrators - selection criteria - program design requirements.

• Page 11, Line 17(1)  In accordance with the requirements of the "Procurement

• Page 11, Line 18Code", articles 101 to 112 of this title 24, the office may

• Page 11, Line 19contract with one or more independent third-party entities to

• Page 11, Line 20serve as program administrators to facilitate and help

• Page 11, Line 21administer utility on-bill programs for participating utilities.

• Page 11, Line 22The office shall contract only with one or more of the following entities to serve as program administrators:

• Page 11, Line 23(a)  A bank;

• Page 11, Line 24(b)  A nondepository community development financial institution;

• Page 12, Line 1(c)  A business development corporation; or

• (d)  A nonprofit organization.

• Page 12, Line 2(2)  In selecting a program administrator pursuant to this

• Page 12, Line 3section, the office shall consider the ability of a potential

• Page 12, Line 4program administrator to expand the program, including by

• Page 12, Line 5expanding the capital available for use in the program through public and private capital sources.

• Page 12, Line 6(3)  The office, in consultation with a selected program

• Page 12, Line 7administrator, may determine the design requirements for the

• Page 12, Line 8program, with the goal of offering customers the lowest reasonable interest rates, including:

• Page 12, Line 9(a)  A requirement that a participating utility's on-bill

• Page 12, Line 10program provide for standardization of aspects of the utility's

• Page 12, Line 11program, such as forms used to apply for participation in the

• Page 12, Line 12utility's program, but otherwise allow for flexibility in

• Page 12, Line 13implementing the utility's program to allow for different

• Page 12, Line 14requirements based on which energy efficiency measures,

• Page 12, Line 15electrification measures, and energy upgrades a program participant chooses;

• Page 12, Line 16(b)  A requirement that the energy efficiency measures,

• Page 12, Line 17electrification measures, and energy upgrades authorized for

• Page 12, Line 18a participating utility's on-bill program comply with program requirements;

• Page 12, Line 19(c)  A requirement that a program administrator pursue

• Page 12, Line 20other sources of public and private capital, with a goal of

• Page 12, Line 21increasing available statewide funding for on-bill programs to one billion dollars by 2030;

• Page 13, Line 1(d)  A requirement to reduce customer interest rates to the lowest reasonable rates and to reduce risk of default; and

• Page 13, Line 2(e)  Requirements regarding how available rebates may be

• Page 13, Line 3applied to an energy efficiency measure, electrification measure, or energy upgrade project before financing.

• Page 13, Line 424-38.5-605.  Transfers of financial responsibility - notification

• Page 13, Line 5required - utility's obligation - program administrator's obligation.

• Page 13, Line 6(1)  The office shall include a requirement in any contract

• Page 13, Line 7entered into with a participating utility or program

• Page 13, Line 8administrator regarding the use of money from the on-bill cash

• Page 13, Line 9fund that the utility or program administrator that receives

• Page 13, Line 10financing from the on-bill cash fund shall either directly or

• Page 13, Line 11through a utility-designated administrator record a notice

• Page 13, Line 12with the county clerk and recorder for inclusion in the public

• Page 13, Line 13records of the county in which a program participant's property is located against the real property title as follows:

• Page 13, Line 14(a)  Where the financing is attached to the meter, the

• Page 13, Line 15office shall establish a requirement that the participating

• Page 13, Line 16utility or program administrator, within thirty days after the

• Page 13, Line 17provision of financing to a program participant, shall record a

• Page 13, Line 18notice of the on-bill repayment obligation, which notice must

• Page 13, Line 19include a legal description of the real property subject to the

• Page 13, Line 20financing that is attached to the meter, the name and address of

• Page 13, Line 21the utility customer, the principal amount financed, and the

• Page 13, Line 22terms of repayment. The office shall also establish a

• Page 13, Line 23requirement that the participating utility or program

• Page 14, Line 1administrator, within thirty days after the financing has been

• Page 14, Line 2completely repaid, shall file a notice with the county clerk and

• Page 14, Line 3recorder for inclusion in the public records of the county in

• Page 14, Line 4which the property is located indicating that the financing

• Page 14, Line 5repayment is complete and that there are no further financial obligations.

• Page 14, Line 6(b)  Where the financing is a loan to the property owner,

• Page 14, Line 7the participating utility or program administrator, within

• Page 14, Line 8thirty days after the provision of financing to a program

• Page 14, Line 9participant, shall record a lien that must include the legal

• Page 14, Line 10description of the real property subject to the loan in the public

• Page 14, Line 11records of the county in which the property is located. The lien

• Page 14, Line 12does not establish a right to foreclose on the property. There

• Page 14, Line 13shall be a requirement that the loan be paid off at the point of

• Page 14, Line 14sale of the real property subject to the loan. Within thirty days

• Page 14, Line 15after the loan has been completely repaid, the participating

• Page 14, Line 16utility or program administrator shall file to remove the lien.

• Page 14, Line 17This subsection (1)(b) does not apply if a loan is structured as an

• Page 14, Line 18unsecured loan to an individual customer, which unsecured

• Page 14, Line 19loan creates no recourse against the property, subsequent

• Page 14, Line 20property owners, or a future utility customer located at the property.

• Page 14, Line 21(2)  At the point of sale of the real property subject to a

• Page 14, Line 22loan, if the property value is less than the remaining repayment

• Page 14, Line 23obligation on the loan, there may be a requirement that the loan be paid off at that time.

• Page 14, Line 24(3)  A county clerk and recorder shall record a notice

• Page 15, Line 1filed pursuant to this section in a manner that will appear in a title search of the property.

• Page 15, Line 224-38.5-606.  Participation by utilities - program

• Page 15, Line 3administration. (1)  A utility or its utility-designated

• Page 15, Line 4administrator may seek money from the on-bill cash fund using

• Page 15, Line 5a process approved by the office to establish its own on-bill program or support an existing on-bill program.

• Page 15, Line 6(2)  A utility participating in the program pursuant to this

• Page 15, Line 7section may designate an administrator with written approval

• Page 15, Line 8from the office or may choose to designate the program

• Page 15, Line 9administrator selected by the office as its utility-designated administrator.

• Page 15, Line 10(3)  If the office contracts with a program administrator

• Page 15, Line 11pursuant to section 24-38.5-604, a utility that, on the effective

• Page 15, Line 12date of this section, has an existing on-bill program may seek

• Page 15, Line 13written approval from the office to transfer the administration of its on-bill program to the program administrator.

• Page 15, Line 1424-38.5-607.  On-bill cash fund - creation. (1)  The on-bill

• Page 15, Line 15cash fund is created in the state treasury. The fund consists of

• Page 15, Line 16money credited to the fund pursuant to section 38-13-801 (3.3)

• Page 15, Line 17and any other money that the general assembly may appropriate or transfer to the fund.

• Page 15, Line 18(2)  The state treasurer shall credit all interest and

• Page 15, Line 19income derived from the deposit and investment of money in the on-bill cash fund to the fund.

• Page 15, Line 20(3)  Money in the on-bill cash fund is continuously

• Page 15, Line 21appropriated to the office to defray the costs incurred by the

• Page 16, Line 1office in administering the program and in supporting utility and building decarbonization.

• Page 16, Line 2(4) (a)  A loan made from the unclaimed property trust

• Page 16, Line 3fund to a separate fund associated with a state office is an

• Page 16, Line 4interfund loan according to governmental accounting

• Page 16, Line 5standards board codification 1800.102, meaning that the loan is

• Page 16, Line 6not classified as revenue and is booked as an interfund receivable or payable.

• Page 16, Line 7(b)  A loan made from the unclaimed property trust fund

• Page 16, Line 8to a separate fund associated with a state office is not state

• Page 16, Line 9fiscal year spending, as defined in section 24-77-102 (17), or state

• Page 16, Line 10revenues, as defined in section 24-77-103.6 (6)(c), and does not

• Page 16, Line 11count against either the state fiscal year spending limit imposed

• Page 16, Line 12by section 20 of article X of the state constitution or the excess state revenues cap, as defined in section 24-77-103.6 (6)(b)(I)(G).

• Page 16, Line 13SECTION 2.  In Colorado Revised Statutes, add 40-2-140 as follows:

• Page 16, Line 1440-2-140.  Utility on-bill program - review by commission -

• Page 16, Line 15definitions. (1)  As used in this section, unless the context otherwise requires:

• Page 16, Line 16(a)  "Combined fuel customer" means a residential utility

• Page 16, Line 17customer that takes both electric and gas service from the utility.

• Page 16, Line 18(b)  "On-bill cash fund" has the meaning set forth in section 24-38.5-602 (7).

• Page 16, Line 19(c)  "On-bill program" has the meaning set forth in section

• Page 16, Line 2024-38.5-602 (8).

