House Committee of Reference Report
Committee on Finance
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April 7, 2025
After consideration on the merits, the Committee recommends the following:
HB25-1268 be amended as follows, and as so amended, be referred to the Committee on Appropriations with favorable recommendation:
Page 1, Line 1Amend the Energy and Environment Committee Report, dated March 20,
Page 1, Line 22025, page 1, after line 13 insert:
Page 1, Line 3"(a) Utilities benefit from utility on-bill programs
Page 1, Line 4because the programs can reduce energy consumption and peak
Page 1, Line 5demand;".
Page 1, Line 6Reletter succeeding paragraphs accordingly.
Page 1, Line 7Page 2, strike lines 38 and 39 and substitute:
Page 1, Line 8"(b) Upgrade other electrical equipment that enables the
Page 1, Line 9installation of energy storage, including installation of a
Page 1, Line 10subpanel, critical load panel, backup switch, gateway, or other
Page 1, Line 11equipment; or".
Page 1, Line 12Page 3, lines 8 and 9, strike "are associated with the utility meter
Page 1, Line 13and".
Page 1, Line 14Page 3, strike lines 12 through 14 and substitute "money through the
Page 1, Line 15program, either directly or by electing to have its
Page 1, Line 16utility-designated administrator receive money; through a loan
Page 1, Line 17from the office; or through participation in a program
Page 1, Line 18administered by the program administrator in which the
Page 1, Line 19program administrator receives money from the office to
Page 1, Line 20manage a utility on-bill program for the utility.".
Page 1, Line 21Page 4, line 1, after "(2)" insert "(a)".
Page 2, Line 1Page 4, strike lines 2 and 3 and substitute "participating utility or the
Page 2, Line 2program administrator, money provided to the utility or its
Page 2, Line 3utility-designated administrator".
Page 2, Line 4Page 4, after line 8 insert:
Page 2, Line 5"(b) In an agreement entered into pursuant to this
Page 2, Line 6subsection (2), the agreement must include requirements that,
Page 2, Line 7no later than three years after money is loaned to the
Page 2, Line 8participating utility or program administrator, the
Page 2, Line 9participating utility or program administrator shall begin
Page 2, Line 10making annual payments of the principal and interest of the
Page 2, Line 11amount loaned at the interest rate specified in subsection (2)(c)
Page 2, Line 12of this section, which money the state treasurer shall credit
Page 2, Line 13directly to the unclaimed property trust fund. An agreement
Page 2, Line 14entered into pursuant to this subsection (2) must require that
Page 2, Line 15the loan is amortized over a maximum of twenty years.
Page 2, Line 16(c) A loan made to a participating utility from the on-bill
Page 2, Line 17cash fund must include an interest rate of one percent, and
Page 2, Line 18interest payments must be credited to the unclaimed property
Page 2, Line 19trust fund.".
Page 2, Line 20Page 4, line 17, strike "participants." and substitute "participants and
Page 2, Line 21nonparticipants.".
Page 2, Line 22Page 4, strike lines 35 through 38 and substitute "recover program
Page 2, Line 23administration costs; and".
Page 2, Line 24Renumber succeeding subparagraph accordingly.
Page 2, Line 25Page 4, strike lines 41 through 43.
Page 2, Line 26Page 5, strike lines 1 through 6 and substitute "subject to a utility's
Page 2, Line 27on-bill program, including a requirement that a property owner
Page 2, Line 28that is a".
Page 2, Line 29Page 5, line 10, strike "obligation." and substitute "obligation, prior
Page 2, Line 30to the execution of a lease.".
Page 2, Line 31Page 5, after line 10 insert:
Page 2, Line 32"(c) For contracts with a regulated utility or the
Page 2, Line 33regulated utility's utility-designated administrator, the final
Page 3, Line 1contract must conform with any final approval from the
Page 3, Line 2commission.
Page 3, Line 3(d) A participating utility or its utility-designated
Page 3, Line 4administrator shall be responsible for repaying the amount of
Page 3, Line 5funding provided from the on-bill cash fund to the utility or its
Page 3, Line 6utility-designated administrator.
Page 3, Line 7(e) In developing guidance on program requirements
Page 3, Line 8pursuant to this subsection (3), the office shall create as much
Page 3, Line 9standardization as possible among newly proposed and already
Page 3, Line 10existing tariffed on-bill programs, with a particular focus on
Page 3, Line 11easing the burden of participation by contractors working
Page 3, Line 12across multiple utility territories.
Page 3, Line 13(4) When contracting with a participating utility or
Page 3, Line 14program administrator regarding an on-bill program
Page 3, Line 15established after July 1, 2025, the office shall structure the
Page 3, Line 16contract as a tariffed on-bill program.".
Page 3, Line 17Renumber succeeding subsections accordingly.
Page 3, Line 18Page 5, line 38, strike "minimize" and substitute "manage".
Page 3, Line 19Page 5, line 43, strike "utility," and substitute "utility or its
Page 3, Line 20utility-designated administrator,".
Page 3, Line 21Page 6, line 22, strike "(5)(a)" and substitute "(6)(a)".
Page 3, Line 22Page 7, line 2, strike "possible" and substitute "reasonable".
Page 3, Line 23Page 7, line 20, strike "rates possible" and substitute "reasonable
Page 3, Line 24rates".
