HB 25-1268
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1268: UTILITY ON-BILL REPAYMENT PROGRAM FINANCING
Prime Sponsors:
Rep. Joseph; Froelich
Sen. Mullica; Winter F.
Published for: House Energy & Environment
Drafting number: LLS 25-0286
Fiscal Analyst:
Matt Bishop, 303-866-4796
matt.bishop@coleg.gov
Version: Initial Fiscal Note
Date: March 3, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. The bill creates a financing mechanism for energy efficiency and electrification measures using
money from the Unclaimed Property Trust Fund.
Types of impacts. The bill is projected to affect the following areas from FY 2025-26 to FY 2044-45:
State Revenue
State Expenditures
State Transfer
Appropriations. For FY 2025-26, the bill requires an appropriation of $100 million to the Colorado Energy
Office.
Table 1
State Fiscal Impacts
Type of Impact
1
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue -$3,000,000 -$3,090,000
State Expenditures $25,111,878 $24,991,868
Transferred Funds $100,000,000 $0
Change in TABOR Refunds $0 $0
Change in State FTE 3.4 FTE 3.4 FTE
1
Fund sources for these impacts are shown in the tables below. Page 2
March 3, 2025 HB 25-1268
Table 1A
State Revenue
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund $0 $0
Cash Funds -$3,000,000 -$3,090,000
Total Revenue -$3,000,000 -$3,090,000
Table 1B
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund $0 $0
Cash Funds $25,038,554 $24,918,544
Federal Funds $0 $0
Centrally Appropriated $73,324 $73,324
Total Expenditures $25,111,878 $24,991,868
Total FTE 3.4 FTE 3.4 FTE
Table 1C
State Transfers
1
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
Unclaimed Property Trust Fund -$100 million $0
State Utility On-Bill Repayment Program Cash Fund $100 million $0
Net Transfer $0 $0
1
This transfer is in the form of an interest-free loan from the Unclaimed Property Trust Fund to the
State Utility On-Bill Repayment Program Cash Fund. The loan must be repaid by July 1, 2045.
Summary of Legislation
The bill creates the State Utility On-Bill Repayment Program in the Colorado Energy Office
(CEO). The office can lend money to a participating utility, which can use the money to complete
energy efficiency or electrification measures at the request of an eligible utility customer. The
customer then repays the utility through a charge on their utility bill. The repayment obligation
is tied to the utility meter, so the beneficiary of the upgrade is responsible for the payments
even if the property is sold. Page 3
March 3, 2025 HB 25-1268
The bill loans $100 million from the Unclaimed Property Trust Fund to the new State Utility
On-Bill Repayment Program Cash Fund to support the program. CEO may use 2 percent of the
loan for its administrative costs, and it must repay the loan, without interest, by July 1, 2045.
Background
The Unclaimed Property Division of the State Treasury holds, in perpetuity or until claimed, lost
or forgotten assets of individuals and businesses in Colorado. The Unclaimed Property Trust
Fund consists of all moneys collected under the Unclaimed Property Act, and interest earned on
the account. The Unclaimed Property Trust Fund is TABOR-exempt; however, transfers out of the
fund are generally subject to TABOR.
Assumptions
The bill makes about $98 million available for financing energy efficiency and electrification
measures through utilities. The fiscal note assumes that CEO will issue the entire amount in
loans over four years. This is for illustrative purposes only; any restriction on the bill’s
appropriation may limit the office’s ability to respond to high demand.
State Revenue
The bill reduces interest revenue earned on the Unclaimed Property Trust Fund. The amount of
revenue depends on interest rates and other changes to the fund’s balance. Assuming a
3 percent annual interest rate, the amount of revenue lost is estimated at $3.0 million in
FY 2025-26 and $3.1 million in FY 2026-27. Over the 20-year lifespan of the loan, the total
revenue lost is an estimated $80.6 million. Interest earned on money in the Unclaimed Property
Trust Fund is not subject to TABOR.
CEO may earn revenue from interest as part of the financing arrangements it makes with
utilities. Because any such revenue depends on the terms of those agreements, it is not
estimated here. Because the source of funds used is not subject to TABOR, the fiscal note
assumes that any interest earned is likewise not subject TABOR.