• Page 17, Line 1(2) (a) (I)  Except as provided in subsection (2)(a)(II) of this

• Page 17, Line 2section, on or before December 31, 2027, a gas, electric, or

• Page 17, Line 3combined fuel utility with more than five hundred thousand

• Page 17, Line 4customers in the state shall file with the commission an

• Page 17, Line 5application that either proposes to use funding from the on-bill

• Page 17, Line 6cash fund to establish or modify an existing on-bill program or proposes not to use funding from the on-bill cash fund.

• Page 17, Line 7(II)  If the utility proposes not to use funding from the

• Page 17, Line 8on-bill cash fund, the utility's filing must demonstrate why the utility's use of the funding would not be in the public interest.

• Page 17, Line 9(III)  If the utility proposes to use funding from the on-bill

• Page 17, Line 10cash fund, the utility may propose to use the funding by

• Page 17, Line 11receiving funding directly from the office, electing to have a

• Page 17, Line 12utility-designated administrator receive funding from the

• Page 17, Line 13office, or by participating in a program administered by the program administrator.

• Page 17, Line 14(b)  Unless otherwise part of a utility on-bill program

• Page 17, Line 15approved by the commission and not in conflict with any

• Page 17, Line 16commission-approved on-bill program or other commission

• Page 17, Line 17decision, a utility's filing submitted pursuant to subsection(2)(a)(I) of this section must:

• Page 17, Line 18(I)  Propose to make the utility's on-bill program available

• Page 17, Line 19to electric-only retail customers, gas-only retail customers, and combined fuel retail customers;

• Page 17, Line 20(II)  Describe how the utility would use money from the on-bill cash fund to implement or modify an on-bill program;

• Page 17, Line 21(III)  Describe how the utility proposes to treat situations involving insufficient repayment by participating customers;

• Page 18, Line 1(IV)  Describe how the utility will offer the on-bill program to its residential customers;

• Page 18, Line 2(V)  Include information concerning how the utility may

• Page 18, Line 3allow nonprofit organizations, state and local governments,

• Page 18, Line 4multifamily dwellings, and homeowners' associations to participate in the on-bill program; and

• Page 18, Line 5(VI)  Describe how the utility may use funding from the

• Page 18, Line 6on-bill cash fund or other sources of funding to reduce interest

• Page 18, Line 7rates, especially for customers in low- and moderate-income households.

• Page 18, Line 8(3)  A utility with more than five hundred thousand

• Page 18, Line 9customers in the state may recover all on-bill program costs in

• Page 18, Line 10accordance with part 6 of article 38.5 of title 24. A utility shall

• Page 18, Line 11recover administrative costs through base rates or an

• Page 18, Line 12applicable rider but not through the interest rate established

• Page 18, Line 13for money made available through the on-bill program. A

• Page 18, Line 14utility shall recover its actual administrative costs associated

• Page 18, Line 15with its on-bill program as approved by the commission. A utility

• Page 18, Line 16may recover an on-bill program administration fee, as defined

• Page 18, Line 17in section 24-38.5-123 (2)(p), and costs associated with managing

• Page 18, Line 18the risk of nonpayment by participants through base rates, an

• Page 18, Line 19applicable rider, or the rate established for money made

• Page 18, Line 20available through the on-bill program, as approved by the

• Page 18, Line 21commission. A utility may propose or may maintain a method to

• Page 18, Line 22recover approved administrative costs, including the use of an

• Page 18, Line 23existing rider, as approved by the commission.

• Page 19, Line 1(4)  A utility with more than five hundred thousand

• Page 19, Line 2customers in the state that, by June 1, 2026, does not have an

• Page 19, Line 3existing on-bill program that has been approved by the

• Page 19, Line 4commission shall file the application described in subsection(2)(a) of this section on or before December 31, 2026.

• Page 19, Line 5(5) (a)  The commission shall review and approve,

• Page 19, Line 6disapprove, or approve with modifications a utility's application

• Page 19, Line 7submitted pursuant to subsection (2) of this section. In reviewing

• Page 19, Line 8an application, the commission shall determine whether the

• Page 19, Line 9utility's proposed plan for participation in a utility on-bill

• Page 19, Line 10program is in the public interest, and, if the commission

• Page 19, Line 11determines that the proposed plan is not in the public interest,

• Page 19, Line 12the commission may modify specific portions of the proposed plan

• Page 19, Line 13to bring the proposed plan into alignment with the public interest.

• Page 19, Line 14(b)  If the commission, pursuant to this section or through

• Page 19, Line 15a commission decision, approves participation in a utility on-bill

• Page 19, Line 16program for nonprofit organizations or nonresidential

• Page 19, Line 17customers, the requirements of sections 40-3.2-105.5 and

• Page 19, Line 1840-3.2-105.6 apply to any work undertaken as part of the on-bill program.

• Page 19, Line 19SECTION 3.  In Colorado Revised Statutes, 38-13-801, amend (1)(b); and add (1)(e) and (3.3) as follows:

• Page 19, Line 2038-13-801.  Unclaimed property trust fund - creation -

• Page 19, Line 21payments - interest - appropriations - records - rules - reports -

• Page 19, Line 22legislative declaration. (1) (b)  Except as provided in subsections (2),

• Page 19, Line 23(3), (3.3), and (3.5) of this section, the principal of the trust fund shall not

• Page 20, Line 1be expended except to pay claims made pursuant to this article 13. Money

• Page 20, Line 2constituting the principal of the trust fund is not fiscal year spending of

• Page 20, Line 3the state for purposes of section 20 of article X of the state constitution and is not subject to appropriation by the general assembly.

• Page 20, Line 4(e)  If claims made pursuant to this article 13 exceed the

• Page 20, Line 5balance in the unclaimed property trust fund, the excess amount shall be paid out of the general fund.

• Page 20, Line 6(3.3) (a)  On July 1, 2025, the state treasurer shall make an

• Page 20, Line 7interest-free loan in the amount of five million dollars from the

• Page 20, Line 8unclaimed property trust fund to the on-bill cash fund created

• Page 20, Line 9in section 24-38.5-607; except that, if the condition described in

• Page 20, Line 10section 24-36-125 (2)(b) occurs, the state treasurer shall not

• Page 20, Line 11make the loan described in this subsection (3.3)(a). If the

• Page 20, Line 12condition described in section 24-36-125 (2)(b) occurs, the state

• Page 20, Line 13treasurer shall transfer twenty-five million dollars from the

• Page 20, Line 14on-bill financing fund created in section 24-36-125 (7) to the

• Page 20, Line 15on-bill cash fund created in section 24-38.5-607 once the money

• Page 20, Line 16in the on-bill financing fund reaches twenty-five million dollars. The Colorado energy office shall:

• Page 20, Line 17(I)  Use the loan to support utility on-bill programs, as described in section 24-38.5-603;

• Page 20, Line 18(II)  Enter into contracts that authorize participating

• Page 20, Line 19utilities and third-party program administrators, as those terms

• Page 20, Line 20are defined in section 24-38.5-602, to remit any interest directly to the unclaimed property trust fund; and

• Page 20, Line 21(III)  Pay the loan back to the unclaimed property trust

• Page 20, Line 22fund by January 1, 2046. The loan repayment is subject to future

• Page 21, Line 1appropriation by the general assembly and shall not be deemed

• Page 21, Line 2or construed as creating indebtedness of the state within the

• Page 21, Line 3meaning of the state constitution or the laws of the state concerning or limiting the creation of indebtedness by the state.

• Page 21, Line 4(b)    If the loan described in subsection (3.3)(a) of this

• Page 21, Line 5section is made on July 1, 2025, then, on March 1, 2026, the state

• Page 21, Line 6treasurer shall make an additional interest-free loan in the

• Page 21, Line 7amount of twenty million dollars from the unclaimed property

• Page 21, Line 8trust fund to the on-bill cash fund created in section 24-38.5-607. The Colorado energy office shall:

• Page 21, Line 9(I)  Use the loan to support utility on-bill programs, as described in section 24-38.5-603; and

• Page 21, Line 10(II)  Pay the loan back to the unclaimed property trust

• Page 21, Line 11fund by January 1, 2046. The loan repayment is subject to future

• Page 21, Line 12appropriation by the general assembly and shall not be deemed

• Page 21, Line 13or construed as creating indebtedness of the state within the

• Page 21, Line 14meaning of the state constitution or the law of the state concerning limiting the creation of indebtedness by the state.

