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, and, in

• Page 1, Line 103connection therewith, making an appropriation.

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, a utility-designated administrator, or

• Page 6, Line 15the program administrator, money provided to the participating

• Page 6, Line 16utility, a utility-designated administrator, or the program

• Page 6, Line 17administratorto help establish or continue the utility's on-bill

• Page 6, Line 18program may be used to support energy efficiency measures,

• Page 6, Line 19electrification measures, and energy upgrades at a program

• Page 6, Line 20participant's premises that are located and remain in the

• Page 6, Line 21utility's service territory.

• Page 7, Line 1(b)  In an agreement entered into pursuant to this

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

• Page 7, Line 3no later than three years after money is loaned to the

• Page 7, Line 4participatingutility, a utility-designated administrator, or the

• Page 7, Line 5program administrator, the participatingutility, a

• Page 7, Line 6utility-designated administrator, or theprogram administrator

• Page 7, Line 7shall begin making annual payments of the principal and

• Page 7, Line 8interest of the amount loaned at the interest rate specified in

• Page 7, Line 9subsection (2)(c) of this section, which money the state

• Page 7, Line 10treasurer shall credit directly to the unclaimed property trust

• Page 7, Line 11fund. An agreement entered into pursuant to this subsection (2)

• Page 7, Line 12must require that the loan is amortized over a maximum of twenty years.

• Page 7, Line 13(c)  A loan made to a participating utility orits utility

• Page 7, Line 14designatedadministrator from the on-bill cash fund must

• Page 7, Line 15include an interest rate of one percent, and interest payments

• Page 7, Line 16must be credited to the unclaimed property trust fund if money

• Page 7, Line 17is loaned from the unclaimed property trust fund to the on-bill

• Page 7, Line 18cash fund pursuant to section 38-13-801 (3.3). If money is instead

• Page 7, Line 19transferred from the on-bill financing fund created in section

• Page 7, Line 2024-36-125 (7), the one-percent interest rate requirement does not apply.

• Page 7, Line 21(3) (a)  The office may issue guidance on program

• Page 7, Line 22requirements or place contract limitations on the use of loans

• Page 7, Line 23from the fund, as appropriate, for development, implementation,

• Page 7, Line 24and updates of consumer protection and equity requirements to

• Page 7, Line 25ensure the success of the program, while balancing:

• Page 8, Line 1(I)  Risk to lenders, utilities, utility-designated administrators, and customers;

• Page 8, Line 2(II)  Equity;

• (III)  Repayment terms; and

• Page 8, Line 3(IV)  Utility bill impacts for program participants and nonparticipants.

• Page 8, Line 4(b)  The office shall consult witha participating utility,

• Page 8, Line 5its utility-designated administrator, or theprogram

• Page 8, Line 6administrator selected by the office pursuant to section

• Page 8, Line 724-38.5-604, as appropriate, in developing guidance on program

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

• Page 8, Line 9(I)  The rate classes of utility customers that may

• Page 8, Line 10participate in the utility's on-bill program, which rate classes must, at a minimum, include residential customers;

• Page 8, Line 11(II)  The energy efficiency measures, electrification

• Page 8, Line 12measures, and energy upgrades that theparticipatingutility

• Page 8, Line 13may authorize a program participant to finance through an on-bill program;

• Page 8, Line 14(III)  A cap on the total financing that may be made

• Page 8, Line 15available to a residential utility customer, not to exceed fifty thousand dollars;

• Page 8, Line 16(IV)  Forparticipatingutilities that are not regulated by

• Page 8, Line 17the commission, the method that a participating utility may use to recover program administration costs; and

• Page 8, Line 18(V)  Requirements regarding transfers of financial

• Page 8, Line 19responsibility when an owner or tenant vacates a building

• Page 9, Line 1subject to a utility's on-bill program, including a requirement

• Page 9, Line 2that a property owner that is a participating customer or is the

• Page 9, Line 3owner of a property for which there is an existing repayment

• Page 9, Line 4obligation on the utility bill related to participation in a

• Page 9, Line 5program shall agree to notify a prospective tenant of the on-bill repayment obligation, prior to the execution of a lease.

• Page 9, Line 6(c)  For contracts with a regulatedparticipating utility

• Page 9, Line 7or itsutility-designated administrator, the final contract must conform with any final approval from the commission.

• Page 9, Line 8(d)  A participating utility, its utility-designated

• Page 9, Line 9administrator, or the program administrator shall be

• Page 9, Line 10responsible for repaying the amount of funding provided from

• Page 9, Line 11the on-bill cash fund to the participating utility, its

• Page 9, Line 12utility-designated administrator, or the program administrator.

• Page 9, Line 13(e)  In developing guidance on program requirements

• Page 9, Line 14pursuant to this subsection (3), the office shall create as much

• Page 9, Line 15standardization as possible among newly proposed and already

• Page 9, Line 16existing tariffed on-bill programs, with a particular focus on

• Page 9, Line 17easing the burden of participation by contractors working across multiple utility territories.

• Page 9, Line 18(4)  When contracting with a participatingutility, a

• Page 9, Line 19utility-designated administrator, or theprogram administrator

• Page 9, Line 20regarding an on-bill program established after July 1, 2025, the

• Page 9, Line 21office shall structure the contract as a tariffed on-bill program.

• Page 9, Line 22(5)  The office may place contract limitations on the use

• Page 10, Line 1of loans from the fund, as appropriate, for the development,

• Page 10, Line 2implementation, and updates of consumer protection and equity

• Page 10, Line 3requirements to ensure the success of the program, while

• Page 10, Line 4balancing risk to lenders,participatingutilities,

• Page 10, Line 5utility-designated administrators, and customers; equity;

• Page 10, Line 6repayment terms; and utility bill impacts for program

• Page 10, Line 7participants. The office shall consult with the participating

• Page 10, Line 8utility, the participating utility's utility-designated

• Page 10, Line 9administrator, or a program administrator selected by the

• Page 10, Line 10office pursuant to section 24-38.5-604, as appropriate, in

• Page 10, Line 11developing the consumer protection and equity requirements, which requirements may include:

• Page 10, Line 12(a)  Quality installation verification, including the

• Page 10, Line 13certifications and related enforcement mechanisms needed to ensure and verify quality installations;

• Page 10, Line 14(b)  Procedures for addressing failing equipment;

• Page 10, Line 15(c)  Vendor or contractor selection and approval

• Page 10, Line 16processes, including labor standards and a process for enforcement of the labor standards;

• Page 10, Line 17(d)  Eligibility requirements for program participants;

• Page 10, Line 18(e)  Protections for tenants whose landlords finance energy efficiency measures through a program, including:

• Page 10, Line 19(I)  Requirements to notify tenants of repayment obligations in lease agreements;

• Page 10, Line 20(II)  Processes for property owners to install measures at tenant-occupied locations; and

• Page 10, Line 21(III)  Other measures as appropriate;

• Page 11, Line 1(f)  Program design to manage the risk of utility disconnection;

• Page 11, Line 2(g)  The financing terms available for different types of energy efficiency measures and energy upgrades; and

• Page 11, Line 3(h)  The treatment of transfer of property ownership,

• Page 11, Line 4treatment of debts to a utility or its utility-designated administrator, and property treatment at transfer.

• Page 11, Line 5(6) (a)  Except as provided in subsection (6)(b) of this

• Page 11, Line 6section, on or before the first January 31 following the fifth

• Page 11, Line 7completed year of program implementation, or once a

• Page 11, Line 8participatingutility has financed at least ten million dollars in

• Page 11, Line 9energy efficiency measures, electrification measures, or energy

• Page 11, Line 10upgrades with funding from the on-bill cash fund, whichever

• Page 11, Line 11occurs first, and on or before January 31 of each of the three

• Page 11, Line 12years thereafter, a participating utility or its

• Page 11, Line 13utility-designated administrator shall prepare and submit to

• Page 11, Line 14the office a report that tracks the total amount of energy

• Page 11, Line 15efficiency measures, electrification measures, and energy

• Page 11, Line 16upgrades financed; the number of participating customers

• Page 11, Line 17broken down by interest rate, as applicable; and cumulative

• Page 11, Line 18program participation default rates, utility disconnections,

• Page 11, Line 19compliance with labor standards, and other metrics that the

• Page 11, Line 20office deems relevant to the consumer protection and equity

• Page 11, Line 21requirements for the program. The office shall make the reports publicly available on its public website.

• Page 11, Line 22(b)  A regulatedparticipatingutility that is required to

• Page 11, Line 23file a report with the commission regarding an on-bill program

• Page 12, Line 1need not prepare and submit to the office a report pursuant to

• Page 12, Line 2subsection (6)(a) of thissection, so long as the utility reports

• Page 12, Line 3information in demand-side management reporting or in another

• Page 12, Line 4report, as directed by the commission, regarding program

• Page 12, Line 5participants' bad debt or lack of full payment for utility service

• Page 12, Line 6and the repayment obligation associated with the utility's on-bill program.

• Page 12, Line 7(7)  For a participating utility with more than five hundred

• Page 12, Line 8thousand customers in the state that elects to use a utility-designated administrator for its on-bill program:

• Page 12, Line 9(a)  A loan from the on-bill cash fund shall be made

• Page 12, Line 10directly to the utility-designated administrator and shall not

• Page 12, Line 11be made in a manner that requires the loan to be reflected in the financial statements of the participating utility;

• Page 12, Line 12(b)  The participating utility shall act only as the collection agent for its utility-designated administrator; and

• Page 12, Line 13(c)  The utility-designated administrator may address the

• Page 12, Line 14risk of losses associated with the loans and bad debt in the interest rates charged to program participants.

• Page 12, Line 1524-38.5-604.  Authority to contract with program

• Page 12, Line 16administrators - selection criteria - program design requirements.

• Page 12, Line 17(1)  In accordance with the requirements of the "Procurement

• Page 12, Line 18Code", articles 101 to 112 of this title 24, the office may

• Page 12, Line 19contract with one or more independent third-party entities to

• Page 12, Line 20serve as program administrators to facilitate and help

• Page 12, Line 21administer utility on-bill programs for participating utilities.

• Page 12, Line 22The office shall contract only with one or more of the following entities to serve as program administrators:

• Page 13, Line 1(a)  A bank;

• Page 13, Line 2(b)  A nondepository community development financial institution;

• Page 13, Line 3(c)  A business development corporation; or

• (d)  A nonprofit organization.