Page 3, Line 25Page 7, strike lines 25 through 43.
Page 3, Line 26Strike page 8.
Page 3, Line 27Page 9, strike lines 1 through 14 and substitute "required - utility's
Page 3, Line 28obligation - program administrator's obligation. (1) The office
Page 3, Line 29shall include a requirement in any contract entered into with
Page 3, Line 30a participating utility or program administrator regarding the
Page 3, Line 31use of money from the on-bill cash fund that the utility or
Page 3, Line 32program administrator that receives financing from the on-bill
Page 3, Line 33cash fund shall either directly or through a utility-designated
Page 3, Line 34administrator record a notice with the county clerk and
Page 4, Line 1recorder for inclusion in the public records of the county in
Page 4, Line 2which a program participant's property is located against the
Page 4, Line 3real property title as follows:
Page 4, Line 4(a) Where the financing is attached to the meter, the
Page 4, Line 5office shall establish a requirement that the participating
Page 4, Line 6utility or program administrator, within thirty days after the
Page 4, Line 7provision of financing to a program participant, shall record a
Page 4, Line 8notice of the on-bill repayment obligation, which notice must
Page 4, Line 9include a legal description of the real property subject to the
Page 4, Line 10financing that is attached to the meter, the name and address of
Page 4, Line 11the utility customer, the principal amount financed, and the
Page 4, Line 12terms of repayment. The office shall also establish a
Page 4, Line 13requirement that the participating utility or program
Page 4, Line 14administrator, within thirty days after the financing has been
Page 4, Line 15completely repaid, shall file a notice with the county clerk and
Page 4, Line 16recorder for inclusion in the public records of the county in
Page 4, Line 17which the property is located indicating that the financing
Page 4, Line 18repayment is complete and that there are no further financial
Page 4, Line 19obligations.
Page 4, Line 20(b) Where the financing is a loan to the property owner,
Page 4, Line 21the participating utility or program administrator, within
Page 4, Line 22thirty days after the provision of financing to a program
Page 4, Line 23participant, shall record a lien that must include the legal
Page 4, Line 24description of the real property subject to the loan in the public
Page 4, Line 25records of the county in which the property is located. The lien
Page 4, Line 26does not establish a right to foreclose on the property. There
Page 4, Line 27shall be a requirement that the loan be paid off at the point of
Page 4, Line 28sale of the real property subject to the loan. Within thirty days
Page 4, Line 29after the loan has been completely repaid, the participating
Page 4, Line 30utility or program administrator shall file to remove the lien.
Page 4, Line 31This subsection (1)(b) does not apply if a loan is structured as an
Page 4, Line 32unsecured loan to an individual customer, which unsecured
Page 4, Line 33loan creates no recourse against the property, subsequent
Page 4, Line 34property owners, or a future utility customer located at the
Page 4, Line 35property.
Page 4, Line 36(2) At the point of sale of the real property subject to a
Page 4, Line 37loan, if the property value is less than the remaining repayment
Page 4, Line 38obligation on the loan, there may be a requirement that the
Page 4, Line 39loan be paid off at that time.
Page 4, Line 40(3) A county clerk and recorder shall record a notice
Page 4, Line 41filed pursuant to this section in a manner that will appear in a
Page 4, Line 42title search of the property.".
Page 4, Line 43
Page 5, Line 1Page 10, strike lines 11 through 28.
Page 5, Line 2Renumber succeeding sections accordingly.
Page 5, Line 3Page 11, strike lines 7 and 8 and substitute "utility's use of the
Page 5, Line 4funding would not be in the public interest.
Page 5, Line 5(III) If the utility proposes to use funding from the on-bill
Page 5, Line 6cash fund, the utility may propose to use the funding by
Page 5, Line 7receiving funding directly from the office, electing to have a
Page 5, Line 8utility-designated administrator receive funding from the
Page 5, Line 9office, or by participating in a program administered by the
Page 5, Line 10program administrator.".
Page 5, Line 11Page 11, after line 18 insert:
Page 5, Line 12"(III) Describe how the utility proposes to treat situations
Page 5, Line 13involving insufficient repayment by participating customers;".
Page 5, Line 14Renumber succeeding subparagraphs accordingly.
Page 5, Line 15Page 11, line 21, strike "will" and substitute "may".
Page 5, Line 16Page 11, strike lines 29 through 35 and substitute:
Page 5, Line 17"(3) A utility with more than five hundred thousand
Page 5, Line 18customers in the state may recover all on-bill program costs in
Page 5, Line 19accordance with part 6 of article 38.5 of title 24. A utility shall
Page 5, Line 20recover administrative costs through base rates or an
Page 5, Line 21applicable rider but not through the interest rate established
Page 5, Line 22for money made available through the on-bill program. A
Page 5, Line 23utility shall recover its actual administrative costs associated
Page 5, Line 24with its on-bill program as approved by the commission. A utility
Page 5, Line 25may recover an on-bill program administration fee, as defined
Page 5, Line 26in section 24-38.5-123 (2)(p), and costs associated with managing
Page 5, Line 27the risk of nonpayment by participants through base rates, an
Page 5, Line 28applicable rider, or the rate established for money made
Page 5, Line 29available through the on-bill program, as approved by the
Page 5, Line 30commission. A utility may propose or may maintain a".