• Page 21, Line 15(c)  On July 1, 2026, the state treasurer shall make an

• Page 21, Line 16interest-free loan in the amount of twenty-five million dollars

• Page 21, Line 17from the unclaimed property trust fund to the on-bill cash fund

• Page 21, Line 18created in section 24-38.5-607; except that, if the condition

• Page 21, Line 19described in section 24-36-125 (2)(c) occurs, the state treasurer

• Page 21, Line 20shall not make the loan described in this subsection (3.3)(c). If

• Page 21, Line 21the condition described in section 24-36-125 (2)(c) occurs, the

• Page 21, Line 22state treasurer shall transfer twenty-five million dollars

• Page 21, Line 23from the on-bill financing fund created in section 24-36-125 (7)

• Page 22, Line 1to the on-bill cash fund created in section 24-38.5-607 once the

• Page 22, Line 2money in the on-bill financing fund reaches twenty-five million dollars. The Colorado energy office shall:

• Page 22, Line 3(I)  Use the loan to support utility on-bill programs, as described in section 24-38.5-603; and

• Page 22, Line 4(II)  Pay the loan back to the unclaimed property trust

• Page 22, Line 5fund by January 1, 2046. The loan repayment is subject to future

• Page 22, Line 6appropriation by the general assembly and shall not be deemed

• Page 22, Line 7or construed as creating indebtedness of the state within the

• Page 22, Line 8meaning of the state constitution or the law of the state concerning limiting the creation of indebtedness by the state.

• Page 22, Line 9(d)  On or before December 31, 2025, and on or before

• Page 22, Line 10December 31 of each year thereafter, the Colorado energy

• Page 22, Line 11office shall submit a report to the state treasurer and the state

• Page 22, Line 12controller summarizing the status of loans made to utilities

• Page 22, Line 13from the money loaned from the unclaimed property trust fund

• Page 22, Line 14to the on-bill cash fund created in section 24-38.5-607. The

• Page 22, Line 15annual report must include information regarding the number

• Page 22, Line 16of loans made to utilities to date and the amounts loaned to each utility to date.

• Page 22, Line 17SECTION 4.  In Colorado Revised Statutes, add 24-38.5-123 as follows:

• Page 22, Line 1824-38.5-123.  Building decarbonization enterprise - creation -

• Page 22, Line 19membership - powers and duties - building decarbonization

• Page 22, Line 20enterprise cash fund - on-bill program administration cash fund -

• Page 22, Line 21legislative declaration - definitions - rules - report - repeal.

• Page 22, Line 22(1)  Legislative declaration. (a)  The general assembly finds that:

• Page 23, Line 1(I)  Reducing greenhouse gas emissions from combustion devices in residential and commercial buildings:

• Page 23, Line 2(A)  Is necessary to help the state achieve its statewide

• Page 23, Line 3greenhouse gas emission reduction goals set forth in section

• Page 23, Line 425-7-102 (2)(g), including the goal to reach net-zero greenhouse gas emissions by 2050; and

• Page 23, Line 5(B)  Presents significant opportunities to lower and

• Page 23, Line 6stabilize energy bills, provide for more comfortable living and

• Page 23, Line 7working spaces, and reduce local air pollution that contributes to ground-level ozone;

• Page 23, Line 8(II)  Covered building owners are required to comply with

• Page 23, Line 9benchmarking requirements and performance standard

• Page 23, Line 10requirements and would benefit from additional financial and technical assistance to meet or exceed those requirements;

• Page 23, Line 11(III)  With additional financial and technical assistance,

• Page 23, Line 12covered building owners may more effectively and efficiently

• Page 23, Line 13implement building decarbonization measures, including, but not limited to, programs that:

• Page 23, Line 14(A)  Help finance energy efficiency measures, electrification measures, and other energy upgrades; and

• Page 23, Line 15(B)  Provide assistance for conducting building energy

• Page 23, Line 16audits, developing analyses to help building owners evaluate

• Page 23, Line 17the best strategies for achieving future performance standard

• Page 23, Line 18targets, employing or consulting with building engineers,

• Page 23, Line 19purchasing energy use tracking software for covered building

• Page 23, Line 20owners to more effectively track energy use, and providing

• Page 23, Line 21training on such software;

• Page 24, Line 1(IV)  Utility customers would benefit from having access

• Page 24, Line 2to significant amounts of public and private capital for

• Page 24, Line 3low-cost financing solutions for energy-related improvements, including end-of-life equipment replacement; and

• Page 24, Line 4(V)  Utilities serving Coloradans have varying levels of

• Page 24, Line 5experience, available capital, and available staff to support the establishment and administration of on-bill programs.

• Page 24, Line 6(b)  Now, therefore, the general assembly declares that:

• Page 24, Line 7(I)  It is in the best interest of covered building owners and

• Page 24, Line 8participating utilities to create an enterprise within the office

• Page 24, Line 9that is committed to financing and providing technical and

• Page 24, Line 10other support for the implementation of building

• Page 24, Line 11decarbonization measures and for the establishment of utility on-bill programs;

• Page 24, Line 12(II)  The activities of the enterprise shall be funded by

• Page 24, Line 13revenue generated from a building decarbonization fee paid by

• Page 24, Line 14covered building owners and any gifts, grants, and donations received;

• Page 24, Line 15(III)  It is appropriate that covered building owners should

• Page 24, Line 16pay a building decarbonization fee, as covered building owners

• Page 24, Line 17are the direct beneficiaries of services provided by the

• Page 24, Line 18enterprise, which services include the financing and technical

• Page 24, Line 19assistance provided for the building decarbonization measures described in subsection (1)(a)(III) of this section;

• Page 24, Line 20(IV)  Covered building owners benefit from the

• Page 24, Line 21implementation of building decarbonization measures because

• Page 24, Line 22such measures can:

• Page 25, Line 1(A)  Reduce covered building owners' long-term costs related to energy use;

• Page 25, Line 2(B)  Improve building comfort; and

• Page 25, Line 3(C)  Increase the market value and desirability of covered buildings to tenants;

• Page 25, Line 4(V)  It is in the best interest of covered building owners to

• Page 25, Line 5create a building decarbonization enterprise cash fund within

• Page 25, Line 6the building decarbonization enterprise, the use of which is

• Page 25, Line 7dedicated to financing the provision of technical support for

• Page 25, Line 8covered building owners seeking to implement energy efficiency measures and building decarbonization measures;

• Page 25, Line 9(VI)  The activities of the enterprise are funded by revenue

• Page 25, Line 10generated from an on-bill program administration fee paid by

• Page 25, Line 11participating utilities and any gifts, grants, and donations received;

• Page 25, Line 12(VII)  It is appropriate that participating utilities should

• Page 25, Line 13pay an on-bill program administration fee because participating

• Page 25, Line 14utilities are the direct beneficiaries of services that the

• Page 25, Line 15enterprise provides, which services include technical assistance

• Page 25, Line 16and other programmatic support for on-bill programs described in subsection (1)(a)(III) of this section;

• Page 25, Line 17(VIII)  Participating utilities benefit from the implementation of on-bill programs because:

• Page 25, Line 18(A)  Utility on-bill programs can reduce energy consumption and peak demand;

• Page 25, Line 19(B)  Utility customers benefit from having access to

• Page 25, Line 20significant amounts of public and private capital for low-cost

• Page 26, Line 1financing solutions for energy-related improvements, including end-of-life equipment replacement; and

• Page 26, Line 2(C)  Utility on-bill programs that allow repayments

• Page 26, Line 3through utility bill payments could expand the opportunities

• Page 26, Line 4for eligible retail utility customers to pursue energy efficiency

• Page 26, Line 5measures and electrification measures, enabling utility

• Page 26, Line 6customers to pay back the up-front costs of the upgrades and

• Page 26, Line 7measures over time through their utility bill payments at or below interest rates that may be available from other sources;

• Page 26, Line 8(IX)  It is in the best interest of participating utilities to

• Page 26, Line 9create an on-bill cash fund within the building decarbonization

• Page 26, Line 10enterprise, the use of which is dedicated to technical assistance

• Page 26, Line 11and other programmatic support for on-bill programs for participating utilities;

• Page 26, Line 12(X)  Consistent with the determination of the Colorado

• Page 26, Line 13supreme court in Nicholl v. E-470 Public Highway Authority, 896

• Page 26, Line 14P.2d 859 (Colo. 1995), that the power to impose taxes is

• Page 26, Line 15inconsistent with enterprise status under section 20 of article

• Page 26, Line 16X of the state constitution, the general assembly concludes

• Page 26, Line 17that the building decarbonization fee and the on-bill program

• Page 26, Line 18administration fee are both fees, not taxes, and the enterprise

• Page 26, Line 19operates as a business because the building decarbonization fee and on-bill program administration fee are:

• Page 26, Line 20(A)  In the case of the building decarbonization fee,

• Page 26, Line 21imposed for the specific business purposes of providing financing