• Page 13, Line 4(2)  In selecting a program administrator pursuant to this

• Page 13, Line 5section, the office shall consider the ability of a potential

• Page 13, Line 6program administrator to expand the program, including by

• Page 13, Line 7expanding the capital available for use in the program through public and private capital sources.

• Page 13, Line 8(3)  The office, in consultation with a selected program

• Page 13, Line 9administrator, may determine the design requirements for the

• Page 13, Line 10program, with the goal of offering customers the lowest reasonable interest rates, including:

• Page 13, Line 11(a)  A requirement that a participating utility's on-bill

• Page 13, Line 12program provide for standardization of aspects of the utility's

• Page 13, Line 13program, such as forms used to apply for participation in the

• Page 13, Line 14utility's program, but otherwise allow for flexibility in

• Page 13, Line 15implementing the utility's program to allow for different

• Page 13, Line 16requirements based on which energy efficiency measures,

• Page 13, Line 17electrification measures, and energy upgrades a program participant chooses;

• Page 13, Line 18(b)  A requirement that the energy efficiency measures,

• Page 13, Line 19electrification measures, and energy upgrades authorized for

• Page 13, Line 20a participating utility's on-bill program comply with program

• Page 13, Line 21requirements;

• Page 14, Line 1(c)  A requirement that a program administrator pursue

• Page 14, Line 2other sources of public and private capital, with a goal of

• Page 14, Line 3increasing available statewide funding for on-bill programs to one billion dollars by 2030;

• Page 14, Line 4(d)  A requirement to reduce customer interest rates to the lowest reasonable rates and to reduce risk of default; and

• Page 14, Line 5(e)  Requirements regarding how available rebates may be

• Page 14, Line 6applied to an energy efficiency measure, electrification measure, or energy upgrade project before financing.

• Page 14, Line 724-38.5-605.  Transfers of financial responsibility - notification

• Page 14, Line 8required - utility's obligation - program administrator's obligation.

• Page 14, Line 9(1)  The office shall include a requirement in any contract

• Page 14, Line 10entered into with a participatingutility, a utility-designated

• Page 14, Line 11administrator, or theprogram administrator regarding the use

• Page 14, Line 12of money from the on-bill cash fund that theutility, a

• Page 14, Line 13utility-designated administrator, or theprogram administrator

• Page 14, Line 14that receives financing from the on-bill cash fund shall either

• Page 14, Line 15directly or through a utility-designated administrator record

• Page 14, Line 16a notice with the county clerk and recorder for inclusion in the

• Page 14, Line 17public records of the county in which a program participant's property is located against the real property title as follows:

• Page 14, Line 18(a) (I)  Where the financing is attached to the metered

• Page 14, Line 19utility service and is not a security interest in the property, the

• Page 14, Line 20office shall establish a requirement that the participating

• Page 14, Line 21utility, a utility-designated administrator, or theprogram

• Page 14, Line 22administrator, within thirty days after the provision of

• Page 14, Line 23financing to a program participant, shall record a notice of the

• Page 15, Line 1on-bill repayment obligation, which notice must include a legal

• Page 15, Line 2description of the real property subject to the financing that is

• Page 15, Line 3attached to the metered utility service, the name and address

• Page 15, Line 4of the utility customer, the principal amount financed, the terms

• Page 15, Line 5of repayment, and a statement that the repayment obligation

• Page 15, Line 6does not constitute a lien on the property but is intended to give

• Page 15, Line 7a purchaser of the property notice that the property is subject to an on-bill repayment obligation.

• Page 15, Line 8(II)  The office shall also establish a requirement that the

• Page 15, Line 9participatingutility, a utility-designated administrator, or the

• Page 15, Line 10program administrator, within thirty days after the financing

• Page 15, Line 11has been completely repaid, shall file a notice with the county

• Page 15, Line 12clerk and recorder for inclusion in the public records of the

• Page 15, Line 13county in which the property is located indicating that the

• Page 15, Line 14financing repayment is complete and that there are no further financial obligations.

• Page 15, Line 15(III)  At the point of sale of the real property subject to

• Page 15, Line 16the on-bill repayment obligation, the on-bill repayment

• Page 15, Line 17obligation may transfer with the metered utility service unless otherwise required by federal law or regulation.

• Page 15, Line 18(b)  Where the financing is a loan to the property owner

• Page 15, Line 19secured by the real property, the participatingutility, a

• Page 15, Line 20utility-designated administrator, or theprogram

• Page 15, Line 21administrator, within thirty days after the provision of

• Page 15, Line 22financing to a program participant, shall record a lien that

• Page 15, Line 23must include the legal description of the real property subject

• Page 15, Line 24to the loan in the public records of the county in which the

• Page 16, Line 1property is located. The lien does not establish a right to

• Page 16, Line 2foreclose on the property. There shall be a requirement that

• Page 16, Line 3the financing loan to the property owner be paid off at the point

• Page 16, Line 4of sale of the real property subject to the loan. Within thirty

• Page 16, Line 5days after the financing loan has been completely repaid, the

• Page 16, Line 6participatingutility, a utility-designated administrator, or the

• Page 16, Line 7program administrator shall file a release of the lien in the

• Page 16, Line 8public records of the county in which the property is located.

• Page 16, Line 9This subsection (1)(b) does not apply if a loan is structured as an

• Page 16, Line 10unsecured loan to an individual customer, which unsecured

• Page 16, Line 11loan creates no recourse against the property, subsequent

• Page 16, Line 12property owners, or a future utility customer located at the property.

• Page 16, Line 13(2)  A county clerk and recorder shall record a notice

• Page 16, Line 14filed pursuant to this section in a manner that will appear in a title search of the property.

• Page 16, Line 1524-38.5-606.  Participation by utilities - program

• Page 16, Line 16administration. (1)  Aparticipatingutility or its

• Page 16, Line 17utility-designated administrator may seek money from the

• Page 16, Line 18on-bill cash fund using a process approved by the office to

• Page 16, Line 19establish its own on-bill program or support an existing on-bill program.

• Page 16, Line 20(2)  A utility participating in the program pursuant to this

• Page 16, Line 21section may designate an administrator with written approval

• Page 16, Line 22from the office or may choose to designate the program

• Page 16, Line 23administrator selected by the office as its utility-designated

• Page 16, Line 24administrator.

• Page 17, Line 1(3)  If the office contracts with a program administrator

• Page 17, Line 2pursuant to section 24-38.5-604, a participating utility that, on

• Page 17, Line 3the effective date of this section, has an existing on-bill

• Page 17, Line 4program and its own utility-designated administrator may seek

• Page 17, Line 5written approval from the office to transfer the administration of its on-bill program to the program administrator.

• Page 17, Line 624-38.5-607.  On-bill cash fund - creation. (1)  The on-bill

• Page 17, Line 7cash fund is created in the state treasury. The fund consists of

• Page 17, Line 8money credited to the fund pursuant to section 38-13-801 (3.3)

• Page 17, Line 9and any other money that the general assembly may appropriate or transfer to the fund.

• Page 17, Line 10(2)  The state treasurer shall credit all interest and

• Page 17, Line 11income derived from the deposit and investment of money in the on-bill cash fund to the fund.

• Page 17, Line 12(3)  Money in the on-bill cash fund is continuously

• Page 17, Line 13appropriated to the office to defray the costs incurred by the

• Page 17, Line 14office in administering the program and in supporting utility and building decarbonization.

• Page 17, Line 15(4) (a)  A loan made from the unclaimed property trust

• Page 17, Line 16fund to a separate fund associated with a state office is an

• Page 17, Line 17interfund loan according to governmental accounting

• Page 17, Line 18standards board codification 1800.102, meaning that the loan is

• Page 17, Line 19not classified as revenue and is booked as an interfund receivable or payable.

• Page 17, Line 20(b)  A loan made from the unclaimed property trust fund

• Page 17, Line 21to a separate fund associated with a state office is not state

• Page 17, Line 22fiscal year spending, as defined in section 24-77-102 (17), or state

• Page 18, Line 1revenues, as defined in section 24-77-103.6 (6)(c), and does not

• Page 18, Line 2count against either the state fiscal year spending limit imposed

• Page 18, Line 3by 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 18, Line 4SECTION 2.  In Colorado Revised Statutes, add 40-2-140 as follows:

• Page 18, Line 540-2-140.  Utility on-bill program - review by commission -

• Page 18, Line 6definitions. (1)  As used in this section, unless the context otherwise requires:

• Page 18, Line 7(a)  "Combined fuel customer" means a residential utility

• Page 18, Line 8customer that takes both electric and gas service from the utility.

• Page 18, Line 9(b)  "On-bill cash fund" has the meaning set forth in section 24-38.5-602 (7).

• Page 18, Line 10(c)  "On-bill program" has the meaning set forth in section 24-38.5-602 (8).

• Page 18, Line 11(2) (a) (I)  Except as provided in subsection (2)(a)(II) of this

• Page 18, Line 12section, on or before December 31, 2027, agas or electric utility

• Page 18, Line 13or a utility with combined fuel customers with more than five

• Page 18, Line 14hundred thousand customers in the state shall file with the

• Page 18, Line 15commission an application that either proposes to use funding

• Page 18, Line 16from the on-bill cash fund to establish or modify an existing

• Page 18, Line 17on-bill program or proposes not to use funding from the on-bill cash fund.

• Page 18, Line 18(II)  If the utility proposes not to use funding from the

• Page 18, Line 19on-bill cash fund, the utility's filing must demonstrate why the

• Page 18, Line 20utility's use of the funding would not be in the public interest.

• Page 19, Line 1(III)  If the utility proposes to use funding from the on-bill

• Page 19, Line 2cash fund, the utility may propose to use the funding by

• Page 19, Line 3receiving funding directly from the office, electing to have a

• Page 19, Line 4utility-designated administrator receive funding from the

• Page 19, Line 5office, or by participating in a program administered by the program administrator.