Page 5, Line 31Page 11, line 39, strike "April" and substitute "June".
Page 5, Line 32Page 12, line 17, strike "(3.3)" and substitute "(1)(e) and (3.3)".
Page 5, Line 33
Page 6, Line 1Page 12, line 19, after "rules -" insert "reports -".
Page 6, Line 2Page 12, after line 25 insert:
Page 6, Line 3"(e) If claims made pursuant to this article 13 exceed the
Page 6, Line 4balance in the unclaimed property trust fund, the excess
Page 6, Line 5amount shall be paid out of the general fund.".
Page 6, Line 6Page 12, strike lines 26 through 35 and substitute:
Page 6, Line 7"(3.3) (a) On July 1, 2025, the state treasurer shall make
Page 6, Line 8an".
Page 6, Line 9Reletter succeeding subparagraph accordingly.
Page 6, Line 10Page 12, line 36, strike "one hundred" and substitute "five".
Page 6, Line 11Page 12, strike line 38 and substitute "created in section 24-38.5-607;
Page 6, Line 12except that, if the condition described in section 24-36-125 (2)(b)
Page 6, Line 13occurs, the state treasurer shall not make the loan described
Page 6, Line 14in this subsection (3.3)(a). If the condition described in section
Page 6, Line 1524-36-125 (2)(b) occurs, the state treasurer shall transfer
Page 6, Line 16twenty-five million dollars from the on-bill financing fund
Page 6, Line 17created in section 24-36-125 (7) to the on-bill cash fund created
Page 6, Line 18in section 24-38.5-607 once the money in the on-bill financing
Page 6, Line 19fund reaches twenty-five million dollars. The Colorado energy
Page 6, Line 20office shall:".
Page 6, Line 21Page 12, strike line 40 and substitute "described in section
Page 6, Line 2224-38.5-603;
Page 6, Line 23(II) Enter into contracts that authorize participating
Page 6, Line 24utilities and third-party program administrators, as those terms
Page 6, Line 25are defined in section 24-38.5-602, to remit any interest directly
Page 6, Line 26to the unclaimed property trust fund; and".
Page 6, Line 27Renumber succeeding subparagraph accordingly.
Page 6, Line 28Page 13, strike lines 4 and 5 and substitute:
Page 6, Line 29"(b) If the loan described in subsection (3.3)(a) of this
Page 6, Line 30section is made on July 1, 2025, then, on March 1, 2026, the state
Page 6, Line 31treasurer shall make an additional interest-free loan in the
Page 6, Line 32amount of twenty million dollars from the unclaimed property
Page 7, Line 1trust fund to the on-bill cash fund created in section
Page 7, Line 224-38.5-607. The Colorado energy office shall:
Page 7, Line 3(I) Use the loan to support utility on-bill programs, as
Page 7, Line 4described in section 24-38.5-603; and
Page 7, Line 5(II) Pay the loan back to the unclaimed property trust
Page 7, Line 6fund by January 1, 2046. The loan repayment is subject to future
Page 7, Line 7appropriation by the general assembly and shall not be deemed
Page 7, Line 8or construed as creating indebtedness of the state within the
Page 7, Line 9meaning of the state constitution or the law of the state
Page 7, Line 10concerning limiting the creation of indebtedness by the state.
Page 7, Line 11(c) On July 1, 2026, the state treasurer shall make an
Page 7, Line 12interest-free loan in the amount of twenty-five million dollars
Page 7, Line 13from the unclaimed property trust fund to the on-bill cash fund
Page 7, Line 14created in section 24-38.5-607; except that, if the condition
Page 7, Line 15described in section 24-36-125 (2)(c) occurs, the state treasurer
Page 7, Line 16shall not make the loan described in this subsection (3.3)(c). If
Page 7, Line 17the condition described in section 24-36-125 (2)(c) occurs, the
Page 7, Line 18state treasurer shall transfer twenty-five million dollars
Page 7, Line 19from the on-bill financing fund created in section 24-36-125 (7)
Page 7, Line 20to the on-bill cash fund created in section 24-38.5-607 once the
Page 7, Line 21money in the on-bill financing fund reaches twenty-five million
Page 7, Line 22dollars. The Colorado energy office shall:
Page 7, Line 23(I) Use the loan to support utility on-bill programs, as
Page 7, Line 24described in section 24-38.5-603; and
Page 7, Line 25(II) Pay the loan back to the unclaimed property trust
Page 7, Line 26fund by January 1, 2046. The loan repayment is subject to future
Page 7, Line 27appropriation by the general assembly and shall not be deemed
Page 7, Line 28or construed as creating indebtedness of the state within the
Page 7, Line 29meaning of the state constitution or the law of the state
Page 7, Line 30concerning limiting the creation of indebtedness by the state.
Page 7, Line 31(d) On or before December 31, 2025, and on or before
Page 7, Line 32December 31 of each year thereafter, the Colorado energy
Page 7, Line 33office shall submit a report to the state treasurer and the state
Page 7, Line 34controller summarizing the status of loans made to utilities
Page 7, Line 35from the money loaned from the unclaimed property trust fund
Page 7, Line 36to the on-bill cash fund created in section 24-38.5-607. The
Page 7, Line 37annual report must include information regarding the number
Page 7, Line 38of loans made to utilities to date and the amounts loaned to
Page 7, Line 39each utility to date.".