• Page 26, Line 22and technical assistance to covered building owners to more

• Page 26, Line 23effectively and efficiently implement building decarbonization

• Page 27, Line 1measures, including feasibility analyses and improvements that

• Page 27, Line 2will reduce energy use and emissions, and collected at a rate

• Page 27, Line 3that is reasonably related to the overall cost of the business services being provided; and

• Page 27, Line 4(B)  In the case of the on-bill program administration fee,

• Page 27, Line 5imposed for the specific purpose of providing technical

• Page 27, Line 6assistance to a utility, as necessary that intends to establish or

• Page 27, Line 7expand on-bill programs for its eligibleretail customers and

• Page 27, Line 8collected at a rate that is reasonably related to the overall cost of the business services being provided; and

• Page 27, Line 9(XI)  So long as the enterprise qualifies as an enterprise

• Page 27, Line 10for purposes of section 20 of article X of the state constitution,

• Page 27, Line 11the revenue from the building decarbonization fee and the

• Page 27, Line 12on-bill program administration fee imposed, collected, and

• Page 27, Line 13administered by the enterprise is not state fiscal year spending,

• Page 27, Line 14as defined in section 24-77-102 (17), or state revenues, as defined

• Page 27, Line 15in section 24-77-103.6 (6)(c), and does not count against either

• Page 27, Line 16the state fiscal year spending limit imposed by section 20 of

• Page 27, Line 17article X of the state constitution or the excess state revenues cap, as defined in section 24-77-103.6 (6)(b)(I)(G).

• Page 27, Line 18(2)  Definitions.As used in this section, unless the context otherwise requires:

• Page 27, Line 19(a)  "Benchmarking requirements" means the energy

• Page 27, Line 20benchmarking requirements set forth in section 25-7-142 (3) with

• Page 27, Line 21which an owner or operator of a covered building is required to comply.

• Page 27, Line 22(b)  "Board" means the board of directors of the enterprise appointed pursuant to subsection (4)(a) of this section.

• Page 28, Line 1(c)  "Building decarbonization enterprise cash fund" or

• Page 28, Line 2"building decarbonization fund" means the building

• Page 28, Line 3decarbonization enterprise cash fund created in subsection(6)(a) of this section.

• Page 28, Line 4(d)  "Building decarbonization fee" or "fee" means the fee

• Page 28, Line 5paid by the owner of a covered building pursuant to subsection(5)(b) of this section.

• Page 28, Line 6(e)  "Covered building" has the meaning set forth in section 25-7-142 (2)(j).

• Page 28, Line 7(f)  "Covered building owner" means an "owner", as defined in section 25-7-142 (2)(r), of a covered building.

• Page 28, Line 8(g)  "Electrification" has the meaning set forth in section 24-38.5-602 (3).

• Page 28, Line 9(h)  "Energy efficiency measure" has the meaning set forth in section 24-38.5-602 (4).

• Page 28, Line 10(i)  "Energy upgrade" has the meaning set forth in section 24-38.5-602 (5).

• Page 28, Line 11(j)  "Enterprise" means the building decarbonization enterprise created in subsection (3) of this section.

• Page 28, Line 12(k)  "Inflation" means the annual percentage change in the

• Page 28, Line 13in the United States department of labor's bureau of labor

• Page 28, Line 14statistics consumer price index, or a successor index, for

• Page 28, Line 15Denver-Aurora-Lakewood for all items paid for by urban consumers.

• Page 28, Line 16(l)  "Office" means the Colorado energy office created in

• Page 28, Line 17section 24-38.5-101.

• Page 29, Line 1(m)  "On-bill cash fund" has the meaning set forth in section 24-38.5-602 (7).

• Page 29, Line 2(n)  "On-bill program" means a utility's on-bill program

• Page 29, Line 3through which energy efficiency measures, electrification

• Page 29, Line 4measures, and energy upgrades are installed at a participating

• Page 29, Line 5customer's premises, the financing of which is repaid through monthly utility bill payments.

• Page 29, Line 6(o)  "On-bill program administration cash fund" or

• Page 29, Line 7"administration fund" means the on-bill program administration cash fund created in subsection (8) of this section.

• Page 29, Line 8(p)  "On-bill program administration fee" or

• Page 29, Line 9"administration fee" means the fee paid by a utility or its

• Page 29, Line 10utility-designated administrator seeking to establish or expand its on-bill program pursuant to section 24-38.5-606.

• Page 29, Line 11(q)  "Participating utility" has the meaning set forth in section 24-38.5-602 (9).

• Page 29, Line 12(r)  "Performance standards" has the meaning set forth in section 25-7-142 (2)(s).

• Page 29, Line 13(s)  "Utility" has the meaning set forth in section 24-38.5-602 (13).

• Page 29, Line 14(3)  Enterprise created - loan from the office - repayment.

• Page 29, Line 15(a)  The building decarbonization enterprise is created in the

• Page 29, Line 16office and exercises its powers and performs its duties and

• Page 29, Line 17functions as a government-owned business in the office to

• Page 29, Line 18execute its business purposes set forth in this subsection (3). The enterprise is created for the purposes of:

• Page 29, Line 19(I)  Imposing and assessing a building decarbonization fee on owners of covered buildings;

• Page 30, Line 1(II)  Providing technical assistance, financing, and other

• Page 30, Line 2programmatic support for covered building owners' building

• Page 30, Line 3decarbonization measures, including, but not limited to,

• Page 30, Line 4conducting building energy audits, developing analyses to help

• Page 30, Line 5building owners evaluate the best strategies for achieving

• Page 30, Line 6future performance standard targets, consulting building

• Page 30, Line 7engineers, purchasing energy use tracking software, and providing training on such software;

• Page 30, Line 8(III)  Having and exercising all rights and powers

• Page 30, Line 9necessary or incidental to or implied from the specific powers and duties granted under this section;

• Page 30, Line 10(IV)  Ensuring that the building decarbonization fee paid

• Page 30, Line 11by covered building owners is used solely to support programs,

• Page 30, Line 12technical assistance, and financial assistance for the covered building owners that pay the building decarbonization fee;

• Page 30, Line 13(V)  Imposing and assessing an on-bill program

• Page 30, Line 14administration fee on utilities or utility-designated

• Page 30, Line 15administrators that seek financing from the on-bill cash fund to develop or expand their on-bill programs;

• Page 30, Line 16(VI)  Providing technical assistance and other

• Page 30, Line 17programmatic support, as necessary, to participating utilities

• Page 30, Line 18seeking to establish or expand an on-bill program. The amount

• Page 30, Line 19of technical assistance and other programmatic support

• Page 30, Line 20provided is commensurate with the amount of financial support

• Page 30, Line 21loaned to a participating utility or its utility-designated

• Page 30, Line 22administrator from the on-bill cash fund and includes:

• Page 31, Line 1(A)  Developing a full set of on-bill program models,

• Page 31, Line 2including models that are run by third-party opt-in programs that participating utilities adopt;

• Page 31, Line 3(B)  Assisting utilities in meeting reporting obligations;

• Page 31, Line 4(C)  Providing technical assistance for the implementation and administration of on-bill programs; and

• Page 31, Line 5(D)  Providing consumer education and marketing support

• Page 31, Line 6to increase customer participation in the participating utilities' on-bill programs; and

• Page 31, Line 7(VII)  Ensuring that the on-bill program administration

• Page 31, Line 8fee that a utility or its utility-designated administrator pays is

• Page 31, Line 9used solely to support on-bill program designs and technical

• Page 31, Line 10assistance for the participating utilities that pay the administration fee.

• Page 31, Line 11(b)  The board, in consultation with the office, shall administer the enterprise in accordance with this section.

• Page 31, Line 12(c) (I)  The enterprise constitutes an enterprise for

• Page 31, Line 13purposes of section 20 of article X of the state constitution so

• Page 31, Line 14long as it retains the authority to issue revenue bonds and

• Page 31, Line 15receives less than ten percent of its total revenues in grants, as

• Page 31, Line 16defined in section 24-77-102 (7), from all Colorado state and

• Page 31, Line 17local governments combined. So long as it constitutes an

• Page 31, Line 18enterprise, the enterprise is not subject to section 20 of article X of the state constitution.

• Page 31, Line 19(II)  The enterprise is authorized to issue revenue bonds for

• Page 31, Line 20the expenses of the enterprise, secured by revenue of the

• Page 31, Line 21enterprise.