• Page 19, Line 6(b)  Unless otherwise part of a utility on-bill program

• Page 19, Line 7approved by the commission and not in conflict with any

• Page 19, Line 8commission-approved on-bill program or other commission

• Page 19, Line 9decision, a utility's filing submitted pursuant to subsection(2)(a)(I) of this section must:

• Page 19, Line 10(I)  Propose to make the utility's on-bill program available

• Page 19, Line 11to electric-only retail customers, gas-only retail customers, and combined fuel customers;

• Page 19, Line 12(II)  Describe how the utility would use money from the on-bill cash fund to implement or modify an on-bill program;

• Page 19, Line 13(III)  Describe how the utility proposes to treat situations involving insufficient repayment by participating customers;

• Page 19, Line 14(IV)  Describe how the utility will offer the on-bill program to its residential customers;

• Page 19, Line 15(V)  Include information concerning how the utility may

• Page 19, Line 16allow nonprofit organizations, state and local governments,

• Page 19, Line 17multifamily dwellings, and homeowners' associations to participate in the on-bill program; and

• Page 19, Line 18(VI)  Describe how the utility may use funding from the

• Page 19, Line 19on-bill cash fund or other sources of funding to reduce interest

• Page 19, Line 20rates, especially for customers in low- and moderate-income households.

• Page 20, Line 1(3)  A utility with more than five hundred thousand

• Page 20, Line 2customers in the state may recover all on-bill program costs in

• Page 20, Line 3accordance with part 6 of article 38.5 of title 24. A utility shall

• Page 20, Line 4recover administrative costs through base rates or an

• Page 20, Line 5applicable rider but not through the interest rate established

• Page 20, Line 6for money made available through the on-bill program. A

• Page 20, Line 7utility shall recover its actual administrative costs associated

• Page 20, Line 8with its on-bill program as approved by the commission. A utility

• Page 20, Line 9may recover an on-bill program administration fee, as defined

• Page 20, Line 10in section 24-38.5-123 (2)(p), and costs associated with managing

• Page 20, Line 11the risk of nonpayment by participants through base rates, an

• Page 20, Line 12applicable rider, or the rate established for money made

• Page 20, Line 13available through the on-bill program, as approved by the

• Page 20, Line 14commission. A utility may propose or may maintain a method to

• Page 20, Line 15recover approved administrative costs, including the use of an existing rider, as approved by the commission.

• Page 20, Line 16(4)  A utility with more than five hundred thousand

• Page 20, Line 17customers in the state that, by June 1, 2026, does not have an

• Page 20, Line 18existing on-bill program that has been approved by the

• Page 20, Line 19commission shall file the application described in subsection(2)(a) of this section on or before December 31, 2026.

• Page 20, Line 20(5) (a)  The commission shall review and approve,

• Page 20, Line 21disapprove, or approve with modifications a utility's application

• Page 20, Line 22submitted pursuant to subsection (2) of this section. In reviewing

• Page 20, Line 23an application, the commission shall determine whether the

• Page 20, Line 24utility's proposed plan for participation in a utility on-bill

• Page 21, Line 1program is in the public interest, and, if the commission

• Page 21, Line 2determines that the proposed plan is not in the public interest,

• Page 21, Line 3the commission may modify specific portions of the proposed plan

• Page 21, Line 4to bring the proposed plan into alignment with the public interest.

• Page 21, Line 5(b)  In evaluating whether a utility's on-bill program is in

• Page 21, Line 6the public interest, the commission shall ensure that, if a

• Page 21, Line 7program participant's utility bill payment is insufficient to

• Page 21, Line 8cover both the costs of utility service and their repayment

• Page 21, Line 9obligation associated with the utility's on-bill program, the

• Page 21, Line 10utility applies the customer's payment in a manner that

• Page 21, Line 11prioritizes coverage of the costs of utility service before

• Page 21, Line 12applying any of the payment toward their repayment obligation

• Page 21, Line 13associated with the utility's on-bill program, unless the

• Page 21, Line 14commission finds that an alternative payment application structure:

• Page 21, Line 15(I)  Does not harm nonparticipating customers;

• (II)  Does not harm the utility's financial health; or

• Page 21, Line 16(III)  Allows for access to lower-cost capital to fund the on-bill program.

• Page 21, Line 17(c)  If the commission, pursuant to this section or through

• Page 21, Line 18a commission decision, approves participation in a utility on-bill

• Page 21, Line 19program for nonprofit organizations or nonresidential

• Page 21, Line 20customers, the requirements of sections 40-3.2-105.5 and

• Page 21, Line 2140-3.2-105.6 apply to any work undertaken as part of the on-bill program.

• Page 21, Line 22SECTION 3.  In Colorado Revised Statutes, 38-13-801, amend (1)(b); and add(2)(e)and (3.3) as follows:

• Page 22, Line 138-13-801.  Unclaimed property trust fund - creation -

• Page 22, Line 2payments - interest - appropriations - records - rules - reports -

• Page 22, Line 3legislative declaration. (1) (b)  Except as provided in subsections (2),

• Page 22, Line 4(3), (3.3), and (3.5) of this section, the principal of the trust fund shall not

• Page 22, Line 5be expended except to pay claims made pursuant to this article 13. Money

• Page 22, Line 6constituting the principal of the trust fund is not fiscal year spending of

• Page 22, Line 7the state for purposes of section 20 of article X of the state constitution and is not subject to appropriation by the general assembly.

• Page 22, Line 8(2) (e)  If claims made pursuant to this article 13 exceed

• Page 22, Line 9the balance in the unclaimed property trust fund, the state

• Page 22, Line 10treasurer shall transfer from the general fund to the

• Page 22, Line 11unclaimed property trust fund an amount needed to pay the

• Page 22, Line 12claims and shall notify the joint budget committee of the

• Page 22, Line 13general assembly of the transfer and the amount of the transfer from the general fund.

• Page 22, Line 14(3.3) (a)  On July 1, 2025, the state treasurer shall make an

• Page 22, Line 15interest-free loan in the amount of five million dollars from the

• Page 22, Line 16unclaimed property trust fund to the on-bill cash fund created

• Page 22, Line 17in section 24-38.5-607; except that, if the condition described in

• Page 22, Line 18section 24-36-125 (2)(b) occurs, the state treasurer shall not

• Page 22, Line 19make the loan described in this subsection (3.3)(a). If the

• Page 22, Line 20condition described in section 24-36-125 (2)(b) occurs, the state

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

• Page 22, Line 22on-bill financing fund created in section 24-36-125 (7) to the

• Page 22, Line 23on-bill cash fund created in section 24-38.5-607 once the money

• Page 22, Line 24in the on-bill financing fund reaches twenty-five million dollars. The Colorado energy office shall:

• Page 23, Line 1(I)  Use the loan to support utility on-bill programs, as described in section 24-38.5-603;

• Page 23, Line 2(II)  Enter into contracts that authorize participating

• Page 23, Line 3utilities and utility-designated administrators, as those terms

• Page 23, Line 4are defined in section 24-38.5-602, to remit any interest directly to the unclaimed property trust fund; and

• Page 23, Line 5(III)  Pay the loan back to the unclaimed property trust

• Page 23, Line 6fund by January 1, 2046. The loan repayment is subject to future

• Page 23, Line 7appropriation by the general assembly and shall not be deemed

• Page 23, Line 8or construed as creating indebtedness of the state within the

• Page 23, Line 9meaning of the state constitution or the laws of the state concerning or limiting the creation of indebtedness by the state.

• Page 23, Line 10(b)    If the loan described in subsection (3.3)(a) of this

• Page 23, Line 11section is made on July 1, 2025, then, on March 1, 2026, the state

• Page 23, Line 12treasurer shall make an additional interest-free loan in the

• Page 23, Line 13amount of twenty million dollars from the unclaimed property

• Page 23, Line 14trust fund to the on-bill cash fund created in section 24-38.5-607. The Colorado energy office shall:

• Page 23, Line 15(I)  Use the loan to support utility on-bill programs, as described in section 24-38.5-603; and

• Page 23, Line 16(II)  Pay the loan back to the unclaimed property trust

• Page 23, Line 17fund by January 1, 2046. The loan repayment is subject to future

• Page 23, Line 18appropriation by the general assembly and shall not be deemed

• Page 23, Line 19or construed as creating indebtedness of the state within the

• Page 23, Line 20meaning of the state constitution or the law of the state

• Page 23, Line 21concerning limiting the creation of indebtedness by the state.

• Page 24, Line 1(c)  On July 1, 2026, the state treasurer shall make an

• Page 24, Line 2interest-free loan in the amount of twenty-five million dollars

• Page 24, Line 3from the unclaimed property trust fund to the on-bill cash fund

• Page 24, Line 4created in section 24-38.5-607; except that, if the condition

• Page 24, Line 5described in section 24-36-125 (2)(c) occurs, the state treasurer

• Page 24, Line 6shall not make the loan described in this subsection (3.3)(c). If

• Page 24, Line 7the condition described in section 24-36-125 (2)(c) occurs, the

• Page 24, Line 8state treasurer shall transfer twenty-five million dollars

• Page 24, Line 9from the on-bill financing fund created in section 24-36-125 (7)

• Page 24, Line 10to the on-bill cash fund created in section 24-38.5-607 once the

• Page 24, Line 11money in the on-bill financing fund reaches twenty-five million dollars. The Colorado energy office shall:

• Page 24, Line 12(I)  Use the loan to support utility on-bill programs, as described in section 24-38.5-603; and

• Page 24, Line 13(II)  Pay the loan back to the unclaimed property trust

• Page 24, Line 14fund by January 1, 2046. The loan repayment is subject to future

• Page 24, Line 15appropriation by the general assembly and shall not be deemed

• Page 24, Line 16or construed as creating indebtedness of the state within the

• Page 24, Line 17meaning of the state constitution or the law of the state concerning limiting the creation of indebtedness by the state.

• Page 24, Line 18(d)  On or before December 31, 2025, and on or before

• Page 24, Line 19December 31 of each year thereafter, the Colorado energy

• Page 24, Line 20office shall submit a report to the state treasurer and the state

• Page 24, Line 21controller summarizing the status of loans made to

• Page 24, Line 22participating utilities,utility-designatedadministrators, or the

• Page 24, Line 23program administratorfrom the money loaned from the

• Page 24, Line 24unclaimed property trust fund to the on-bill cash fund created

• Page 25, Line 1in section 24-38.5-607. The annual report must include

• Page 25, Line 2information regarding the number of loans made to

• Page 25, Line 3participating utilities or utility-designated administrators to

• Page 25, Line 4date and the amounts loaned to each utility or utility-designated administrator to date.