Page 7, Line 40Page 13, line 27, strike "financing" and substitute "financial".
Page 7, Line 41Page 14, line 5, strike "public interest" and substitute "best interest
Page 8, Line 1of covered building owners and participating utilities".
Page 8, Line 2Page 14, strike lines 28 through 33 and substitute:
Page 8, Line 3"(V) It is in the best interest of covered building owners
Page 8, Line 4to create a building decarbonization enterprise cash fund within
Page 8, Line 5the building decarbonization enterprise, the use of which is
Page 8, Line 6dedicated to financing the provision of technical support for
Page 8, Line 7covered building owners seeking to implement energy efficiency
Page 8, Line 8measures and building decarbonization measures;
Page 8, Line 9(VI) The activities of the enterprise are funded by revenue
Page 8, Line 10generated from an on-bill program administration fee paid by
Page 8, Line 11participating utilities and any gifts, grants, and donations
Page 8, Line 12received;
Page 8, Line 13(VII) It is appropriate that participating utilities should
Page 8, Line 14pay an on-bill program administration fee because participating
Page 8, Line 15utilities are the direct beneficiaries of services that the
Page 8, Line 16enterprise provides, which services include technical assistance
Page 8, Line 17and other programmatic support for on-bill programs described
Page 8, Line 18in subsection (1)(a)(III) of this section;
Page 8, Line 19(VIII) Participating utilities benefit from the
Page 8, Line 20implementation of on-bill programs because:
Page 8, Line 21(A) Utility on-bill programs can reduce energy
Page 8, Line 22consumption and peak demand;
Page 8, Line 23(B) Utility customers benefit from having access to
Page 8, Line 24significant amounts of public and private capital for low-cost
Page 8, Line 25financing solutions for energy-related improvements, including
Page 8, Line 26end-of-life equipment replacement; and
Page 8, Line 27(C) Utility on-bill programs that allow repayments
Page 8, Line 28through utility bill payments could expand the opportunities
Page 8, Line 29for eligible retail utility customers to pursue energy efficiency
Page 8, Line 30measures and electrification measures, enabling utility
Page 8, Line 31customers to pay back the up-front costs of the upgrades and
Page 8, Line 32measures over time through their utility bill payments at or
Page 8, Line 33below interest rates that may be available from other sources;
Page 8, Line 34(IX) It is in the best interest of participating utilities to
Page 8, Line 35create an on-bill cash fund within the building decarbonization
Page 8, Line 36enterprise, the use of which is dedicated to technical assistance
Page 8, Line 37and other programmatic support for on-bill programs for
Page 8, Line 38participating utilities;".
Page 8, Line 39Renumber succeeding subparagraphs accordingly.
Page 8, Line 40
Page 9, Line 1Page 14, line 39, strike "is a fee, not a tax," and substitute "and the
Page 9, Line 2on-bill program administration fee are both fees, not taxes,".
Page 9, Line 3Page 15, line 9, strike "utility" and substitute "utility, as necessary".
Page 9, Line 4Page 15, line 10, strike "retail customers;" and substitute "eligible
Page 9, Line 5retail customers and collected at a rate that is reasonably
Page 9, Line 6related to the overall cost of the business services being
Page 9, Line 7provided;".
Page 9, Line 8Page 16, line 16, before "installed" insert "are".
Page 9, Line 9Page 16, strike lines 17 and 18 and substitute "customer's premises, the
Page 9, Line 10financing of which is repaid through monthly".
Page 9, Line 11Page 17, line 17, strike "support" and substitute "support, as
Page 9, Line 12necessary,".
Page 9, Line 13Page 17, strike line 26.
Page 9, Line 14Page 17, after line 28 insert:
Page 9, Line 15"(D) Providing consumer education and marketing support
Page 9, Line 16to increase customer participation in the participating utilities'
Page 9, Line 17on-bill programs; and".
Page 9, Line 18Page 17, strike line 31 and substitute "designs and technical
Page 9, Line 19assistance for the".
Page 9, Line 20Page 18, line 17, strike "enterprise." and substitute "enterprise, but
Page 9, Line 21not to exceed three percent.".
Page 9, Line 22Page 19, line 17, after "duties" insert "of board".
Page 9, Line 23Page 20, after line 4 insert:
Page 9, Line 24"(VI) To seek, accept, and expend gifts, grants, and
Page 9, Line 25donations in support of services that the enterprise provides to
Page 9, Line 26covered building owners for building decarbonization measures
Page 9, Line 27or to participating utilities for on-bill programs;".
Page 9, Line 28Renumber succeeding subparagraphs accordingly.
Page 9, Line 29
Page 10, Line 1Page 20, strike lines 7 through 10 and substitute "expanding an on-bill
Page 10, Line 2program, which program includes:
Page 10, Line 3(A) Developing a full set of on-bill program models,
Page 10, Line 4including models that are run by third-party opt-in on-bill
Page 10, Line 5programs that participating utilities adopt;
Page 10, Line 6(B) Assisting utilities in meeting reporting obligations set
Page 10, Line 7forth in section 24-38.5-603 (5)(a);
Page 10, Line 8(C) Providing technical assistance for the implementation
Page 10, Line 9and administration of on-bill programs; and
Page 10, Line 10(D) Providing consumer education and marketing support
Page 10, Line 11to increase customer participation in the participating utilities'
Page 10, Line 12on-bill programs; and".