• Page 32, Line 1(d) (I)  The office may transfer money from any legally

• Page 32, Line 2available source to the enterprise for the purpose of defraying

• Page 32, Line 3expenses incurred by the enterprise before it receives fee

• Page 32, Line 4revenue. The enterprise may accept and expend any money so

• Page 32, Line 5transferred, and, notwithstanding any state fiscal rule or

• Page 32, Line 6generally accepted accounting principle that could otherwise

• Page 32, Line 7be interpreted to require a contrary conclusion, such a

• Page 32, Line 8transfer is a loan from the office to the enterprise that is

• Page 32, Line 9required to be repaid and is not a grant for purposes of section

• Page 32, Line 1020 (2)(d) of article X of the state constitution or as defined in section 24-77-102 (7).

• Page 32, Line 11(II)  As the enterprise receives sufficient revenue in excess

• Page 32, Line 12of its expenses, the enterprise shall reimburse the office for the

• Page 32, Line 13principal amount of any loan made by the office, plus interest at

• Page 32, Line 14a rate agreed upon by the office and the enterprise, but not to exceed three percent.

• Page 32, Line 15(4)  Enterprise board of directors created - membership -

• Page 32, Line 16duties - repeal. (a)  The enterprise board of directors is created to

• Page 32, Line 17administer the enterprise. The board consists of the following seven members:

• Page 32, Line 18(I)  The following four members appointed by the governor and confirmed by the senate:

• Page 32, Line 19(A)  A representative of covered building owners;

• Page 32, Line 20(B)  An expert in building energy efficiency and decarbonization;

• Page 32, Line 21(C)  A local government representative with expertise in

• Page 32, Line 22planning or energy codes; and

• (D)  A utility representative;

• Page 33, Line 1(II)  The director of the office or the director's designee;

• Page 33, Line 2(III)  The executive director of the department of public

• Page 33, Line 3health and environment or the executive director's designee; and

• Page 33, Line 4(IV)  The director of the public utilities commission or the director's designee.

• Page 33, Line 5(b) (I)  The governor shall appoint initial members to the

• Page 33, Line 6board pursuant to subsection (4)(a)(I) of this section on or before September 1, 2025.

• Page 33, Line 7(II)  This subsection (4)(b) is repealed, effective July 1, 2026.

• Page 33, Line 8(c) (I)  Board members appointed pursuant to subsection

• Page 33, Line 9(4)(a)(I) of this section serve three-year terms. A board member may serve an unlimited number of terms.

• Page 33, Line 10(II)  Notwithstanding subsection (4)(c)(I) of this section,

• Page 33, Line 11the governor shall make the initial terms of two of the board

• Page 33, Line 12members who are appointed pursuant to subsection (4)(a)(I) of this section two years.

• Page 33, Line 13(d)  Board members serving pursuant to subsection (4)(a)(I)

• Page 33, Line 14of this section may receive compensation from the enterprise on

• Page 33, Line 15a per diem basis for reasonable expenses actually incurred in the performance of their duties.

• Page 33, Line 16(e) (I)  The chair and vice-chair of the board are selected

• Page 33, Line 17by the members of the board in accordance with the board's bylaws.

• Page 33, Line 18(II) (A)  The director of the office or the director's

• Page 33, Line 19designee shall call the first meeting of the board, and the board

• Page 34, Line 1shall select the chair and vice-chair at that meeting in accordance with subsection (4)(e)(I) of this section.

• Page 34, Line 2(B)  This subsection (4)(e)(II) is repealed, effective July 1, 2026.

• Page 34, Line 3(5)  Powers and dutiesof board - building decarbonization fee

• Page 34, Line 4- on-bill program administration fee - rules. (a)  In addition to any

• Page 34, Line 5other powers and duties specified in this section, the board has the following powers and duties on behalf of the enterprise:

• Page 34, Line 6(I)  To adopt procedures for conducting the board's affairs;

• Page 34, Line 7(II)  To engage the services of contractors, consultants,

• Page 34, Line 8the division of administration described in section 25-1-102 (2)(a),

• Page 34, Line 9and the staff of the office for professional and technical

• Page 34, Line 10assistance and advice and to supply other services related to

• Page 34, Line 11the conduct of the affairs of the enterprise without regard to

• Page 34, Line 12the "Procurement Code", articles 101 to 112 of title 24. The

• Page 34, Line 13enterprise shall engage the attorney general's office for legal

• Page 34, Line 14services. The enterprise may contract with the office for the

• Page 34, Line 15provision of office space and administrative staff to the enterprise at a fair market rate.

• Page 34, Line 16(III)  To establish and administer a program through which

• Page 34, Line 17owners of covered buildings may apply for, and the board may

• Page 34, Line 18review and approve applications for, financing or technical

• Page 34, Line 19assistance for building decarbonization measures, including, but

• Page 34, Line 20not limited to, participating in programs that help finance

• Page 34, Line 21energy efficiency measures, electrification measures, and other

• Page 34, Line 22energy upgrades; conducting building energy audits; employing

• Page 35, Line 1or consulting with building engineers; and purchasing energy use tracking software and providing training on such software;

• Page 35, Line 2(IV)  To impose the building decarbonization fee described in subsection (5)(b) of this section;

• Page 35, Line 3(V)  In accordance with subsection (5)(c) of this section, to

• Page 35, Line 4impose the on-bill program administration fee on utilities or

• Page 35, Line 5utility-designated administrators that seek financing from the on-bill cash fund to develop or expand their on-bill programs;

• Page 35, Line 6(VI)  To seek, accept, and expend gifts, grants, and

• Page 35, Line 7donations in support of services that the enterprise provides to

• Page 35, Line 8covered building owners for building decarbonization measures or to participating utilities for on-bill programs;

• Page 35, Line 9(VII)  To establish and administer a program through

• Page 35, Line 10which participating utilities may receive assistance for

• Page 35, Line 11establishing or expanding an on-bill program, which program includes:

• Page 35, Line 12(A)  Developing a full set of on-bill program models,

• Page 35, Line 13including models that are run by third-party opt-in on-bill programs that participating utilities adopt;

• Page 35, Line 14(B)  Assisting utilities in meeting reporting obligations set forth in section 24-38.5-603 (5)(a);

• Page 35, Line 15(C)  Providing technical assistance for the implementation and administration of on-bill programs; and

• Page 35, Line 16(D)  Providing consumer education and marketing support

• Page 35, Line 17to increase customer participation in the participating utilities' on-bill programs; and

• Page 35, Line 18(VIII)  To have and exercise all rights and powers

• Page 36, Line 1necessary or incidental to or implied from the specific powers and duties granted by this section.

• Page 36, Line 2(b) (I)  Beginning in state fiscal year 2026-27 and in

• Page 36, Line 3furtherance of the enterprise's business purposes, the board

• Page 36, Line 4shall adopt rules for the purpose of setting the amount of the

• Page 36, Line 5building decarbonization fee at the maximum amount authorized

• Page 36, Line 6in this section to be imposed upon all covered building owners;

• Page 36, Line 7except that the fee shall not be imposed on the owner of a public

• Page 36, Line 8building, as defined in section 25-7-142 (2)(t). The board shall

• Page 36, Line 9only adopt rules pursuant to this subsection (5)(b)(I) and subsection (5)(c)(I) of this section.

• Page 36, Line 10(II)  On or before November 1, 2025, and on or before

• Page 36, Line 11November 1 of each year thereafter, and except as provided in

• Page 36, Line 12subsection (5)(b)(III) of this section, each owner of a covered

• Page 36, Line 13building shall pay a building decarbonization fee in an amount

• Page 36, Line 14of four hundred dollars, which is reasonably related to the

• Page 36, Line 15overall cost of the provided services funded by the building

• Page 36, Line 16decarbonization fee. The fee shall be paid to the office, which

• Page 36, Line 17shall collect the building decarbonization fee on behalf of the enterprise.

• Page 36, Line 18(III)  Beginning in state fiscal year 2027-28, the board may

• Page 36, Line 19increase the building decarbonization fee from the previous

• Page 36, Line 20year's building decarbonization fee amount, as adjusted for

• Page 36, Line 21inflation and, on or before March 15 of each of the state fiscal

• Page 36, Line 22years thereafter, shall notify the office of the adjusted amount

• Page 36, Line 23of the building decarbonization fee, if the building

• Page 36, Line 24decarbonization fee has been adjusted. On or before April 15 of

• Page 37, Line 1each of the state fiscal years thereafter, the enterprise shall

• Page 37, Line 2publish the updated amount of the building decarbonization fee on the enterprise's website.

• Page 37, Line 3(IV)  Money collected as a building decarbonization fee

• Page 37, Line 4shall be credited to the building decarbonization enterprise cash fund.