• Page 25, Line 5SECTION 4.  In Colorado Revised Statutes, add 24-38.5-123 as follows:

• Page 25, Line 624-38.5-123.  Building decarbonization enterprise - creation -

• Page 25, Line 7membership - powers and duties - building decarbonization

• Page 25, Line 8enterprise cash fund - on-bill program administration cash fund -

• Page 25, Line 9legislative declaration - definitions - rules - report - repeal.(1)  Legislative declaration. (a)  The general assembly finds that:

• Page 25, Line 10(I)  Reducing greenhouse gas emissions from combustion devices in residential and commercial buildings:

• Page 25, Line 11(A)  Is necessary to help the state achieve its statewide

• Page 25, Line 12greenhouse gas emission reduction goals set forth in section

• Page 25, Line 1325-7-102 (2)(g), including the goal to reach net-zero greenhouse gas emissions by 2050; and

• Page 25, Line 14(B)  Presents significant opportunities to lower and

• Page 25, Line 15stabilize energy bills, provide for more comfortable living and

• Page 25, Line 16working spaces, and reduce local air pollution that contributes to ground-level ozone;

• Page 25, Line 17(II)  Covered building owners are required to comply with

• Page 25, Line 18benchmarking requirements and performance standard

• Page 25, Line 19requirements and would benefit from additional financial and technical assistance to meet or exceed those requirements;

• Page 25, Line 20(III)  With additional financial and technical assistance,

• Page 26, Line 1covered building owners may more effectively and efficiently

• Page 26, Line 2implement building decarbonization measures, including, but not

• Page 26, Line 3limited to, programs that provide assistance for conducting

• Page 26, Line 4building energy audits, developing analyses to help building

• Page 26, Line 5owners evaluate the best strategies for achieving future

• Page 26, Line 6performance standard targets, employing or consulting with

• Page 26, Line 7building engineers, purchasing energy use tracking software for

• Page 26, Line 8covered building owners to more effectively track energy use, and providing training on such software;

• Page 26, Line 9(IV)  Utility customers would benefit from having access

• Page 26, Line 10to significant amounts of public and private capital for

• Page 26, Line 11low-cost financing solutions for energy-related improvements, including end-of-life equipment replacement; and

• Page 26, Line 12(V)  Utilities serving Coloradans have varying levels of

• Page 26, Line 13experience, available capital, and available staff to support the establishment and administration of on-bill programs.

• Page 26, Line 14(b)  Now, therefore, the general assembly declares that:

• Page 26, Line 15(I)  It is in the best interest of covered building owners and

• Page 26, Line 16participating utilities to create an enterprise within the office

• Page 26, Line 17that is committed to financing and providing technical and

• Page 26, Line 18other support for the implementation of building

• Page 26, Line 19decarbonization measures and for the establishment of utility on-bill programs;

• Page 26, Line 20(II)  The activities of the enterprise shall be funded by

• Page 26, Line 21revenue generated from a building decarbonization fee paid by

• Page 26, Line 22covered building owners and any gifts, grants, and donations

• Page 26, Line 23received;

• Page 27, Line 1(III)  It is appropriate that covered building owners should

• Page 27, Line 2pay a building decarbonization fee, as covered building owners

• Page 27, Line 3are the direct beneficiaries of services provided by the

• Page 27, Line 4enterprise, which services include the financing and technical

• Page 27, Line 5assistance provided for the building decarbonization measures described in subsection (1)(a)(III) of this section;

• Page 27, Line 6(IV)  Covered building owners benefit from the

• Page 27, Line 7implementation of building decarbonization measures because

• Page 27, Line 8such measures can reduce covered building owners' long-term costs related to energy use;

• Page 27, Line 9(V)  It is in the best interest of covered building owners to

• Page 27, Line 10create a building decarbonization enterprise cash fund within

• Page 27, Line 11the building decarbonization enterprise, the use of which is

• Page 27, Line 12dedicated to financing the provision of technical support for

• Page 27, Line 13covered building owners seeking to implement energy efficiency measures and building decarbonization measures;

• Page 27, Line 14(VI)  The activities of the enterprise are funded by revenue

• Page 27, Line 15generated from an on-bill program administration fee paid by

• Page 27, Line 16participating utilities and any gifts, grants, and donations received;

• Page 27, Line 17(VII)  It is appropriate that participating utilities should

• Page 27, Line 18pay an on-bill program administration fee because participating

• Page 27, Line 19utilities are the direct beneficiaries of services that the

• Page 27, Line 20enterprise provides, which services include technical assistance

• Page 27, Line 21and other programmatic support for on-bill programs described in subsection (1)(a)(III) of this section;

• Page 27, Line 22(VIII)  Participating utilities benefit from the implementation of on-bill programs because:

• Page 28, Line 1(A)  Utility on-bill programs can reduce energy consumption and peak demand;

• Page 28, Line 2(B)  Utility customers benefit from having access to

• Page 28, Line 3significant amounts of public and private capital for low-cost

• Page 28, Line 4financing solutions for energy-related improvements, including end-of-life equipment replacement; and

• Page 28, Line 5(C)  Utility on-bill programs that allow repayments

• Page 28, Line 6through utility bill payments could expand the opportunities

• Page 28, Line 7for eligible retail utility customers to pursue energy efficiency

• Page 28, Line 8measures and electrification measures, enabling utility

• Page 28, Line 9customers to pay back the up-front costs of the upgrades and

• Page 28, Line 10measures over time through their utility bill payments at or below interest rates that may be available from other sources;

• Page 28, Line 11(IX)  It is in the best interest of participating utilities to

• Page 28, Line 12create an on-bill cash fund within the building decarbonization

• Page 28, Line 13enterprise, the use of which is dedicated to technical assistance

• Page 28, Line 14and other programmatic support for on-bill programs for participating utilities;

• Page 28, Line 15(X)  Consistent with the determination of the Colorado

• Page 28, Line 16supreme court in Nicholl v. E-470 Public Highway Authority, 896

• Page 28, Line 17P.2d 859 (Colo. 1995), that the power to impose taxes is

• Page 28, Line 18inconsistent with enterprise status under section 20 of article

• Page 28, Line 19X of the state constitution, the general assembly concludes

• Page 28, Line 20that the building decarbonization fee and the on-bill program

• Page 28, Line 21administration fee are both fees, not taxes, and the enterprise

• Page 28, Line 22operates as a business because the building decarbonization fee and on-bill program administration fee are:

• Page 29, Line 1(A)  In the case of the building decarbonization fee,

• Page 29, Line 2imposed for the specific business purposes of providing financing

• Page 29, Line 3and technical assistance to covered building owners to more

• Page 29, Line 4effectively and efficiently implement building decarbonization

• Page 29, Line 5measures, including feasibility analyses and improvements that

• Page 29, Line 6will reduce energy use and emissions, and collected at a rate

• Page 29, Line 7that is reasonably related to the overall cost of the business services being provided; and

• Page 29, Line 8(B)  In the case of the on-bill program administration fee,

• Page 29, Line 9imposed for the specific purpose of providing technical

• Page 29, Line 10assistance to a utility, as necessary, that intends to establish

• Page 29, Line 11or expand on-bill programs for its eligibleretail customers and

• Page 29, Line 12collected at a rate that is reasonably related to the overall cost of the business services being provided; and

• Page 29, Line 13(XI)  So long as the enterprise qualifies as an enterprise

• Page 29, Line 14for purposes of section 20 of article X of the state constitution,

• Page 29, Line 15the revenue from the building decarbonization fee and the

• Page 29, Line 16on-bill program administration fee imposed, collected, and

• Page 29, Line 17administered by the enterprise is not state fiscal year spending,

• Page 29, Line 18as defined in section 24-77-102 (17), or state revenues, as defined

• Page 29, Line 19in section 24-77-103.6 (6)(c), and does not count against either

• Page 29, Line 20the state fiscal year spending limit imposed by section 20 of

• Page 29, Line 21article X of the state constitution or the excess state revenues cap, as defined in section 24-77-103.6 (6)(b)(I)(G).

• Page 29, Line 22(2)  Definitions.As used in this section, unless the context

• Page 29, Line 23otherwise requires:

• Page 30, Line 1(a)  "Benchmarking requirements" means the energy

• Page 30, Line 2benchmarking requirements set forth in section 25-7-142 (3) with

• Page 30, Line 3which an owner or operator of a covered building is required to comply.

• Page 30, Line 4(b)  "Board" means the board of directors of the enterprise appointed pursuant to subsection (4)(a) of this section.

• Page 30, Line 5(c)  "Building decarbonization enterprise cash fund" or

• Page 30, Line 6"building decarbonization fund" means the building

• Page 30, Line 7decarbonization enterprise cash fund created in subsection(6)(a) of this section.

• Page 30, Line 8(d)  "Building decarbonization fee" means the fee paid by

• Page 30, Line 9the owner of a covered building pursuant to subsection (5)(b) of this section.

• Page 30, Line 10(e)  "Covered building" has the meaning set forth in section 25-7-142 (2)(j).

• Page 30, Line 11(f)  "Covered building owner" means an "owner", as defined in section 25-7-142 (2)(r), of a covered building.

• Page 30, Line 12(g)  "Electrification" has the meaning set forth in section 24-38.5-602 (3).

• Page 30, Line 13(h)  "Energy efficiency measure" has the meaning set forth in section 24-38.5-602 (4).

• Page 30, Line 14(i)  "Energy upgrade" has the meaning set forth in section 24-38.5-602 (5).

• Page 30, Line 15(j)  "Enterprise" means the building decarbonization enterprise created in subsection (3) of this section.

• Page 30, Line 16(k)  "Inflation" means the annual percentage change in the

• Page 30, Line 17in the United States department of labor's bureau of labor

• Page 31, Line 1statistics consumer price index, or a successor index, for

• Page 31, Line 2Denver-Aurora-Lakewood for all items paid for by urban consumers.

• Page 31, Line 3(l)  "Office" means the Colorado energy office created in section 24-38.5-101.

• Page 31, Line 4(m)  "On-bill cash fund" has the meaning set forth in section 24-38.5-602 (7).