Page 10, Line 13Page 20, line 27, strike "dollars" and substitute "dollars, which is
Page 10, Line 14reasonably related to the overall cost of the provided services
Page 10, Line 15funded by the building decarbonization fee. The fee shall be
Page 10, Line 16paid".
Page 10, Line 17Page 20, line 36, strike "office" and substitute "enterprise".
Page 10, Line 18Page 21, strike lines 3 and 4 and substitute:
Page 10, Line 19"(B) Is collected on behalf of the enterprise;
Page 10, Line 20(C) Is held temporarily by the office and the state
Page 10, Line 21treasurer solely".
Page 10, Line 22Reletter succeeding sub-subparagraph accordingly.
Page 10, Line 23Page 21, line 15, after the period add "To ensure that the on-bill
Page 10, Line 24program administration fee for each participating utility is
Page 10, Line 25reasonably related to the services provided by the enterprise,
Page 10, Line 26the board shall set the administration fee within the ranges
Page 10, Line 27specified in subsection (5)(c)(II) of this section based on criteria
Page 10, Line 28including:
Page 10, Line 29(A) The anticipated size of the proposed on-bill program;
Page 10, Line 30(B) The number and amount of services that the enterprise
Page 10, Line 31intends to provide to participating utilities based on the size of
Page 10, Line 32the loan;
Page 10, Line 33(C) Whether the participating utility is seeking to
Page 10, Line 34establish a new on-bill program or expand an existing on-bill
Page 10, Line 35program; and
Page 10, Line 36(D) The estimated number of customers in each rate class
Page 10, Line 37forecasted to participate in the on-bill program.".
Page 11, Line 1Page 21, line 16, strike "(5)(c)(III)" and substitute "(5)(c)(IV)".
Page 11, Line 2Page 21, strike lines 19 through 23 and substitute "2025, and on or
Page 11, Line 3before November 1 of each year thereafter, so long as the
Page 11, Line 4participating utility is establishing, maintaining, or expanding
Page 11, Line 5its on-bill program. The on-bill program administration fee must
Page 11, Line 6be based on the amount of the money loaned to the participating
Page 11, Line 7utility or a utility-designated administrator from the on-bill
Page 11, Line 8cash fund as follows:".
Page 11, Line 9Page 22, after line 8 insert:
Page 11, Line 10"(III) The fee ranges prescribed in subsection (5)(c)(II) of
Page 11, Line 11this section are reasonably related to the overall cost of the
Page 11, Line 12services provided. The cost of services to fee payers that receive
Page 11, Line 13larger loans is higher because participating utilities that
Page 11, Line 14receive larger loans will require greater services from the
Page 11, Line 15enterprise, including services for technical support, program
Page 11, Line 16development, and rate impact modeling for larger and more
Page 11, Line 17complex on-bill programs.".
Page 11, Line 18Renumber succeeding subparagraphs accordingly.
Page 11, Line 19Page 22, line 11, after "utility's" insert "or its utility-designated
Page 11, Line 20administrator's".
Page 11, Line 21Page 22, line 15, after "inflation." insert "In evaluating the fee, the
Page 11, Line 22board may also consider whether the administration fee should
Page 11, Line 23be based on the original loan amount borrowed or on the
Page 11, Line 24principal held by the utility or its utility-designated
Page 11, Line 25administrator. In making this evaluation, the board shall
Page 11, Line 26consider the level of fee needed to administer the on-bill
Page 11, Line 27program.".
Page 11, Line 28Page 22, line 27, before "repeal." insert "gifts, grants, and donations - ".
Page 11, Line 29Page 22, after line 31 insert:
Page 11, Line 30"(II) Any money that the enterprise receives as gifts,
Page 11, Line 31grants, and donations in support of services that the enterprise
Page 11, Line 32provides to covered building owners for building
Page 11, Line 33decarbonization measures;".
Page 11, Line 34
Page 12, Line 1Renumber succeeding subparagraphs accordingly.
Page 12, Line 2Page 23, line 18, before "repeal." insert "gifts, grants, and donations -".
Page 12, Line 3Page 23, after line 23 insert:
Page 12, Line 4"(II) Any money that the enterprise receives as gifts,
Page 12, Line 5grants, and donations in support of services that the enterprise
Page 12, Line 6provides to participating utilities for on-bill programs;".
Page 12, Line 7Renumber succeeding subparagraphs accordingly.
Page 12, Line 8Page 24, after line 3 insert:
Page 12, Line 9"SECTION 5. In Colorado Revised Statutes, add 24-36-125 as
Page 12, Line 10follows:
Page 12, Line 1124-36-125. On-bill financing tax credits - authorization to
Page 12, Line 12issue - terms - use of tax credits - carry over - on-bill financing fund
Page 12, Line 13- creation - definitions - repeal. (1) Definitions. As used in this
Page 12, Line 14section, unless the context otherwise requires:
Page 12, Line 15(a) "Applicable forecast" means either the quarterly
Page 12, Line 16December revenue forecast prepared by legislative council
Page 12, Line 17staff or the quarterly December revenue forecast prepared by
Page 12, Line 18the office of state planning and budgeting in the December
Page 12, Line 19immediately preceding the applicable state fiscal year, as
Page 12, Line 20determined by which immediately preceding March forecast the
Page 12, Line 21joint budget committee of the general assembly used in the
Page 12, Line 22preparation of the state budget.