• Page 37, Line 5(V)  Money collected by the office for transfer to the

• Page 37, Line 6building decarbonization fund pursuant to subsection (5)(b)(IV) of this section:

• Page 37, Line 7(A)  Is collected for the enterprise;

• (B)  Is collected on behalf of the enterprise;

• Page 37, Line 8(C)  Is held temporarily by the office and the state

• Page 37, Line 9treasurer solely for the purpose of transferring the money to the building decarbonization fund for use by the enterprise; and

• Page 37, Line 10(D)  Based on the enterprise's status as an enterprise, is

• Page 37, Line 11not subject to section 20 of article X of the state constitution at any time during the money's collection, transfer, and use.

• Page 37, Line 12(c) (I)  Beginning in state fiscal year 2025-26, and in

• Page 37, Line 13furtherance of the enterprise's business purposes, the board

• Page 37, Line 14shall adopt rules for the purpose of setting the amount of the

• Page 37, Line 15on-bill program administration fee at or below the maximum

• Page 37, Line 16amount authorized in this subsection (5)(c) to be imposed on

• Page 37, Line 17participating utilities.To ensure that the on-bill program

• Page 37, Line 18administration fee for each participating utility is reasonably

• Page 37, Line 19related to the services provided by the enterprise, the board

• Page 37, Line 20shall set the administration fee within the ranges specified in

• Page 37, Line 21subsection (5)(c)(II) of this section based on criteria including:

• (A)  The anticipated size of the proposed on-bill program;

• Page 38, Line 1(B)  The number and amount of services that the enterprise

• Page 38, Line 2intends to provide to participating utilities based on the size of the loan;

• Page 38, Line 3(C)  Whether the participating utility is seeking to

• Page 38, Line 4establish a new on-bill program or expand an existing on-bill program; and

• Page 38, Line 5(D)  The estimated number of customers in each rate class forecasted to participate in the on-bill program.

• Page 38, Line 6(II)  Except as provided in subsection (5)(c)(IV) of this

• Page 38, Line 7section, a participating utility shall pay the on-bill program

• Page 38, Line 8administration fee to the enterprise on or before November 1,

• Page 38, Line 92025, and on or before November 1 of each year thereafter, so

• Page 38, Line 10long as the participating utility is establishing, maintaining, or

• Page 38, Line 11expanding its on-bill program. The on-bill program

• Page 38, Line 12administration fee must be based on the amount of the money

• Page 38, Line 13loaned to the participating utility or a utility-designated administrator from the on-bill cash fund as follows:

• Page 38, Line 14(A)  If the participating utility or its utility-designated

• Page 38, Line 15administrator borrows ten million dollars or less from the

• Page 38, Line 16on-bill cash fund, the administration fee shall be imposed in an amount of up to fifty thousand dollars;

• Page 38, Line 17(B)  If the participating utility or its utility-designated

• Page 38, Line 18administrator borrows more than ten million dollars but

• Page 38, Line 19twenty million dollars or less from the on-bill cash fund, the

• Page 38, Line 20administration fee shall be imposed in an amount between fifty

• Page 38, Line 21thousand dollars and seventy-five thousand dollars;

• Page 39, Line 1(C)  If the participating utility or its utility-designated

• Page 39, Line 2administrator borrows more than twenty million dollars but

• Page 39, Line 3forty million dollars or less from the on-bill cash fund, the

• Page 39, Line 4administration fee shall be imposed in an amount between

• Page 39, Line 5seventy-five thousand dollars and one hundred thousand dollars;

• Page 39, Line 6(D)  If the participating utility or its utility-designated

• Page 39, Line 7administrator borrows more than forty million dollars but

• Page 39, Line 8sixty million dollars or less from the on-bill cash fund, the

• Page 39, Line 9administration fee shall be imposed in an amount between one hundred thousand dollars and two hundred thousand dollars;

• Page 39, Line 10(E)  If a participating utility or its utility-designated

• Page 39, Line 11administrator borrows more than sixty million dollars but

• Page 39, Line 12eighty million dollars or less from the on-bill cash fund, the

• Page 39, Line 13administration fee shall be imposed in an amount between two

• Page 39, Line 14hundred thousand dollars and three hundred thousand dollars; and

• Page 39, Line 15(F)  If a participating utility or its utility-designated

• Page 39, Line 16administrator borrows more than eighty million dollars from

• Page 39, Line 17the on-bill cash fund, the administration fee shall be imposed in

• Page 39, Line 18an amount between three hundred thousand dollars and four hundred thousand dollars.

• Page 39, Line 19(III)  The fee ranges prescribed in subsection (5)(c)(II) of

• Page 39, Line 20this section are reasonably related to the overall cost of the

• Page 39, Line 21services provided. The cost of services to fee payers that receive

• Page 39, Line 22larger loans is higher because participating utilities that

• Page 39, Line 23receive larger loans will require greater services from the

• Page 40, Line 1enterprise, including services for technical support, program

• Page 40, Line 2development, and rate impact modeling for larger and more complex on-bill programs.

• Page 40, Line 3(IV)  A participating utility or its utility-designated

• Page 40, Line 4administrator shall begin paying the applicable administration

• Page 40, Line 5fee to the enterprise on or before the first November 1 that

• Page 40, Line 6follows the utility's or its utility-designated administrator's execution of a loan agreement with the office.

• Page 40, Line 7(V)  Beginning in state fiscal year 2026-27, the board may

• Page 40, Line 8increase the administration fee from the previous year's

• Page 40, Line 9administration fee in an amount adjusted for inflation. In

• Page 40, Line 10evaluating the fee, the board may also consider whether the

• Page 40, Line 11administration fee should be based on the original loan amount

• Page 40, Line 12borrowed or on the principal held by the utility or its

• Page 40, Line 13utility-designated administrator. In making this evaluation, the

• Page 40, Line 14board shall consider the level of fee needed to administer the

• Page 40, Line 15on-bill program. On or before March 15, 2026, and on or before

• Page 40, Line 16March 15 of each year thereafter, the board shall notify the

• Page 40, Line 17office of the adjusted amount of the administration fee if the

• Page 40, Line 18administration fee has been adjusted for inflation, and, on or

• Page 40, Line 19before April 15, 2026, and on or before April 15 of each year

• Page 40, Line 20thereafter, the board shall publish the updated amount of the administration fee on the enterprise's website.

• Page 40, Line 21(VI)  Money collected as an on-bill program

• Page 40, Line 22administration fee shall be credited to the on-bill program administration cash fund.

• Page 40, Line 23(6)  Building decarbonization enterprise cash fund - creation

• Page 41, Line 1- gifts, grants, and donations - repeal. (a)  The building

• Page 41, Line 2decarbonization enterprise cash fund is created in the state treasury. The building decarbonization fund consists of:

• Page 41, Line 3(I)  Money received from a building decarbonization fee imposed pursuant to subsection (5)(b) of this section;

• Page 41, Line 4(II)  Any money that the enterprise receives as gifts,

• Page 41, Line 5grants, and donations in support of services that the enterprise

• Page 41, Line 6provides to covered building owners for building decarbonization measures;

• Page 41, Line 7(III)  Any money received from the issuance of revenue bonds, as described in subsection (3)(c)(II) of this section; and

• Page 41, Line 8(IV)  Any other money that the general assembly may appropriate or transfer to the fund.

• Page 41, Line 9(b) (I)  Section 24-77-108 does not apply to the enterprise

• Page 41, Line 10because the total amount of money credited or appropriated to

• Page 41, Line 11the building decarbonization fund and the on-bill program

• Page 41, Line 12administration cash fund as a fee shall not exceed one hundred

• Page 41, Line 13million dollars in the first five fiscal years of the enterprise's existence.

• Page 41, Line 14(II)  This subsection (6)(b) is repealed, effective July 1, 2031.

• Page 41, Line 15(c)  Money credited to the building decarbonization fund

• Page 41, Line 16is continuously appropriated to the enterprise for the purposes

• Page 41, Line 17set forth in this section and to pay the enterprise's reasonable

• Page 41, Line 18and necessary operating expenses. The state treasurer shall

• Page 41, Line 19credit all interest and income derived from the deposit and

• Page 41, Line 20investment of money in the building decarbonization fund to the

• Page 41, Line 21building decarbonization fund.

• Page 42, Line 1(d)  Any unexpended and unencumbered money remaining

• Page 42, Line 2in the building decarbonization fund at the end of a fiscal year

• Page 42, Line 3remains in the building decarbonization fund and is not credited or transferred to the general fund.

• Page 42, Line 4(7)  Legislative review of building decarbonization enterprise.

• Page 42, Line 5On or before December 1 of each year, the enterprise shall

• Page 42, Line 6submit an annual report to the general assembly detailing the

• Page 42, Line 7enterprise's expenditures and program outcomes from the

• Page 42, Line 8preceding year and the enterprise's financial projections for the following year.