• Page 31, Line 5(n)  "On-bill program" means a utility's on-bill program

• Page 31, Line 6through which energy efficiency measures, electrification

• Page 31, Line 7measures, and energy upgrades are installed at a participating

• Page 31, Line 8customer's premises, the financing of which is repaid through monthly utility bill payments.

• Page 31, Line 9(o)  "On-bill program administration cash fund" or

• Page 31, Line 10"administration fund" means the on-bill program administration cash fund created in subsection (8) of this section.

• Page 31, Line 11(p)  "On-bill program administration fee" or

• Page 31, Line 12"administration fee" means the fee paid by a utility or its

• Page 31, Line 13utility-designated administrator seeking to establish or expand its on-bill program pursuant to section 24-38.5-606.

• Page 31, Line 14(q)  "Participating utility" has the meaning set forth in section 24-38.5-602 (9).

• Page 31, Line 15(r)  "Performance standards" has the meaning set forth in section 25-7-142 (2)(s).

• Page 31, Line 16(s)  "Utility" has the meaning set forth in section 24-38.5-602 (13).

• Page 31, Line 17(3)  Enterprise created - loan from the office - repayment.

• Page 31, Line 18(a)  The building decarbonization enterprise is created in the

• Page 32, Line 1office and exercises its powers and performs its duties and

• Page 32, Line 2functions as a government-owned business in the office to

• Page 32, Line 3execute its business purposes set forth in this subsection (3). The enterprise is created for the purposes of:

• Page 32, Line 4(I)  Imposing and assessing a building decarbonization fee on owners of covered buildings;

• Page 32, Line 5(II)  Providing technical assistance, financing, and other

• Page 32, Line 6programmatic support for covered building owners' building

• Page 32, Line 7decarbonization measures, including, but not limited to,

• Page 32, Line 8conducting building energy audits, developing analyses to help

• Page 32, Line 9building owners evaluate the best strategies for achieving

• Page 32, Line 10future performance standard targets, consulting building

• Page 32, Line 11engineers, purchasing energy use tracking software, and providing training on such software;

• Page 32, Line 12(III)  Having and exercising all rights and powers

• Page 32, Line 13necessary or incidental to or implied from the specific powers and duties granted under this section;

• Page 32, Line 14(IV)  Ensuring that the building decarbonization fee paid

• Page 32, Line 15by covered building owners is used solely to support programs,

• Page 32, Line 16technical assistance, and financial assistance for the covered building owners that pay the building decarbonization fee;

• Page 32, Line 17(V)  Imposing and assessing an on-bill program

• Page 32, Line 18administration fee on utilities or utility-designated

• Page 32, Line 19administrators that seek financing from the on-bill cash fund to develop or expand their on-bill programs;

• Page 32, Line 20(VI)  Providing technical assistance and other

• Page 32, Line 21programmatic support, as necessary, to participating utilities

• Page 33, Line 1seeking to establish or expand an on-bill program. The amount

• Page 33, Line 2of technical assistance and other programmatic support

• Page 33, Line 3provided is commensurate with the amount of financial support

• Page 33, Line 4loaned to a participating utility or its utility-designated administrator from the on-bill cash fund and includes:

• Page 33, Line 5(A)  Developing a full set of on-bill program models,

• Page 33, Line 6including models that are run by third-party opt-in programs that participating utilities adopt;

• Page 33, Line 7(B)  Assisting utilities in meeting reporting obligations;

• Page 33, Line 8(C)  Providing technical assistance for the implementation and administration of on-bill programs; and

• Page 33, Line 9(D)  Providing consumer education and marketing support

• Page 33, Line 10to increase customer participation in the participating utilities' on-bill programs; and

• Page 33, Line 11(VII)  Ensuring that the on-bill program administration

• Page 33, Line 12fee that a utility or its utility-designated administrator pays is

• Page 33, Line 13used solely to support on-bill program designs and technical

• Page 33, Line 14assistance for the participating utilities that pay the administration fee.

• Page 33, Line 15(b)  The board, in consultation with the office, shall administer the enterprise in accordance with this section.

• Page 33, Line 16(c) (I)  The enterprise constitutes an enterprise for

• Page 33, Line 17purposes of section 20 of article X of the state constitution so

• Page 33, Line 18long as it retains the authority to issue revenue bonds and

• Page 33, Line 19receives less than ten percent of its total revenues in grants, as

• Page 33, Line 20defined in section 24-77-102 (7), from all Colorado state and

• Page 33, Line 21local governments combined. So long as it constitutes an

• Page 34, Line 1enterprise, the enterprise is not subject to section 20 of article X of the state constitution.

• Page 34, Line 2(II)  The enterprise is authorized to issue revenue bonds for

• Page 34, Line 3the expenses of the enterprise, secured by revenue of the enterprise.

• Page 34, Line 4(d) (I)  The office may transfer money from any legally

• Page 34, Line 5available source to the enterprise for the purpose of defraying

• Page 34, Line 6expenses incurred by the enterprise before it receives fee

• Page 34, Line 7revenue. The enterprise may accept and expend any money so

• Page 34, Line 8transferred, and, notwithstanding any state fiscal rule or

• Page 34, Line 9generally accepted accounting principle that could otherwise

• Page 34, Line 10be interpreted to require a contrary conclusion, such a

• Page 34, Line 11transfer is a loan from the office to the enterprise that is

• Page 34, Line 12required to be repaid and is not a grant for purposes of section

• Page 34, Line 1320 (2)(d) of article X of the state constitution or as defined in section 24-77-102 (7).

• Page 34, Line 14(II)  As the enterprise receives sufficient revenue in excess

• Page 34, Line 15of its expenses, the enterprise shall reimburse the office for the

• Page 34, Line 16principal amount of any loan made by the office, plus interest at

• Page 34, Line 17a rate agreed upon by the office and the enterprise, but not to exceeda rate based on fair market value.

• Page 34, Line 18(4)  Enterprise board of directors created - membership -

• Page 34, Line 19duties - repeal. (a)  The enterprise board of directors is created to

• Page 34, Line 20administer the enterprise. The board consists of the following seven members:

• Page 34, Line 21(I)  The following four members appointed by the governor

• Page 34, Line 22and confirmed by the senate:

• (A)  A representative of covered building owners;

• Page 35, Line 1(B)  An expert in building energy efficiency and decarbonization;

• Page 35, Line 2(C)  A local government representative with expertise in planning or energy codes; and

• Page 35, Line 3(D)  A utility representative;

• (II)  The director of the office or the director's designee;

• Page 35, Line 4(III)  The executive director of the department of public

• Page 35, Line 5health and environment or the executive director's designee; and

• Page 35, Line 6(IV)  The director of the public utilities commission or the director's designee.

• Page 35, Line 7(b) (I)  The governor shall appoint initial members to the

• Page 35, Line 8board pursuant to subsection (4)(a)(I) of this section on or before September 1, 2025.

• Page 35, Line 9(II)  This subsection (4)(b) is repealed, effective July 1, 2026.

• Page 35, Line 10(c) (I)  Board members appointed pursuant to subsection

• Page 35, Line 11(4)(a)(I) of this section serve three-year terms. A board member may serve an unlimited number of terms.

• Page 35, Line 12(II)  Notwithstanding subsection (4)(c)(I) of this section,

• Page 35, Line 13the governor shall make the initial terms of two of the board

• Page 35, Line 14members who are appointed pursuant to subsection (4)(a)(I) of this section two years.

• Page 35, Line 15(d)  Board members serving pursuant to subsection (4)(a)(I)

• Page 35, Line 16of this section may receive compensation from the enterprise on

• Page 35, Line 17a per diem basis for reasonable expenses actually incurred in

• Page 35, Line 18the performance of their duties.

• Page 36, Line 1(e) (I)  The chair and vice-chair of the board are selected

• Page 36, Line 2by the members of the board in accordance with the board's bylaws.

• Page 36, Line 3(II) (A)  The director of the office or the director's

• Page 36, Line 4designee shall call the first meeting of the board, and the board

• Page 36, Line 5shall select the chair and vice-chair at that meeting in accordance with subsection (4)(e)(I) of this section.

• Page 36, Line 6(B)  This subsection (4)(e)(II) is repealed, effective July 1, 2026.

• Page 36, Line 7(5)  Powers and dutiesof board - building decarbonization fee

• Page 36, Line 8- on-bill program administration fee - rules. (a)  In addition to any

• Page 36, Line 9other powers and duties specified in this section, the board has the following powers and duties on behalf of the enterprise:

• Page 36, Line 10(I)  To adopt procedures for conducting the board's affairs;

• Page 36, Line 11(II)  To engage the services of contractors, consultants,

• Page 36, Line 12the division of administration described in section 25-1-102 (2)(a),

• Page 36, Line 13and the staff of the office for professional and technical

• Page 36, Line 14assistance and advice and to supply other services related to

• Page 36, Line 15the conduct of the affairs of the enterprise without regard to

• Page 36, Line 16the "Procurement Code", articles 101 to 112 of title 24. The

• Page 36, Line 17enterprise shall engage the attorney general's office for legal

• Page 36, Line 18services. The enterprise may contract with the office for the

• Page 36, Line 19provision of office space and administrative staff to the enterprise at a fair market rate.

• Page 36, Line 20(III)  To establish and administer a program through which

• Page 36, Line 21owners of covered buildings may apply for, and the board may

• Page 37, Line 1review and approve applications for, financing or technical

• Page 37, Line 2assistance for building decarbonization measures, including, but

• Page 37, Line 3not limited to, participating in programs that help finance

• Page 37, Line 4energy efficiency measures, electrification measures, and other

• Page 37, Line 5energy upgrades; conducting building energy audits; employing

• Page 37, Line 6or consulting with building engineers; and purchasing energy use tracking software and providing training on such software;

• Page 37, Line 7(IV)  To impose the building decarbonization fee described in subsection (5)(b) of this section;

• Page 37, Line 8(V)  In accordance with subsection (5)(c) of this section, to

• Page 37, Line 9impose the on-bill program administration fee onparticipating

• Page 37, Line 10utilities or utility-designated administrators that seek

• Page 37, Line 11financing from the on-bill cash fund to develop or expand their on-bill programs;

• Page 37, Line 12(VI)  To seek, accept, and expend gifts, grants, and

• Page 37, Line 13donations in support of services that the enterprise provides to

• Page 37, Line 14covered building owners for building decarbonization measures or to participating utilities for on-bill programs;

• Page 37, Line 15(VII)  To establish and administer a program through

• Page 37, Line 16which participating utilities may receive assistance for

• Page 37, Line 17establishing or expanding an on-bill program, which program includes:

• Page 37, Line 18(A)  Developing a full set of on-bill program models,

• Page 37, Line 19including models that are run by third-party opt-in on-bill programs that participating utilities adopt;

• Page 37, Line 20(B)  Assisting utilities in meeting reporting obligations set

• Page 37, Line 21forth in section 24-38.5-603 (6)(a);

• Page 38, Line 1(C)  Providing technical assistance for the implementation and administration of on-bill programs; and

• Page 38, Line 2(D)  Providing consumer education and marketing support

• Page 38, Line 3to increase customer participation in the participating utilities' on-bill programs; and

• Page 38, Line 4(VIII)  To have and exercise all rights and powers

• Page 38, Line 5necessary or incidental to or implied from the specific powers and duties granted by this section.