Page 12, Line 23(b) "Department" means the department of the treasury.
Page 12, Line 24(c) "Forecast" means the quarterly June revenue forecast
Page 12, Line 25prepared by the office of state planning and budgeting in June
Page 12, Line 262025.
Page 12, Line 27(d) "Nonexempt revenue" means, for the applicable state
Page 12, Line 28fiscal year, the revenue that is identified as nonexempt TABOR
Page 12, Line 29revenues in the annual comprehensive financial report published
Page 12, Line 30by the office of the state controller.
Page 12, Line 31(e) "On-bill financing fund" means the on-bill financing
Page 12, Line 32fund created in subsection (7) of this section.
Page 12, Line 33(f) "On-bill financing tax credit" or "tax credit" means the
Page 12, Line 34tax credit authorized in subsection (2) of this section.
Page 12, Line 35(g) "Premium tax liability" means the liability imposed by
Page 12, Line 36section 10-3-209 or 10-6-128 or, in the case of a repeal or
Page 12, Line 37reduction by the state of the liability imposed by section
Page 13, Line 110-3-209 or 10-6-128, any other tax liability imposed upon an
Page 13, Line 2insurance company by the state.
Page 13, Line 3(h) (I) "Qualified taxpayer" means an insurance company
Page 13, Line 4authorized to do business in Colorado that has premium tax
Page 13, Line 5liability owing to the state and that purchases a tax credit
Page 13, Line 6under this section.
Page 13, Line 7(II) "Qualified taxpayer" includes an insurance company
Page 13, Line 8that receives or assumes a tax credit transfer.
Page 13, Line 9(i) "Ref C cap" means the limit on state fiscal year
Page 13, Line 10spending from section 20 of article X of the state constitution,
Page 13, Line 11as modified by Referendum C.
Page 13, Line 12(j) "TABOR" means section 20 of article X of the state
Page 13, Line 13constitution.
Page 13, Line 14(k) "Tax credit sale proceeds" or "sale proceeds" means
Page 13, Line 15the money or other liquid asset acceptable to the state
Page 13, Line 16treasurer that a qualified taxpayer pays to the department
Page 13, Line 17that is deposited in the on-bill financing fund.
Page 13, Line 18(2) On-bill financing tax credits. (a) Subject to subsections
Page 13, Line 19(2)(b) and (2)(c) of this section, a qualified taxpayer may
Page 13, Line 20purchase on-bill financing tax credits from the department in
Page 13, Line 21accordance with this section and may apply the tax credits
Page 13, Line 22against the qualified taxpayer's premium tax liability in
Page 13, Line 23accordance with subsection (6) of this section.
Page 13, Line 24(b) If the forecast shows that the state's nonexempt
Page 13, Line 25revenue for the 2025-26 state fiscal year is at least fifty million
Page 13, Line 26dollars under the ref C cap:
Page 13, Line 27(I) The department is required to issue tax credit
Page 13, Line 28certificates to qualified taxpayers with total sale proceeds of
Page 13, Line 29at least twenty-five million dollars in state fiscal year 2025-26;
Page 13, Line 30and
Page 13, Line 31(II) The tax credit sale proceeds deposited into the on-bill
Page 13, Line 32financing fund pursuant to subsection (5) of this section shall be
Page 13, Line 33used to finance utilities' on-bill programs pursuant to part 6 of
Page 13, Line 34article 38.5 of this title 24.
Page 13, Line 35(c) If the applicable forecast shows that the state's
Page 13, Line 36nonexempt revenue for the 2026-27 state fiscal year is at least
Page 13, Line 37fifty million dollars under the ref C cap:
Page 13, Line 38(I) The department is required to issue tax credit
Page 13, Line 39certificates to qualified taxpayers with total sale proceeds of
Page 13, Line 40at least twenty-five million dollars in state fiscal year 2026-27;
Page 13, Line 41and
Page 13, Line 42(II) The tax credit sale proceeds deposited into the on-bill
Page 13, Line 43financing fund pursuant to subsection (5) of this section shall be
Page 14, Line 1used to finance utilities' on-bill programs pursuant to part 6 of
Page 14, Line 2article 38.5 of this title 24.
Page 14, Line 3(d) The department may contract with an independent
Page 14, Line 4third party to conduct or consult on a bidding process among
Page 14, Line 5qualified taxpayers to purchase the tax credits.
Page 14, Line 6(e) The department shall consult with insurance
Page 14, Line 7companies in advance of issuing any tax credits in accordance
Page 14, Line 8with this section.
Page 14, Line 9(f) An insurance company authorized to do business in
Page 14, Line 10Colorado seeking to purchase tax credits must apply to the
Page 14, Line 11department in the manner prescribed by the department.