• Page 42, Line 9(8)  On-bill program administration cash fund - creation -

• Page 42, Line 10gifts, grants, and donations - repeal. (a)  The on-bill program

• Page 42, Line 11administration cash fund is created in the state treasury. The administration fund consists of:

• Page 42, Line 12(I)  Money received from an on-bill program

• Page 42, Line 13administration fee imposed pursuant to subsection (5)(c) of this section;

• Page 42, Line 14(II)  Any money that the enterprise receives as gifts,

• Page 42, Line 15grants, and donations in support of services that the enterprise provides to participating utilities for on-bill programs;

• Page 42, Line 16(III)  Any money received from the issuance of revenue bonds as described in subsection (3)(c)(II) of this section; and

• Page 42, Line 17(IV)  Any other money that the general assembly may appropriate or transfer to the administration fund.

• Page 42, Line 18(b) (I)  Section 24-77-108 does not apply to the enterprise

• Page 42, Line 19because the total amount of money credited or appropriated to

• Page 42, Line 20the on-bill program administration cash fund and the building

• Page 43, Line 1decarbonization enterprise cash fund shall not exceed one

• Page 43, Line 2hundred million dollars in the first five years of the enterprise's existence.

• Page 43, Line 3(II)  This subsection (8)(b) is repealed, effective July 1, 2031.

• Page 43, Line 4(c)  Money credited to the on-bill program administration

• Page 43, Line 5cash fund is continuously appropriated to the enterprise for the

• Page 43, Line 6purposes set forth in this section and to pay the enterprise's

• Page 43, Line 7reasonable and necessary operating expenses. The state

• Page 43, Line 8treasurer shall credit all interest and income derived from the

• Page 43, Line 9deposit and investment of money in the on-bill program

• Page 43, Line 10administration cash fund to the on-bill program administration fund.

• Page 43, Line 11(d)  Any unexpended and unencumbered money remaining

• Page 43, Line 12in the on-bill program administration cash fund at the end of a

• Page 43, Line 13fiscal year remains in the on-bill program administration fund and is not credited or transferred to the general fund.

• Page 43, Line 14SECTION 5.  In Colorado Revised Statutes, add 24-36-125 as follows:

• Page 43, Line 1524-36-125.  On-bill financing tax credits - authorization to

• Page 43, Line 16issue - terms - use of tax credits - carry over - on-bill financing fund

• Page 43, Line 17- creation - definitions - repeal. (1)  Definitions.As used in this section, unless the context otherwise requires:

• Page 43, Line 18(a)  "Applicable forecast" means either the quarterly

• Page 43, Line 19December revenue forecast prepared by legislative council

• Page 43, Line 20staff or the quarterly December revenue forecast prepared by

• Page 43, Line 21the office of state planning and budgeting in the December

• Page 43, Line 22immediately preceding the applicable state fiscal year, as

• Page 44, Line 1determined by which immediately preceding March forecast the

• Page 44, Line 2joint budget committee of the general assembly used in the preparation of the state budget.

• Page 44, Line 3(b)  "Department" means the department of the treasury.

• Page 44, Line 4(c)  "Forecast" means the quarterly June revenue forecast

• Page 44, Line 5prepared by the office of state planning and budgeting in June 2025.

• Page 44, Line 6(d)  "Nonexempt revenue" means, for the applicable state

• Page 44, Line 7fiscal year, the revenue that is identified as nonexempt TABOR

• Page 44, Line 8revenues in the annual comprehensive financial report published by the office of the state controller.

• Page 44, Line 9(e)  "On-bill financing fund" means the on-bill financing fund created in subsection (7) of this section.

• Page 44, Line 10(f)  "On-bill financing tax credit" or "tax credit" means the tax credit authorized in subsection (2) of this section.

• Page 44, Line 11(g)  "Premium tax liability" means the liability imposed by

• Page 44, Line 12section 10-3-209 or 10-6-128 or, in the case of a repeal or

• Page 44, Line 13reduction by the state of the liability imposed by section

• Page 44, Line 1410-3-209 or 10-6-128, any other tax liability imposed upon an insurance company by the state.

• Page 44, Line 15(h) (I)  "Qualified taxpayer" means an insurance company

• Page 44, Line 16authorized to do business in Colorado that has premium tax

• Page 44, Line 17liability owing to the state and that purchases a tax credit under this section.

• Page 44, Line 18(II)  "Qualified taxpayer" includes an insurance company that receives or assumes a tax credit transfer.

• Page 44, Line 19(i)  "Ref C cap" means the limit on state fiscal year

• Page 45, Line 1spending from section 20 of article X of the state constitution, as modified by Referendum C.

• Page 45, Line 2(j)  "TABOR" means section 20 of article X of the state constitution.

• Page 45, Line 3(k)  "Tax credit sale proceeds" or "sale proceeds" means

• Page 45, Line 4the money or other liquid asset acceptable to the state

• Page 45, Line 5treasurer that a qualified taxpayer pays to the department that is deposited in the on-bill financing fund.

• Page 45, Line 6(2)  On-bill financing tax credits. (a)  Subject to subsections

• Page 45, Line 7(2)(b) and (2)(c) of this section, a qualified taxpayer may

• Page 45, Line 8purchase on-bill financing tax credits from the department in

• Page 45, Line 9accordance with this section and may apply the tax credits

• Page 45, Line 10against the qualified taxpayer's premium tax liability in accordance with subsection (6) of this section.

• Page 45, Line 11(b)  If the forecast shows that the state's nonexempt

• Page 45, Line 12revenue for the 2025-26 state fiscal year is at least fifty million dollars under the ref C cap:

• Page 45, Line 13(I)  The department is required to issue tax credit

• Page 45, Line 14certificates to qualified taxpayers with total sale proceeds of

• Page 45, Line 15at least twenty-five million dollars in state fiscal year 2025-26; and

• Page 45, Line 16(II)  The tax credit sale proceeds deposited into the on-bill

• Page 45, Line 17financing fund pursuant to subsection (5) of this section shall be

• Page 45, Line 18used to finance utilities' on-bill programs pursuant to part 6 of article 38.5 of this title 24.

• Page 45, Line 19(c)  If the applicable forecast shows that the state's

• Page 45, Line 20nonexempt revenue for the 2026-27 state fiscal year is at least fifty million dollars under the ref C cap:

• Page 46, Line 1(I)  The department is required to issue tax credit

• Page 46, Line 2certificates to qualified taxpayers with total sale proceeds of

• Page 46, Line 3at least twenty-five million dollars in state fiscal year 2026-27; and

• Page 46, Line 4(II)  The tax credit sale proceeds deposited into the on-bill

• Page 46, Line 5financing fund pursuant to subsection (5) of this section shall be

• Page 46, Line 6used to finance utilities' on-bill programs pursuant to part 6 of article 38.5 of this title 24.

• Page 46, Line 7(d)  The department may contract with an independent

• Page 46, Line 8third party to conduct or consult on a bidding process among qualified taxpayers to purchase the tax credits.

• Page 46, Line 9(e)  The department shall consult with insurance

• Page 46, Line 10companies in advance of issuing any tax credits in accordance with this section.

• Page 46, Line 11(f)  An insurance company authorized to do business in

• Page 46, Line 12Colorado seeking to purchase tax credits must apply to the department in the manner prescribed by the department.

• Page 46, Line 13(3)  Procedure for obtaining a tax credit certificate. (a)  Using

• Page 46, Line 14procedures adopted by the department or, if applicable, by an

• Page 46, Line 15independent third party, each insurance company that submits

• Page 46, Line 16an application for on-bill financing tax credits shall make a

• Page 46, Line 17timely and irrevocable offer, contingent only upon the

• Page 46, Line 18department's issuance to the insurance company of the tax

• Page 46, Line 19credit certificates, to make a specified purchase payment amount to the department on dates specified by the department.

• Page 46, Line 20(b)  The offer must include all of the following:

• Page 47, Line 1(I)  The requested amount of tax credits, which amount

• Page 47, Line 2must not be less than any minimum amount established in the

• Page 47, Line 3department's procedures or, if applicable, the independent third party's procedures;

• Page 47, Line 4(II)  The qualified taxpayer's proposed tax credit purchase amount for each tax credit dollar requested;

• Page 47, Line 5(III)  The minimum proposed tax credit purchase amount must be either:

• Page 47, Line 6(A)  The percentage of the requested dollar amount of tax

• Page 47, Line 7credits that the department or, if applicable, the independent

• Page 47, Line 8third party determines to be consistent with market conditions as of the offer date; or

• Page 47, Line 9(B)  If no amount is established by the department or the

• Page 47, Line 10independent third party pursuant to subsection (3)(b)(III)(A) of

• Page 47, Line 11this section, seventy-five percent of the requested dollar amount of tax credits; and

• Page 47, Line 12(IV)  Any other information that the department or, if applicable, the independent third party requires.