• Page 38, Line 6(b) (I)  Beginning in state fiscal year 2026-27 and in

• Page 38, Line 7furtherance of the enterprise's business purposes, the board

• Page 38, Line 8shall adopt rules for the purpose of setting the amount of the

• Page 38, Line 9building decarbonization fee at the maximum amount authorized

• Page 38, Line 10in this subsection (5) to be imposed upon all covered building

• Page 38, Line 11owners; except that the fee shall not be imposed on the owner of

• Page 38, Line 12a public building, as defined in section 25-7-142 (2)(t). The board

• Page 38, Line 13shall only adopt rules pursuant to this subsection (5)(b)(I) and subsection (5)(c)(I) of this section.

• Page 38, Line 14(II)  On or before November 1, 2025, and on or before

• Page 38, Line 15November 1 of each year thereafter, and except as provided in

• Page 38, Line 16subsection (5)(b)(III) of this section, each owner of a covered

• Page 38, Line 17building shall pay a building decarbonization fee in an amount

• Page 38, Line 18of four hundred dollars, which is reasonably related to the

• Page 38, Line 19overall cost of the provided services funded by the building

• Page 38, Line 20decarbonization fee. The fee shall be paid to the office, which

• Page 38, Line 21shall collect the building decarbonization fee on behalf of the enterprise.

• Page 38, Line 22(III)  Beginning in state fiscal year 2027-28, the board may

• Page 39, Line 1increase the building decarbonization fee from the previous

• Page 39, Line 2year's building decarbonization fee amount, as adjusted for

• Page 39, Line 3inflation and, on or before March 15 of each of the state fiscal

• Page 39, Line 4years thereafter, shall notify the office of the adjusted amount

• Page 39, Line 5of the building decarbonization fee, if the building

• Page 39, Line 6decarbonization fee has been adjusted. On or before April 15 of

• Page 39, Line 7each of the state fiscal years thereafter, the enterprise shall

• Page 39, Line 8publish the updated amount of the building decarbonization fee on the enterprise's website.

• Page 39, Line 9(IV)  Notwithstanding subsection (5)(b)(I) of this section,

• Page 39, Line 10the board shall not set the building decarbonization fee in an

• Page 39, Line 11amount higher than that authorized by subsections (5)(b)(II) and (5)(b)(III) of this section.

• Page 39, Line 12(V)  Money collected as a building decarbonization fee

• Page 39, Line 13shall be credited to the building decarbonization enterprise cash fund.

• Page 39, Line 14(VI)  Money collected by the office for transfer to the

• Page 39, Line 15building decarbonization fund pursuant to subsection (5)(b)(V) of this section:

• Page 39, Line 16(A)  Is collected on behalf of the enterprise;

• Page 39, Line 17(B)  Is held temporarily by the office and the state

• Page 39, Line 18treasurer solely for the purpose of transferring the money to the building decarbonization fund for use by the enterprise; and

• Page 39, Line 19(D)  Based on the enterprise's status as an enterprise, is

• Page 39, Line 20not subject to section 20 of article X of the state constitution at any time during the money's collection, transfer, and use.

• Page 39, Line 21(c) (I)  Beginning in state fiscal year 2025-26, and in

• Page 40, Line 1furtherance of the enterprise's business purposes, the board

• Page 40, Line 2shall adopt rules for the purpose of setting the amount of the

• Page 40, Line 3on-bill program administration fee at or below the maximum

• Page 40, Line 4amount authorized in this subsection (5)(c) to be imposed on

• Page 40, Line 5participating utilities.To ensure that the on-bill program

• Page 40, Line 6administration fee for each participating utility is reasonably

• Page 40, Line 7related to the services provided by the enterprise, the board

• Page 40, Line 8shall set the administration fee within the ranges specified in subsection (5)(c)(II) of this section based on criteria including:

• Page 40, Line 9(A)  The anticipated size of the proposed on-bill program;

• Page 40, Line 10(B)  The number and amount of services that the enterprise

• Page 40, Line 11intends to provide to participating utilities based on the size of the loan;

• Page 40, Line 12(C)  Whether the participating utility is seeking to

• Page 40, Line 13establish a new on-bill program or expand an existing on-bill program; and

• Page 40, Line 14(D)  The estimated number of customers in each rate class forecasted to participate in the on-bill program.

• Page 40, Line 15(II)  Except as provided in subsection (5)(c)(IV) of this

• Page 40, Line 16section, a participating utility shall pay the on-bill program

• Page 40, Line 17administration fee to the enterprise on or before November 1,

• Page 40, Line 182025, and on or before November 1 of each year thereafter, so

• Page 40, Line 19long as the participating utility is establishing, maintaining, or

• Page 40, Line 20expanding its on-bill program. The on-bill program

• Page 40, Line 21administration fee must be based on the amount of the money

• Page 40, Line 22loaned to the participating utility or a utility-designated

• Page 40, Line 23administrator from the on-bill cash fund as follows:

• Page 41, Line 1(A)  If the participating utility or its utility-designated

• Page 41, Line 2administrator borrows ten million dollars or less from the

• Page 41, Line 3on-bill cash fund, the administration fee shall be imposed in an amount of up to fifty thousand dollars;

• Page 41, Line 4(B)  If the participating utility or its utility-designated

• Page 41, Line 5administrator borrows more than ten million dollars but

• Page 41, Line 6twenty million dollars or less from the on-bill cash fund, the

• Page 41, Line 7administration fee shall be imposed in an amount between fifty thousand dollars and seventy-five thousand dollars;

• Page 41, Line 8(C)  If the participating utility or its utility-designated

• Page 41, Line 9administrator borrows more than twenty million dollars but

• Page 41, Line 10forty million dollars or less from the on-bill cash fund, the

• Page 41, Line 11administration fee shall be imposed in an amount between

• Page 41, Line 12seventy-five thousand dollars and one hundred thousand dollars;

• Page 41, Line 13(D)  If the participating utility or its utility-designated

• Page 41, Line 14administrator borrows more than forty million dollars but

• Page 41, Line 15sixty million dollars or less from the on-bill cash fund, the

• Page 41, Line 16administration fee shall be imposed in an amount between one hundred thousand dollars and two hundred thousand dollars;

• Page 41, Line 17(E)  If a participating utility or its utility-designated

• Page 41, Line 18administrator borrows more than sixty million dollars but

• Page 41, Line 19eighty million dollars or less from the on-bill cash fund, the

• Page 41, Line 20administration fee shall be imposed in an amount between two

• Page 41, Line 21hundred thousand dollars and three hundred thousand dollars; and

• Page 41, Line 22(F)  If a participating utility or its utility-designated

• Page 42, Line 1administrator borrows more than eighty million dollars from

• Page 42, Line 2the on-bill cash fund, the administration fee shall be imposed in

• Page 42, Line 3an amount between three hundred thousand dollars and four hundred thousand dollars.

• Page 42, Line 4(III)  The fee ranges prescribed in subsection (5)(c)(II) of

• Page 42, Line 5this section are reasonably related to the overall cost of the

• Page 42, Line 6services provided. The cost of services to fee payers that receive

• Page 42, Line 7larger loans is higher because participating utilities that

• Page 42, Line 8receive larger loans will require greater services from the

• Page 42, Line 9enterprise, including services for technical support, program

• Page 42, Line 10development, and rate impact modeling for larger and more complex on-bill programs.

• Page 42, Line 11(IV)  A participating utility or its utility-designated

• Page 42, Line 12administrator shall begin paying the applicable administration

• Page 42, Line 13fee to the enterprise on or before the first November 1 that

• Page 42, Line 14follows the utility's or its utility-designated administrator's execution of a loan agreement with the office.

• Page 42, Line 15(V)  Beginning in state fiscal year 2026-27, the board may

• Page 42, Line 16increase the administration fee from the previous year's

• Page 42, Line 17administration fee in an amount adjusted for inflation. In

• Page 42, Line 18evaluating the fee, the board may also consider whether the

• Page 42, Line 19administration fee should be based on the original loan amount

• Page 42, Line 20borrowed or on the principal held by the utility or its

• Page 42, Line 21utility-designated administrator. In making this evaluation, the

• Page 42, Line 22board shall consider the level of fee needed to administer the

• Page 42, Line 23on-bill program. On or before March 15, 2026, and on or before

• Page 42, Line 24March 15 of each year thereafter, the board shall notify the

• Page 43, Line 1office of the adjusted amount of the administration fee if the

• Page 43, Line 2administration fee has been adjusted for inflation, and, on or

• Page 43, Line 3before April 15, 2026, and on or before April 15 of each year

• Page 43, Line 4thereafter, the board shall publish the updated amount of the administration fee on the enterprise's website.

• Page 43, Line 5(VI)  Money collected as an on-bill program

• Page 43, Line 6administration fee shall be credited to the on-bill program administration cash fund.

• Page 43, Line 7(6)  Building decarbonization enterprise cash fund - creation

• Page 43, Line 8- gifts, grants, and donations - repeal. (a)  The building

• Page 43, Line 9decarbonization enterprise cash fund is created in the state treasury. The building decarbonization fund consists of:

• Page 43, Line 10(I)  Money received from a building decarbonization fee imposed pursuant to subsection (5)(b) of this section;

• Page 43, Line 11(II)  Any money that the enterprise receives as gifts,

• Page 43, Line 12grants, and donations in support of services that the enterprise

• Page 43, Line 13provides to covered building owners for building decarbonization measures;

• Page 43, Line 14(III)  Any money received from the issuance of revenue bonds, as described in subsection (3)(c)(II) of this section; and

• Page 43, Line 15(IV)  Any other money that the general assembly may appropriate or transfer to the fund.