Page 14, Line 12(3) Procedure for obtaining a tax credit certificate. (a) Using
Page 14, Line 13procedures adopted by the department or, if applicable, by an
Page 14, Line 14independent third party, each insurance company that submits
Page 14, Line 15an application for on-bill financing tax credits shall make a
Page 14, Line 16timely and irrevocable offer, contingent only upon the
Page 14, Line 17department's issuance to the insurance company of the tax
Page 14, Line 18credit certificates, to make a specified purchase payment amount
Page 14, Line 19to the department on dates specified by the department.
Page 14, Line 20(b) The offer must include all of the following:
Page 14, Line 21(I) The requested amount of tax credits, which amount
Page 14, Line 22must not be less than any minimum amount established in the
Page 14, Line 23department's procedures or, if applicable, the independent third
Page 14, Line 24party's procedures;
Page 14, Line 25(II) The qualified taxpayer's proposed tax credit purchase
Page 14, Line 26amount for each tax credit dollar requested;
Page 14, Line 27(III) The minimum proposed tax credit purchase amount
Page 14, Line 28must be either:
Page 14, Line 29(A) The percentage of the requested dollar amount of tax
Page 14, Line 30credits that the department or, if applicable, the independent
Page 14, Line 31third party determines to be consistent with market conditions
Page 14, Line 32as of the offer date; or
Page 14, Line 33(B) If no amount is established by the department or the
Page 14, Line 34independent third party pursuant to subsection (3)(b)(III)(A) of
Page 14, Line 35this section, seventy-five percent of the requested dollar
Page 14, Line 36amount of tax credits; and
Page 14, Line 37(IV) Any other information that the department or, if
Page 14, Line 38applicable, the independent third party requires.
Page 14, Line 39(c) The department shall provide written notice to each
Page 14, Line 40insurance company that submits an application indicating
Page 14, Line 41whether the insurance company has been approved as a
Page 14, Line 42purchaser of tax credits and, if so, the amount of tax credits
Page 14, Line 43allocated and the date by which payment of the tax credit sale
Page 15, Line 1proceeds must be made.
Page 15, Line 2(d) On receipt of payment of the sale proceeds, the
Page 15, Line 3department shall issue to each qualified taxpayer a tax credit
Page 15, Line 4certificate. The tax credit certificate must state all of the
Page 15, Line 5following:
Page 15, Line 6(I) The total amount of premium tax credits that the
Page 15, Line 7qualified taxpayer may claim;
Page 15, Line 8(II) The amount that the qualified taxpayer has paid or
Page 15, Line 9agreed to pay in return for the issuance of the tax credit
Page 15, Line 10certificates and the date of the payment;
Page 15, Line 11(III) The dates on which the tax credits will be available
Page 15, Line 12for use by the qualified taxpayer;
Page 15, Line 13(IV) Any penalties or other remedies for noncompliance;
Page 15, Line 14(V) The procedures to be used for transferring or
Page 15, Line 15assuming the tax credits in accordance with subsection (6)(d) of
Page 15, Line 16this section;
Page 15, Line 17(VI) The serial number of the tax credit certificate; and
Page 15, Line 18(VII) Any other requirements deemed necessary by the
Page 15, Line 19department as a condition of issuing the tax credit certificate.
Page 15, Line 20(4) Defaulted tax credits - reallocation process - penalty.
Page 15, Line 21(a) The department shall not issue a tax credit certificate to a
Page 15, Line 22qualified taxpayer that fails to provide the tax credit sale
Page 15, Line 23proceeds within the time the department specifies.
Page 15, Line 24(b) A qualified taxpayer that fails to provide the tax
Page 15, Line 25credit sale proceeds within the time the department specifies is
Page 15, Line 26subject to a penalty equal to ten percent of the amount of the
Page 15, Line 27purchase price that remains unpaid. The penalty shall be paid to
Page 15, Line 28the department within thirty days after demand.
Page 15, Line 29(c) The department may offer to reallocate the defaulted
Page 15, Line 30tax credits among other qualified taxpayers so that the result
Page 15, Line 31after reallocation is the same as if the initial allocation had
Page 15, Line 32been performed without considering the tax credit allocation
Page 15, Line 33to the defaulting qualified taxpayer.
Page 15, Line 34(d) If the reallocation of tax credits under subsection
Page 15, Line 35(4)(c) of this section results in the payment by another qualified
Page 15, Line 36taxpayer of the amount of tax credit sale proceeds not paid by
Page 15, Line 37the defaulting qualified taxpayer, the department may waive
Page 15, Line 38the penalty imposed under subsection (4)(b) of this section.
Page 15, Line 39(e) A qualified taxpayer that fails to pay the tax credit
Page 15, Line 40sale proceeds within the time specified may avoid the imposition
Page 15, Line 41of the penalty by transferring the allocation of tax credits to
Page 15, Line 42a new or existing qualified taxpayer within thirty days after the
Page 15, Line 43due date of the defaulted installment. A transferee of an
Page 16, Line 1allocation of tax credits of a defaulting qualified taxpayer
Page 16, Line 2under this subsection (4) shall agree to pay tax credit sale
Page 16, Line 3proceeds within five days after the date of the transfer.
Page 16, Line 4(5) Deposit of tax credit sale proceeds into fund. The state
Page 16, Line 5treasurer shall deposit the tax credit sale proceeds provided by
Page 16, Line 6a qualifying taxpayer in return for a tax credit certificate into
Page 16, Line 7the on-bill financing fund.