State Transfers
On July 1, 2025, the bill transfers $100 million from the Unclaimed Property Trust Fund to the
State Utility On-Bill Repayment Program Cash Fund. This transfer is in the form of an
interest-free loan from the Unclaimed Property Trust Fund to the State Utility On-Bill Repayment
Program Cash Fund. The loan must be repaid by July 1, 2045. Page 4
March 3, 2025 HB 25-1268
State Expenditures
Excluding loans issues through the new program, the bill increases state expenditures in the
Colorado Energy Office by about $600,000 in FY 2025-26 and $500,000 in FY 2026-27 through
FY 2028-29. Preliminarily, it is assumed that around $24.5 million in loans will be issued annually
over a four-year period. Costs in CEO, paid from the State Utility On-Bill Repayment Program
Cash Fund, are summarized in Table 2 and discussed below. The bill also minimally affects
workload in the Department of Regulatory Agencies.
Table 2
State Expenditures
Colorado Energy Office
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Personal Services $360,952 $360,952
Operating Expenses $4,096 $4,096
Capital Outlay Costs $20,010 $0
Financing Loans $24,500,000 $24,500,000
Consultant $100,000 $0
Legal Services $53,496 $53,496
Centrally Appropriated Costs $73,324 $73,324
FTE – Personal Services 3.2 FTE 3.2 FTE
FTE – Legal Services 0.2 FTE 0.2 FTE
Total Costs $25,111,878 $24,991,868
Total FTE 3.4 FTE 3.4 FTE
Colorado Energy Office
The office will have staff and legal services costs beginning in FY 2025-26 to implement the bill.
Staff
CEO requires additional staff beginning in FY 2025-26 to establish policies and procedures for
the new program, oversee loan applications and contracts, and conduct financial reviews.
Standard operating and capital outlay costs are included.
Financing for Energy Efficiency or Electrification Measures
The fiscal note assumes CEO will make loans to utilities to finance energy efficiency or
electrification measures over multiple years. Actual expenditures will depend on demand from
utility customers up to about $98 million. Page 5
March 3, 2025 HB 25-1268
Consultant
CEO requires consulting services in FY 2025-26 only to develop guidelines for program design,
program eligibility, and monitoring and reporting practices.
Legal Services
CEO requires 400 hours of legal services to support policy development and contracting. Legal
services are provided by the Department of Law at a rate of $133.74 per hour.
Department of Regulatory Agencies
Requiring participating utilities to include an application with the Public Utilities Commission
increases workload to conduct a new regulatory proceeding, likely in FY 2027-28. This can be
accomplished within existing appropriations.
Centrally Appropriated Costs
Pursuant to a Joint Budget Committee policy, certain costs associated with this bill are
addressed through the annual budget process and centrally appropriated in the Long Bill or
supplemental appropriations bills, rather than in this bill. These costs, which may include
employee insurance, supplemental employee retirement payments, leased space, and indirect
cost assessments, are shown in the expenditure table(s) above.
TABOR Refunds
Funds in the Unclaimed Property Trust Fund are exempt from TABOR, but may become subject
to TABOR when transferred to other funds to be used for governmental purposes. If CEO is
unable to repay the loan in full, any unpaid balance will constitute a transfer to a state cash fund
and that amount will count against the state’s TABOR limit.
Technical Note
The bill limits CEO’s administrative costs to 2 percent of the amount loaned from the Unclaimed
Property Trust Fund, or $2 million. Based on the costs identified in the fiscal note, CEO will reach
this limit in about four years. If the limit is reached, either the limit must be raised or another
source of funds will be required.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
signature. Page 6
March 3, 2025 HB 25-1268
State Appropriations
For FY 2025-26, the bill requires an appropriation of $100,000,000 from the State Utility On-Bill
Repayment Program Cash Fund to the Colorado Energy Office, and 3.2 FTE. Of this, $53,496 is
reappropriated to the Department of Law, with an additional 0.2 FTE. It is assumed roll-forward
spending authority is required for this amount for at least five years or until all loans have been
issued.
State and Local Government Contacts
Colorado Energy Office
Law
Personnel
Regulatory Agencies
Treasury
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.