• Page 43, Line 16(b) (I)  Section 24-77-108 does not apply to the enterprise

• Page 43, Line 17because the total amount of money credited or appropriated to

• Page 43, Line 18the building decarbonization fund and the on-bill program

• Page 43, Line 19administration cash fund as a fee shall not exceed one hundred

• Page 43, Line 20million dollars in the first five fiscal years of the enterprise's existence.

• Page 44, Line 1(II)  This subsection (6)(b) is repealed, effective July 1, 2031.

• Page 44, Line 2(c)  Subject to annual appropriation by the general

• Page 44, Line 3assembly, the enterprise may expend money from the building

• Page 44, Line 4decarbonization enterprise cash fund for the purposes set forth

• Page 44, Line 5in this section and to pay the enterprise's reasonable and

• Page 44, Line 6necessary operating expenses. The state treasurer shall credit

• Page 44, Line 7all interest and income derived from the deposit and investment

• Page 44, Line 8of money in the building decarbonization fund to the building decarbonization fund.

• Page 44, Line 9(d)  Any unexpended and unencumbered money remaining

• Page 44, Line 10in the building decarbonization fund at the end of a fiscal year

• Page 44, Line 11remains in the building decarbonization fund and is not credited or transferred to the general fund.

• Page 44, Line 12(7)  Legislative review of building decarbonization enterprise.

• Page 44, Line 13On or before December 1 of each year, the enterprise shall

• Page 44, Line 14submit an annual report to the general assembly detailing the

• Page 44, Line 15enterprise's expenditures and program outcomes from the

• Page 44, Line 16preceding year and the enterprise's financial projections for the following year.

• Page 44, Line 17(8)  On-bill program administration cash fund - creation -

• Page 44, Line 18gifts, grants, and donations - repeal. (a)  The on-bill program

• Page 44, Line 19administration cash fund is created in the state treasury. The administration fund consists of:

• Page 44, Line 20(I)  Money received from an on-bill program

• Page 44, Line 21administration fee imposed pursuant to subsection (5)(c) of this

• Page 44, Line 22section;

• Page 45, Line 1(II)  Any money that the enterprise receives as gifts,

• Page 45, Line 2grants, and donations in support of services that the enterprise provides to participating utilities for on-bill programs;

• Page 45, Line 3(III)  Any money received from the issuance of revenue bonds as described in subsection (3)(c)(II) of this section; and

• Page 45, Line 4(IV)  Any other money that the general assembly may appropriate or transfer to the administration fund.

• Page 45, Line 5(b) (I)  Section 24-77-108 does not apply to the enterprise

• Page 45, Line 6because the total amount of money credited or appropriated to

• Page 45, Line 7the on-bill program administration cash fund and the building

• Page 45, Line 8decarbonization enterprise cash fund shall not exceed one

• Page 45, Line 9hundred million dollars in the first five years of the enterprise's existence.

• Page 45, Line 10(II)  This subsection (8)(b) is repealed, effective July 1, 2031.

• Page 45, Line 11(c)  Subject to annual appropriation by the general

• Page 45, Line 12assembly, the enterprise may expend money from the on-bill

• Page 45, Line 13program administration cash fund for the purposes set forth in

• Page 45, Line 14this section and to pay the enterprise's reasonable and

• Page 45, Line 15necessary operating expenses. The state treasurer shall credit

• Page 45, Line 16all interest and income derived from the deposit and investment

• Page 45, Line 17of money in the on-bill program administration cash fund to the on-bill program administration fund.

• Page 45, Line 18(d)  Any unexpended and unencumbered money remaining

• Page 45, Line 19in the on-bill program administration cash fund at the end of a

• Page 45, Line 20fiscal year remains in the on-bill program administration cash fund and is not credited or transferred to the general fund.

• Page 45, Line 21SECTION 5.  In Colorado Revised Statutes, add 24-36-125 as follows:

• Page 46, Line 124-36-125.  On-bill financing tax credits - authorization to

• Page 46, Line 2issue - terms - use of tax credits - carry over - on-bill financing fund

• Page 46, Line 3- creation - definitions - repeal. (1)  Definitions.As used in this section, unless the context otherwise requires:

• Page 46, Line 4(a)  "Applicable forecast" means either the quarterly

• Page 46, Line 5December revenue forecast prepared by legislative council

• Page 46, Line 6staff or the quarterly December revenue forecast prepared by

• Page 46, Line 7the office of state planning and budgeting in the December

• Page 46, Line 8immediately preceding the applicable state fiscal year, as

• Page 46, Line 9determined by which immediately preceding March forecast the

• Page 46, Line 10joint budget committee of the general assembly used in the preparation of the state budget.

• Page 46, Line 11(b)  "Department" means the department of the treasury.

• Page 46, Line 12(c)  "Forecast" means the quarterly June revenue forecast

• Page 46, Line 13prepared by the office of state planning and budgeting in June 2025.

• Page 46, Line 14(d)  "Nonexempt revenue" means, for the applicable state

• Page 46, Line 15fiscal year, the revenue that is identified as nonexempt TABOR

• Page 46, Line 16revenues in the annual comprehensive financial report published by the office of the state controller.

• Page 46, Line 17(e)  "On-bill financing fund" means the on-bill financing fund created in subsection (7) of this section.

• Page 46, Line 18(f)  "On-bill financing tax credit" or "tax credit" means the tax credit authorized in subsection (2) of this section.

• Page 46, Line 19(g)  "Premium tax liability" means the liability imposed by

• Page 46, Line 20section 10-3-209 or 10-6-128 or, in the case of a repeal or

• Page 47, Line 1reduction by the state of the liability imposed by section

• Page 47, Line 210-3-209 or 10-6-128, any other premium tax liability imposed upon an insurance company by the state.

• Page 47, Line 3(h) (I)  "Qualified taxpayer" means an insurance company

• Page 47, Line 4authorized to do business in Colorado that has premium tax

• Page 47, Line 5liability owing to the state and that purchases a tax credit under this section.

• Page 47, Line 6(II)  "Qualified taxpayer" includes an insurance company that receives or assumes a tax credit transfer.

• Page 47, Line 7(i)  "Ref C cap" means the limit on state fiscal year

• Page 47, Line 8spending from section 20 of article X of the state constitution, as modified by Referendum C.

• Page 47, Line 9(j)  "TABOR" means section 20 of article X of the state constitution.

• Page 47, Line 10(k)  "Tax credit sale proceeds" or "sale proceeds" means

• Page 47, Line 11the money or other liquid asset acceptable to the state

• Page 47, Line 12treasurer that a qualified taxpayer pays to the department that is deposited in the on-bill financing fund.

• Page 47, Line 13(2)  On-bill financing tax credits. (a)  Subject to subsections

• Page 47, Line 14(2)(b) and (2)(c) of this section, a qualified taxpayer may

• Page 47, Line 15purchase on-bill financing tax credits from the department in

• Page 47, Line 16accordance with this section and may apply the tax credits

• Page 47, Line 17against the qualified taxpayer's premium tax liability in accordance with subsection (6) of this section.

• Page 47, Line 18(b)  If the forecast shows that the state's nonexempt

• Page 47, Line 19revenue for the 2025-26 state fiscal year is at least fifty million

• Page 47, Line 20dollars under the ref C cap:

• Page 48, Line 1(I)  The department is required to issue tax credit

• Page 48, Line 2certificates to qualified taxpayers with total sale proceeds of

• Page 48, Line 3at least twenty-five million dollars in state fiscal year 2025-26; and

• Page 48, Line 4(II)  The tax credit sale proceeds deposited into the on-bill

• Page 48, Line 5financing fund pursuant to subsection (5) of this section shall be

• Page 48, Line 6used to finance utilities' on-bill programs pursuant to part 6 of article 38.5 of this title 24.

• Page 48, Line 7(c)  If the applicable forecast shows that the state's

• Page 48, Line 8nonexempt revenue for the 2026-27 state fiscal year is at least fifty million dollars under the ref C cap:

• Page 48, Line 9(I)  The department is required to issue tax credit

• Page 48, Line 10certificates to qualified taxpayers with total sale proceeds of

• Page 48, Line 11at least twenty-five million dollars in state fiscal year 2026-27; and

• Page 48, Line 12(II)  The tax credit sale proceeds deposited into the on-bill

• Page 48, Line 13financing fund pursuant to subsection (5) of this section shall be

• Page 48, Line 14used to finance utilities' on-bill programs pursuant to part 6 of article 38.5 of this title 24.

• Page 48, Line 15(d)  The department may contract with an independent

• Page 48, Line 16third party to conduct or consult on a bidding process among qualified taxpayers to purchase the tax credits.

• Page 48, Line 17(e)  The department shall consult with insurance

• Page 48, Line 18companies in advance of issuing any tax credits in accordance with this section.

• Page 48, Line 19(f)  An insurance company authorized to do business in

• Page 48, Line 20Colorado seeking to purchase tax credits must apply to the department in the manner prescribed by the department.

• Page 49, Line 1(3)  Procedure for obtaining a tax credit certificate. (a)  Using

• Page 49, Line 2procedures adopted by the department or, if applicable, by an

• Page 49, Line 3independent third party, each insurance company that submits

• Page 49, Line 4an application for on-bill financing tax credits shall make a

• Page 49, Line 5timely and irrevocable offer, contingent only upon the

• Page 49, Line 6department's issuance to the insurance company of the tax

• Page 49, Line 7credit certificates, to make a specified purchase payment amount to the department on dates specified by the department.