Page 16, Line 8(6) Process for claiming tax credits - carry over authorized -
Page 16, Line 9tax credits are nonrefundable - transfer and assumption of tax credit.
Page 16, Line 10(a) (I) For a tax credit certificate that the department issues in
Page 16, Line 11state fiscal year 2025-26, the department, in consultation with
Page 16, Line 12the office of state planning and budgeting, prior to the sale, may
Page 16, Line 13determine the calendar years in which the qualified taxpayer
Page 16, Line 14may claim their credit against premium tax liability.
Page 16, Line 15(II) For a tax credit certificate that the department
Page 16, Line 16issues in state fiscal year 2026-27, the department, in
Page 16, Line 17consultation with the office of state planning and budgeting,
Page 16, Line 18prior to the sale, may determine the calendar years in which the
Page 16, Line 19qualified taxpayer may claim their credit against premium tax
Page 16, Line 20liability.
Page 16, Line 21(b) The total credit that a qualified taxpayer may apply
Page 16, Line 22in any one year must not exceed the premium tax liability of the
Page 16, Line 23qualified taxpayer for the taxable year. If the qualified
Page 16, Line 24taxpayer cannot use the entire amount of the tax credit for the
Page 16, Line 25taxable year in which the taxpayer is eligible for the tax credit,
Page 16, Line 26the excess may be carried over to succeeding taxable years and
Page 16, Line 27used as a credit against the premium tax liability of the
Page 16, Line 28taxpayer for those taxable years; except that the credit shall
Page 16, Line 29not be carried over to any taxable year that begins after
Page 16, Line 30December 31, 2035. Any amount of the tax credit that is not
Page 16, Line 31timely claimed expires and is not refundable.
Page 16, Line 32(c) A qualified taxpayer claiming a tax credit under this
Page 16, Line 33section shall:
Page 16, Line 34(I) Submit the tax credit certificate issued with the
Page 16, Line 35qualified taxpayer's tax return; and
Page 16, Line 36(II) Not be required to pay any additional or retaliatory
Page 16, Line 37tax as a result of claiming the tax credit.
Page 16, Line 38(d) (I) If a qualified taxpayer holding an unclaimed tax
Page 16, Line 39credit is part of a merger, acquisition, or line of business
Page 16, Line 40divestiture transaction, the tax credit may be transferred to
Page 16, Line 41and assumed by the resulting entity if the resulting entity is an
Page 16, Line 42insurance company authorized to do business in Colorado and
Page 16, Line 43has premium tax liability.
Page 17, Line 1(II) The qualified taxpayer that originally purchased the
Page 17, Line 2tax credit and the resulting entity shall notify the department
Page 17, Line 3in writing of the transfer or assumption of the tax credit in
Page 17, Line 4accordance with procedures adopted by the department. The
Page 17, Line 5department shall provide a copy of the notice to the division of
Page 17, Line 6insurance in the department of regulatory agencies and shall
Page 17, Line 7maintain a record of the transfer or assumption of the tax
Page 17, Line 8credit. The transfer or assumption of the tax credit does not
Page 17, Line 9affect the time schedule for claiming the tax credit as provided
Page 17, Line 10in this section.
Page 17, Line 11(7) On-bill financing fund - creation. The on-bill financing
Page 17, Line 12fund is created in the state treasury. The fund consists of tax
Page 17, Line 13credit sale proceeds received from qualified taxpayers and
Page 17, Line 14deposited into the fund pursuant to subsection (5) of this section.
Page 17, Line 15The state treasurer shall credit all interest and income derived
Page 17, Line 16from the deposit and investment of money in the on-bill finance
Page 17, Line 17fund to the fund.
Page 17, Line 18(8) Repeal. This section is repealed, effective July 1, 2038.
Page 17, Line 19SECTION 6. In Colorado Revised Statutes, 24-75-402, amend
Page 17, Line 20(5)(jjj) and (5)(kkk); and add (5)(lll) as follows:
Page 17, Line 2124-75-402. Cash funds - limit on uncommitted reserves -
Page 17, Line 22reduction in the amount of fees - exclusions - definitions.
Page 17, Line 23(5) Notwithstanding any provision of this section to the contrary, the
Page 17, Line 24following cash funds are excluded from the limitations specified in this
Page 17, Line 25section:
Page 17, Line 26(jjj) The employee ownership cash fund created in section
Page 17, Line 2739-22-542.5 (8); and
Page 17, Line 28(kkk) The community revitalization tax credit program cash fund
Page 17, Line 29created in section 39-22-569 (13); and
Page 17, Line 30(lll) The on-bill financing fund created in section 24-36-125
Page 17, Line 31(7).".
Page 17, Line 32Renumber succeeding sections accordingly.
Page 17, Line 33After "utilities," insert "utility-designated administrators," on:
Page 17, Line 34Page 4, line 14; and Page 5, line 15.
Page 17, Line 35After "utility" insert "or its utility-designated administrator" on:
Page 17, Line 36Page 9, line 16; Page 16, line 24; Page 17, lines 21 and 30; Page 21,
Page 17, Line 37lines 24, 28, 33, 38, and 43; and Page 22, lines 5 and 9.
Page 17, Line 38After "utilities" insert "or utility-designated administrators" on:
Page 17, Line 39Page 17, line 14; and Page 20, line 2.