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 Finance
Drafting number: LLS 25-0286
Fiscal Analyst:
Matt Bishop, 303-866-4796
matt.bishop@coleg.gov
Version: First Revised Note
Date: March 24, 2025
Fiscal note status: The revised fiscal note reflects the introduced bill, as amended by the House Energy
and Environment Committee.
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 Loan
State Expenditures
Appropriations. No appropriation is required, as the On-Bill Cash Fund and the On-Bill Program
Administration Cash Fund are continuously appropriated 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 -$2,916,250 -$2,922,500
State Expenditures $23,203,575 $23,168,592
Transferred Funds $100,000,000 $0
Change in TABOR Refunds $0 $0
Change in State FTE 4.4 FTE 5.4 FTE
1
Fund sources for these impacts are shown in the tables below. Page 2
March 24, 2025 HB 25-1268
Table 1A
State Revenue
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund $0 $0
On-Bill Program Administration Cash Fund $83,750 $167,500
Unclaimed Property Trust Fund -$3,000,000 -$3,090,000
Total Revenue -$2,916,250 -$2,922,500
Table 1B
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund $0 $0
Cash Funds $23,111,760 $23,058,286
Federal Funds $0 $0
Centrally Appropriated $91,815 $110,306
Total Expenditures $23,203,575 $23,168,592
Total FTE 4.4 FTE 5.4 FTE
Table 1C
State Loan
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
On-Bill Cash Fund. The loan must be repaid by July 1, 2045.
Summary of Legislation
The bill creates the On-Bill 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 24, 2025 HB 25-1268
Participating utilities must occasionally report on their on-bill programs to the Colorado Energy
Office, unless they already file a similar report to the Public Utilities Commission. A utility with
more than 500,000 customers must file an application with the commission to establish an
on-bill program by December 31, 2026, and they must either propose participating in the state
financing program or explain why it will not participate by December 31, 2027.
The bill loans $100 million from the Unclaimed Property Trust Fund to the new On-Bill Cash
Fund to support the program. CEO must repay the loan, without interest, by July 1, 2045.
House Bill 25-1269 creates the Building Decarbonization Enterprise in the Colorado Energy
Office. If that bill is enacted, this bill requires the enterprise to support the On-Bill Program. A
participating utility must pay an annual administration fee to the enterprise throughout the life
of the loan, at a level that depends on the amount it borrows from the On-Bill Program. The
enterprise provides technical assistance to the utility for on-bill program models, meeting
reporting obligations, and program administration.
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 $100 million available for financing energy efficiency and electrification measures
through utilities, before paying for CEO’s administrative costs. The fiscal note assumes that CEO
will issue $90 million in loans over four years. This is for illustrative purposes only; actual
program expenditures will depend on the number of participating utilities and demand from
utility customers.
State Revenue
The bill increases revenue from fees on utilities and decreases revenue from foregone interest
earnings in the Unclaimed Property Trust Fund.
Fee Impact on Participating Utilities
Colorado law requires legislative service agency review of measures which create or increase any
fee collected by a state agency. These fee amounts are estimates only, actual fees will be set
administratively by the Building Decarbonization Enterprise based on cash fund balance, Page 4
March 24, 2025 HB 25-1268
program costs, the fee limits in the bill, and the amount of money that a utility borrows from the
On-Bill Program. Table 2A identifies the fee impact of this bill on utilities, and Table 2B estimates
the total revenue generated based on the assumptions above.
Table 2A
Fee Impact on Participating Utilities
Borrowed Amount Annual Fee Amount
up to $10 million up to $50,000
$10 million to $20 million $50,000 to $75,000
$20 million to $40 million $75,000 to $100,000
$40 million to $60 million $100,000 to 200,000
$60 million to $80 million $200,000 to $300,000
more than $80 million $300,000 to $400,000
Table 2B
Estimated Fee Revenue
Fiscal Year Total Amount Loaned Fee Revenue
FY 2025-26 $22.5 million $83,750
FY 2026-27 $45.0 million $167,500
Interest on the Unclaimed Property Trust Fund
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 Loan
On January 1, 2026, the bill transfers $100 million from the Unclaimed Property Trust Fund to
the On-Bill 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 5
March 24, 2025 HB 25-1268
State Expenditures
Excluding loans issued through the new program, the bill increases state expenditures in the
Colorado Energy Office by about $700,000 per year beginning in FY 2025-26 and FY 2026-27
and increasing to about $900,000 by FY 2028-29. It is assumed that around $22.5 million in
loans will be issued annually over a four-year period. Costs in CEO, paid from the On-Bill Cash
Fund and the On-Bill Program Administration Cash Fund, are summarized in Table 3 and
discussed below. The bill also minimally affects workload in the Department of Regulatory
Agencies.
Table 3
State Expenditures
Colorado Energy Office
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Personal Services $426,208 $491,464
Operating Expenses $5,376 $6,656
Capital Outlay Costs $26,680 $6,670
Financing Loans $22,500,000 $22,500,000
Consultant $100,000 $0
Legal Services $53,496 $53,496
Centrally Appropriated Costs $91,815 $110,306
FTE – Personal Services 4.2 FTE 5.2 FTE
FTE – Legal Services 0.2 FTE 0.2 FTE
Total Costs $23,203,575 $23,168,592
Total FTE 4.4 FTE 5.4 FTE
Page 6
March 24, 2025 HB 25-1268
Colorado Energy Office
The office will have staff and legal services costs beginning in FY 2025-26 to implement the bill.
Staff
CEO requires 3.2 FTE staff beginning in FY 2025-26 to establish policies and procedures for the
new program, oversee loan applications and contracts, and conduct financial reviews. In
addition, the bill increases workload in the enterprise to offer technical assistance. This is
estimated at 1.0 FTE in FY 2025-26, ramping up to 4.0 FTE once funding is fully available in
future years. 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
participating utilities and utility customers.
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 tables above.
Page 7
March 24, 2025 HB 25-1268
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 in FY 2045-46.
Technical Note
The bill directs an amount of money from the Unclaimed Property Trust Fund to the
On-Bill Cash Fund equal to CEO’s costs to implement the program. The fiscal note assumes that
the CEO’s costs will be paid from the $100 million loan to the On-Bill Cash Fund and that this
additional transfer is redundant and not required. It is assumed that this provision will be
removed by an upcoming amendment. If this provision remains in the bill, the fiscal note will be
updated to show a larger transfer from the Unclaimed Property Trust Fund to reflect
administrative costs in addition to the current $100 million transfer.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
signature.
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.