• Page 49, Line 8(b)  The offer must include all of the following:

• Page 49, Line 9(I)  The requested amount of tax credits, which amount

• Page 49, Line 10must not be less than any minimum amount established in the

• Page 49, Line 11department's procedures or, if applicable, the independent third party's procedures;

• Page 49, Line 12(II)  The qualified taxpayer's proposed tax credit purchase amount for each tax credit dollar requested;

• Page 49, Line 13(III)  The minimum proposed tax credit purchase amount must be either:

• Page 49, Line 14(A)  The percentage of the requested dollar amount of tax

• Page 49, Line 15credits that the department or, if applicable, the independent

• Page 49, Line 16third party determines to be consistent with market conditions as of the offer date; or

• Page 49, Line 17(B)  If no amount is established by the department or the

• Page 49, Line 18independent third party pursuant to subsection (3)(b)(III)(A) of

• Page 49, Line 19this section, seventy-five percent of the requested dollar amount of tax credits; and

• Page 49, Line 20(IV)  Any other information that the department or, if applicable, the independent third party requires.

• Page 50, Line 1(c)  The department shall provide written notice to each

• Page 50, Line 2insurance company that submits an application indicating

• Page 50, Line 3whether the insurance company has been approved as a

• Page 50, Line 4purchaser of tax credits and, if so, the amount of tax credits

• Page 50, Line 5allocated and the date by which payment of the tax credit sale proceeds must be made.

• Page 50, Line 6(d)  On receipt of payment of the sale proceeds, the

• Page 50, Line 7department shall issue to each qualified taxpayer a tax credit

• Page 50, Line 8certificate. The tax credit certificate must state all of the following:

• Page 50, Line 9(I)  The total amount of premium tax credits that the qualified taxpayer may claim;

• Page 50, Line 10(II)  The amount that the qualified taxpayer has paid or

• Page 50, Line 11agreed to pay in return for the issuance of the tax credit certificates and the date of the payment;

• Page 50, Line 12(III)  The dates on which the tax credits will be available for use by the qualified taxpayer;

• Page 50, Line 13(IV)  Any penalties or other remedies for noncompliance;

• Page 50, Line 14(V)  The procedures to be used for transferring or

• Page 50, Line 15assuming the tax credits in accordance with subsection (6)(d) of this section;

• Page 50, Line 16(VI)  The serial number of the tax credit certificate; and

• Page 50, Line 17(VII)  Any other requirements deemed necessary by the department as a condition of issuing the tax credit certificate.

• Page 50, Line 18(4)  Defaulted tax credits - reallocation process - penalty.

• Page 50, Line 19(a)  The department shall not issue a tax credit certificate to a

• Page 51, Line 1qualified taxpayer that fails to provide the tax credit sale proceeds within the time the department specifies.

• Page 51, Line 2(b)  A qualified taxpayer that fails to provide the tax

• Page 51, Line 3credit sale proceeds within the time the department specifies is

• Page 51, Line 4subject to a penalty equal to ten percent of the amount of the

• Page 51, Line 5purchase price that remains unpaid. The penalty shall be paid to the department within thirty days after demand.

• Page 51, Line 6(c)  The department may offer to reallocate the defaulted

• Page 51, Line 7tax credits among other qualified taxpayers so that the result

• Page 51, Line 8after reallocation is the same as if the initial allocation had

• Page 51, Line 9been performed without considering the tax credit allocation to the defaulting qualified taxpayer.

• Page 51, Line 10(d)  If the reallocation of tax credits under subsection

• Page 51, Line 11(4)(c) of this section results in the payment by another qualified

• Page 51, Line 12taxpayer of the amount of tax credit sale proceeds not paid by

• Page 51, Line 13the defaulting qualified taxpayer, the department may waive the penalty imposed under subsection (4)(b) of this section.

• Page 51, Line 14(e)  A qualified taxpayer that fails to pay the tax credit

• Page 51, Line 15sale proceeds within the time specified may avoid the imposition

• Page 51, Line 16of the penalty by transferring the allocation of tax credits to

• Page 51, Line 17a new or existing qualified taxpayer within thirty days after the

• Page 51, Line 18due date of the defaulted installment. A transferee of an

• Page 51, Line 19allocation of tax credits of a defaulting qualified taxpayer

• Page 51, Line 20under this subsection (4) shall agree to pay tax credit sale proceeds within five days after the date of the transfer.

• Page 51, Line 21(5)  Deposit of tax credit sale proceeds into fund.The state

• Page 51, Line 22treasurer shall deposit the tax credit sale proceeds provided by

• Page 52, Line 1a qualifying taxpayer in return for a tax credit certificate into the on-bill financing fund.

• Page 52, Line 2(6)  Process for claiming tax credits - carry over authorized -

• Page 52, Line 3tax credits are nonrefundable - transfer and assumption of tax credit.

• Page 52, Line 4(a) (I)  For a tax credit certificate that the department issues in

• Page 52, Line 5state fiscal year 2025-26, the department, in consultation with

• Page 52, Line 6the office of state planning and budgeting, prior to the sale, may

• Page 52, Line 7determine the calendar years in which the qualified taxpayer may claim their credit against premium tax liability.

• Page 52, Line 8(II)  For a tax credit certificate that the department

• Page 52, Line 9issues in state fiscal year 2026-27, the department, in

• Page 52, Line 10consultation with the office of state planning and budgeting,

• Page 52, Line 11prior to the sale, may determine the calendar years in which the

• Page 52, Line 12qualified taxpayer may claim their credit against premium tax liability.

• Page 52, Line 13(b)  The total credit that a qualified taxpayer may apply

• Page 52, Line 14in any one year must not exceed the premium tax liability of the

• Page 52, Line 15qualified taxpayer for the taxable year. If the qualified

• Page 52, Line 16taxpayer cannot use the entire amount of the tax credit for the

• Page 52, Line 17taxable year in which the taxpayer is eligible for the tax credit,

• Page 52, Line 18the excess may be carried over to succeeding taxable years and

• Page 52, Line 19used as a credit against the premium tax liability of the

• Page 52, Line 20taxpayer for those taxable years; except that the credit shall

• Page 52, Line 21not be carried over to any taxable year that begins after

• Page 52, Line 22December 31, 2035. Any amount of the tax credit that is not timely claimed expires and is not refundable.

• Page 52, Line 23(c)  A qualified taxpayer claiming a tax credit under this section shall:

• Page 53, Line 1(I)  Submit the tax credit certificate issued with the qualified taxpayer's tax return; and

• Page 53, Line 2(II)  Not be required to pay any additional or retaliatory tax as a result of claiming the tax credit.

• Page 53, Line 3(d) (I)  If a qualified taxpayer holding an unclaimed tax

• Page 53, Line 4credit is part of a merger, acquisition, or line of business

• Page 53, Line 5divestiture transaction, the tax credit may be transferred to

• Page 53, Line 6and assumed by the resulting entity if the resulting entity is an

• Page 53, Line 7insurance company authorized to do business in Colorado and has premium tax liability.

• Page 53, Line 8(II)  The qualified taxpayer that originally purchased the

• Page 53, Line 9tax credit and the resulting entity shall notify the department

• Page 53, Line 10in writing of the transfer or assumption of the tax credit in

• Page 53, Line 11accordance with procedures adopted by the department. The

• Page 53, Line 12department shall provide a copy of the notice to the division of

• Page 53, Line 13insurance in the department of regulatory agencies and shall

• Page 53, Line 14maintain a record of the transfer or assumption of the tax

• Page 53, Line 15credit. The transfer or assumption of the tax credit does not

• Page 53, Line 16affect the time schedule for claiming the tax credit as provided in this section.

• Page 53, Line 17(7)  On-bill financing fund - creation.The on-bill financing

• Page 53, Line 18fund is created in the state treasury. The fund consists of tax

• Page 53, Line 19credit sale proceeds received from qualified taxpayers and

• Page 53, Line 20deposited into the fund pursuant to subsection (5) of this section.

• Page 53, Line 21The state treasurer shall credit all interest and income derived

• Page 53, Line 22from the deposit and investment of money in the on-bill finance fund to the fund.

• Page 54, Line 1(8)  Repeal.This section is repealed, effective July 1, 2038.

• Page 54, Line 2SECTION 6.  In Colorado Revised Statutes, 24-75-402, amend (5)(jjj) and (5)(kkk); and add (5)(lll) as follows:

• Page 54, Line 324-75-402.  Cash funds - limit on uncommitted reserves -

• Page 54, Line 4reduction in the amount of fees - exclusions - definitions.

• Page 54, Line 5(5)  Notwithstanding any provision of this section to the contrary, the

• Page 54, Line 6following cash funds are excluded from the limitations specified in this section:

• Page 54, Line 7(jjj)  The employee ownership cash fund created in section 39-22-542.5 (8); and

• Page 54, Line 8(kkk)  The community revitalization tax credit program cash fund created in section 39-22-569 (13); and

• Page 54, Line 9(lll)  The on-bill financing fund created in section 24-36-125 (7).

• Page 54, Line 10SECTION 7.  Appropriation. (1) For the 2025-26 state fiscal

• Page 54, Line 11year, $200,000 is appropriated to the office of the governor for use by the

• Page 54, Line 12Colorado energy office. This appropriation is from the on-bill program

• Page 54, Line 13administration cash fund created in section 24-38.5-123 (8)(a), C.R.S.,

• Page 54, Line 14and is based on an assumption that the office will require an additional

• Page 54, Line 150.8 FTE. To implement this act, the office may use this appropriation for on-bill program administration.

• Page 54, Line 16(2)  For the 2025-26 state fiscal year, $3,000,000 is appropriated

• Page 54, Line 17to the office of the governor for use by the Colorado energy office. This

• Page 54, Line 18appropriation is from the building decarbonization enterprise cash fund

• Page 54, Line 19created in section 24-38.5-123 (6)(a), C.R.S. To implement this act, the

• Page 54, Line 20office may use this appropriation for the building decarbonization enterprise.

• Page 55, Line 1SECTION 8.  Effective date. (1) Except as provided in subsections (2) and (3) of this section, this act takes effect upon passage.

• Page 55, Line 2(2)  Section 38-13-801 (2)(e), Colorado Revised Statutes, as

• Page 55, Line 3enacted in section 3 of this act, takes effect only if Senate Bill 25-290 does not become law.

• Page 55, Line 4(3)  Subsection (2) of section 7 of this act takes effect only if House Bill 25-1269 does not become law.

• Page 55, Line 5SECTION 9.  Safety clause. The general assembly finds,

• Page 55, Line 6determines, and declares that this act is necessary for the immediate

• Page 55, Line 7preservation of the public peace, health, or safety or for appropriations for

• Page 55, Line 8the support and maintenance of the departments of the state and state institutions.