• Page 47, Line 13(c)  The department shall provide written notice to each

• Page 47, Line 14insurance company that submits an application indicating

• Page 47, Line 15whether the insurance company has been approved as a

• Page 47, Line 16purchaser of tax credits and, if so, the amount of tax credits

• Page 47, Line 17allocated and the date by which payment of the tax credit sale proceeds must be made.

• Page 47, Line 18(d)  On receipt of payment of the sale proceeds, the

• Page 47, Line 19department shall issue to each qualified taxpayer a tax credit

• Page 47, Line 20certificate. The tax credit certificate must state all of the following:

• Page 48, Line 1(I)  The total amount of premium tax credits that the qualified taxpayer may claim;

• Page 48, Line 2(II)  The amount that the qualified taxpayer has paid or

• Page 48, Line 3agreed to pay in return for the issuance of the tax credit certificates and the date of the payment;

• Page 48, Line 4(III)  The dates on which the tax credits will be available for use by the qualified taxpayer;

• Page 48, Line 5(IV)  Any penalties or other remedies for noncompliance;

• Page 48, Line 6(V)  The procedures to be used for transferring or

• Page 48, Line 7assuming the tax credits in accordance with subsection (6)(d) of this section;

• Page 48, Line 8(VI)  The serial number of the tax credit certificate; and

• Page 48, Line 9(VII)  Any other requirements deemed necessary by the department as a condition of issuing the tax credit certificate.

• Page 48, Line 10(4)  Defaulted tax credits - reallocation process - penalty.

• Page 48, Line 11(a)  The department shall not issue a tax credit certificate to a

• Page 48, Line 12qualified taxpayer that fails to provide the tax credit sale proceeds within the time the department specifies.

• Page 48, Line 13(b)  A qualified taxpayer that fails to provide the tax

• Page 48, Line 14credit sale proceeds within the time the department specifies is

• Page 48, Line 15subject to a penalty equal to ten percent of the amount of the

• Page 48, Line 16purchase price that remains unpaid. The penalty shall be paid to the department within thirty days after demand.

• Page 48, Line 17(c)  The department may offer to reallocate the defaulted

• Page 48, Line 18tax credits among other qualified taxpayers so that the result

• Page 48, Line 19after reallocation is the same as if the initial allocation had

• Page 49, Line 1been performed without considering the tax credit allocation to the defaulting qualified taxpayer.

• Page 49, Line 2(d)  If the reallocation of tax credits under subsection

• Page 49, Line 3(4)(c) of this section results in the payment by another qualified

• Page 49, Line 4taxpayer of the amount of tax credit sale proceeds not paid by

• Page 49, Line 5the defaulting qualified taxpayer, the department may waive the penalty imposed under subsection (4)(b) of this section.

• Page 49, Line 6(e)  A qualified taxpayer that fails to pay the tax credit

• Page 49, Line 7sale proceeds within the time specified may avoid the imposition

• Page 49, Line 8of the penalty by transferring the allocation of tax credits to

• Page 49, Line 9a new or existing qualified taxpayer within thirty days after the

• Page 49, Line 10due date of the defaulted installment. A transferee of an

• Page 49, Line 11allocation of tax credits of a defaulting qualified taxpayer

• Page 49, Line 12under this subsection (4) shall agree to pay tax credit sale proceeds within five days after the date of the transfer.

• Page 49, Line 13(5)  Deposit of tax credit sale proceeds into fund.The state

• Page 49, Line 14treasurer shall deposit the tax credit sale proceeds provided by

• Page 49, Line 15a qualifying taxpayer in return for a tax credit certificate into the on-bill financing fund.

• Page 49, Line 16(6)  Process for claiming tax credits - carry over authorized -

• Page 49, Line 17tax credits are nonrefundable - transfer and assumption of tax credit.

• Page 49, Line 18(a) (I)  For a tax credit certificate that the department issues in

• Page 49, Line 19state fiscal year 2025-26, the department, in consultation with

• Page 49, Line 20the office of state planning and budgeting, prior to the sale, may

• Page 49, Line 21determine the calendar years in which the qualified taxpayer may claim their credit against premium tax liability.

• Page 49, Line 22(II)  For a tax credit certificate that the department

• Page 50, Line 1issues in state fiscal year 2026-27, the department, in

• Page 50, Line 2consultation with the office of state planning and budgeting,

• Page 50, Line 3prior to the sale, may determine the calendar years in which the

• Page 50, Line 4qualified taxpayer may claim their credit against premium tax liability.

• Page 50, Line 5(b)  The total credit that a qualified taxpayer may apply

• Page 50, Line 6in any one year must not exceed the premium tax liability of the

• Page 50, Line 7qualified taxpayer for the taxable year. If the qualified

• Page 50, Line 8taxpayer cannot use the entire amount of the tax credit for the

• Page 50, Line 9taxable year in which the taxpayer is eligible for the tax credit,

• Page 50, Line 10the excess may be carried over to succeeding taxable years and

• Page 50, Line 11used as a credit against the premium tax liability of the

• Page 50, Line 12taxpayer for those taxable years; except that the credit shall

• Page 50, Line 13not be carried over to any taxable year that begins after

• Page 50, Line 14December 31, 2035. Any amount of the tax credit that is not timely claimed expires and is not refundable.

• Page 50, Line 15(c)  A qualified taxpayer claiming a tax credit under this section shall:

• Page 50, Line 16(I)  Submit the tax credit certificate issued with the qualified taxpayer's tax return; and

• Page 50, Line 17(II)  Not be required to pay any additional or retaliatory tax as a result of claiming the tax credit.

• Page 50, Line 18(d) (I)  If a qualified taxpayer holding an unclaimed tax

• Page 50, Line 19credit is part of a merger, acquisition, or line of business

• Page 50, Line 20divestiture transaction, the tax credit may be transferred to

• Page 50, Line 21and assumed by the resulting entity if the resulting entity is an

• Page 50, Line 22insurance company authorized to do business in Colorado and has premium tax liability.

• Page 51, Line 1(II)  The qualified taxpayer that originally purchased the

• Page 51, Line 2tax credit and the resulting entity shall notify the department

• Page 51, Line 3in writing of the transfer or assumption of the tax credit in

• Page 51, Line 4accordance with procedures adopted by the department. The

• Page 51, Line 5department shall provide a copy of the notice to the division of

• Page 51, Line 6insurance in the department of regulatory agencies and shall

• Page 51, Line 7maintain a record of the transfer or assumption of the tax

• Page 51, Line 8credit. The transfer or assumption of the tax credit does not

• Page 51, Line 9affect the time schedule for claiming the tax credit as provided in this section.

• Page 51, Line 10(7)  On-bill financing fund - creation.The on-bill financing

• Page 51, Line 11fund is created in the state treasury. The fund consists of tax

• Page 51, Line 12credit sale proceeds received from qualified taxpayers and

• Page 51, Line 13deposited into the fund pursuant to subsection (5) of this section.

• Page 51, Line 14The state treasurer shall credit all interest and income derived

• Page 51, Line 15from the deposit and investment of money in the on-bill finance fund to the fund.

• Page 51, Line 16(8)  Repeal.This section is repealed, effective July 1, 2038.

• Page 51, Line 17SECTION 6.  In Colorado Revised Statutes, 24-75-402, amend (5)(jjj) and (5)(kkk); and add (5)(lll) as follows:

• Page 51, Line 1824-75-402.  Cash funds - limit on uncommitted reserves -

• Page 51, Line 19reduction in the amount of fees - exclusions - definitions.

• Page 51, Line 20(5)  Notwithstanding any provision of this section to the contrary, the

• Page 51, Line 21following cash funds are excluded from the limitations specified in this section:

• Page 51, Line 22(jjj)  The employee ownership cash fund created in section 39-22-542.5 (8); and

• Page 52, Line 1(kkk)  The community revitalization tax credit program cash fund created in section 39-22-569 (13); and

• Page 52, Line 2(lll)  The on-bill financing fund created in section 24-36-125 (7).

• Page 52, Line 3SECTION 7.  Effective date. This act takes effect upon passage;

• Page 52, Line 4except that section 5 of this act takes effect only if House Bill 25-1269

• Page 52, Line 5becomes law, in which case section 5 takes effect upon the effective date of this act or House Bill 25-1269, whichever is later.

• Page 52, Line 6SECTION 8.  Safety clause. The general assembly finds,

• Page 52, Line 7determines, and declares that this act is necessary for the immediate

• Page 52, Line 8preservation of the public peace, health, or safety or for appropriations for

• Page 52, Line 9the support and maintenance of the departments of the state and state institutions.